For Greggs 2015 financial year as a whole (52 weeks ended 2 January 2016) total sales
grew by 5.2% on a comparable 52 week basis and company-managed shop like-for-like sales grew by 4.7%.
As expected, like-for-like sales growth slowed to 2.3% in the fourth quarter as we came up against stronger comparatives and the impact of weaker footfall in some shopping locations. Sales over the Christmas period were in line with the overall trend for the fourth quarter.
Sales growth has been particularly strong in sandwiches and drinks, including the
healthier options ‘Balanced Choice’ range including new salads and ‘no added sugar’
drinks. The new hot food menu, with an improved hot sandwich range and fresh soups, is also selling well as customers become increasingly aware of our new food-on-the-go options.
Seasonal favourites such as our award-winning mince pies and Festive Bake made a strong contribution to sales over the Christmas and New Year period. Customer demand for breakfast-on-the-go continues to make this the fastest growing part of the day with sales of coffee continuing to grow strongly. The firm plans to add ‘flat white’ and an improved ‘mocha’ to our coffee menu early in the New Year.
During the year, Greggs opened 122 new shops (including 61 franchised units) and
closed 74, growing the estate to 1,698 shops trading as at 2 January 2016. It now
has 105 franchised shops operated by partners in travel and other convenience
locations.
In 2015, the group completed 222 shop refurbishments including the conversion of 20 of
the larger bakery cafes to the 'bakery food-on-the-go' format. This transformational
programme continues to go well and the firm will invest at a similar rate in the year
ahead.
In the year ahead, Greggs will continue with the implementation of its strategic plan to
transform the business so that it can be ever more competitive in the food-on-the-go
market, whilst also driving efficiencies and adding capacity for further sustainable
growth.