Greggs' sales recovery stronger than expected

Greggs says its sales have been stronger than anticipated in the weeks since lockdown measures were eased.

The bakery chain saw a "strong recovery" during May after non-essential shops reopened, and although pent-up demand has tailed off, sales remain ahead of pre-pandemic levels.

Car dealership Lookers also reported strong trading for the year so far.

It said consumer demand was "robust" and it expected annual profits to be higher than previously forecast.

Mark Raban, chief executive officer at Lookers, said the company's performance in the first six months of the year had been "exceptionally strong".

Profit boost

Greggs said it had expected to see increased competition from cafes and restaurants when Covid lockdown measures were eased, but sales in its shops remained between 1% and 3% higher than levels seen in 2019, before the pandemic.

"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," Greggs said.

Earlier this year, Greggs had reported its first full-year loss for 36 years after its sales fell by a third during 2020 amid coronavirus restrictions.

Supply issues

Lookers said that after strong trading during the first four months of the year, the "positive trends" continued during May and June "where we have seen robust consumer demand and ongoing outperformance of the UK retail new car market".

However, it added that there was "some uncertainty" going into the second half of the year due to the pandemic and "notable" supply restrictions in both new and used vehicles.

Despite this, Lookers said it expected its full-year profits to be "significantly ahead of current expectations".