Five years into its strategy, there is plenty for Greggs (LON:GRG) to do. Its shops, which all now look and work like value food-on-the-go outlets, must spread out from their high street origins. Its manufacturing bases are being transformed, at substantial projected returns. But most importantly, its wide-ranging food offer will take time to be known by non-customers, we believe. Their gradual buy-in should provide a tailwind to Greggs’ mission to gain share.
Food-on-the-go strategy goes on
Where next for Greggs’ strategy, now that the entire estate has been repurposed on the food-on-the-go operating model? The full answer to this references the fourfold strategy as a whole: not only the shops, but also the food offer, the supply chain project, and the enabling of service through support systems. It is through these enhancements that the brand is aiming to become the customer’s favourite for food-on-the-go, with the share gains that implies. The estate is still developing with non-retail locations such as transport hubs; the food offer is pushing boundaries with, for instance hot food, creating the possibility of evening opening, and the supply chain project is entering its heaviest investment phase, with substantial returns to come according to the company’s projections.
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