Greggs PLC
LSE:GRG
Greggs PLC
In the bustling streets of the UK, Greggs PLC has established itself as an iconic purveyor of bakery delights, blending tradition with modern convenience. Founded in 1939, this company has evolved from a small bakery into a national staple, offering an array of products from savory pastries to sandwiches and sweet treats. With over 2,000 locations, Greggs has strategically positioned itself in high foot-traffic areas like city centers, transport hubs, and retail parks, capitalizing on the impulse purchasing habits of busy commuters and shoppers. The company combines its core bakery operations with an innovative menu that adapts to changing consumer tastes, including vegan and healthier option lines, supporting its broad customer base.
Fueling its success, Greggs employs a vertically integrated supply chain, owning and operating its production and distribution centers. This control allows Greggs to maintain quality and consistency across its offerings while keeping costs manageable. By producing goods in-house, they can better navigate market fluctuations and supplier dependencies. Furthermore, Greggs operates a successful subscription-based model known as the Greggs App, integrating mobile technology to enhance customer engagement and loyalty. Through strategic site selections, innovative menu offerings, and a well-managed supply chain, Greggs not only captures the hearts of customers but also secures its share of the bustling on-the-go food market.
In the bustling streets of the UK, Greggs PLC has established itself as an iconic purveyor of bakery delights, blending tradition with modern convenience. Founded in 1939, this company has evolved from a small bakery into a national staple, offering an array of products from savory pastries to sandwiches and sweet treats. With over 2,000 locations, Greggs has strategically positioned itself in high foot-traffic areas like city centers, transport hubs, and retail parks, capitalizing on the impulse purchasing habits of busy commuters and shoppers. The company combines its core bakery operations with an innovative menu that adapts to changing consumer tastes, including vegan and healthier option lines, supporting its broad customer base.
Fueling its success, Greggs employs a vertically integrated supply chain, owning and operating its production and distribution centers. This control allows Greggs to maintain quality and consistency across its offerings while keeping costs manageable. By producing goods in-house, they can better navigate market fluctuations and supplier dependencies. Furthermore, Greggs operates a successful subscription-based model known as the Greggs App, integrating mobile technology to enhance customer engagement and loyalty. Through strategic site selections, innovative menu offerings, and a well-managed supply chain, Greggs not only captures the hearts of customers but also secures its share of the bustling on-the-go food market.
Sales Growth: Total sales rose 7% year-on-year, with like-for-like company-managed shop sales up 2.6% and franchise shops up 4.8%, despite tough market conditions.
Profit Down: Operating profit declined by 7.1% to £70.4 million and pretax profit fell 14.3% to £63.5 million, mainly due to cost inflation and lower like-for-like volumes.
Weather Impact: Hot weather in June and July suppressed customer volumes, which management said had a significant negative effect on sales.
Dividend Maintained: Interim dividend held at 19p, consistent with Greggs' progressive dividend policy.
Store Expansion: 87 new shops (27 relocations) opened so far this year, on track for 140–150 net new openings in 2025.
Innovation & Channels: Continued product innovation, digital investments, and a major new Tesco grocery partnership were highlighted as strategic growth initiatives.
Cost Outlook: Cost inflation guidance for 2025 remains unchanged at about 6% like-for-like; input costs are mostly hedged for the remainder of the year.
Market Share: Greggs reported holding or slightly gaining market share in the food-to-go segment despite the weak consumer environment.
