Bargain-hunting shoppers bring new year cheer to Greggs and B&M

theguardian.com:

Greggs plans to open 150 more stores this year and B&M is to pay a £200m special dividend to shareholders as both cut-price chains benefit from the search for bargains during the cost of living crisis.

The bakery chain famous for its sausage rolls and steak bakes said sales surged by 18% in established outlets in the run-up to Christmas as it shrugged off the impact of rail strikes and the cold weather to bounce back from a poor 2022, when Omicron prompted many people to avoid high streets and offices.

Total sales rose by 23% to £1.5bn in the three months to 31 December helped by the opening of new stores as well as strong trading in established outlets.

B&M said sales rose 12.3% in the three months to 24 December with profit margins up as it achieved strong sales of grocery and general merchandise lines. The company is paying a 20p a share special dividend, after “strong momentum through the golden quarter”. The final highly profitable three months of the year is known in retail as the golden quarter.

Greggs said its festive bakes, mince pies and salted caramel lattes had sold particularly well, with early evening experiencing the fastest rise in sales as it opens more outlets for takeaway dinners.

It said use of its app, which offers discounts, had also increased as fans of the bakery chain looked for way to save cash.

However, the company warned of “material cost inflation”, hinting it may be forced to put up prices again in 2023 after two rounds of increases last year.

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Roisin Currie, the chief executive of Greggs, said: “We enter 2023 in a strong financial position that will enable us to