BAKERY chain Greggs enjoyed a surprise increase in Christmas sales.

The Newcastle-based company said like-for-like sales rose 5.7 per cent in the 11 weeks to New Year's Day, beating its earlier prediction of a slowdown in growth.

Several high street names, including Woolworths, Ottakars and JJB Sports have reported disappointing sales during the festive period.

Greggs managing director Sir Michael Darrington said: "Sales were much better than a lot of those around us and we are pleased with the progress we are making.

"Footfall for retailers generally has not been good, but in many ways, for us it was business as usual."

The group, which includes the Bakers Oven brand, had been anticipating a slowdown from the 5.4 per cent growth it had enjoyed during the 18 weeks leading up to the festive season.

Sir Michael attributed the rise in sales to the quality of the chain's staff and products.

The chain, which started as a Tyneside bakery in 1964, has 1,263 UK stores, after adding 32 in the past year. It plans to open up to 50 more this year.

In October, Sir Michael warned that rising wage and energy bills could force it to raise prices, but yesterday said those pressures had eased.

The trading update pushed shares up nearly four per cent after analysts noted the rise in sales was ahead of budget and had been achieved in the absence of a parallel rise in costs.