Greggs, retailer synonymous with cheap pasties, sausage rolls, and greasy convenience foods, just made a killing from its gamble in turning itself into a healthier food store.
The retailer has been trying to reinvent itself as a “modern, well-invested food-on-the-go retailer” to rival the likes of Pret A Manager.
To do this, it has launched things like salads, no added sugar drinks, and soups. Morning coffees are also one of its fastest-growing products.
And it’s significantly paying off.
The group said in its preliminary results statement for the 52 weeks to January 2, it said it will hike its dividend by 30% to 28.6p after profits soared by 50%.
Total sales rose by 5.2% to £835.7 million and ‘Balanced Choice’ range of healthier options now accounts for 10% of total sales, confirmed the group.
“In 2015 we delivered another excellent performance in the second year of our strategy to transform Greggs from a traditional bakery business into a modern, attractive food-on-the-go retailer,” said Roger Whiteside, CEO at Greggs.
“We have made significant progress across the business change programme, consequently our estate is stronger and our products, value and service are all improving the experience for customers.”
“This year has started well and the consumer outlook remains positive with disposable incomes expected to grow further in 2016. Overall 2016 will be another year of significant change as we advance with our strategic plan and propose major investment in our supply chain. Alongside this we are confident of delivering a further year of underlying growth.”