Greggs has announced the closure of four factories across the UK, including one in Scotland, as part of a major overhaul of its logistics and manufacturing network. The high street bakery chain confirmed the news in a trading update on September 30.
The closures will take place over two and a half years, with a consultation exercise launched to consider proposals for the affected sites. Alongside the closures and relocations, two new distribution centres have been confirmed for Derby and Kettering, which are expected to "increase costs in 2027 before contributing to profitable growth thereafter".
Which Factories Are Closing?
The four factories set to close are located in:
- Pettigrews, Kelso (Scotland)
- North Lakes, near Penrith, Cumbria
- Seaham, County Durham
- Enfield, Greater London (distribution operations will continue from this site)
There will also be a reduction in the range of products manufactured at the firm's sites in Clydesmill, Glasgow, and Manchester. Production of tinned bread at Gosforth will cease.
Will My Local Greggs Be Affected?
Greggs has confirmed that its retail stores will not be affected by the closures. The thousands of outlets across the UK will continue to operate as normal, meaning customers can still buy their favourite sausage rolls and steak bakes.
Job Losses and Reasons for Closure
The closures could result in 740 jobs being made redundant over the next two years. Greggs said in a statement: "We believe such changes, whilst difficult, are necessary to ensure Greggs continues to meet capacity requirements for growth in the years ahead in the most cost-efficient manner."
Consultation periods are expected to begin shortly, with Greggs working with "trade unions and employee representatives of those affected to refine and develop these proposals".
The factory closures are part of a cost-cutting measure following a comprehensive review. The firm expects to spend £60 million on the changes but anticipates £20 million in growth over the 2026 and 2027 financial years. Greggs said: "We have carried out a comprehensive review to determine where our future manufacturing activity should most effectively be located to ensure we can continue to offer the exceptional value that Greggs is famous for."
Despite the closures, Greggs reported sales growth of 7.7 percent in the three months to September 26, compared with the same period a year earlier. Like-for-like sales in company-managed shops rose by 3.4 percent, which the firm attributes to "the successful launch of new products" and "settled weather in August and September". The bakery is also on track to open between 100 and 110 net locations this year, increasing from 2,796 shops to 3,500.
