Greggs to roll out loyalty scheme

Greggs is to launch a loyalty scheme this year as it looks to roll out a number of initiatives designed to boost performance and grow the brand beyond the food to go market, as it reveals a fall in like-for-like sales.

Greggs looks to boost loyalty.

The scheme will launch later this year as part of Greggs’ efforts to reward customers and better target its marketing. Marketing Week revealed last year the chain was considering ways to develop a loyalty programme.

Greggs also plans to extend its presence in a number of new markets it has trialled over the past 12 months including frozen food ranges, coffee shops and motorway services.

It is growing its presence in the frozen ‘at home’ market after launching a trial in partnership with Iceland in 2011. It plans to roll out additional lines after the trial “proved it can compete effectively and … take market share from existing packaged brands”.

The chain is also reviewing its Greggs Moments coffee shop trial with a view to rolling it out beyond the existing five stores.

It will open additional motorway services locations under its partnership with services provider Moto later this year. There are currently 10 in operation.

The chain will also increase investment in its core food to go stores and warns the strategy will continue to impact like-for-like performance in the short term as it refits 250 stores.

Greggs says its brand awareness is strengthening and credits the ill-fated ‘pasty tax’ introduced in last year’s Budget and the subsequent campaign it led to have the proposal dropped for “thrusting the Greggs brand into the spotlight”.

The plans come as the bakery chain has posted a 4 per cent drop in like for like sales in its final quarter while same store sales for the full year to 29 December fell 2.7 per cent. Pre-tax profit fell 2.2% to £51.9m for the year.

Roger Whiteside replaced Ken McMeikan as CEO in February.

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