Retailer: UK's Greggs reports first ever annu...
Retailer

UK's Greggs reports first ever annual loss

Imago / ZUMA Wire
Greggs, best known for its sausage rolls, steak bakes and vegan snacks.
Greggs, best known for its sausage rolls, steak bakes and vegan snacks.

UNITED KINGDOM, London. British baker and fast food retailer Greggs reported its first annual loss since listing on the stock exchange in 1984 after the Covid-19 pandemic hammered shopper numbers.

Greggs, best known for its sausage rolls, steak bakes and vegan snacks, said it made a year to Jan. 2 pretax loss of 13.7 mill. pounds, having made a record profit of 108.3 mill. pounds in 2019. Total sales fell 31% to 811 mill. pounds.

A year ago Greggs, which trades from over 2,000 UK outlets, could do no wrong and its shares hit a record high. But then the pandemic hit, shattering its business model which relies on a high volume of shop visits. While Greggs' shares lost a quarter of their value in 2020, they are up 23% so far in 2021 on hopes the rapid vaccination roll-out and an easing of restrictions will see trade bounce back.

While like-for-like sales in company managed shops were down 36.2% year-on-year in 2020, they have recovered to be down 28.8% in the ten weeks to March 13. That figure improves to down 22.4% if Scotland, where shops have been closed to walk-in customers for the majority of the year to date, is excluded. Greggs also said delivery sales were particularly strong, representing 9.6% of sales in the ten week period.

Source: Reuters
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