Greggs plans to shut Scottish site as hundreds of jobs set to go
“Shareholders have welcomed the baker’s recipe for trimming fat from its manufacturing operations but at the same time keeping plans for opening new stores intact” – Susannah Streeter, Wealth Club
Greggs has said it plans to shut four plants, including one in Scotland, with the loss of some 740 jobs in total as part of an overhaul of its food manufacturing operations.
The high street bakery business said the proposed changes, which will take place over the next two-and-a-half years, will see it relocate parts of its manufacturing process. It plans to close its manufacturing sites at Pettigrews in Kelso, Enfield Greater London, North Lakes near Penrith in Cumbria, and Seaham, County Durham. It will continue to run distribution operations from Enfield.
The proposals will also impact manufacturing operations at its Treforest site in Wales, but this will continue as a distribution centre for business.
Greggs also said it will reduce the range of products manufactured at its Clydesmill Glasgow and Manchester locations, as well stopping the manufacturing of tinned bread at Gosforth. It said this will consolidate its manufacturing operations, with the firm set to source a small number of products from specialist suppliers.
Greggs retail shops will not be affected by the changes.
The shake-up will cost the firm in the region of £60 million, including disruption costs and redundancy payments. But it said the plans will save it around £20m across the 2028 and 2029 financial years.
News of the changes came as the retail business revealed that sales grew by 7.7 per cent in the three months to September 26, compared with the same period a year earlier. Trading improved across the quarter as the firm benefited from product launches and “more settled weather” in August and September. It said this represented progress in face of “challenging market conditions”, as consumer finances continue to come under pressure.
Greggs is now anticipating a “modestly improved outcome” for 2026.
Like-for-like sales grew by 3.4 per cent across its managed stores, with overall growth buoyed by the opening of new shops.
Greggs said it has opened 95 shops and closed 38 in the year to date, taking its overall estate to 2,796 outlets. It means the company has had 57 net new openings, with predictions it will have between 100 and 110 openings on a net basis by the end of the year. There are also likely to have been 12 “Greggs Express” convenience retailing installations undertaken during 2026.
The group stressed that current cost inflation is “well managed” and likely to stay around 2 per cent for 2026. However, bosses warned that there are “signs of greater inflationary pressures in 2027” as higher energy costs feed through.
The Newcastle-headquartered firm told investors: “Greggs continues to make progress despite challenging market conditions by further evolving its product offer and making the brand even more convenient for a wider range of customers through disciplined estate expansion.
“Cost inflation remains well managed and is expected to be circa 2 per cent on a like-for-like basis in 2026. This has supported performance in 2026, though there are signs of greater inflationary pressures in 2027.
“Our proposals to reshape our manufacturing footprint reflect the evolution of the business and our focus on remaining the customer’s number one choice for value in the market.”
Keishia Quijano at Edinburgh-based consultancy Label Sessions said: “After challenging trading conditions in the last couple of years, Greggs is showing its ability to buck the wider high street trend once again with another resilient update. The bakery chain is keeping costs under control - although that means making tough decisions - and delivering menu innovation that keeps customers coming back, supporting upgraded guidance for 2026.
“The question that continues to hang over the company is whether the UK has reached ‘peak Greggs’ - this quarter suggests not. Growth is no longer coming only from more shops but from giving customers more ways to buy, whether that’s counters inside supermarkets, self-service units on forecourts, or mobile.
“With no further price rises planned this year, the test is winning more visits rather than bigger bills, and Greggs is unusually well equipped for that. Nearly a third of its transactions now run through the app. That gives it a detailed, daily picture of how Britain eats on the go. The next chapter is about what Greggs does with that picture to outsmart the competition.”
Adam Vettese, market analyst at eToro, noted: “Greggs has spent much of the past year answering a single awkward question; has Britain finally had enough sausage rolls? This update, and the jump in the shares at the open, suggests the answer is still no.
“Like-for-like sales accelerating to 3.4 per cent is not a boom. It is, however, the first convincing sign that the brand’s value offer and a more interesting menu are cutting through a tired high street.
“Matcha lattes and chicken rolls will not transform the P&L on their own, but they show Greggs can still refresh itself without abandoning the customers who made it ubiquitous. The profit upgrade matters more than the sales print.”
Susannah Streeter, chief investment strategist at Wealth Club, added: “Shareholders have welcomed the baker’s recipe for trimming fat from its manufacturing operations but at the same time keeping plans for opening new stores intact.
“In a more cost-conscious environment, its value ranges keep enticing hungry customers through the doors, with total sales rising 7.7 per cent over the last three months. It’s not just relying on traditional staples like flaky bakes but is continuing to roll out new innovative offerings like matcha lattes, egg protein pots and grain and green salads to lure in a more health-conscious crowd.”
Comments
Want to join the conversation? Please or to comment on this article.