Greggs ‘on-track' to double sales by 2026 as more UK consumers prioritise value

Greggs opened 145 net new stores last year to reach 2,473 sites | Photo credit: Greggs

Value-focused Greggs is ‘on-track’ to double its sales by 2026 following strong outlet growth, increased evening trade and higher digital transactions across its UK estate last year. 
 

The food-to-go and coffee chain achieved 19.6% year-on-year sales growth in 2023 to reach £1.8bn ($2.3bn) with like-for-like sales increasing 14%. Greggs also reported that pre-tax profits, excluding exceptional income, rose 13% to £167.7m ($212.7m) in the 12 months ending 31 December 2023. 

Like-for-like sales across its company-operated stores increased 8.2% in the first nine weeks of 2024, Greggs added in a trading update. 

“We are very much on-track to deliver our bold five-year growth plan to double sales by 2026 and to have significantly more than 3,000 shops in the UK over the longer-term,” said CEO Roisin Currie. 

Greggs opened 145 net new stores last year to reach 2,473 sites. The value-focused operator expects to open 160 net new stores in 2024 and increase the number of sites across its estate offering evening trade and delivery.  

More than 1,200 Greggs stores currently open until 7pm or later, with the operator citing evening trade as its fastest growing daypart – contributing 8.7% of sales from company-operated stores in the last six months of 2023. 
 

Additionally, 1,440 Greggs sites now offer delivery from either Just Eat or Uber Eats, with total delivery sales increasing 23.6% year-on-year in 2023. The Greggs App was used in 12.5% of company-operated store transactions last year, compared to 6.2% in 2022. 
 

“I am so proud of how our teams have risen to the challenge of serving more customers through more channels. Our teams stepped up to make sure that we kept pace with the increased customer demand as we delivered on our strategic growth plan,” Currie added. 
 

World Coffee Portal’s Project Café UK 2024 report identifies increasing price consciousness within the branded UK coffee shop market. The research found that consumer satisfaction with value-for-money in branded coffee shops fell 9% last year, mirroring an average 9% rise in beverage prices.

The research also found that industry leaders surveyed view price consciousness, economic uncertainty and value-focused consumption among the most important consumer trends currently affecting the market.