Greggs is eyeing central London as a prime location for new shops, after the pandemic made it easier to pick up previously sought-after retail units at a discounted price.
The bakery chain is gearing up to open 100 new shops in 2021, despite posting its first loss since floating on the London Stock Exchange more than three decades ago.
The sausage roll specialist has 2,078 branches across the UK, but hopes to eventually bring that to 3,000 over the coming years.
The company said: “New opportunities now exist in previously underrepresented locations such as central London and mass transport hubs, where availability and rental levels will now make those locations more accessible.”
Greggs’ expansion plans defy a £13m loss for 2020, after the pandemic dramatically reduced footfall for several months of the year. It is a significant swing from the £108m profit the baker made in 2019.
The chain said sales had fallen from £1.2bn to £811m in 2020, with like-for-like sales down 36%. Just under 10% of all sales came from deliveries, which are only available from about one-third of its stores.
Nonetheless, Greggs opened a net 28 new stores last year, and chief executive Roger Whiteside said it was “well placed to participate in the recovery from the pandemic”.
“[Greggs] has a clear strategy to extend its digital capabilities and to grow further in new locations, channels and dayparts. These opportunities will benefit all of its stakeholders in the years to come,” he added.
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