Greggs has reported a 2.9% drop in like for like sales over the Christmas and New Year trading period, made up of the five weeks ending 5 January 2013.

For the full year ending 29 December 2012, like for like sales were down 2.7%. Total sales grew by 4.8%.

Greggs opened 121 new shops in 2012 - a net increase of 100. It currently has 1,671 shops. Just under half of the new shops were opened in locations away from high streets. Greggs also completed 118 shop refurbishments.

It also announced plans to refit up to 300 shops this year, open 80 and close 30.

CEO Ken McMeikan, who is set to leave Greggs for foodservice giant Brakes soon, said Greggs performance over Christmas had been “resilient” but predicted the pressure on the high street to continue in the year ahead.

“We expect that the tough trading environment will continue during 2013, with consumers remaining cautious and inflationary cost pressure on a number of key commodities,” said McMeikan.

“However, having built strong foundations in 2012 for our multi-channel approach, we are well placed to drive further sales growth in the year ahead. We anticipate that we will report full year results broadly in line with expectations when we make our preliminary announcement on 13 March 2013.”