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Greggs shuts 56 stores amid declining profits
Greggs announced the closure of more than 50 stores in 2025 due to a challenging market.
Greggs has closed 56 stores in 2025 following a tough market environment.
Greggs closes stores amid a challenging market
Greggs has closed 56 stores in the first half of 2025, citing a challenging market. This closure number is a 61 percent increase compared to last year. The bakery also opened just 31 new shops, down 40 percent from the previous year, indicating a shift in its expansion strategy. Despite a 7 percent rise in sales to just over £1 billion, profits fell 14 percent to £63.5 million due to a decline in foot traffic and other external factors. Chief executive Roisin Currie emphasized a focus on disciplined expansion and innovation to navigate these challenges. The company also announced a dividend of 19p, but its shares have dropped 40 percent since January.
Key Takeaways
"Greggs has long been a reliable read on the UK high street."
Mark Crouch's remark emphasizes Greggs' importance as a market indicator.
"After a challenging start to 2025, we remain clear on the strategic opportunities that lie ahead."
CEO Roisin Currie expresses confidence in the company's future despite current difficulties.
"The macro backdrop should, in theory, be supportive. That it isn’t showing up in Greggs’ numbers is a red flag."
Mark Crouch points out the troubling disconnect between economic indicators and Greggs' performance.
"We are making great progress in building the supply chain infrastructure that will support the next phase of growth."
Currie highlights Greggs' focus on developing its supply chain as part of its growth strategy.
Greggs' store closures reflect broader struggles in the UK retail landscape, where consumer spending appears to be faltering. While the increase in total sales suggests a resilient brand, the significant drop in profit and expansion signals underlying issues. Mark Crouch's comments highlight a potential cooling in consumer interest, which raises concerns about the overall health of high street retail. The company's future growth plans and investments in supply chain infrastructure will be crucial in ensuring that it can adapt to these market pressures.
Highlights
- Greggs' closures signal deeper troubles on the high street.
- A challenging market is reshaping Greggs' expansion plans.
- Consumer appetite may be waning across retail, not just for sausage rolls.
- Greggs is adapting its strategy amid significant market changes.
Greggs faces significant market risks
Greggs' store closures and declining profits suggest challenges that could impact further growth. Consumer spending patterns raise concerns for a brand that depends on high street traffic.
The coming months will reveal whether Greggs can recover from this downturn.
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