The UK’s biggest food-to-go brand says the first half of the year was impacted by ‘challenging market footfall, more weather disruption than in 2024, and the phasing of cost headwinds’.
Total first-half sales for the 26 weeks ended 28 June were up 7%, with company-managed shop sales up 2.6% and franchised shop sales up 4.8% on a like-for-like basis.
Operating profit, however, was down 7.1% for the period to £70.4m, while profit before tax fell 14.3% to £63.5m.
Greggs opened 87 new shops in the first half with 56 closures, including 27 relocations, resulting in 31 net openings over the period, growing the estate to 2,649 sites total.
The group says it remains on track to achieve 140 to 150 net new shop openings in 2025, with openings are typically weighted to the second half of the year.
Over the longer term, it adds that it continues to see clear opportunity for its estate to breach the 3,000 site mark.
“After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead,” says Roisin Currie CBE, Greggs chief executive.
‘Bitesize Greggs’
In the second half of 2025 Greggs will trial a new format called ‘Bitesize Greggs’, which will aim to improve frequency of purchase by opening up locations that do not have space for a full-service Greggs store.
These sites will have a narrower range but offer core products and will be tested in locations such as railway stations and retail parks where there is unmet demand for Greggs.
Meanwhile, trials of in-store kiosk ordering have recently commenced in six shops, targeting labour efficiency and like-for-like growth.
Additionally, Greggs will bolster its omnichannel presence in September by extending availability of its frozen ‘Bake at Home’ range through a new relationship with Tesco.
Evening remains the fastest growing daypart of the Greggs operation, with sales at company-managed shops up 9.3% (H1 2024: 8.4%), driven by strong demand in higher-footfall locations
Sales through delivery channels also climbed slightly, representing 6.8% of company-managed shop sales in the first half (H1 2024: 6.7%).
The Greggs App was scanned in 25.7% of company-managed shop transactions (H1 2024: 18.3%), with customers who engage with the app shopping more frequently than previously.
“Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers,” Currie continues.
“The outlook for cost inflation is unchanged and we are making great progress in building the supply chain infrastructure that will support the next phase of growth.”
Currie adds that the expectations of the Greggs board for the full year are consistent with the guidance provided in its last trading update on 2 July, which anticipated that, in light of the current trading conditions, full year operating profit could be modestly below that achieved in 2024.
Greggs reported a pre-tax profit of £203.9m in 2024 with total sales surpassing £2bn for the first time.