Greggs suffers slowdown in sales

BAKERY chain Greggs has revealed a slowdown in sales growth after the squeeze in consumer spending dulled the nation's appetite for its pies and rolls.

The firm, which operates more than 1,500 outlets and has expanded its range by selling breakfast baps and coffee, yesterday said like-for-like sales rose 0.4 per cent in the 26 weeks to 2 July - compared to 0.8 per cent in the first 18 weeks of the period.

It warned that it does not expect the second half of 2011 to bring any relief, as consumer spending will continue to come under pressure.

But the group's expansion plans are on track - Greggs opened a record 39 stores during the period, leaving it on track to open 80 in the year, as it takes up cheap rents on Britain's beleaguered high streets.

The firm said underlying profits rose 4 per cent to 19.3 million, not including a 2m impact of the additional cost of bank holidays around Easter and the royal wedding, which made May a "very difficult month". The interim dividend was raised by 5.5 per cent to 5.8p.

Greggs said two of its London stores had been damaged in this week's rioting.