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| Greggs sees strong sales growth | Greggs sees strong sales growth |
| (about 2 hours later) | |
| Bakery chain Greggs has reported stronger than expected sales for the July-to-September period as meal deals continued to bring in customers. | |
| Like-for-like sales - which take out the impact of new store openings - were up by 4.9% during the quarter compared with a year earlier. | Like-for-like sales - which take out the impact of new store openings - were up by 4.9% during the quarter compared with a year earlier. |
| The company said it would continue to benefit from "low cost pressures and a stronger consumer environment". | The company said it would continue to benefit from "low cost pressures and a stronger consumer environment". |
| But it warned that wage pressures could drive costs up next year. | But it warned that wage pressures could drive costs up next year. |
| Chief executive Roger Whiteside told the BBC that the chain already paid staff more than the national minimum wage, but that rising labour costs would lead to "longer term inflationary pressure". | Chief executive Roger Whiteside told the BBC that the chain already paid staff more than the national minimum wage, but that rising labour costs would lead to "longer term inflationary pressure". |
| He said the business would "look for cost efficiencies to offset" any rising costs, but added that labour costs "held no fear for us". | He said the business would "look for cost efficiencies to offset" any rising costs, but added that labour costs "held no fear for us". |
| 'Good times' | |
| Shares in Greggs rose more than 5% in early trading following the announcement. | |
| The chain said meal deals, where customers can buy a drink together with food at a discount, were proving popular, particularly at breakfast time. | |
| "The good times continue to roll for Greggs, with the bakery chain posting an impressive third quarter performance, following on from a dynamic 51.3% increase in first half pre-tax profits," said George Scott at retail analyst Conlumino. | |
| Greggs has refitted 158 stores this year, while opening 65 and closing 47. The company now has 1,668 outlets. | Greggs has refitted 158 stores this year, while opening 65 and closing 47. The company now has 1,668 outlets. |
| "We have the High Street pretty well covered," Mr Whiteside said, so most new openings would be in other areas, such as motorway services and garage forecourts. | "We have the High Street pretty well covered," Mr Whiteside said, so most new openings would be in other areas, such as motorway services and garage forecourts. |