Greggs’ tasty 2023 sales

HOW people shop says a great deal about inflation and Greggs sales reflect the present situation.

UK bakery chain Greggs declared that inflationary pressures were now diminishing as it posted 2023 like-for-like sales that were 13.7 per cent up on the previous year. Total sales rose by 19.6 per cent to £1.8 billion (€2.09 billion).

In line with plans to home in on retail parks and travel hubs, the baker opened 220 new shops last year and closed 75, of which 42 were relocations.  It proposes to open a further 160 stores throughout 2024.

Inflation has boosted retailers’ sales growth over the past two years and Greggs’ own  fourth quarter growth slowed down with like-for-like sales up 9.4 per cent owing to a “reduced contribution from price inflation.”

The slowdown in rising prices was likely to continue, Greggs’ fourth quarter report suggested, with no current plans for 2024 increases.

“As expected, inflationary pressures are reducing and with good forward cover on food, packaging and energy, we anticipate a more stable cost base in the coming year,” Greggs’ chief executive Roisin Currie said.

“Wage inflation remains, although higher rates of pay across the economy will also provide support to consumer incomes.”