Greggs, the Newcastle-based bakery chain with over 1600 shops, has said it's H1 sales are up 4.5% overall and 2.3% on a LFL basis, despite the BRC saying that footfall in UK High Streets is down 7%.

The lack of footfall did hit the Q2 sales, which were down 3.5% on a LFL basis, but profits have suffered as a result, being down 4.5% in H1.

Greggs has a "Lunch for Less" promotion running with filled baguettes starting at £1, in response to the challenging market conditions.

During H1 Greggs opened 39 new shops and closed six, making a net increase of 33 shops giving  a total of 1,604 shops at 30 June 2012. They intend a net increase of 90 shops during the FY and refurbishing up to 120 old stores.

Shares in Greggs closed last night at 509.5p valuing the firm at £515 million.