Greggs Heads to Spain as Sales Rise Despite Cost Pressures
British bakery giant Greggs is taking its famous sausage rolls overseas, announcing plans to open a new store in Tenerife South Airport as part of a bold international test.
The Newcastle-based bakery chain, best known for its pastries, sandwiches and sweet treats, says the move into one of Spain’s busiest travel hubs will help it gauge demand from millions of British and international travellers.
The airport opening forms part of Greggs’ wider growth plans, revealed in its latest trading update covering the 19 weeks to May 9.
Strong Sales in a Tough Market
Despite ongoing economic pressures, Greggs reported a 7.5% increase in total sales, reaching £800 million in what the company described as a “challenging” market.
Sales at company-managed stores also edged higher, with like-for-like growth of 2.5%.
The bakery credited strong customer demand for newer menu additions, including its recently launched chicken roll. A new iced matcha drinks range has also proved popular, helping attract younger customers into stores.
Tenerife Expansion Signals International Ambition
The opening at Tenerife South Airport marks a significant milestone for Greggs, which began more than 80 years ago delivering eggs and yeast to North East households by bicycle.
Partnering with travel retail operator Lagardère Travel Retail, Greggs says the airport location will allow it to test how its products perform in an international travel environment.
Chief executive Roisin Currie described the move as an “excellent opportunity” to showcase the brand to a global audience.
“Tenerife South Airport is a destination for millions of UK and international passengers each year and represents an excellent opportunity to test our offering in an international travel hub,” she said.
Cost Concerns Remain
While sales performance has improved, Greggs warned that global instability could continue to affect costs.
The company said it remains cautious about geopolitical uncertainty, particularly the ongoing conflict in the Middle East, which could drive higher food inflation through the rest of 2026 and into 2027.
Currie said Greggs is keeping a close eye on developments, adding that value remains central to the company’s appeal during uncertain times.
“In this uncertain environment, our value offer remains highly attractive,” she said.
More Growth on the Horizon
Beyond its overseas ambitions, Greggs is continuing to invest heavily in its UK infrastructure.
Testing is ongoing at a frozen food manufacturing and distribution hub in Derby, which is expected to open later this year. Meanwhile, work is progressing on a major national distribution centre in Kettering, scheduled to launch in 2027.
For a brand built on affordable bakes and grab-and-go convenience, Greggs’ move into Tenerife could be the first sign that Britain’s high street favourite has bigger international ambitions in mind.