Greggs set to keep prices on hold as it aims to open up to another 160 shops
The high street bakery chain posted a 9.4% rise in like-for-like sales across its own-managed shops in the fourth quarter.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.High street bakery chain Greggs said it does not plan to hike prices over the year ahead, but is unlikely to be able to offer price cuts as rising wages keep costs under pressure.
Roisin Currie, chief executive of Greggs, told the PA news agency she has “no plans currently” to increase prices across it ranges as it expects a more stable cost base over the year ahead.
However, she said it would be “a long time before we see deflation” that would allow the group to start reducing prices, with retailers among those facing higher wage bills due to increases in the national living wage.
But she said rising wages was also “good news as it puts more money into consumers pockets”.
The comments came as Greggs revealed plans to open up to another 160 stores in the year ahead and cheered a strong end to 2023.
The group opened a record 220 new shops over 2023, with 33 closures and 42 relocations leaving it with 145 new sites on a net basis and taking its total estate to 2,473.
Greggs is set to open between 140 and 160 new shops on a net basis in 2024 as it looks to give customers more convenient access to its stores.
It will continue to look at expanding across retail parks, travel sites and roadside locations, as well as industrial estates.
“Where there’s any location where you can’t currently access a Greggs easily, we want to try and get into that location,” Ms Currie said.
It also plans to continue rolling out evening opening hours on a targeted basis across stores, with extended hours currently available in around 1,200 shops.
The firm posted a 9.4% rise in like-for-like sales across its own-managed shops in the fourth quarter, with comparable store growth of 13.7% overall in 2023, helping send shares up nearly 10% in Wednesday early trading.
The final quarter performance marks a slowdown on the 14.2% growth seen in the previous three months, as Greggs said there was less contribution from price inflation.
It said it continued to see strong demand for vegan options, having recently brought back the vegan steak bake, as well as Christmas ranges, including its festive bake, chocolate orange muffin and Christmas lunch baguette.