The UK-based food-to-go and coffee chain says it sees the potential to operate 3,000 UK stores ‘over time’ as it sets a target to open 150 net new stores every year from 2022
Greggs is planning to open 150 net new stores every year from 2022 | Photo credit: Greggs
Greggs is eyeing the potential for 3,000 stores over the next five-and-half years after reporting strong 2021 results and a robust start to 2022 trading.
Confirming its
full-year results forecast for 2021 first stated in January 2022, Greggs said sales had surpassed pre-pandemic levels, up 5.3% to £1.23bn ($1.6bn) on 2019.
Pre-tax profits for the year were £145.6m compared to a $13.7m loss in 2020 when stores were temporarily closed in the second quarter due to the pandemic.
As of 1 January 2022, Greggs said it operated 2,181 stores across the UK, having opened net 103 stores and permanently closing 28 locations. Based on the company’s strong performance, the company said it would target 150 net new stores per year from 2022, with the potential for ‘at least’ 3,000 UK outlets – a target it could reach by the end of 2027 if the growth is realised.
Greggs is eyeing the potential for 3,000 stores over the next five-and-half years after reporting strong 2021 results and a robust start to 2022 trading.
Confirming its
full-year results forecast for 2021 first stated in January 2022, Greggs said sales had surpassed pre-pandemic levels, up 5.3% to £1.23bn ($1.6bn) on 2019. Pre-tax profits for the year were £145.6m compared to a $13.7m loss in 2020 when stores were temporarily closed in the second quarter due to the pandemic.
As of 1 January 2022, Greggs said it operated 2,181 stores across the UK, having opened net 103 stores and permanently closing 28 locations. Based on the company’s strong performance, the company said it would target 150 net new stores per year from 2022, with the potential for ‘at least’ 3,000 UK outlets – a target it could reach by the end of 2027 if the growth is realised.
Greggs is also investing in its existing portfolio, with more than 200 store refurbishments planned in 2022 and the extension of late opening to 500 stores in the year ahead.
The chain also reported progress on its digital and delivery businesses, with its delivery reach extended from 1,000 to 1,300 stores to complement evening availability. Meanwhile, Greggs said it had achieved ‘further recruitment and engagement’ with Greggs App customers.
Greggs said it would also be investing in boosting its supply chain capacity to facilitate its growth ambitions. It has also pledged to reduce food waste across stores and manufacturing sites while growing its range of healthier food items.
“We have started 2022 well, helped by the easing of restrictions. Cost pressures are currently more significant than our initial expectations and, as ever, we will work to mitigate the impact of this on customers, however given this dynamic we do not currently expect material profit progression in the year ahead,” said Roger Whiteside OBE, Chief Executive, Greggs.
“Despite these near-term pressures, we continue to believe that the opportunities for Greggs have never been more exciting. Our investment over recent years has left the business well-placed to move quickly as the economy recovers and we drive our ambitious plans to become a larger, multi-channel business,” Whiteside added.
If realised, Greggs’ ambitious plans to grow its footprint would make it the UK’s largest branded coffee chain based on the
current market size. It is already the largest brand in the UK’s food-focused coffee segment.
Costa Coffee is currently the UK’s largest branded coffee chain overall, operating nearly 2,800 stores in 2021 after opening net 110 outlets over the year.