Greggs announced on Wednesday its intention to expand its UK store network to at least 3,500 locations, following a significant increase in profit during the first half of the year. The bakery chain reported a 20% boost in pre-tax profit, reaching £76m in the six months to June, exceeding analyst forecasts of £75m.
The company's shares saw an increase of more than eight per cent in early trading, reaching 1,826p. Chief executive Roisin Currie stated that Greggs will target areas where it is currently "underrepresented," such as retail parks, train stations, airports, and roadsides. The company also plans to "optimise the distribution of shops" in towns and cities by relocating existing stores to adapt to local conditions.
Greggs currently operates 2,773 locations across the UK and one overseas branch. The company plans to open over 100 new bakeries this year. Sales grew by 7.2% to £1.1bn in the first half of the year, attributed in part to new menu items like a chicken sausage roll and tandoori chicken pizza. This growth occurred despite what Currie described as "a challenging market characterised by subdued consumer confidence and increased uncertainty."