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Greggs Bakery In Profits Warning After Sales Fall

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http://www.bbc.co.uk/news/business-22335085

High Street bakery Greggs has warned of lower than expected profits this year after reporting falling sales.

The chain said like-for-like sales, which exclude newly-opened outlets, were down 4.4% so far this year.

It blamed bad weather and "under pressure" consumers, and said it did not expect market conditions to improve in the short term.

It said profits for the year were now likely to come in lower than market expectations.

The pieless recovery.

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Early in this recession Greggs profits soared - the reason given that cash strapped buyers were moving to Greggs to cut lunchtime costs.

If Greggs profits are falling what does that say? Things are getting worse in the economy? Or better?

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When there is obvious shrinkage going on and people are hungry at lunchtime they quickly work it out that if you can be bothered to bring your own into work you can be satisfied, healthier and feel fuller for less.

Most places have a micro to warm yesterdays dinner of chilli and rice if need be...yummy. ;)

Edited by winkie

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When there is obvious shrinkage going on and people are hungry at lunchtime they quickly work it out that if you can be bothered to bring your own into work you can be satisfied, healthier and feel fuller for less.

Most places have a mico to warm yesterdays dinner of chilli and rice if need be...yummy. ;)

Got to say they are shrinking stuff, and I am buying less as a result, and I am one of their regulars. We haven't all got a weight problem and portion size is important.

On shrinkage I am particularly pissed off with Asda cafe at the moment, well those they haven't handed over to Costa. Remember when Walmart took over and everything was cheap. The food has since got very expensive and the portions smaller. The fish and chips on Saturday looked suitable fodder for a kindergarten at £5 a pop, and you wonder if they are having a laugh at customers expensive.

Especially if you look at the alternative fish and chip dinners.......Morrisons about £4 for 765 calories and about twice the size, Wetherspoons big cod at 1265 calories and a free drink at £5, and Brewers Fayre super--sized ' Cod father' recently on special offer at £5, and the calories on that one is anbody's guess.

Edited by crashmonitor

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I often called in when in town on the way home for a couple of pasties.Always a good size and good value.Last time i went in they were double the price and half the size.Id havr to spend £4+ to get the same i got 4 years ago for £1.30.

Iv never been in since.There used to always be a line of people getting served and lots of pigeons outside picking up the crumbs.Now i hardly see anyone in and the pigeons have moved on.

Printing money,high inflation and massive deficits while peoples incomes are hollowed out doesnt seem to be working very well .

The government was expecting rising tax to fill its spending gap but i would think taxes are still falling.Not pretty.

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Perhaps after finding bits of minced up equine in their processed rubbish elsewhere some people have decided enough is enough? That and it is far cheaper if you are prepared to put in the effort to sort your lunch out at home and put it in a plastic box.

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Got to say they are shrinking stuff, and I am buying less as a result, and I am one of their regulars. We haven't all got a weight problem and portion size is important.

On shrinkage I am particularly pissed off with Asda cafe at the moment, well those they haven't handed over to Costa. Remember when Walmart took over and everything was cheap. The food has since got very expensive and the portions smaller. The fish and chips on Saturday looked suitable fodder for a kindergarten at £5 a pop, and you wonder if they are having a laugh at customers expensive.

Especially if you look at the alternative fish and chip dinners.......Morrisons about £4 for 765 calories and about twice the size, Wetherspoons big cod at 1265 calories and a free drink at £5, and Brewers Fayre super--sized ' Cod father' recently on special offer at £5, and the calories on that one is anbody's guess.

Morrisons had the fish and chips as the offer on Saturday,,£2.20,very nice as well.Not many chips but the fish was very decent.I like the sound of that Wetherspoons one il have to try that thanks.

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Morrisons had the fish and chips as the offer on Saturday,,£2.20,very nice as well.Not many chips but the fish was very decent.I like the sound of that Wetherspoons one il have to try that thanks.

Available Monday to Saturday 2pm-5pm, all day on 'fish Friday'. (Wetherspoons)

Morrisons are one of the few Supermarket cafe's that is still trying to please the customer.

Edited by crashmonitor

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You have to ask yourself with some of these businesses where the profits are going?........paying staff wages, shareholders, executive pay and bonuses or excessive debt by expanding to far and too fast? :unsure:

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You have to ask yourself with some of these businesses where the profits are going?........paying staff wages, shareholders, executive pay and bonuses or excessive debt by expanding to far and too fast? :unsure:

Fixed rental costs and increasing food supply costs in recessionary times?

You could be onto something with expansion. I see they have Greggs now at at least one motorway service station. That doesn't make sense to me.

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Fixed rental costs and increasing food supply costs in recessionary times?

You could be onto something with expansion. I see they have Greggs now at at least one motorway service station. That doesn't make sense to me.

I reckon there is a bit of flagshipping going on, because you wonder how budget food outlets can profit from premium locations, because there is little difference from their normal prices.

Wetherspoons and Greggs are very welcome, however, if I am down in London in locations like the Strand, Whitehall and Tower Bridge. But the footfall can't be enough to pay the extra rent, can it?

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I reckon there is a bit of flagshipping going on, because you wonder how budget food outlets can profit from premium locations, because there is little difference from their normal prices.

Wetherspoons and Greggs are very welcome, however, if I am down in London in locations like the Strand, Whitehall and Tower Bridge. But the footfall can't be enough to pay the extra rent, can it?

Central London is odd. I have never understood the amount of newsagents, Italian greasy spoons and other small independent businesses in premium locations. I wonder what the rents are like in some of the side streets one minute away from Oxford Circus, Chancery Lane etc.

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Guest eight

Central London is odd. I have never understood the amount of newsagents, Italian greasy spoons and other small independent businesses in premium locations. I wonder what the rents are like in some of the side streets one minute away from Oxford Circus, Chancery Lane etc.

I know what you mean. Maybe been there 50 years and it hasn't occurred to them to cash in?

On Greggs, they are getting killed round here by a new Greggs but called Couplands. Just better products, more of a home baked feel. Everything in Greggs seems to be greasy - why would a cheese and onion pastie ever be greasy?

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I know what you mean. Maybe been there 50 years and it hasn't occurred to them to cash in?

On Greggs, they are getting killed round here by a new Greggs but called Couplands. Just better products, more of a home baked feel. Everything in Greggs seems to be greasy - why would a cheese and onion pastie ever be greasy?

I know Couplands, from their Newark branch. They do go for a traditional window display and do look more upmarket and it is a bit of a 1960s/70s throw back.

I do tend to like bland low fat cakes like rock cakes and Danish buns so Greggs does suit me. The savouries are greasy cholesterol hits and I avoid those.

Rather disappointed that the super-sized rock cakes do appear a bit smaller lately.

Edit. competition-wise the Just Eat chain with their £1 no frills baguette must have been a bit of a worry for Greggs.

Edited by crashmonitor

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Available Monday to Saturday 2pm-5pm, all day on 'fish Friday'. (Wetherspoons)

Morrisons are one of the few Supermarket cafe's that is still trying to please the customer.

Who actually wants to go to these overpriced coffee shops in a supermarket?

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I know Couplands, from their Newark branch. They do go for a traditional window display and do look more upmarket and it is a bit of a 1960s/70s throw back.

I do tend to like bland low fat cakes like rock cakes and Danish buns so Greggs does suit me. The savouries are greasy cholesterol hits and I avoid those.

Rather disappointed that the super-sized rock cakes do appear a bit smaller lately.

Edit. competition-wise the Just Eat chain with their £1 sub must have been a bit of a worry for Greggs.

Lets be honest the products in UK bakeries is at best mediocre....no comparison to Belgium/French bakeries.

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Who actually wants to go to these overpriced coffee shops in a supermarket?

I agree, you get a school canteen atmosphere for premium prices.

Asda were cheap on Walmart's takeover, but they have cranked prices up or thrown in the towel and handed them over to Costa or the like....as have other supermarket chains.

Incidentally in 2006 carrot cake and a coffee was £1.52 at Asda, which I then thought reasonable. It's nearly doubled in price since.

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I reckon there is a bit of flagshipping going on, because you wonder how budget food outlets can profit from premium locations, because there is little difference from their normal prices.

Wetherspoons and Greggs are very welcome, however, if I am down in London in locations like the Strand, Whitehall and Tower Bridge. But the footfall can't be enough to pay the extra rent, can it?

The rest of the BBC article is quite interesting (in the HPC does this add up kind of way ;))

Total stores 1700

Like for like sale down 4.4%

Total sales up 3% with the addition of 10 new stores.

Assuming someone hasn't made a mistake those 10 new stores must have massive turnover i.e. flagshipping of some kind.

(i wonder how they have accounted for any closures??? - 10 net new or 10 new and 25 worst performers closed...)

The sales vs profit certainly suggests something like that is going on as the costs have shot up.

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Guest eight

Who actually wants to go to these overpriced coffee shops in a supermarket?

My parents. Other pensioners mostly. My folks can give you chapter and verse on all of them. I sometimes join them if they're paying, these places would never get a penny of my own money.

I find old people in general a bit perverse when it comes to food - like they actually like rubbish food and poor service, or something.

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