Greggs sales rocket, eyes expansion of shop openings in 2023
Like-for-like sales in company-managed shops were up 17.8% year-on-year, and the company ended the year with a robust cash position of £191.6 million.
On the estate front, a record 186 new shop openings in 2022 and 39 closures grew the estate to 2,328 shops as at 31 December 2022. The company continued to expand it’s presence in retail parks, in Central London, as well as at key transport hubs, with shops opening in Leicester Square, Liverpool Street Station and Birmingham and Liverpool airports. In 2023, the British bakery chain will target 150 net openings, illustrating a clear opportunity for significantly more than 3,000 UK shops in time.
Chief executive Roisin Currie commented that cost inflation will continue to be a challenge in the year ahead, but said "we are confident that our outstanding value proposition will remain compelling as customers look to make their money go further. As such, we remain confident in the prospects for the business in 2023.”
"2022 has been a year of strong progress for Greggs, the result of committed efforts to deliver our strategic growth plan. The significant opportunities on which the plan is based will remain centre stage in the year ahead as we make Greggs more accessible to even more customers.”
“Although consumer incomes remain under pressure, Greggs continues to offer exceptional value to people looking for great tasting, high-quality food and drink on-the-go.”
View from Vox
Greggs has continued to deliver strong growth throughout 2022, with exceptional progress made across sales and shop openings.
Looking to the year ahead, while the cost of living squeeze continues to be felt by customers, Greggs can offer more affordable lunch options, and as a result can entice new customers to switch from competing establishments. Greggs has the opportunity to gain further market share in 2023, already demonstrated by their 2022 sales data, when tightened budgets saw customers flocking to Greggs for cheaper on-the-go alternatives.
However, there is also the opposing view that if costs continue to rise throughout the year, then customers could begin to avoid buying on-the-go food entirely, even if Greggs does present a cheaper option. However, with the Bank of England recently forecasting a much shallower recession than previously feared, and CPI inflation rates easing in January of this year, Greggs can be confident that consumers will still prioritise better-value food and drink options as inflation rates remain high, while the more positive recession forecasts mean that Greggs won’t fear some consumers steering clear altogether in 2023.
As the year unfolds, Greggs will still have to navigate pay awards and rising energy costs, but maintains that its outstanding value proposition will mean that the company remains confident in business prospects for 2023.
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