Greggs resorts to coffee and sandwiches to improve sales
Greggs, the famous bakery chain has shown very positive improvements in the past few weeks by going easy on sausages and offering coffee and sandwiches to reach out to more customers and the idea seem to actually work.
Greggs was affected due to a glitch on Google as the logo was changed and lost considerable market share. However, after the introduction of the coffee and sandwiches, sales figures have started rising and the company has recovered some lost profits.
Now, the bakery chain has installed seats in the stores and the coffee blend has been improved in addition to the introduction of low fat sandwiches, a healthier choice over the regular sandwiches. After the introduction of the new strategy, the sales figures have risen by 5.4 percent in the past 11 weeks. The figures for the same period last year show that there was a decline in sales by 1 percent and at that time, Greggs was trying hard to fend off competition from the growing popularity of coffee shops and convenience stores selling sandwiches and salads.
Greggs CEO Roger Whiteside said, “This strong performance reflects a positive response from customers to new product initiatives, improved service, better value and our investment in shop refurbishments alongside more favourable trading conditions.”
He also said that the balanced choice options are helping the stores to sell well and the upgrades done to the coffee blend to the sweet lines have increased sales figures. The bakery chain has introduced 15 new varieties of low calorie sandwiches which alone sold for £1 million per week. Although the newly introduced products drive sales, their pastries and sausage rolls still account for one third of total sales and the chain generates £100 million per year from the sale of sausage rolls alone. Following the rise in sales, its share prices have increased by 12 percent.