Food-to-go chain Greggs stated today that it has seen a strong recovery in sales following the easing of lockdown restrictions.
In a trading statement, the company revealed that its sales in the 10 weeks to 13 March fell by 23.3% compared to the same period two years ago. However, the decline eased to just 3.9% in the eight weeks to 8 May.
Total sales for the full 18-week period were £352m compared to £280m a year ago and £373m in 2019.
Greggs said: “Sales have recovered well in recent weeks as out-of-home activity levels have increased, albeit in the absence of competition from indoor seated catering operators. If restrictions continue to ease in line with current plans, then we now expect our overall sales performance for the year to be stronger than we had previously anticipated. Costs have been well-controlled and the rate of cost inflation we are experiencing is in line with our plans for the year.”
As a result, the company expects its full-year profits to be materially higher than its previous expectation and could be around 2019 levels in the absence of further restrictions.
In the first 18 weeks of 2021, Greggs opened 34 new shops, including 13 with franchise partners. It is currently focusing its openings on locations such as retail parks and petrol filling stations due to their stronger performance during the pandemic. As of 8 May, the group had 2,101 shops.
