BAKER'S RISE IN AMBITIONS; NORTH EAST FIRM PLANS MASSIVE GROWTH.

Byline: KAREN DENT

GEORDIE baker Greggs reckons it can open at least 600 new shops and create 6,000 jobs in a major national expansion.

Between 50 and 60 new Greggs shops are in the pipeline for next year and it plans to launch at least 70 a year from 2011 - more than double its usual rate of new openings.

The Newcastle business, which wants to expand out of the high street and into bus and train stations and retail parks, is concentrating on becoming a national brand with more shops in areas including the South West, East Midlands and North Wales.

Chief executive Ken McMeikan said: "The fact that Greggs is a baker with wholesome, tasty products that are made in our own bakeries and shops remains a key point of difference versus our competitors.

"This gives us a great opportunity to attract new customers who are less familiar with the brand, particularly as we move into areas where we are new or under-represented.

"We look forward to making the unique Greggs proposition available to many more customers throughout the UK as we embark on our major programme of accelerated expansion." Greggs, which is also planning a renewal and expansion programme at its bakeries, is looking to invest around pounds 50m-pounds 60m a year in growing its business.

It announced the plans in a statement, which revealed that sales so far this year are up by 3.8%. Cost inflation is now at its lowest level for five years and the good wheat harvest and lower energy prices are also helping Greggs to offset the increased prices of some ingredients.

Mr McMeikan said: "I am pleased with our sales performance against the background of continued tough high street trading conditions.

"We are committed to helping our customers make their budgets stretch as far as possible and the exceptional value we off combined with the freshness, quality and taste for our products, is a key strength.

"We are on track to deliver our targets for the year, although the final outcome will depend on consumer sentiment and spending over the important Christmas period."

In August, Greggs announced its profits jumped by 7.3% to pounds 16.5m for the six months to June 28 and sales rose by 4.4% to pounds 312m.

CAPTION(S):

BIG PLANS: Ken McMeikan, chief executive of Greggs, is to open 600 new shops SUCCESSFUL BRAND: North East company Greggs will create jobs across the UK