In a new trading statement, the company underlined its strategy to improve business efficiency, restructuring management and support teams too.
As a legacy from earlier business acquisitions there are 79 shops remaining where we currently operate in-store bakeries. It is more efficient to supply our shops from regional bakeries and therefore over the next 12-18 months it is proposed that the remaining shops that are supplied by in-store bakeries will be transferred to our regional bakery network. This would involve the de-commissioning of the in-store bakeries across our estate and may result in 300 roles becoming redundant.
Wherever possible, we would look to offer existing vacancies to the employees who work in our in-store bakeries, but anticipate that many will leave the business.
The proposed changes would result in one-off redundancy costs and asset impairment charges amounting to £9m in 2014, of which £8m would be a cash cost. We anticipate that the ongoing benefit of the cost reduction would be £6m per year from mid-2015 and that, excluding one-off costs, there would be a benefit in 2014 of £2m.
Greggs total sales were up 4.8% for the festive period.
“While we face a number of challenges in the coming year, we remain confident that we can make further progress with our strategic plan in 2014,” said chief executive Roger Whiteside.
Source: Greggs
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