Greggs' (LON:GRG) strong sales quarter reflects its secure place in the value sector of an increasingly edgy retail market. But it is also driven by a range of factors including menu development, estate upgrade, store ordering, and extensions to the range of dayparts and locations. With margins carefully controlled and wastage from the new ordering system starting to reduce, we expect those factors to continue to propel the company to outperformance within a constrained wider economy.
Q3 trading: Sales strengthen…
Greggs has traded strongly in Q3, with total sales up 8.6% and like-for-like managed store sales up 5.0%. Both were significantly ahead of H1 growth of 7.3% and 3.4%, respectively. The retail climate supports Greggs’ value offer, but self-help measures such as the forecasting and replenishment system are also contributing.
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