Greggs improves trading, plans for restructuring may cut over 700 jobs
(Alliance News) - Greggs PLC on Wednesday said trading improved in recent weeks and proposed a plan to consolidate its manufacturing operations, which may result in over 700 job cuts.
The Newcastle upon Tyne bakery and fast food chain said total sales rose 7.7% in the 13 weeks to September 26, supported by new products launched and more favourable weather. Like-for-like sales in company-managed stores rose 3.4%.
From the start of the year to September 26, total sales rose 7.4%, with like-for-like sales in company-managed shops up 2.6%.
Greggs now expects a "modestly improved outcome" for 2026 due to better trading performance and continued strong cost control. The company previously expected results "broadly in line with 2025".
During the year, the chain said it closed 38 shops, including 20 relocations, and opened 95 new ones. Greggs said initial trading performance of the new stores was strong and reflected the focus on "high-quality locations."
Greggs said it still expects around 100 to 110 shop openings in 2026, plus 12 Greggs Express.
Plans to open two new national distribution centres were progressing well, Greggs said. The Derby centre should become operational in the last quarter, while the one in Kettering is scheduled to open in 2027. The company said overhead costs associated with the centres will increase 2027 expenditures, "before contributing to profitable growth thereafter."
As part of its restructuring plans, Greggs said it was considering closing four manufacturing sites, which may result in a total of 740 roles becoming redundant over a period of two and a half years.
Greggs said the proposals would result in cash costs of some GBP60.0 million, including around GBP40.0 million in capital expenditure and GBP20.0 million in "disruption costs and redundancy payments".
The company said it will enter a consultation period with trade unions and employee representatives shortly.
Greggs said it expects greater inflationary pressures in 2027.
Greggs shares were up 6.8% at 2,002.00 pence on Wednesday morning in London.
By Camilla Borri, Alliance News reporter
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