The upmarket bakery chain Gail's has unveiled ambitious plans to significantly expand its footprint across England, targeting the opening of 40 new stores by February 2026.
Strategic Expansion Beyond London
This latest growth drive continues a period of rapid nationwide expansion for the brand. Following the successful opening of 36 new sites in the last financial year, Gail's is now strategically focusing on locations outside of the capital. This move indicates a deliberate push to capture market share across a broader swathe of the country.
Financial Performance: Sales Boom and Investment Costs
The expansion is fuelled by impressive financial results. In the year to February 2025, the company saw its sales surge by approximately 20 per cent to £278 million. This substantial revenue growth underscores strong consumer demand for the brand's premium bakery offerings.
However, this period of aggressive growth has come at a cost. Despite the soaring sales, Gail's reported that its pre-tax losses widened to £7.8 million. The company attributes this to significant investment in its new store portfolio and higher staff costs associated with its expansion.
Retail Arm Leads Profitable Growth
Within the group's operations, the core retail business—its chain of bakeries—has been identified as the faster-growing and more profitable segment. This is a notable achievement given the fiercely competitive nature of the UK food and coffee shop market. The success of this division provides a solid foundation for the planned store openings.
The announcement, made on Monday 1st December 2025, sets the stage for a transformative period for Gail's. The next 15 months will be crucial as the company executes its expansion strategy, aiming to convert its strong sales momentum into a more robust bottom-line performance.
