The UK food-to-go and coffee chain says its value-focused offer has become increasingly relevant for UK consumers during the cost-of-living crisis and forecasts strong sales momentum in 2023 despite ongoing market challenges
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Greggs opened 147 net new stores across the UK over the last 12 months to reach 2,328 locations | Photo credit: Greggs
Greggs has credited its value proposition during the cost-of-living crisis and diverse portfolio of store locations and formats for driving its 23% sales growth in 2022.
Reporting on the 12 months ended 31 December 2022, the UK food-to-go and coffee chain achieved revenues of £1.5bn ($1.8bn).
Like-for-like sales in the company’s fourth quarter grew 18%, which Greggs attributed to its seasonal menu and more favourable trading conditions than during the same period in 2021, when the omicron variant of Covid-19 restricted in-store trade.
Greggs also said its diverse portfolio of stores, which includes petrol station and motorway locations, as well as city centre and retail parks, helped to ameliorate disruption caused by train strikes and adverse weather in the UK across the final months of the year.
The food-to-go and coffee chain opened 147 net new stores across the UK over the last 12 months to reach 2,328 locations. The company plans to open a further 150 outlets in 2023.
Of its current store portfolio, 441 are franchised and 500 now operate extended hours.
The value-focused company said early-evening is now its fastest growing time of the day for sales, with an increase in consumers using delivery platforms driving its popularity.
Greggs maintains that its value offering will offset many cost pressures currently facing consumers and said it remains excited by the significant growth opportunities ahead.
However, rising inflation continues to increase the cost of energy and ingredients. Greggs said costs were approximately 9% higher on average in 2022 compared with the previous year.
“We enter 2023 in a strong financial position that will enable us to invest in shops and supply chain capacity to bring Greggs to even more customers across the UK. While market conditions in 2023 will remain challenging, our value-for-money offer of freshly-prepared food and drink is highly relevant as consumers look to manage their budgets without compromising on quality and taste," said Roisin Currie, CEO, Greggs.
Founded as a bakery in 1939, Greggs opened its first store in Newcastle upon Tyne, UK, in 1951.
Alongside an expanding store portfolio, Greggs also commenced a café and clothing line collaboration with British fashion retailer Primark in February 2022. The partnership saw Greggs open its largest UK outlet within Primark’s flagship store in Birmingham, UK.