BAKER Greggs yesterday unveiled a £300m five-year plan to open at least 600 shops across the UK creating at least 6,000 jobs.
The North-East baker is aiming to have more than 2,000 shops nationwide by 2014, with it targeting areas where the Greggs brand is currently absent or under-represented, particularly the South-West, East Midlands, North-East Scotland, the North-West and North Wales.
While Greggs said yesterday it has no plans to open more high street outlets in the North-East, it is looking for suitable sites at railway stations and industrial and retail parks – a strategy it is continuing nationally.
It also intends to open a new bakery in its hometown of Gosforth, Newcastle, as well as one in the South to help accommodate its expansion, and will invest significantly in refurbishing outlets across the North-East.
Unveiling the plans yesterday – which will see it more than double its traditional rate of shop openings – chief executive Ken McMeiken said its reflected the confidence of Greggs, which is expected to eventually make £10m of annual efficiencies as a result of the investment.
“More than 50 per cent of the UK population does not have a Greggs nearby. I repeatedly receive letters from customers who know about the brand and want Greggs to come to a particular part of the country where we are under-represented,” he said.
“There are particular opportunities for Greggs in the increasing numbers of airports, bus terminals, train stations, retail and industrial parks, in addition to more high street locations.”
Mr McMeikan, who took over as chief executive in June last year, said in the financial year to date its range of baguettes had helped underpin overall sales growth of 3.8 per cent, with sales rising 20 per cent. Its steak bake sales rose 12 per cent, as did those of its staple sausage roll, and sandwiches containing no mayonnaise account for 15 per cent of overall sandwich sales.
Greggs’ expansion plan is to get under way next year.
Currently, the group has 1,400 retail outlets, but intends to add between 50 and 60 shops to its estate during 2010, followed by at least 70 a year from 2011 onwards.
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