Greggs has announced plans to close four factories and cut about 740 jobs as part of an overhaul of its food manufacturing operations. The high street bakery chain said the proposed changes, which will take place over the next two-and-a-half years, will see it relocate parts of its manufacturing process.
Factory closures and site changes
The company plans to close its manufacturing sites at Enfield in Greater London, North Lakes near Penrith in Cumbria, Pettigrews in Kelso, Scotland, and Seaham in County Durham. It will continue to run distribution operations from Enfield.
The proposals will also impact manufacturing operations at its Treforest site in Wales, but this will continue as a distribution centre for the business. Greggs also said it will reduce the range of products manufactured at its Clydesmill Glasgow and Manchester locations, as well as stopping the manufacturing of tinned bread at Gosforth.
This will consolidate its manufacturing operations, with the firm set to source a small number of products from specialist suppliers. Greggs retail shops will not be affected by the changes.
Costs and savings
The shake-up will cost the firm around £60 million, including disruption costs and redundancy payments. However, the plans will save it around £20 million across the 2028 and 2029 financial years.
The firm said it will shortly start a consultation process with affected workers and their union representatives, but stressed that “no final decisions have been made”. Greggs employs around 33,000 people across the UK, with the vast majority of these in stores.
Chief executive comment
Chief executive Roisin Currie said: “To continue building a successful business for the future, we must keep evolving alongside changing customer expectations. We want to ensure Greggs remains a strong, sustainable business for decades to come.
“Greggs manufacturing and logistics network remains a key strength of the business, and these proposals are intended to strengthen our manufacturing network, improve efficiency and ensure we remain well placed for the future while continuing to deliver the quality, value and service our customers expect.”
Sales growth and trading
The retail business revealed that sales grew by 7.7% in the three months to September 26, compared with the same period a year earlier. Trading improved across the quarter as Greggs benefited from product launches and “more settled weather” in August and September.
It said this represented progress in the face of “challenging market conditions”, as consumer finances continue to come under pressure. The company said positive trading and continued cost control means it expects a “modestly improved outcome” for 2026.
Like-for-like sales grew by 3.4% across its managed stores, with overall growth buoyed by the opening of new shops. Greggs said it has opened 95 new shops and closed 38 in the year to date, taking its overall estate to 2,796 shops.
This means the company has had 57 net new openings, with predictions it will have between 100 and 110 shops on a net basis by the end of the year. The retailer stressed that current cost inflation is “well managed” and likely to stay around 2% for 2026.
However, bosses warned that there are “signs of greater inflationary pressures in 2027” as higher energy costs feed through. Shares in the company were up 6.5% at 1,997p, striking their highest level for around two months.
Union response
Sarah Woolley, general secretary of the Bakers, Food and Allied Workers Union (BFAWU), said: “The BFAWU is deeply concerned by today’s announcement from Greggs, which places hundreds of workers and their livelihoods at risk as part of proposed changes to the company’s manufacturing network.
“Our immediate priority is our members, their jobs, their families and the communities that could be affected by these proposals. Greggs is clear in its own announcement that the business continues to perform strongly, that more customers are choosing Greggs than ever before, and that it is investing significantly to support further growth.
“Against that backdrop, our members will understandably be asking why their jobs and livelihoods should now be put at risk in the name of efficiency and future progression. The workers affected by these proposals have played a huge part in getting Greggs to where it is today. They cannot simply be dropped like stones as the company moves on to its next phase of growth.”
