Greggs launches mobile loyalty app as sales drop

Greggs has launched a mobile loyalty app as the food chain looks to reverse a drop in sales in its latest financial year. 

The “Greggs Rewards” app will reward customers with “treats and rewards” when they use it to pay.

The “Greggs Rewards” app will reward customers with “treats and rewards” such as a free coffee after seven bought and monthly prize draws when they use the app to pay for food across its 1,700 outlets. Accounts can carry up to £50.

It is claimed the app, which uses PayPal technology, is the first entirely digital loyalty app launched by a fast-food retailer.

The loyalty scheme has been in development since 2012 and is one of several initiatives introduced by the baker over the past 12 months to revive flagging sales.

The company announced today (26 February) sales from stores open for a year or more fell 0.8 per cent in the year to 28 December. Store refits and its decision to focus on its food on the go core offering and retreat from cafes and third-party supply did pay dividends in the second-half, Greggs claimed, with like for like sales up 1.2 per cent.

Chief executive Roger Whiteside says he is “encouraged” by the improved performance.

“Market conditions are expected to remain challenging in 2014. It will be a year of further change for Greggs as we move forward with our plan to focus on the food-on-the-go market and build on positive recent trading momentum.”