Greggs reveals ‘stronger than anticipated’ financial recovery following the Covid-19 pandemic
North-East based bakery chain, Greggs, has revealed that sales are returning at a faster rate than expected following the easing of lockdown restrictions.
According to Greggs appetites for sausage rolls have been greater than first thought with sale returning at a faster rate than expected following the easing of Covid lockdown restrictions.
In a short update to the London Stock Exchange on Monday, June 28, the company said: "We had expected to see increased competition as cafes and restaurants were allowed to compete more effectively with our largely take-out offer.
"In recent weeks the impact of pent-up demand for retail has reduced but, nonetheless, like-for-like sales growth in company-managed shops has remained in positive territory ranging between 1% and 3% when measured against the same period in 2019.
"This level of sustained sales recovery is stronger than we had anticipated and, if it were to continue, would have a materially positive impact on the expected financial result for the year."
The chain first indicated in May that it could return to pre-pandemic profit levels later this year but bosses now seem convinced it could happen sooner than first thought.
In the eight weeks to May 8, sales dropped just 3.9%, compared with a 23.3% fall in the 10 weeks to March 13.