The leading bakery retailer in the UK, with almost 1,700 retail shops throughout the country. I have a holding in my income portfolio (epic code: GRG).
Following the review of Greggs' interim announcement I had a look at their presentation and thought I would just add some more detail on where the write-offs are being applied and examples of the investment in processes and systems:
£25m investment in processes and system replacement:
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Integrated ERP-based stock system replacing legacy of autonomous
divisional manufacturing &
warehousing systems.
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New ordering processes to ensure better product
availability and reduced waste.
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Forecast-based manpower planning application to
replace manually generated staff rotas.
-
More transparent supplier management and purchasing processes
to drive full benefits of scale in buying.
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Sunk costs of plans for frozen manufacturing facility.
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Impairment of Greggs Moment shop assets.
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Provision for onerous leases on 9 accelerated closures.
-
Impairment of Southall development site value.
In simplifying
the offering into one format “Bakery Food on the Go” and better use of space
and flow to create ‘Greggs with seats’ the before and after was detailed in the
presentation:
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| "Food on the go" shop |
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| Bakery |
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| Click to enlarge pictures |
It seems to me that Greggs' offering will in the future look more like a Pret A Manger shop, with the USP of a company owned fresh bakery supply.
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