How Greggs Achieved a 20% Sales Boost Through Enhanced Brand Appeal and Accessibility
Discover how Greggs saw a significant sales surge of nearly 20% by emphasizing the significance of its brand to a wider audience and expanding accessibility with the introduction of new stores and extended operating hours in 2023.
Greggs
Greggs has reported another strong year of growth as it seeks to both “broaden” its appeal to more consumers and “reward loyalty”.
The bakery chain made £1.81bn in sales in 2023, showing a 19.6% increase from the year before. Chief executive Roisin Currie told investors, “Our success proves that we are focusing on the right growth strategies.”
Greggs is focusing on growth levers such as expanding availability through initiatives like click-and-collect, extending store hours, and enhancing customer loyalty.
The company announced that its market share has reached an "all-time high." Data from Circana revealed that Greggs' share of visits in the food-to-go market rose to 8.2% last year, up from 7.7% in 2022.
Greggs mentioned that their market share has increased due to their investment in marketing to encourage people to consider and buy their products. They are focused on building their brand to have a deeper meaning for a larger audience.
Roisin Currie, from Greggs, saw a rise in the consideration score on YouGov's BrandIndex. In 2022, the score was 36.9, but it climbed to 39 in 2023. This increase is considered a substantial improvement by the platform. Additionally, the purchase intent score also saw a notable increase from 15.6 in 2022 to 16.8 in 2023.
Greggs reported that its awareness score remains high at 95%, but they are focused on letting everyone know that Greggs is for all. According to Currie, they are working on expanding their brand to resonate with a wider audience.
Greggs has been focused on expanding its customer base and encouraging occasional visitors to become regulars. In line with this goal, the company has been enhancing its loyalty app, which saw a significant increase in usage over the year. Greggs shared that customers who use the app tend to shop more frequently at their stores.
The increasing use of the loyalty app is helping Greggs personalize its marketing efforts and gain insights into customer behaviors.
In 2023, the company increased its investment in marketing, although the exact amount was not specified.
Expanding Greggs’ Accessibility
Greggs is not only focused on appealing to a wider audience but also on increasing its availability. This includes offering extended opening hours, utilizing digital platforms, and opening new stores to make their products more accessible to customers.
Greggs has been putting a lot of emphasis on their evening opening hours since the pandemic. They have seen a significant increase in sales during the evening, making it the fastest-growing part of their business. In the latter half of 2023, 8.7% of sales in company-managed shops were made in the evening.
In addition to focusing on evening sales, Greggs is also expanding its digital presence. They are introducing click-and-collect and home delivery services to make it more convenient for customers to enjoy their products.
In 2021, Greggs announced a plan to double sales by 2026. CEO Roisin Currie mentioned that the brand is making investments in innovation to create products that cater to a wider range of occasions and tastes. She also added that Greggs is progressing well towards achieving this goal by expanding its physical presence and appealing to a diverse group of consumers.
Editor's P/S:
The article highlights Greggs' impressive growth trajectory and its strategic initiatives to expand its appeal and accessibility. The company's focus on enhancing customer loyalty through its app and increasing evening opening hours demonstrates a customer-centric approach. Greggs' commitment to innovation and expanding its digital presence further strengthens its position in the market. The company's ambition to double sales by 2026 is a testament to its long-term growth vision and its ability to adapt to changing consumer preferences.
Overall, the article paints a positive picture of Greggs' business performance and its strategic direction. The company's focus on broadening its appeal, rewarding loyalty, and expanding its accessibility bodes well for its future growth.
