Greggs has posted its Q3 trading update, delivering positive results off the back of a loyalty-focused approach to customer retention and the introduction of more touch points for consumers.
Participation in the loyalty scheme, which is enabled through the Greggs app, continues to grow, with 13.1% of in-store transactions scanned in the app during the 13 weeks to 30 September. This is a rise from 10.6% for the first half of the year.
Greggs also reported positive results from its longer opening hours, with 8.8% of sales during the quarter happening after 4pm – up 0.5% on the first half of the year. As a result, the year-on-year sales for the business increased by 14.2%.
The chain has also been expanding and relocating stores to higher-value locations. So far during the year it has opened 144 new shops, making for a total of 2,410 stores – a record year for the absolute number of outlets. During that period it closed 62 shops, in line with its relocation efforts. As it stands the chain now expects around 140 net shop openings for the full year, with a focus on train stations and airports.
It attributes some of that success to its experiments with pizza toppings and baguettes, which were previously referred to as growth areas in its interim results.
Greggs has also seen positive results from its trial partnership with Uber Eats. The bakery chain has partnered with Uber Eats on a trial basis since July, in addition to its pre-existing relationship with Just Eat. Both have delivered incremental sales, according to Greggs, meaning it will be extending its partnership with Uber Eats.
Crucially for consumers, the brand states it has no plans for further price rises in the second half of the year following an increase in July. It states this is a result of expected easing in cost inflation, though the company says the overall economic outlook remains uncertain.
Promotional activities, however, will continue. The company says: “At a time when customers are looking to make their money go further Greggs continues to offer exceptional value and grow market share. We have strong product and promotional plans for the fourth quarter and the extension of our delivery service will make Greggs accessible to more customers on more occasions.”