Greggs has said it is in talks with staff over cutting employee hours “to minimise the risk of job losses” when the furlough scheme ends next month.

In a trading statement issued this morning, the UK High Street baker said that since reopening its stores on 2 July like-for-like sales in company-managed shops have averaged 71.2% of the 2019 level in the 12 weeks to 26 September.

In the most recent four weeks to 26 September like-for-like sales in company-managed shops have averaged 76.1% of the 2019 level.

The shops were not able to participate in the Chancellor’s Eat out scheme in August, as it was not able to offer indoor tables

Increased out-of-home activity in September appears to have driven a recovery in customer visits. 

In response to this they are bringing back more of our product range, including a broader sandwich range and classic favourites such as Belgian buns.  In addition, 100 of its larger shops have now reopened their customer seating with appropriate social distancing in place.

Digital sales are increasing with its Click & Collect offer is now available in all shops, allowing customers to pre-order and pay ahead of visiting to collect their order. 

“The rollout of our national delivery offer, in partnership with Just Eat, is progressing at speed and we are seeing encouraging participation levels.  In the most recent week to 26 September delivery represented 2.6% of company-managed shop sales.”

However says the Company,

“With the Job Retention Scheme planned to end in October we are taking steps to ensure that our employment costs reflect the estimated level of demand from November onwards.  With business activity levels remaining below normal for the foreseeable future we must change the way we work to be as productive and flexible as we can in order to protect as many jobs as possible for the long term.  We have completed a review of our activity and requirements in every part of the business and are now proposing a series of changes which are the subject of a collective consultation with union and employee representatives.  Our aim is to minimise the risk of job losses by negotiating reduced hours in our shops and we will update on the outcome of the consultation when concluded.”



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