Strategy in action

Continuing to focus on four key areas will deliver success in food-on-the-go

'Keeping our people communities and values at the heart of our business'
Read more about our Social Responsibility

Our strategic plan focuses on growing like-for-like sales by improving the quality of our existing estate and making our operation simpler and more efficient. The plan has four key pillars: 

  1. Great tasting fresh food 
  2. A great shopping experience
  3. Simple and efficient operations
  4. Improvement through change

 

These pillars are all supported by our approach to keeping our people, communities and values at the heart of our business.

Strategy in action

We believe we can leverage our bakery heritage to compete successfully, in the food-on-the-go market, by offering 'Always Fresh. Always Tasty'. products at affordable and competitive prices.

The Greggs offer is differentiated by the way that we freshly prepare food in our shops each day delivering an 'Always Fresh. Always Tasty.' experience to our customers that others find hard to match.

 

Because we own and run our own bakeries we know, and can control, exactly what goes into our food - our unique recipes, bakery expertise and sheer passion for our products all help to set Greggs apart.

 

We believe a combination of improved recipes, product initiatives and market leading promotions will help us to restore like-for-like sales growth.

 

Measuring Progress: Our aim is to restore like-for-like sales growth

We believe in 'Always Fresh, Always Tasty.'

Whilst we continue to believe in the long-term opportunity to grow the number of Greggs shops, we will spend the next two to three years improving the quality of and reshaping our existing estate. We are also committed to making changes to our service levels in shops to better meet the needs of the food-on-the-go customers.

During the course of 2013, we simplified our approach to shop development, focusing on our new bakery food-on-the-go format and doubled the annual rate of shop refits.  We will continue to reshape our estate, rebalancing it towards more sustainable long-term locations. This will involve closing some shops, relocating others and opening new ones away from the high street, with help from our franchise partners in travel locations.

 

As well as improvements to our product offer and shopping environment, we have started to make changes to our service levels in shops.  We have invested in increased labour hours to improve the availability of our freshly made sandwiches in the morning, extended afternoon trading hours and improved the range of fresh products available on a Sunday, all of which has helped to drive sales.

 

Measuring progress: Our aim is to achieve target returns on our increased investment in shop refits

Shop refits
We completed a record number of 216 shop refits.

Investment in our supply chain will be focused on realising the significant efficiency and capacity benefits to be gained within our existing supply chain, building on the work to develop centres of excellence seen in recent years. We will also continue to develop simpler and more effective support operations. 

We have made good progress in improving supply chain efficiency over several years and have further opportunities to improve in the years ahead. For example, we announced a new step in this direction earlier this year, with proposals to consolidate the remaining 79 in-store bakeries into our regional bakery network over the next 12 to 18 months.

 

The general direction of change in our supply chain is towards further consolidation, creating centres of excellence for key product types and developing more effective logistics solutions.

 

Our aim is to improve product quality and consistency together with providing a more responsive, cost effective supply service to our shops.  As well as improving our supply chain operation, we will improve our operational effectiveness in support areas in order to maximise our scope for investment in front line customer service.

 

Measuring progress: Our aim is to deliver operational and supply chain efficiencies

99.6 per cent
of our shop deliveries were delivered on time during the last half of 2013.

Greggs has made significant progress in the past five years towards centralising the operation of the business. The final phase of centralisation involves investing in the process and systems platform that will enable us to compete more effectively in the fast-moving food-on-the-go market.

An independent review of our business processes and systems which identified a range of opportunities for improvement led to us announcing a five-year transformation programme in August 2013. 

 

We plan to invest £25 million over the next five years in process improvement and systems replacement and expect to deliver £38 million of related business benefits over the same period. In the next two years we expect that the costs of this programme will impact profits by around £2 million annually. The net annual benefit to the business at the conclusion of the programme is expected to be £6 million.

 

In 2014, we will deliver the first two elements of this programme. A forecast-based manpower planning application will replace manually generated staff rotas, and more transparent supplier management and purchasing processes will be put into place to drive benefits of scale and better purchasing opportunities.

 

Measuring progress: Our aim is to achieve the planned benefits from our investment in processes and systems

The final phase of centralisation involves investigating in key processes and systems.

Continuing to focus on four key areas will deliver success in food-on-the-go

Our strategic plan focuses on growing like-for-like sales by improving the quality of our existing estate and making our operation simpler and more efficient. The plan has four key pillars: 

  1. Great tasting fresh food 
  2. A great shopping experience
  3. Simple and efficient operations
  4. Improvement through change

 

These pillars are all supported by our approach to keeping our people, communities and values at the heart of our business.

'Keeping our people communities and values at the heart of our business'
Read more about our Social Responsibility

Strategy in action

Great tasting fresh food

We believe we can leverage our bakery heritage to compete successfully, in the food-on-the-go market, by offering 'Always Fresh. Always Tasty'. products at affordable and competitive prices.

The Greggs offer is differentiated by the way that we freshly prepare food in our shops each day delivering an 'Always Fresh. Always Tasty.' experience to our customers that others find hard to match.

 

Because we own and run our own bakeries we know, and can control, exactly what goes into our food - our unique recipes, bakery expertise and sheer passion for our products all help to set Greggs apart.

 

We believe a combination of improved recipes, product initiatives and market leading promotions will help us to restore like-for-like sales growth.

 

Measuring Progress: Our aim is to restore like-for-like sales growth

We believe in 'Always Fresh, Always Tasty.'

Great shopping experience

Whilst we continue to believe in the long-term opportunity to grow the number of Greggs shops, we will spend the next two to three years improving the quality of and reshaping our existing estate. We are also committed to making changes to our service levels in shops to better meet the needs of the food-on-the-go customers.

During the course of 2013, we simplified our approach to shop development, focusing on our new bakery food-on-the-go format and doubled the annual rate of shop refits.  We will continue to reshape our estate, rebalancing it towards more sustainable long-term locations. This will involve closing some shops, relocating others and opening new ones away from the high street, with help from our franchise partners in travel locations.

 

As well as improvements to our product offer and shopping environment, we have started to make changes to our service levels in shops.  We have invested in increased labour hours to improve the availability of our freshly made sandwiches in the morning, extended afternoon trading hours and improved the range of fresh products available on a Sunday, all of which has helped to drive sales.

 

Measuring progress: Our aim is to achieve target returns on our increased investment in shop refits

Shop refits
We completed a record number of 216 shop refits.

Simple and efficient operations

Investment in our supply chain will be focused on realising the significant efficiency and capacity benefits to be gained within our existing supply chain, building on the work to develop centres of excellence seen in recent years. We will also continue to develop simpler and more effective support operations. 

We have made good progress in improving supply chain efficiency over several years and have further opportunities to improve in the years ahead. For example, we announced a new step in this direction earlier this year, with proposals to consolidate the remaining 79 in-store bakeries into our regional bakery network over the next 12 to 18 months.

 

The general direction of change in our supply chain is towards further consolidation, creating centres of excellence for key product types and developing more effective logistics solutions.

 

Our aim is to improve product quality and consistency together with providing a more responsive, cost effective supply service to our shops.  As well as improving our supply chain operation, we will improve our operational effectiveness in support areas in order to maximise our scope for investment in front line customer service.

 

Measuring progress: Our aim is to deliver operational and supply chain efficiencies

99.6 per cent
of our shop deliveries were delivered on time during the last half of 2013.

Improvement through change

Greggs has made significant progress in the past five years towards centralising the operation of the business. The final phase of centralisation involves investing in the process and systems platform that will enable us to compete more effectively in the fast-moving food-on-the-go market.

An independent review of our business processes and systems which identified a range of opportunities for improvement led to us announcing a five-year transformation programme in August 2013. 

 

We plan to invest £25 million over the next five years in process improvement and systems replacement and expect to deliver £38 million of related business benefits over the same period. In the next two years we expect that the costs of this programme will impact profits by around £2 million annually. The net annual benefit to the business at the conclusion of the programme is expected to be £6 million.

 

In 2014, we will deliver the first two elements of this programme. A forecast-based manpower planning application will replace manually generated staff rotas, and more transparent supplier management and purchasing processes will be put into place to drive benefits of scale and better purchasing opportunities.

 

Measuring progress: Our aim is to achieve the planned benefits from our investment in processes and systems

The final phase of centralisation involves investigating in key processes and systems.