Greggs confirms 56 stores closed in 2020 as it reports first loss in 36 years

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GREGGS has confirmed it permanently closed 56 stores last year as it reports its first loss in 36 years due to the Covid.

The store closures were offset by 84 new branch openings in 2020.

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Greggs has confirmed it closed 56 stores in 2020 as it reports first loss in 36 years

However, the bakery chain today announced a pre-tax loss of £13.7million in 2020, compared with a £108.3million profit a year earlier.

Meanwhile, sales dropped from £1.17billion to £811.3million as stores closed their doors for large swathes of the year.

Greggs had never previously reported a loss since becoming a public company on the London Stock Exchange in 1984.

A spokesperson told HOAR store closures happen every year as they’re part of Greggs’ ongoing estate maintenance.

It added that it aims to open around 100 net shops each year.

It couldn’t confirm how many workers lost their jobs due to the closures, but said it always aims to relocate as many as possible.

HOAR has asked Greggs for a list of the stores that opened and closed last year, and we’ll update this article once we hear back.

Delivery services and a partnership with Just Eat helped offset some of the falls, the company said, with 9.6% of total sales in the first ten weeks of 2021 now coming via deliveries.

But the latest lockdowns and restrictions since the start of the year have hit overall sales, the company said, with like-for-like sales down 28.8% in the ten weeks to March 13.

Stores have remained open for takeaways, as they are classed as essential retailers, however city centre locations and travel hub sites have seen substantial falls due to the stay-at-home Government orders.

Excluding sales in Scotland, where stores have been closed to walk-in customers for the majority of the year, like-for-like sales were down 22.4% during the period.

The company said the results for 2020 were slightly better than expected, considering the lockdowns, adding that it benefited from the furlough scheme and business rates holiday.

Bosses added they have access to a new £100 million revolving credit facility to fund further expansion beyond the 2,078 stores in operation.

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