Greggs warns of uncertain year

By James Hall 600AM GMT nineteen March 2010

Greggs

The sequence that serves a million business a day from the 1,419 shops pronounced that the stirring election, concerns about pursuit security and probable taxation rises have for an "uncertain outlook" for consumer spending in the stream year.

"In this context we have deliberate it essential to plan for like-for-like sales expansion to be marginally certain this year and to conduct the costs so that they sojourn unchanging with this severe trade environment," pronounced Derek Netherton, Greggs" chairman.

Shares4Schools Students goal to set up on last year?s opening Greggs and Dominos Pizza augmenting as cash-strapped consumers contend no to Thorntons Greggs cuts gain forecasts as costs punch Greggs cuts distinction foresee on soppy summer, food costs Greggs sales climb augmenting by 99p sandwich

Despite sounding a note of caution, Greggs still plans to open around one store a week over the subsequent twelve months.

The headlines came as Greggs denounced the full-year increase for the twelve months to Jan 2. Pre-tax distinction augmenting 8pc to �48.8m, whilst like-for-like sales over the year rose by 0.8pc. Total sales augmenting by 4.8pc to �658m.

Over the year and underneath the superintendence of new arch senior manager Ken McMeikan, the association has undergone wide-reaching changes. It reorganised the eleven bakery groups in to 7 new regions and centralised supply and IT operations. Greggs additionally "harmonised" 80pc of the product range opposite the stores. Previously, opposite stores sole opposite products. Greggs additionally upped the gait of new product growth it launched twenty-two new products during the year, compared with 9 in 2008. Greggs has attempted to foster full of health eating, stealing all synthetic colours, hydrogenated unfeeling oils and trans fats from the own products, and put nutritive report on core ranges.

Last year it non-stop 49 new shops and sealed 39, creation a net further of 10 new shops. It is formulation to open in between 50 and 60 new shops during the stream year, with around dual thirds of these openings due to take place during the second half.

It pronounced that since the augmenting suit of dull sell space on the high street, it continues to disagree that the life of upward-only rent reviews from landlords levy an inapt vigour on retailers.

The tradesman will compensate a last division of 11.4p on May 21, receiving the sum division to 16.6p, up 11.4pc on last year.

Shares in Greggs rose 18.3 to 455.3p.