GREGGS saw sales continue to grow at the start of the year despite increased competition in the sandwich market.

The bakery group, which has 1,240 shops, said it had made a satisfactory start to the year, with results ahead of the same period last year.

Growth in like-for-like sales and total sales continued in line with those reported in March.

The group, which sells sandwiches, hot pasties and savouries, as well as cakes and drinks, said it intended to open 30 shops this year.

Greggs, which also owns 220 Bakers Oven shops, has opened 21 shops this year, but also closed 12, including six unprofitable Bakers Oven stores in Scotland.

After expanding in recent years, the sandwich market has shown signs of slowing down.

The group, which made record profits of £40.5m last year, is facing competition from franchisee operations such as O'Briens and Subway, as well as the supermarkets.

Last month, Greggs launched an advertising campaign to update its brand under the slogan "It's the way we bake it that makes it".

The company cautioned that it was too early to draw firm conclusions about the impact of the promotional drive, which began three weeks ago.

But the company said: "Initial consumer response is encouraging."