Bakery chain Greggs has revealed plans to open 100 new stores in 2021, despite recording its first trading loss since 1984.
The impact of coronavirus saw the fast-food retailer post a pre-tax loss of £13.7 million, which is down on a pre-tax profit of £108m in 2019.
Total sales for Greggs dropped by 30.5% as it was forced to close its stores back in March before reopening in the summer. Like-for-like sales also fell by just over 36%.
Despite the challenges, Greggs chairman, Ian Durant, says it is recovering well: “With lower-than-normal sales levels Greggs made a loss in 2020; the first time in its history as a listed business. Government support has been essential to mitigate the impact of Covid and protect as many jobs as possible through this period.
“This gave us the confidence to restart our new shop opening programme in the second half and we are targeting a rapid return to previously planned growth levels of circa 100 net new shops for the year ahead.”
“Shareholders have made a significant contribution, forgoing dividends and accepting reduced investment in the business, and there has been terrific support from our employees.”
Part of the bakery firm’s recovery is to open around 100 new bakery outlets in 2021 as it pins its hopes on a pre-pandemic resurgence.
CEO Roger Whiteside added: “Shops accessed by car have been the strongest performers during the Covid crisis and these location types already formed most of our new shop pipeline. This gave us the confidence to restart our new shop opening programme in the second half and we are targeting a rapid return to previously planned growth levels of circa 100 net new shops for the year ahead.”
Analysis
Commenting on Greggs’ yearly results, Russell Pointon, director of consumer and media at Edison Group, said: “Following a challenging FY20 there is a very clear message that the company is looking forward to the future. The store opening platform is being reactivated, the multi-channel development strategy is being accelerated, and investment in the supply chain continues to grow. More is also being done to achieve the long-term target of 3,000 stores i.e. 44% more stores than currently in operation.”
