Greggs has no Plans for More Price Rises as Sales Slow
The boss of Britain’s biggest bakery chain, Greggs, has said it has no plans for further price rises this year, as it reported a slowdown in sales in recent months. Its chief executive, Roisin Currie, said the company planned to hold its prices, as cost inflation – led by wage increases – is now expected to come in at the bottom end of the expected 4% to 5% range.
She said sales in July and August had been affected by the weather and the far-right riots across numerous cities and towns in England, and in Belfast in Northern Ireland, but the outlook for 2025 was better than for this year.
“July and August were slightly softer for a mix of reasons,” Currie said. “We had some damp weather, the riots we had to contend with and also general uncertainty in the economy which was a factor of the election and the new government.”
Currie added that a couple of Greggs outlets had been damaged by the violent disturbances but had quickly reopened. She said trading had strengthened in September as people had returned to work and Greggs continued to benefit from customers seeking to save money.
In July, Greggs revealed it had increased prices for some of its menu items after coming under pressure from a soaring wage bill, including an extra 5p on sausage rolls and their vegan equivalent, despite having said earlier in the year that it had no plans for further rises.
Greggs said on Tuesday that like-for-like sales at outlets open at least a year rose by 5% in the 13 weeks to 28 September, and by 6.5% in the year to date. Its shares dropped by more than 5%, making it one of the biggest fallers on the FTSE 250.
The grocery chain has launched its autumn menu, featuring an all-day breakfast baguette and a pumpkin spice doughnut.
So far this year, Greggs has opened 86 new shops on a net basis, giving it a total of 2,559 outlets. It plans to open between 140 and 160 shops this year.
Currie said the company, which employs about 32,000 people, was relaxed about the Labour government’s plans to give workers more rights and greater certainty over their hours and pay. “Our quest is to always be an employer of choice,” she added. “Until we know the detail we don’t know exactly what our plans will be but we should be able to take into account any changes.”