BAKERY chain Greggs became the latest casualty of the consumer slowdown yesterday.

The Newcastle baker, which has 1,312 outlets trading under the Greggs and Bakers Oven brands, said sales in recent weeks had dipped as shoppers continued to avoid the high street.

But managing director Sir Michael Darrington said plans to create 350 jobs by investing £5m in stores over the next five years would go ahead.

Greggs, which has shops in most of the region's high streets, last month revealed plans to open about 35 outlets in industrial estates and near call centres across the region.

Yesterday, Sir Michael said: "We are taking this period as being a bumpy ride while things are bad across the board.

"We are still keen to expand both on high streets and elsewhere."

Sir Michael said rising energy costs had added to the "more challenging sales environment", but he looked to a positive end to the year - helped by record profits of £15.6m in the first half.