Bakery chain Greggs is to open 100 new outlets in 2021 because it bets on a post-pandemic restoration.
That is regardless of the chain reporting its first loss for 36 years in 2020 after gross sales fell by a 3rd amid coronavirus lockdown measures. Greggs mentioned it had ramped up deliveries, wholesale, and click-and-collect as Excessive Avenue gross sales fell. Chief govt Roger Whiteside added that Greggs had “made a better-than-expected begin to 2021″.
He added that the chain was “nicely positioned to take part within the restoration from the pandemic”. Gross sales at company-managed outlets fell by greater than 36% final yr as footfall in metropolis centres and journey hub websites fell considerably throughout lockdowns.
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Susannah Streeter, senior funding and markets analyst at Hargreaves Lansdown, mentioned the pandemic “tore an enormous chunk off enterprise because it turned as soon as bustling metropolis centres into ghost cities“.
“Though the disaster is more likely to show a brief interruption to our insatiable demand for sausage rolls somewhat than an indication of dramatically altering tastes, it’s fairly a sustained break, and it is going to take a toll. Greggs has beforehand mentioned it would not anticipate a return to pre-Covid ranges of operations till 2022 on the earliest.”
John Moore, senior funding supervisor at Brewin Dolphin, mentioned: “The Excessive Avenue is more likely to be a really completely different place when lockdown restrictions are absolutely ended, with many empty areas and chains similar to Pret re-focusing on suburban areas – the normal heartland of Greggs.
To get by way of the pandemic, Greggs organized financing each from the federal government, which it has since repaid, and from lenders.”Authorities assist has been important to mitigate the affect of Covid and defend as many roles as potential by way of this era,” He mentioned it had been “unhappy to say goodbye” to employees whose roles had been lower by the agency “to mirror the truth of the buying and selling setting“.