Greggs sales up 4.9%

Bakery chain Greggs has reported a 4.9 per cent rise in sales since the start of the year after April's good weather brought out shoppers.

The Newcastle-based group, said the sales boost across its 1,300 stores had helped operating profits for the year so far to beat company forecasts.

The company - which last month launched a £3 million advertising and marketing push - said performance for the 18 week period to May 5 was a further improvement on the 3.9 per cent sales rise already posted for the first nine weeks of 2007.

Greggs, which has been forging ahead with plans to revitalise the business by changing store formats and management structure, said extended Sunday trading had added to the momentum.

Chairman Derek Netherton said the group is seeing "encouraging" results of a roll-out of the store formats and product lines, such as its healthy options range, which include wraps, sandwiches and fruit salads.

He added: "Steady progress is also being made in the process of moving away from our previously decentralised management structure to ensure that we are even more customer focused and to build a strong, unified national Greggs brand."

Last year, Greggs experienced its toughest trading conditions for more than a decade with annual profits down 13 per cent to £43.7 million.

It is now mulling the possibility of opening into the early hours of the morning to take advantage of the late night post-pub trade.

© Independent Television News Limited 2007. All rights reserved.