Greggs has increased the price of its sausage roll by 5p to £1.35 and a latte by 10p to £2.25, citing rising costs for wages, energy, and packaging. The bakery chain described the increases as “targeted” and said it has no immediate plans for further price rises.
The UK’s largest bakery chain reported a slowdown in sales growth, with like-for-like sales at company-managed stores rising just 2.9% in the three months to 27 December, driven largely by price increases. Chief executive Roisin Currie said the market has been “very tough, challenging” and noted that subdued consumer confidence and extreme weather had impacted the food-to-go sector.
Total annual sales rose 6.8% to £2.15bn, supported by the opening of 207 new outlets and the closure or relocation of 86. However, Greggs expects annual profits to decline by about £17m to £173m for the year to 27 December. The company also warned that profits are not expected to increase in the coming year as it plans to open 120 new stores, fewer than earlier targets.
Currie said households’ disposable income remains under pressure, with consumers choosing to save rather than spend. She expressed cautious optimism that inflation is easing, which could provide some relief to consumers who have become “fatigued” with rising prices over the past few years.
