Greggs has announced plans to close four factories with the loss of approximately 740 jobs as part of a major overhaul of its food manufacturing operations. The high street bakery chain said the proposed changes, which will be implemented over the next two-and-a-half years, will see parts of its manufacturing process relocated.
Factory closures and impacted sites
The company intends 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. Distribution operations from Enfield will continue. The proposals will also affect manufacturing operations at its Treforest site in Wales, though this location will remain open as a distribution centre.
Greggs also said it will reduce the range of products manufactured at its Clydesmill Glasgow and Manchester locations, and will stop manufacturing tinned bread at Gosforth. The company said this will consolidate its manufacturing operations, with a small number of products set to be sourced 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 are expected to save approximately £20 million across the 2028 and 2029 financial years.
The announcement came as 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.
Sales performance and outlook
The company said this represented progress in the face of “challenging market conditions”, as consumer finances continue to come under pressure. 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.
