Greggs the bakers one of the most dominant forces in the UK High Street
(with over 1700 retail outlets) have issued a profit warning stating that
like-for-like sales, which exclude newly-opened outlets, were down 4.4% so far this
year.
Citing bad weather and
"under pressure" consumers, the Group said it did not expect market
conditions to improve in the short term.
It said profits for the year were now likely to come in lower than
market expectations.
UK consumers continue to rein in their expenditure in response to
increased fuel costs for domestic energy and petrol together with food price
inflation .
Greggs have focussed on good cost control but with Consumers under
pressure, promotional deals have been particularly popular, which has hit
profit margins.
This is a dilemma common to many businesses the need to boost sales
whilst protecting the bottom line.
It is a very hard act to get the balance right in the current climate.
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