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Greggs' sales recovery stronger than expected
Greggs says its sales have been stronger than anticipated in the weeks since lockdown measures were eased.
The bakery chain saw a "strong recovery" during May after non-essential shops reopened, and although pent-up demand has tailed off, sales remain ahead of pre pandemic levels.
Greggs said it had expected to see increased competition from cafes and restaurants when Covid lockdown measures were eased, but sales in its shops remained between 1% and 3% higher than levels seen in 2019, before the pandemic. "This level of sustained sales recovery is stronger than we had anticipated and, if it were to continue, would have a materially positive impact on the expected financial result for the year," Greggs said.
This year, Greggs had reported its first full-year loss for 36 years after its sales fell by a third during 2020 amid coronavirus restrictions. However, revenues were boosted in the final quarter thanks to a shake-up of the menu to include a range of breakfast items, plus more tasty plant-based options.
1. Explain one reason why Greggs experienced a fall in sales in 2020 (4)
2. Explain one reason Greggs has recently experienced increased demand (4)