Greggs, the prominent high street bakery chain celebrated for its iconic sausage rolls and steak bakes, has expressed optimism that "easing inflationary pressures" will invigorate stronger consumer spending, following the disclosure of a significant slump in annual profits. The company, which employs over 33,000 individuals across the United Kingdom, emphasised its resilience in navigating a "challenging market" characterised by cautious shoppers, escalating cost-of-living burdens, heightened tax obligations, rising labour expenses, and the increasing prevalence of weight-loss treatments.
Financial Performance and Market Challenges
In its latest financial report, Greggs revealed that statutory pre-tax profits plummeted by 17.9% to £167.4 million for the year ending December 27, compared to the previous year. This decline was attributed partly to the difficult market environment and a "spell of particularly hot weather" that adversely impacted high street footfall, deterring potential customers from visiting physical stores.
Sales Growth and Expansion Strategy
Despite the profit downturn, Greggs achieved a total sales increase of 6.8%, reaching £2.15 billion over the past year. This growth was bolstered by a robust store opening programme, with 121 net new locations added in 2025, expanding the retail estate to 2,739 shops by year-end. The company has ambitious plans for further expansion, targeting approximately 120 additional openings in the current year and aiming to grow to "significantly more than 3,000 UK shops over the longer term."
Sales performance was further supported by the expansion of its delivery services and a notable rise in evening trade, catering to the evolving demands of modern consumers. In the first nine weeks of 2026, like-for-like sales across managed shops grew by 1.6%, with total sales rising 6.3% due to ongoing store openings.
Leadership Insights and Future Outlook
Roisin Currie, the chief executive of Greggs, provided a forward-looking perspective, indicating that some of the prevailing challenges may diminish in the coming months. She stated, "Looking into 2026, easing inflationary pressures should provide some support to consumer spending, and demand for convenient food-on-the-go continues to underpin the market." This sentiment reflects the company's confidence in a gradual recovery as economic conditions improve.
The bakery chain remains steadfast in its commitment to growth and adaptation, leveraging its extensive network and popular product offerings to maintain a competitive edge. While the past year presented hurdles, Greggs' strategic initiatives and optimistic outlook suggest a potential rebound as inflationary trends moderate and consumer confidence strengthens.
