Greggs has announced plans to close four factories, resulting in the loss of approximately 740 jobs, as part of a major restructuring of its food manufacturing operations. The high street bakery chain said the proposed changes, which will be implemented over the next two and a half years, will involve relocating parts of its manufacturing process.
Factory closures and site changes
The company intends to shut its manufacturing sites in Enfield, Greater London; North Lakes near Penrith, Cumbria; Pettigrews in Kelso, Scotland; and Seaham, County Durham. Distribution operations at Enfield will continue. The proposals will also impact manufacturing at its Treforest site in Wales, though it will remain a distribution centre.
Greggs also said it will reduce the range of products manufactured at its Clydesmill in Glasgow and Manchester locations, and will stop manufacturing tinned bread at Gosforth. The company said this will consolidate its manufacturing operations, with a small number of products to be sourced from specialist suppliers.
Costs and savings
The restructuring is expected to cost the firm around £60 million, including disruption costs and redundancy payments. However, the company said the plans will save approximately £20 million across the 2028 and 2029 financial years. Greggs stressed that it will shortly begin a consultation process with affected workers and their union representatives, and that “no final decisions have been made.”
Greggs employs around 33,000 people across the UK, with the vast majority working in stores. Chief executive Roisin Currie said: “To continue building a successful business for the future, we must keep evolving alongside changing customer expectations. We want to ensure Greggs remains a strong, sustainable business for decades to come. Greggs manufacturing and logistics network remains a key strength of the business, and these proposals are intended to strengthen our manufacturing network, improve efficiency and ensure we remain well placed for the future while continuing to deliver the quality, value and service our customers expect.”
Sales growth and outlook
The announcement came as Greggs revealed that sales grew by 7.7% in the three months to September 26, compared with the same period a year earlier. Trading improved across the quarter, benefiting from product launches and “more settled weather” in August and September. The company said this represented progress in the face of “challenging market conditions,” as consumer finances continue to come under pressure.
Greggs said positive trading and continued cost control mean it expects a “modestly improved outcome” for 2026. Like-for-like sales grew by 3.4% across its managed stores, with overall growth buoyed by new shop openings. The company has opened 95 new shops and closed 38 in the year to date, taking its overall estate to 2,796 shops. This results in 57 net new openings, with predictions of between 100 and 110 net new shops by the end of the year.
The retailer stressed that current cost inflation is “well managed” and likely to stay around 2% for 2026. However, bosses warned of “signs of greater inflationary pressures in 2027” as higher energy costs feed through. Shares in the company were up 6.5% at 1,997p, hitting their highest level in around two months.
