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.