Will Greggs open more stores?

Yes, Greggs plans to open 800 new branches, aiming for a total of 3,500 stores across the UK.

Why are analysts concerned about Greggs?

Analysts are questioning Greggs' direction due to falling sales and a significant drop in its share price over the past year.

Where will Greggs' new factories be?

Greggs is building new automated production sites in Derby and Kettering, Northamptonshire.

Home / Business and Economy / Greggs Eyes 800 New Stores Amid Sales Dip

Greggs Eyes 800 New Stores Amid Sales Dip

3 Jan

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Summary

Greggs plans 800 new branches, targeting 3,500 total stores.
New factories in Derby and Kettering will support expansion.
Analysts question Greggs' direction amid falling sales and share price.

Greggs Eyes 800 New Stores Amid Sales Dip

Greggs is pushing forward with significant expansion plans, aiming to increase its store count by 800 to reach a total of 3,500 branches across the UK. To support this growth, the company is investing in new production facilities, with an automated site set to open in Derby and another in Kettering by 2027. Its estimated capital expenditure for 2025 was £300 million.

Despite these ambitious plans, Greggs faces headwinds. Sales have experienced a downturn, and its share price has fallen by approximately 40% over the past year, making it the most-shorted stock in the UK. Analysts have voiced concerns, with some suggesting the brand is at a crossroads and questioning the sustainability of its expansion strategy, especially given the saturation of its market.

Founded in 1939, Greggs has transformed from a local bakery into a national chain, pivoting to a food-to-go model in the 2010s. While it achieved £1 billion in sales in 2018 and doubled turnover to £2 billion by 2024, recent challenges, including the impact of warmer weather on pastry sales and increased pricing, have led to investor uncertainty.