Greggs Faces Profit Decline Amid Economic Challenges
Greggs, the popular bakery chain, has reported a significant drop in statutory pre-tax profits for the year ending 27 December 2025. Profits fell by 17.9 per cent to £167.4 million, attributed to a challenging market environment and cautious consumer spending patterns. Chief executive Roisin Currie highlighted the tough economic backdrop but expressed optimism that easing inflationary pressures could boost demand for food-on-the-go in the coming year.
Sales Growth and Store Expansion Strategy
Despite the profit slump, total sales for Greggs increased by 6.8 per cent to £2.15 billion. This growth was supported by the opening of 121 net new stores in 2025, expanding the company's estate to 2,739 locations across the UK. Looking ahead, Greggs plans to open approximately 120 new stores in 2026, with a long-term goal of significantly exceeding 3,000 shops nationwide.
Cost Inflation and Consumer Sentiment
The company noted that cost inflation has slowed from nearly six per cent last year to around three per cent, providing some relief. However, shopper sentiment remains cautious, reflecting broader economic uncertainties. Greggs is focusing on growth in its delivery business and evening trade to mitigate these challenges and drive future revenue.
In summary, while Greggs navigates a difficult market with declining profits, its aggressive store expansion and strategic initiatives aim to position the chain for sustained growth in the competitive retail sector.
