Greggs, the UK’s largest bakery chain, has confirmed it will not raise prices again this year, even as it reports a slowdown in sales during its third quarter.
CEO Roisin Currie announced that there are “no plans to put up prices for this year,” noting that costs are stabilising faster than anticipated. Earlier in the year, inflation driven largely by rising wages had prompted price increases, with the cost of Greggs’ signature sausage roll rising by 5p in July. Currie suggested that future price rises might be influenced by statutory minimum wage increases expected next year.
Despite easing cost pressures, Greggs experienced a sales dip over the summer, leading to a 5.8% fall in its share price, down to £29.42. Still, the stock has gained over 20% in the past year. Currie attributed the weaker sales in July and August to a combination of poor weather, economic uncertainty, and unrest in several cities that damaged a few stores. However, sales rebounded in September as people returned to work, and Greggs anticipates further growth with the launch of its autumn menu, featuring seasonal favourites like pumpkin spice lattes and a new pumpkin spice doughnut.
Greggs continues to expand its footprint, with over 2,500 outlets nationwide and plans to open up to 160 net new shops this year. The bakery chain is focusing on increasing its presence in supermarkets, petrol stations, and travel hubs, and it has also expanded its delivery partnerships with Uber Eats and Just Eat. Analysts remain optimistic about Greggs’ long-term growth, with some forecasting a 10% increase in pre-tax profits for the year.
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Greggs rules out further price hikes despite slower sales in third quarter