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Greggs has scaled back plans for new store openings this year, but still expects to open nearly 800 more over the long term.

It came as the retailer opened 34 new shops this year, which alongside a new menu, helped to ramp up sales in the first half of the year.

The bakery chain has said it plans to open between 100 and 110 new shops this year, slightly lower than its prior target of 120.

It will also trial 10 new Greggs Express shops, which offer self-service coffee and food.

However, Greggs still plans to open more than 700 extra stores over the 'longer term', which would increase its estate from 2,773 shops to 3,500 as it continues investment in its distribution centres in Derby and Kettering.

Chief executive Roisin Currie said the bakery chain 'remained focused' on its plans to open more shops and launch more convenient ways for people to buy food.

'We remain focused on opening shops in more catchments and introducing convenient ways for customers to pick up Greggs favourites, while broadening and innovating our menu in line with changing tastes and trends,' she said.

'We are making great progress in building the supply chain infrastructure that will support the significant growth opportunities that lie ahead. The Board's expectations for the full-year outcome are unchanged.'

Greggs sales were boosted by 34 new store openings and a new menu

Over half of the company's new store openings in the first half were located in sites such as petrol forecourts, supermarkets, retail parks, hospitals and university campuses.

In its first half, the group also opened its first international travel hub shop in Tenerife South Airport, with new franchise partner Lagardère Travel Retail. It said it planned to open further stores in major transport hubs.

It came as Greggs reported a 7.2 per cent rise in sales to £1.1billion, largely driven by the opening of 34 new stores.

Stripping out the impact of new shops, like-for-like growth at company managed shops was 2.1 per cent, and 1.3 per cent higher at franchised stores.

The retailer’s pre-tax profit jumped by 20 per cent to £76 million for the half-year period.

Greggs said its new menu helped to entice new customers, with new products including a chicken roll which had been a 'standout success', and matcha drinks.

The company said the outlook for cost inflation this year had 'reduced' to 2.2 per cent, but added that 'some uncertainty remains'.

It warned that additional supply-chain capacity is expected to result in second-half profit falling year-on-year, unless the consumer backdrop improves.

Like-for-like sales at company-managed shops increased by 2.1 per cent, with franchised shop sales up 1.3 per cent.

Greggs shares surged 11.54 per cent or 195.00p to 1,885.00p on Wednesday morning, having risen by 20 per cent in the past year.

Chris Beauchamp, chief market analyst at IG said: 'Greggs has rallied to its highest level in a year as it lays out ambitious plans to cement its dominance of the British retail space.

'Amid admittedly soft comparatives, a surge in pre-tax profit suggests that the UK has rediscovered its love for the bakery chain, and crucially the group has been able to find further cost savings to help drive the group forward to its lofty goal of 3,500 outlets.'

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