Greggs to increase marketing spend in loyalty push

The bakery chain is also looking to drive growth through a focus on evening dining and plans to have two-thirds of its stores open for late trading by 2022.


Greggs plans to “increase marketing investment in the months and years ahead” to drive visit frequency and average transaction value.

The bakery chain claims the recent relaunch of its app is laying the foundations for future growth as the business looks to attract “many more customers” to its loyalty scheme. Greggs says it will adopt a “CRM approach” to offer customers reasons to visit more often, as it looks to grow its membership base from the current 400,000 members.

Despite disruption to staffing and supply chains, sales rose by 3.5% during the third quarter, compared to the same period in 2019. Growth was particularly strong in August when Greggs benefited from a ‘staycation’ effect and remained positive into September, with two-year like-for-like growth of 3% in the four weeks to 2 October.

Greggs says delivery sales have continued to “develop well”, with 943 shops now involved in supplying customers. The business expects delivery to expand to around 80% of its company-managed estate in the years ahead.

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Early evening push

Claiming that its menu already has “great relevance” for early evening dining, Greggs is planning to develop further hot food options for evening meals and identifies click-and-collect as offering further scope to drive sales, including made-to-order range extensions.

This early evening market is of interest to the business, which is planning for two-thirds of its estate to be suitable for late trading – both walk-in and delivery. By the end of 2022, 500 shops will be open until 8pm.

From a menu perspective, Greggs says the broadening of its vegan-friendly food and drink options has been well received, notably the limited-edition vegan sausage, bean and cheese melt, while pizza and savoury boxes are proving popular for delivery.

The business opened 68 new shops in the year to-date and expects to add a further 100 net shop openings this year. The plan is to accelerate the rate of net shop growth to 150 per year from 2022, with potential for at least 3,000 shops. Greggs wants to meet its “ambitious target” to double turnover to £2.4bn by 2026.

Greggs was a new entry into Kantar’s BrandZ ranking of the UK’s most valuable brands for 2021. Its focus on innovation and adapting to customers’ changing needs, while also improving its advertising in terms of perceived strength were singled out as reasons for its growth.