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Daily Mail
an hour ago
- Business
- Daily Mail
Britain has not reached 'peak Greggs', says bakery chain boss amid fears fat jabs could hit sales
Britain has not reached 'peak Greggs', the boss of the bakery chain insisted yesterday, amid fears Ozempic could suppress appetite for its food. Chief executive Roisin Currie said she has faith in plans to expand to 3,000 shops over the next few years as there are still plenty of areas where it does not have a presence. 'I absolutely don't believe we have reached peak Greggs,' Currie said, adding the business would expand into retail parks and supermarkets. The comments came as Greggs said footfall at its 2,649 shops was hit by 'unusually hot weather' in June, dragging profits down by 14.3 per cent to £63.5million for the first six months of the year. The heatwaves deterred shoppers from buying hot pastries, a spokesman said. Currie said the company has a 'watching brief' on how fat jabs are changing what people buy on-the-go. She said: 'We have to make sure that if you are on one of these drugs, you can still shop at Greggs.' The group has expanded its ranges to include healthier options, the spokesman added.
Daily Mail
9 hours ago
- Business
- Daily Mail
Has Britain hit peak Greggs? Baker suffers summer sales slump
Greggs has blamed hot weather and weak consumer confidence after the iconic bakery chain revealed a sharp fall in profits in the first half of this year. However, the chain's boss said she remains committed to plans to open 140 to 150 net new stores over the course of 2025. The FTSE 250-listed firm, which flagged a drop in footfall earlier this month, told investors a 'challenging start to 2025' had seen Greggs struggle against 'snow and strong winds in January and unusually hot weather in June'. Greggs said the weather had a 'material impact on consumer behaviour' and sales, which inched 2.6 per cent higher on a like-for-like basis over the period. Total sales were up 7 per cent to just over £1billion thanks to new store openings, but the 'phasing of cost headwinds' contributed to a 14.3 per cent fall in pre-tax profits to £63.5million. Boss Roisin Currie said: 'After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead. 'Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers. 'The outlook for cost inflation is unchanged and we are making great progress in building the supply chain infrastructure that will support the next phase of growth.' Are even more stores the answer? Greggs opened 87 new stores over the first half but also shut 56, bringing the total size of its estate to 2,649 shops and keeping it on track for 140 to 150 net new openings over the whole year. Currie told the PA news agency Greggs can expand to 'significantly more than 3,000' sites across the UK. Greggs shares were down 5.1 per cent to 1,556.01p in early trading on Tuesday, bringing losses since the start of the year to around 45 per cent. Recent weakness is a reversal of Greggs' performance over recent years, as the group's profits continued to beat expectations. Its shares had added almost 150 per cent between their Covid-era low and the end of last year. Robinhood UK lead analyst Dan Lane said: 'Greggs isn't the plucky market darling anymore and today's results show how hard it is to keep up with the boomtime years. 'Slowing sales growth and noticeable profit drops are a real issue but as much as Greggs talks about expansion, that's not a sure-fire way to course correct.' He added that Greggs' UK footprint 'already serves vast swathes of the country' so more stores 'won't necessarily unlock underserved customer appetites'. Zoe Gillespie, wealth manager at RBC Brewin Dolphin, said: 'This will do little to address fears the UK has hit "peak Greggs", but the company has been through significant challenges before and come through stronger on the other side. 'Sales are still heading in a positive direction, the store estate is expanding, and the commitment to innovation is delivering popular new products. 'Greggs also has plenty of cash to deploy and drive its investment programme forward.'
Telegraph
9 hours ago
- Business
- Telegraph
Greggs to target customers on weight-loss drugs
Greggs is to target customers on weight-loss drugs by rolling out smaller portions and protein-rich alternatives as it battles a slowdown in sales. Roisin Currie, the chief executive, said there was 'no doubt' that the injections were changing 'what and how' people eat, and that the bakery chain was looking at adapting its range to suit these customers. It came as shares in Greggs plunged to their lowest level since the pandemic after it said weaker demand for its sausage rolls and other baked goods dealt a £10m blow to profits. Ms Currie said: 'If anyone is on a GLP-1 [weight-loss drug], we know they still need to eat, but what they need to eat starts to change and the portions that they start to eat are changing. 'That's really important for us and making sure that we have got a variety of protein-led options in our range, and also making sure that we've got some of the snack products that customers are looking for if they are on any of the GLP-1 drugs.'
Reuters
10 hours ago
- Business
- Reuters
Britain has not hit peak Greggs, CEO says
LONDON, July 29 (Reuters) - British baker and fast food chain Greggs (GRG.L), opens new tab is keeping its foot on the pedal in an expansion drive, despite a slowdown in sales growth that dragged down first-half profit by 14%, its boss said on Tuesday. Greggs, known for sausage rolls, steak bakes, vegan alternatives and sweet treats, has more stores than McDonald's (MCD.N), opens new tab in Britain and opened a net 31 new stores over its first half to June 28, taking the total to 2,649. It said it was on track to open 140 to 150 new shops in 2025, saw an opportunity for "significantly more" than 3,000 shops over the longer term and ultimately saw scope for more than 4,500. However, like-for-like sales growth slowed to 2.6% in the first half versus 5.5% in 2024, which Greggs partly blamed on June's heatwave, prompting some investors to reportedly call for expansion to be slowed. "I completely do not believe we've reached peak Greggs," CEO Roisin Currie told Reuters in an interview. "There are still significant parts of the UK where you cannot access a Greggs," she said, adding that it was underrepresented in retail parks, supermarkets, roadside and transport locations. Shares in Greggs were down 4.5%, extending 2025 losses to 44%. Despite the slump, Currie, CEO since 2022, said she did not believe her job was under threat. "I'm not responsible for the share price," she said. "My job is to make sure that we continue to take every opportunity and make strategic progress." Greggs made a pretax profit of 63.5 million pounds ($84.8 million) in the six months to June 28, on total sales up 7.0% at 1.03 billion pounds, boosted by new store openings. This month, Greggs warned full year profit "could be modestly below" 2024 levels after underlying sales growth slowed in a June heatwave that boosted demand for cold drinks but reduced overall shopper numbers. Greggs' growth is also being supported by the expansion of its menu, longer opening hours into the evening, increased delivery sales through Just Eat and Uber Eats and loyalty building through the Greggs App. ($1=0.7492 pounds)
Scottish Sun
10 hours ago
- Business
- Scottish Sun
Greggs shuts 56 stores amid ‘challenging start' to the year – has your local closed?
The bakery chain is also planning to open 150 stores in 2025 ON A ROLL Greggs shuts 56 stores amid 'challenging start' to the year – has your local closed? GREGGS has shut more than 50 stores already this year as it reported a "challenging start" to 2025. The high-street bakery chain said its profits had been hit by winter storms and summer heatwaves, as well as shoppers being cautious over their spending. 1 Greggs has closed 56 stores so far this year as it reported a 'challenging start' to 2025 Credit: Getty Greggs has closed 56 stores in the first half of the year, leaving it with 2,649 shops at the end of June. Some of the closures reported this year - 27 of which it said were "relocations" - include its branch in Ilford, East London, as well as Lancashire, Cambridge, and Buckinghamshire. However, the full list of its 56 closures is yet to be revealed. The chain has also opened 87 new stores this year, with bosses saying they hope to open between 140 and 150 new branches in 2025. The retail business has plans to expand to 'significantly more than 3,000' sites across the UK. Greggs' boss said that many consumers are 'saving rather than spending' due to continued pressure on their household finances. The Newcastle-based business revealed that pre-tax profits fell by 14.3% to £63.5 million for the half-year to June 28, compared to a year earlier. It said the first half of 2025 was impacted by 'challenging market footfall, more weather disruption than in 2024' and increased costs. Earlier this month, Greggs told shareholders that soaring temperatures in June dragged on demand for its hot food over the month. It added this week that heavy snow and strong winds in January also hit demand. Greggs' boss Roisin Currie said it has experienced 'challenging' conditions on the high street this year. Greggs Steak & Cheese roll appeal 'If you look at all the consumer confidence data, it remains low and points to cautious and fragile customers,' she said. 'They are saving rather than spending and that means they aren't out and about on the high street as much. 'Customers are worried about their finances and being very careful about their spending, but we do think Greggs is in a positive position because of our strong value offer.' Sales still grew by 7% to £1.03billion for the half-year, Greggs added, as it was buoyed by new stores. It said like-for-like sales across company-managed stores grew 2.6%, with 4.8% growth across franchise sites. Greggs confirmed closures High Road, Ilford, East London - closed in June - closed in June Fitzroy Street, Cambridge - closed on March 31 - closed on March 31 Lytham, Lancashire - closed on March 28 - closed on March 28 Foleshill, Coventry - closed on January 4 - closed on January 4 Amersham, Buckinghamshire - closed on January 18 Ms Currie added: 'After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead. 'Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers. 'The outlook for cost inflation is unchanged and we are making great progress in building the supply chain infrastructure that will support the next phase of growth.' She also said that more than 30% of Greggs' products were now "healthy" options, adding that the business was continuing to work with the government and food standards agencies to help tackle the obesity. She gave examples of its turmeric shot, its range of salads, and its flatbreads as some of its healthy options. Asked about the impact of fat jabs like Ozempic on Greggs' profits, she said she didn't think it was a "significant factor". However, Ms Currie said that there was "no doubt" fat loss jabs were changing some people's portion sizes and the type of food they eat, adding that this trend was informing Greggs' snack offering. Mark Crouch, market analyst at EToro, said: 'Greggs has long been a reliable read on the UK high street. 'Its sudden stumble suggests consumers may not just be cooling on sausage rolls, but that appetite across the high street may be waning more broadly. 'With inflation easing and real wages recovering, the macro backdrop should, in theory, be supportive. That it isn't showing up in Greggs' numbers is a red flag.' Greggs shares were 2.2% lower in early trading on Tuesday. Meanwhile, Greggs launched a shake-up to its menus last week for summer, with the new line-up now available in stores nationwide. A Chipotle Chicken Baguette and Flatbread and a Sweet & Spicy Chicken Oval Bite are among the new items on offer. It has also unveiled a new three-part breakfast deal, which allows customers to pair their breakfast roll or baguette with a hot drink and a choice of side – hash browns, a fruit pot or creamy yoghurt – starting from £3.95 for the roll combo and £5.10 for a baguette. 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