Greggs serves up Christmas sales surge

LONDON (Reuters) - Baker Greggs Wednesday reported a 5.3 percent rise in underlying sales in the four weeks to January 3 as Christmas shoppers flocked to buy its low-price savouries and cakes.

The rise in underlying sales marks an acceleration from the 3.8 percent increase in like-for-like sales the firm reported for the 15 weeks to December 6.

"I am pleased with our Christmas trading performance, particularly given the current economic environment and that we were building on strong like-for-like sales in the same period last year," Chief Executive Ken McMeikan said in a statement.

"I expect to report 2008 results in line with expectations when we make our preliminary announcement on Tuesday, 10 March 2009."

The update from Greggs, which runs around 1,400 shops throughout the country, comes amid signs of mixed trading for Britain's retailers over the key Christmas period.

Marks & Spencer, the country's biggest clothing retailer, reported its worst quarterly sales performance for over a decade, while pizza takeway chain Domino's Pizza said it would beat profit expectations after a strong Christmas.

(Reporting by Mark Potter; Editing by Erica Billingham)