Greggs has revealed that the level of sustained sales recovery is “stronger than anticipated” since its previous trading update, adding that if it were to continue, its performance would have a positive impact on its full-year results.
In recent weeks, while the impact of pent-up demand for retail has reduced, like-for-like sales growth in company-managed shops has remained in “positive territory” ranging between 1% and 3% when measured against the same period in 2019.
This follows the group’s last reported trading performance on 10 May, at which point it had already seen a strong recovery in sales levels following the easing of restrictions on non-essential retail across the UK.
At the time, it reported that its two-year like-for-like (LFL) sales closed the gap to just a 3.9% decline for the eight weeks to 8 May. This followed a 13.5% fall in LFL sales for the 18 weeks to 8 May when compared to FY19, as the group also showed signs of recovery following the 12 April reopening of non-essential retail.
Greggs has issued its latest positive trading update despite expecting to see increased competition as cafes and restaurants were allowed to compete more effectively with its largely take-out offer.
The group previously said: “Sales have recovered well in recent weeks as out-of-home activity levels have increased, albeit in the absence of competition from indoor seated catering operators.
“If restrictions continue to ease in line with current plans then we now expect our overall sales performance for the year to be stronger than we had previously anticipated.”
It added that “costs have been well-controlled” and the company’s current rate of cost inflation is “in line with our plans for the year”.
Greggs will provide a new update when it presents its interim results on 3 August 2021.