Construction jobs to gain from bakery expansion

Affordable bakery chain Greggs plans to expand its business after reporting an increase in profits during the downturn.

In August, Greggs reported a pre-tax profit of £16.5m for the six months to June 2009. This represents an increase of 7.3%.

The bakery's expansion drive bodes well for construction jobs, with as many as 50-60 new stores planned for 2010 and at least 70 new shops to be opened every year from 2011 onwards. This will involve between £50m and £60m per year in capital expenditure.

The group currently has 1,400 shops in the UK and told BBC News that it wanted to expand in areas where the business was “currently under-represented or [had] no presence at all".

"Currently more than 50% of the UK population do not have a Greggs nearby," chief executive Ken McMeikan said.

"We also see the continued opportunity to expand into locations where consumers work and travel such as transport hubs and industrial and retail parks, in addition to our more traditional presence on high streets," a spokesperson for the firm added. 

The bakery chain told BBC News that its financial position remained strong in the first 9 or 10 months of the financial year, although admitted that sales growth had slowed in recent weeks to 0.2%.