Greggs double whammy as sales are hit by February storms and the coronavirus outbreak
Greggs said its sales were battered by the February storms as retailers brace for a slump in demand caused by coronavirus.
The on-the-go bakery said growth slowed as people stayed home in the recent wet weather.
It also suffered a flood at its bakery outside Cardiff, putting production out for around four weeks.
Stale sales: Greggs said said growth slowed as people stayed home in the recent wet weather
The chain, which has 2,050 shops, had a record-breaking 2019 with pre-tax profits up 31 per cent to £108.3million, on revenue of almost £1.2billion, up 13.5 per cent.
It is the sixth consecutive year of growth. Shares rose 3.6 per cent, or 76p, to 2166p, and the dividend rose 25.8 per cent to 44.9p.
Greggs said 10 per cent growth in January, fell to ‘low-single digit’ growth in February.
Its shops were battered by recent storms and now face shoppers deserting high streets due to the coronavirus.
Chief executive Roger Whiteside said that Greggs would continue to open 100 stores per year, and had capacity to supply 2,500.
‘There are 20,000 food-on-the-go locations in the UK. For Greggs, we just don’t know the number,’ he said.
Bosses are looking at openings in train stations and airports, click-and-collect, a delivery service from Just Eat, and will start serving in five Asda stores.
International expansion is also seen as an option, but not before 2025.