Greggs sees drop in sales & gives profit warning
The bakery group Greggs has seen a decline in sales so far this year
By Nicole Hamer |11:28 29 April 2013
High Street bakery firm Greggs, who are known for selling pastries among other things, has seen a drop in sales so far this 2013. Now, the group are giving a profit warning.
Greggs has issued a warning over profits being less than originally expected following the fact that the firm has seen a decrease in sales.
This relates to like-for-like sales – not including new stores – which have dropped by 4.4per cent. This is for the first part of the year up to the close of last week it has emerged on Monday, 29th April, 2013.
One reason being attributed to the decline in sales is the weather. Greggs like other UK businesses has had to endure cooler temperatures recently and the firm has said bad weather has not helped sales.
Greggs also said that consumers may be feeling the pressure at the moment.
Sales overall raised by 3per cent for the start of 2013. The group has opened a number of new stores, which may have helped increase overall sales.
Greggs said in a statement: “Despite good cost control overall profits have been affected in the first quarter of the year and are behind our plan.”
Adding: “Although we are only four months into the year, based on current own shop like-for-like performance we believe that profits for the year are likely to be slightly below the lower end of the range of market expectations.”
Greggs, who are considered to be the largest bakery chain in Britain, has thousands of shops, with their first store opening in 1952. Aside from pastries, Greggs is well-known for sausage rolls and sandwiches as well as selling other products.