Greggs’ iconic signs and sausage rolls are a staple on every high street. But it is a far cry from the company’s humble origins in Newcastle more than 80 years ago.
The Northern baker has achieved a cult-like status – Greggs bucket hats were everywhere at music festivals this summer thanks to a collaboration with high street fashion store, Primark.
It is one of only a handful of companies that has managed to shrug off a cost-of-living crisis which has caused Britons to tighten their purse strings in the face of painful energy and grocery bills.
As a result, the FTSE 250 company yesterday served up steaming sales growth of 16 per cent to £844million in the six months to July.
‘We continue to offer exceptional value, which is reflected in our performance and growing market share,’ said boss Roisin Currie.
FTSE 250 bakery chain Greggs yesterday served up steaming sales growth of 16% to £844m in the six months to July
But while investors revel in the company’s success, a look back at Greggs’s history reveals that it was built on modest foundations.
The baked goods giant began life as a bakery on Tyneside, opened by John Gregg, who started out delivering fresh eggs and yeast to families on his bike.
Greggs opened its first shop in Gosforth, Newcastle upon Tyne in 1951. Later the company expanded across Scotland and the North of England, under the guidance of John’s son Ian.
In the early years Greggs was synonymous with working class Northern women who would queue for hours in Newcastle outside the company’s seconds shop in order to buy half-price unsold bread and pastries from the day before.
The women would come from nearby towns and villages such as Wideopen, West Denton and Hexham and start queuing at 6.30am.
In a BBC video captured from 1974, one woman said: ‘The products aren’t old, it’s only probably misshapen. It’s quite fresh. I’m getting a bargain.’
Now the company boasts a total of 2,378 shops, including at almost every train station in the UK, and customers range from builders to investment bankers.
But management isn’t finished yet and has its sights on ramping up the pace of opening more shops.
It is on track to have more than 3,000 over the next few years. So far this year it has ploughed money into shops at Glasgow and Cardiff airports and most recently at Gatwick’s south terminal.
‘Food on the go has been a phenomenon over the last decade or so, and Greggs has been at the forefront of the movement,’ according to Dan Coatsworth, analyst at investment platform AJ Bell.
As well as its signature product, the unassuming sausage roll, Greggs has branched out into products for all times of the day and different dietary requirements, including those after healthier options. Its vegan sausage rolls have been a runaway success and have even managed to woo meat-eaters.
Working class roots: A Greggs ‘seconds’ shop in Newcastle in the early 1970s which sold half-price bread and pastries from the day before
Coatsworth added: ‘It has brought a broad range of products, from sandwiches and wraps to chicken goujons and wedges, to the public in a takeaway or sit-down environment.
‘At the same time, its core offering of sausage rolls and pasties continue to be a big hit.
‘This breadth of offering has enabled it to capture all manners of customer, from builders wanting a quick snack or shoppers wanting to sit down for a cup of tea, to an office worker needing sustenance on their lunch break or at the end of the day.’
What’s more, many Greggs stores operate into the early hours, appealing to hungry punters from beleaguered nightclub revellers in Leicester Square to night workers like nurses on their way home.
Greggs has captured British hearts, as is evident from the bucket hats, pyjamas and crocs sold by Primark.
‘Customers see it as a bit of fun, yet the fact Greggs can use its brand in this way just goes to show how people love the company through and through,’ Coatsworth adds.
Primark has even opened a Greggs cafe in its flagship Oxford Street store offering shoppers the chance to take pictures for social media while sitting on a sausage roll swing.
The chain has not lost sight of its cheap and cheerful offer that makes its customers happy, despite inflationary pressures over the last year.
The bakery chain has been forced to hike prices, including of sausage rolls, but boss Currie said yesterday there were no more price rises planned for the year at the moment.
‘Consumers’ disposable income is still under pressure and they’re constantly looking for opportunities where they can save money,’ she said.
‘Inflation is cooling but there is still inflation out there.’
