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Greggs 'in rude health' as its targets 3,500 shops and new locations

2025-11-16 06:24:53 By

Newcastle bakery favourite Greggs is far from “peak Greggs” with plans to expand into new locations amid its current target of 3,500 stores, a senior director has declared.

The Tyneside food-on-the-go champion currently opens four shops every week, and last month topped annual revenues of more than £2bn for the first time ever, a result which led to it sharing a £20.5m bonus amongst staff. However, analysts noted a slowdown in volume growth since the fourth quarter, with some fearing the popular brand may have already peaked.

Now, CFO Richard Hutton has told how Greggs still has much more to give. He said: “We are a long, long way from peak Greggs I can assure you. Fundamentally it’s the strength of the brand and the under penetration in the market. Greggs is one of the strongest brands not just in the UK but when ranked against international brands as well, and that’s a huge asset.

“It’s in rude health and there’s so much more we can go at, in terms of the penetration across the UK, entering these new locations which are new to us but not new to the market, and also into new food and drink areas. Greggs is always looking to bring good value food and drink to more people. We effectively copy food trends so we never run out of ideas and are always looking for what the next thing is.

"As human beings we always want new, interesting stuff and Greggs is here to make that affordable. We are excited about different times of day, different channels and more interesting food. There is much more great stuff in the pipeline so watch this space.”

Mr Hutton, who also champions Greggs’ community initiatives and is a Trustee of the Greggs Foundation, said four shops every week are opened by the company’s but that it is not in danger of seeing its new shops start to cannibalise old shops.

He said: “The reason we feel confident that is not the case in this next phase is that the areas we are expanding into are locations where we are very under penetrated at the moment. The shop opening pipeline is typically areas which are maybe roadside, retail parks, supermarkets and transport locations – often areas you will access by car rather than by foot, like the traditional estate in towns and cities.

“This is a very different occasion we are targeting, which is not neglecting the legacy estate which we have kept healthy by relocation activity. The growth is coming from a part of the market we are very poorly represented and is attractive in terms of the return profile too. Wrapped together, the Greggs offer, with geographical and location specific penetration opportunities, is very clear.”

His comments came in an interview with Panmure Liberum analyst Ben Hunt, who quizzed the Greggs executive on the firm’s strategies to grow evening trading and deliveries through JustEat and Uber Eats, the strength of Greggs’ balance sheet to withstand any future scenarios similar to Covid, and its recent capital expenditure programs to aid the firm’s expansion to 3,500 shops.

The business initially extended its opening hours across a number of shops two years ago, and it has since flexed evening trading times, while also diversifying to offer new hot food products, including pizzas, chicken goujons and made-to-order food, which have also proved popular at lunchtimes.

Mr Hutton said Greggs will see growth in both evening trade and its deliveries, and while he admitted he was a little disappointed with the initial speed of growth, he said Greggs is now in a phase of steady profitable growth and doesn’t expect it to happen at a rapid pace.

He said: “I do have a lot of faith that Greggs can continue to grow across the day and the one ‘day part’ which is massively under represented is the evening. Because we came from the bakery sector we have been known for initially lunchtime and latterly breakfast trade and have a real strength in those areas.

“But we are hugely under represented in the evening market. As a brand, Greggs has 8% market share in food-to-go and post 4 pm it’s 1.7%. That’s not to say that it can necessarily get to the same level as a whole, but I have to believe it can rise from where it is.

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Welsh footfall growth the strongest in the UK despite cooling on January

Retail footfall in Wales increased in February but at a slower rate than January, shows latest research from the Welsh Retail Consortium. Footfall, defined as shoppers entering a store, in February was up 2.% year-on-year (YoY) compared to a 8.5% rise in January. The rise in February was the highest of any nation or region of the UK, followed by the north west of England at 1.9% and London and the west Midlands at 1.8%. For England it rose by just 0.2%, while in Northern Ireland it was down 0.1% and Scotland 0.3%. The biggest fall was in Yorkshire and the Humber, down 3.5%. Shopping centre footfall in Wales YoY decreased by 1.5% in February, down from 8.6% in January. Retail park footfall increased by 2.9% in February YoY, down from 9.8% in January. Footfall in Cardiff decreased by 1.8% (YoY), down from 9.1% in January. Of the core cities of the UK the fall in February in Cardiff was only greater in Liverpool, down 2.5%, Bristol, 5.2%, and Leeds 5.6%. The biggest rise was in Birmingham at 5%. FOOTFALL BY NATION AND REGION GROWTH RANK NATION AND REGION Feb-25 Jan-25 1 Wales 2.7% 8.5% 2 North West England 1.9% 7.7% 3 London 1.8% 6.7% 3 West Midlands 1.8% 10.0% 5 South East England 0.4% 9.4% 6 England 0.2% 7.4% 7 Northern Ireland -0.1% 3.5% 8 Scotland -0.3% 1.0% 9 East of England -0.8% 8.5% 10 North East England -1.0% 6.8% 11 East Midlands -1.3% 6.4% 12 South West England -1.4% 7.9% 13 Yorkshire and the Humber -3.5% 3.3% TOTAL FOOTFALL BY CITY GROWTH RANK CITY Feb-25 Jan-25 1 Birmingham 5.0% 14.3% 2 Manchester 3.9% 10.3% 3 Edinburgh 1.9% 2.8% 4 London 1.8% 6.7% 4 Belfast 0.1% 4.8% 6 Nottingham -0.3% 6.7% 7 Glasgow -1.1% 1.9% 8 Cardiff -1.8% 9.1% 9 Liverpool -2.5% 3.2% 10 Bristol -5.2% 6.2% 11 Leeds -5.6% 1.0% Sara Jones, head of the Welsh Retail Consortium, said:“Shopper footfall across all Welsh retail destinations faltered in February, dipping over 5% compared to the previous month. That said, February still saw healthy year on year growth, the best of the four home nations. “Shopper numbers picked up substantially in the last week of February, no doubt helped by the late half term and start of spring weather, coinciding with the benefits of a St. David’s day uptick. “Confident consumers and buoyant household disposable incomes are critical to the health of the retail industry and all who rely on it, including our colleagues and our wider communities. As we approach the two-year anniversary of the Welsh Government’s retail action plan it will be time to take stock on what more can be achieved to cement the future of the retail industry in Wales. With an onslaught of additional government-mandated costs in the pipeline from April, bold decisions will be needed to help safeguard the sector and to help it flourish rather than falter in the years to come.” On the UK picture Andy Sumpter, retail consultant for Sensormatic Solutions, which carried out the research, said: “After January’s jump-start, retail footfall in February stalled, with retailers seeing a more modest improvement compared to 2024 last month. "While the good news is that shopper counts remained steady, many would have been hoping for a more substantial leap building off a strong start to the year. Retail Parks, consistently one of the top performers in 2024, once again outstripped other retail destinations in February, as the convenience and choice built into their retail offerings again proved popular with customers. " With Easter falling late and well into April this year, this will, undoubtedly, put added pressure on retailers as we head into March. To plug the gap, retailers have an opportunity to create compelling reasons to visit and enhance their offerings with greater convenience and choice, which have been the standout strengths of retail park performance.”

UK shop prices drop as food inflation soars, British Retail Consortium reports

UK shop prices experienced a dip in February, as heavy discounting across the retail sector partially absorbed the sting of elevated grocery costs. The Shop Price Index from the British Retail Consortium (BRC) indicated that overall shop prices decreased by 0.7 per cent year-on-year last month, matching January's decrease, buoyed by a significant 2.1 per cent reduction in non-food prices, as reported by City AM. Helen Dickinson, Chief Executive of the BRC, noted that "Discounting is still widespread in fashion as retailers tried to entice customers against a backdrop of weak demand," reflecting the aggressive tactics adopted to stimulate consumer interest. Such discounting contributed to a 2.6 per cent climb in retail sales during January – significantly surpassing the 12-month average growth of 0.8 per cent. Nevertheless, February's sales flattened out despite continued price cuts, underscoring the "much reported and very concerning long-term decline in the UK high street," according to Sophie Michael, Head of Retail and Wholesale at BDO. In addition, Neil Bellamy, Consumer Insights Director at NIQ GfK, remarked that the cost-of-living crisis, which is "struggling with a cost-of-living crisis that is far from over," continues to affect consumer confidence negatively. Inflation has been pouring into breakfast tables, with food inflation ticking up to 2.1 per cent year-on-year this February following upticks in the prices of staples like butter, cheese, and eggs. Dickinson cautioned that inflation is "likely to rise" throughout the year due to an imminent £5bn surge in expenses for retailers and overarching geopolitical tensions, forecasting a four per cent hike in food prices by year-end. Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, commented: "With many household bills increasing over the next few weeks, shoppers will be looking carefully at their discretionary spend and this may help keep prices lower at non-food retailers. Ofgem has already announced a higher energy cap from April, with prices set to rise by £9.25 monthly due to a spike in wholesale prices." He added, "However, the increase in food inflation is likely to encourage even more shoppers to seek out the savings available from supermarket loyalty schemes."

Manchester Airport to get third Premier Inn hotel as bosses eye new site

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Jollyes continues to sink into the red despite sales surge as it takes on Pets at Home

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Historic Preston Guild festival looks set to continue despite council abolition

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Liverpool confirm 'multi-year' Adidas kit deal as Reds target big revenue hike

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Applied Nutrition seals USA and Holland & Barrett deals as its Coleen Rooney range expands across UK

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DFS upgrades profit expectations as credit deals and new products spur demand

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Poundland considering 'all options' as it struggles and shuts 13 stores

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High Street shops, pubs and restaurants face £1bn tax bill from April

Shops, restaurants and pubs across England are facing an extra £1 billion in taxes when a discount is cut next month, adding to a “tsunami” of rising costs hurtling toward the sector, according to new analysis. Businesses in London will be hit hardest by changes, tax and software firm Ryan found. Firms in the retail, leisure and hospitality sector are facing increased costs in April when a discount on business rates will be reduced from 75% to 40%. The changes were announced in last year’s autumn Budget, with the Government committing to keeping the discount scheme for the next financial year but cutting the level of relief. Each business will still have a maximum discount of £110,000. Ryan’s analysis found that the reduced discount will raise an extra £1.03 billion from firms across England over the 2025-2026 tax year. Nearly a third of the extra revenue will come from businesses in London, who collectively are facing an additional £309.7 million in business rates. This is followed by an extra £157.9 million from businesses in the South East who are facing a bigger bill, and £110.5 million from firms in the North West. Alex Probyn, a property tax expert at Ryan, told the PA news agency that it “comes on top of a tsunami of other rising costs, making it a complex and challenging environment” for businesses to operate in. From April, national insurance contributions will also rise for some businesses, while they will also have to pay employees a higher national living wage. The Government has said extra revenues raised from higher taxes on businesses will help fill a gap in the UK’s public finances and be plugged into things like infrastructure and the public sector. It pledged in the Budget to introduce permanently lower business rates for smaller retail, hospitality and leisure firms from 2026. The Government has also said that some 865,000 employers will not pay any national insurance in the year ahead because of the employment allowance rising from £5,000 to £10,500. But Mr Probyn said the changes will “disproportionately affect small and independent businesses across sectors already struggling”.