Have you visited a Poundbakery commercial property yet? If you have no idea what I am talking about, you soon will as they are expanding all over the North of the UK and are the cheapest pastry commercial property around.
The news is good news to us as consumers, but not so good for the likes of Greggs and Cooplands Bakery as Poundbakery are offering similar products at considerably cheaper prices.
The chain which currently has 37 commercial properties in cities such as Bolton, Chester, Halifax, Oldham and Warrington offers pastry products like sandwiches, sausage rolls, pies, slices, donuts, cookies and loaves of bread all priced at an easy to remember one pound. They also have two for one promotions available, so at the moment you could get two meat and potato pies for just £1 – not a bad price to spend during an office dinner break. As well as their own freshly made products, they also offer a variety of drinks and crisps.
Speaking of the potential for the retail commercial properties to flourish, Sandy Birnie Chairman of STB Holdings (the parent company for Poundbakery), said: “There is a significant opportunity for our retail format Poundbakery and ample capacity in the market to allow it to flourish.”
However Greggs remains unfazed by the new competition, as Ken McMeikan Chief Executive of Greggs stated: “I think it is good competition. The bakery industry thrives on healthy competition and we need to be innovative and learn from each other.
“So, if anything, I don’t see it as unhealthy competition because it makes us look hard at our own business and ask whether there is anything else we can do.
“It makes us look at what they’re doing and we cannot lose our quality but we have to try and offer competitive promotions. If they are offering something similar to us but for cheaper, then in these tough times, people will look to make their money go as far as possible and we have to look to do something about it.”
Have you tried a sausage roll or cheese and onion pasty from Poundbakery? Do you think the likes of Gregg’s should be worried about a rival bakery offering similar products at substantially lower prices? Share your views on our Facebook page.
