Expanding Presence and Managing Costs

  • Greggs sales increased by 14.6% for the 13 weeks to October 1st, 2022
  • Company-managed shop like-for-like sales up by 9.7% in Q3
  • Sales growth slowed due to staycation effect but picked up in September
  • Greggs closed shops for Queen’s funeral affecting LFL sales growth
  • 90 net new shops opened year-to-date, totaling 2,271 sites trading at October 1st
  • Aiming for around 150 net shop openings in 2022, 40% with franchise partners
  • No change in cost inflation outlook for the year
  • Significant energy cover secured for Q1 of 2023 at lower costs than price cap
  • Greggs continues to trade well amidst cost pressures

Greggs, the popular bakery chain, has reported a 14.6% increase in total sales for the 13 weeks to October 1st, 2022, with company-managed shop like-for-like sales up by 9.7% in Q3. Although sales growth slowed due to the staycation effect, it picked up pace in September. The closure of shops during the Queen’s funeral impacted LFL sales growth by approximately one percentage point. In the year-to-date, Greggs has opened 90 net new shops, totaling 2,271 sites trading as of October 1st. The company plans to achieve around 150 net shop openings in 2022, with about 40% through franchise partners. Despite cost pressures, the group maintains its cost inflation outlook and has secured significant energy cover for Q1 of 2023 at lower costs than the announced price cap. Greggs continues to trade well amidst these challenges, with expectations for the full-year outcome in line with previous predictions.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Greggs’ sales performance, store openings, and cost outlook without any digressions or personal perspective presented as a universally accepted truth. It also includes relevant data and statistics to support its claims.
Noise Level: 3
Noise Justification: The article provides relevant information about Greggs’ sales performance and expansion plans, but lacks deeper analysis or exploration of broader trends or consequences. It also does not offer significant actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: Greggs’ sales and stock prices
Financial Rating Justification: The article discusses Greggs’ financial performance, including its total sales, like-for-like sales growth, shop openings, cost inflation outlook, and energy cover, which can impact the company’s stock prices and overall financial situation.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk