(Updates with closing share price.)
Oct. 6 (Bloomberg) -- Greggs Plc, the U.K.’s biggest bakery chain, advanced the most in almost seven months after saying that sales growth accelerated in the fiscal third quarter as it sold more meal deals and breakfast items.
Greggs rose 4.8 percent, the most since March, to close at 483.2 pence at 4:30 p.m. in London. Revenue climbed 5.4 percent in the 13 weeks ended Oct. 1, the Newcastle Upon Tyne, England- based company said today in a statement. Sales in shops open at least a year rose 0.8 percent over the same period. Sales on that basis increased 0.6 percent in the 39 weeks to Oct. 1.
Britain’s largest supermarket chain Tesco Plc and Mothercare Plc reported weaker sales yesterday as consumer spending contracts, while inflation accelerates and wages remain stagnant. U.K. economic growth in the second quarter slowed more than initially estimated, as consumer spending fell 0.8 percent, the Office for National Statistics said yesterday.
“Our performance has been resilient in a tough market,” Chief Executive Officer Ken McMeikan said in a telephone interview today. “Most items at Greggs tend to be low-priced.”
Consumers are shifting into lower priced baked food such as sausage rolls which are performing well, he said.
The company will increase investment in promotional activities, including meal deals and discounts, McMeikan said. Greggs said it plans to open 80 net new stores this year. The baker has added a net 53 shops in the year to date, taking the total number of outlets to 1,540 as of Oct. 1.
--Editors: Tim Farrand, Peter Branton
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