Greggs has announced that it will not introduce any more price increases this year as it continues with ambitious plans to open up to 110 new stores. The bakery chain, headquartered in Newcastle, cited easing inflation as a key factor that places the business in a favourable position for growth.
The company reported strong performance from the new shops opened so far this year, attributing success to a carefully selected strategy focusing on high-quality locations. Chief Executive Roisin Currie said Greggs now anticipates cost inflation to ease to around 2%, down from a previous 3%, eliminating the need for further price hikes in the near term.
“Our latest results demonstrate that Greggs continues to outperform the market,” Ms Currie said. “We still see significant opportunity to expand our presence, especially in travel hubs, industrial areas, retail parks and alongside motorways.”
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She added that the company remains committed to increasing accessibility by opening shops in more catchment areas and providing convenient methods for customers to enjoy their favourite products. Additionally, Greggs is dedicated to broadening and innovating its menu to keep pace with evolving customer tastes and trends.
In response to more frequent hot weather spells in the UK, Greggs introduced iced drinks to its menu last year and has followed up with an enhanced selection of salads this year. Ms Currie remarked, “We have become more resilient to the changing climate patterns as hot weather has become more commonplace at certain times.”
Industry expert Julie Palmer, managing partner at BTG – a financial and real estate advisory group – commented on Greggs’ pricing strategy. “Given that any price increases risk diminishing customer demand, Greggs must carefully balance pricing and cost control to maintain and grow its market share as a leading food-to-go provider.”
Currently, Greggs operates 2,773 outlets, having added 34 net new sites recently. While the bakery plans to open between 100 and 110 new stores this year – slightly below an earlier target of 120 – the company envisions its estate eventually expanding beyond 3,500 locations nationwide.