Well-loved bakery Greggs’ profits have reportedly dropped 19% at the end of 2013.
The high-street bakery recently announced a decrease in profits by almost 20% for 2013, overall the total sales increased by 3.8% with a 0.8% decrease at stores which had been in operation for more than 12 months – a method which is matched by other businesses to produce an industry standard. While total sales were up it was a difficult year for Greggs and looking to the future it may be on the up.
Total Greggs profits fell to £41.3 million as of December 28 2013. Which is around the change that was expected by the business. Northerners in particular love a good sausage roll and pasties as there is a huge concentration of Greggs stores in the North East, seemingly only outdone by London – however, the bad weather in 2013 is being attributed to the reduced profits as more and more customers avoided heading out so didn’t pop in for a bite to eat on their shopping trip.
Roger Whiteside, Greggs’ Chief Executive, said: “2013 was a year of transition for Greggs as our new strategic focus centred on the growing food-on-the-go market.”
Greggs profits are expected to improve in 2o14 due to an encouraging start to 2014, with an increase of 2.1% in the first eight weeks of 2014. Shares in the industry giant are also up from even just six months ago, increasing by 30%. While Greggs profits may not be directly affected by the weather they’re certainly linked with stores offering a more cafe-type experience – stores across the country have been upgraded with seating areas; charging slightly more to allow customers to sit inside away from the elements.
This plan has since been scrapped by Greggs, with a heavier focus on ‘food-on-the-go’ and a more traditional Greggs stype. Cafe stores and supplying third party businesses with Greggs products are no longer on the cards for Greggs so more attention can be given to promoting the takeaway elements of the bakery.