Greggs, the largest bakery chain in the United Kingdom, has observed a deceleration in sales over recent months, and the CEO has indicated that the company does not plan to introduce any further price hikes this year.
Roisin Currie, the chief executive officer of the company, indicated that the organisation plans to sustain existing rates, as cost inflation is now expected to align with the lower end of the previously projected range of 4% to 5%.
She also mentioned that the weather and the far-right riots that occurred in a number of English cities and towns, including Belfast in Northern Ireland, had an impact on sales during July and August. She indicated that the projection for 2025 appeared to be more advantageous compared to the current year.
In response to the upward pressure from an escalating wage bill, Greggs disclosed in July that it has adjusted the pricing for select items on its menu. The price adjustments encompassed an increment of 5 pence for both sausage rolls and their vegan counterparts. This occurred even though Greggs had previously indicated that it did not plan to implement any further price increases during the year.
Greggs announced on Tuesday that its comparable sales at locations operating for a minimum of one year rose by 5% in the thirteen-week period ending September 28 and by 6.5% year-to-date. Following the news, the company’s shares experienced a decline of 5.3%, positioning it as the most notable loser within the FTSE 250 index.
The grocery store chain has launched its autumn menu, featuring a pumpkin spice doughnut and a pumpkin spice latte, alongside a Mexican bean and spicy cheese flatbread, as well as a baguette offered for breakfast and throughout the day. The current distribution of its new line of over-ice drinks spans 800 stores, with projections indicating an increase to 1,000 locations by year-end.
At the start of this year, Greggs has opened 86 new stores on a net basis, comprising 43 relocations, resulting in a total of 2,559 outlets. The corporation manages over 2,000 units directly, whereas franchisees handle 543 units. The projection indicates that the number of stores to be opened this year will range from 140 to 160.
When enquired about the Labour government’s goals to enhance workers’ rights and ensure more stability regarding their hours and compensation, Currie indicated that the corporation exhibited a lack of concern regarding the issue. Approximately 32,000 individuals are currently employed at Greggs.
During an interview with Reuters, she remarked, “There is nothing in the employment rights bills that raises any concerns for us.” It is essential to prioritise the health of individuals in the workplace through deliberate and systematic efforts.
Greggs is currently developing a new facility in Derby aimed at the manufacturing and distribution of frozen products, with expectations to finalise the lease by year-end. Upon the execution of the lease agreement, the building will undergo outfitting, with an anticipated opening scheduled for the year 2026.