Poor weather hits Greggs as shoppers buy fewer pies

BAKERY chain Greggs has reported slower sales growth after poor weather and challenging economic conditions combined to hit trade.

The firm said like-for-like sales grew by 4.7 per cent during the 19 weeks to 10 May, compared with a rise of 6.2 per cent during the first ten weeks of the year.

Chairman Derek Netherton blamed this year's earlier Easter and poor weather over the period for the dip during March and April.

He added: "There is also widespread evidence of reduced footfall on the high street as consumers react to the tightening economic climate."

Netherton said sales had picked up since the beginning of May, but that it was too early to tell whether this would be sustained.

Citi analyst James Targett said: "While Greggs seems to be successfully negotiating rising commodity prices, we believe the statement shows its volumes are not immune to consumer pressures and high street footfall."

Greggs, which has about 170 of its 1,376 stores north of the Border, said it would open at least 40 outlets this year.