Greggs to create 500 jobs as it plans 100 more stores

Bakery chain Greggs has said it expects to create 500 new retail jobs in the coming months as it continues to open new outlets.

The new jobs come as part of the chain's plans to open about 100 net new stores by the end of the year.

Greggs swung back to profit during the first half of the year as its sales rebounded to pre-pandemic levels.

The stronger-than-expected sales mean it now expects full-year profits to be "slightly ahead" of previous forecasts.

Greggs reported profits of £55.5m for six months to 3 July, compared with a £65.2m loss a year earlier..

The chain said the recovery in trade in recent months had been "stronger than we had anticipated", helped by the easing of Covid restrictions.

The lifting of restrictions "made a significant difference to footfall", it said, with sales in the second quarter up 2.8% compared with the same period in 2019, before the pandemic.

However, Greggs saw a mixed performance from its stores. It said its shops in public transport hubs and large city centres were among its weaker performing outlets, suggesting that many workers have yet to return to the office.

In contrast, "customers staying closer to home are supporting our heartland shops in suburban and High Street areas".

"The strongest locations continue to be shops typically accessed by car," it added.

Greggs is looking at even more ambitious growth plans as it said it had "the opportunity to expand its UK estate to at least 3,000 shops".

It had 2,115 locations at the start of July.

"Greggs once again showed its resilience in a challenging first half, emerging from the lockdown months in a strong position and rebuilding sales as social restrictions were progressively relaxed," said boss Roger Whiteside.

The group has also targeted growth areas such as delivery and drive-thru sales.

"Greggs' results reflect its underlying strength as a business," said John Moore, senior investment manager at Brewin Dolphin.

"The company is feeling the full effect of a 'return to normal' along with the benefits of its investment in digital and the adaptations made to its estate to accommodate new customer habits during lockdown."

The chain needs another vegan sausage roll success, reckons Julie Palmer, partner at Begbies Traynor.

"Now that workplaces are opening and staff are returning to city centres, Greggs cannot afford to let up the pace," she said.

"It has already started playing up the passion that its customers have for its food, but if it hopes to get back to the heights of giving out bonuses to its staff then it needs restrictions permanently eased, pandemic contingency plans in place and, almost inevitably, another vegan sausage roll of a PR campaign."

Greggs launched a new vegan sausage, bean and cheese melt launched last week.

"That is likely to bring a little extra sauce to sales in the coming months," said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown.