Greggs sales boosted by healthier food

High Street food chain Greggs has reported rising sales over the summer, helped by demand for its healthier options such as salads and yoghurts.

Greggs, which has shifted from being a traditional bakery to focusing on food-on-the-go, said total sales rose by 5.6% in the 13 weeks to 1 October.

Like-for-like sales, which includes shops that have been open for more than a year, rose by 3.4%.

The company's new menu includes gluten-free options and lower calorie soups.

"The popularity of our summer menu including an extended range of Balanced Choice salads and yoghurts supported sales growth in the period," it said in a statement.

"We also saw continued strong growth at breakfast time, helped by our strong coffee offer and value deals."

The Newcastle-based firm said it had opened 103 new outlets so far this year, including 41 franchises. It closed 58 stores, leaving it with a total of 1,743 shops, 143 of them franchises.

It has refitted 145 stores and by the end of the year expects to have completed 200 refurbishments.

Cost pressures

The company is now two years into its five-year strategic plan to shift from being a traditional bakery to focusing on the £6bn food-to go market.

Earlier this year, it announced the closure of three of its 12 bakeries as part of the plan to refocus the business. In its latest statement it said the Twickenham bakery would close next month.

The company is also investing in its supply chain and said its new distribution centre in Enfield would open in the the next few weeks.

Greggs said its expectations for the year as a whole remain unchanged and that while it anticipated "general industry-wide cost pressures" next year it expected to make further progress with its strategy.