Great Britain
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Greggs sales surge in cost of living crisis as consumers opt for cheap eats

Sales at Greggs have surged in the past few months as Britain’s consumers opt for cheaper meals during the cost of living crisis.

The bakery chain said its sales have shot up by 15 per cent over the past three months as food prices and energy bills soar.

Sales slowed during August compared to last year as people traded pandemic staycations for trips abroad, but that momentum returned in September.

Greggs said the rise in sales comes “in an environment where cost pressures are significant and our outstanding value-for-money positioning is ever-more important to consumers”.

The sausage roll seller also noted that its sales growth dropped by about 1 per cent due to shop closures for the Queen’s funeral on 19 September.

The high street chain said its total sales increased by 14.6 per cent over the 13 weeks to 1 October year-on-year, with like-for-like sales in company-managed shops up 9.7 per cent.

Cost inflation for the year is expected to remain at its previous estimations of 9 per cent on last year as the retailer faces surging costs of raw materials, production, and energy.

In March, Greggs said it did not expect material profit growth in 2022 due to the rising cost of raw materials, energy and staff.

This week, the company introduced a further round of price rises, including for the much-loved sausage rolls amid rising costs.

“We have put a small number of rises across products as of yesterday, we’ve worked hard to mitigate that,” chief executive Roisin Currie told Reuters.

The sausage roll cost £1.05 at the start of the year, but increased to £1.10 in May and is now £1.15.

But Greggs assured shareholders that it has fixed prices for a good level of its food and energy costs for the next three months.

The chain has opened 90 new stores this year to date and is set to have opened around 150 new stores by the end of the year, including two “drive through” shops in Amesbury and Durham.