Greggs to open up to 160 new stores in 2024 as sales see festive boost

Greggs is set to open up to 160 new sites this year after a record number of openings in 2023, which helped revenues soar by almost a fifth to £1.8billion. 

The group, which opened 220 new shops and closed 75 in 2023, saw like-for-like sales jump 9.4 per cent in the final quarter to 30 December, boosted by demand for its seasonal products such as the Festive Bake. 

This brought full-year sales growth to 19.6 per cent and its total store count to 2,473 locations, the high street baker said on Wednesday.

Greggs grew its business ambitiously last year, surpassing plans to open 150 new UK stores and trial 24-hour drive-thru locations. 

It also benefited from extended trading hours and rolling out a delivery service to 710 shops via Uber Eats, alongside its existing service offered with Just Eat.

It is even considering expanding beyond the UK, with its chief executive Roisin Currie suggesting the group could trial overseas operations 15 years after a failed foray into Belgian markets. 

Greggs told investors on Wednesday it would use its £195million cash pile ‘to invest further in growing both our shop estate and supply chain capacity’, with expectations of ‘between 140 and 160 net new shops in 2024’.

Supply chain investment sees a fourth production line commissioned at Balliol Park in Newcastle upon Tyne to ‘provide significant additional manufacturing capacity for our iconic savoury rolls and bakes’, it added.

Greggs is also expanding the logistics capacity of its Birmingham and Amesbury distribution centres.

Chief executive Currie said: ‘We enter 2024 with plans to continue to invest in our shops and expand supply chain capacity to deliver the growth strategy, supported by our strong balance sheet. 

‘Our value-for-money offer, and the quality of our freshly prepared food and drink continue to evolve and position us well for further progress in the year ahead.’

Greggs also cheered easing inflation pressures and anticipates ‘a more stable cost base in the coming year’.

While it noted wage inflation remains high, it assured investors this would also ‘provide support to customer incomes’.  

Greggs shares were up 9.9 per cent to 2,718p in early trading.

Matt Britzman, equity analyst at Hargreaves Lansdown, said: ‘One of Greggs’ key strengths is offering a lower value treat and keeping that proposition intact is key, especially when consumer incomes are stretched. 

‘The most important thing is to see volumes trend higher, and that remains the case.

‘The job’s not done. Expect to see more progress over 2024 as investment continues into the digital offering, delivery partnerships and expanding the store estate.’

Greggs is one of many high street firms reporting Christmas trading figures this week, with Sainsbury’s also reporting on Wednesday, and M&S and Tesco reporting on Thursday. 

Yesterday B&M revealed plans to dole out a 20p per share dividend after revenue grews by 5 per cent to £1.65billion in the 13 weeks ending 23 December. 

Last week Next published strong festive figures, while JD Sports was forced to trim its profit expectations in an unexpected turn.