Gail’s on track to open 40 new stores in current financial year

Gail’s is on track to open 40 new locations in its current financial period as the bakery chain edges closer to a target of 300 shops across the UK.

The news came as part of the firm’s latest full-year accounts, filed on Companies House by parent company Grain Topco Limited, which revealed Gail’s revenue hit £219.8m for the year to 28 February 2025. This represents a 23% increase on the £179m generated the year prior.

Adjusted group EBITDA, which includes wholesale division The Bread Factory, grew by almost a fifth (19.7%) to £53.6m in FY25. This was led by the opening of new space and the continued appeal of its offer.

However, increases in staff costs and utilities resulted in its operating margin falling from 9.5% to 9.2% and its gross profit margin down from 38.8% to 38.2%. Loss before tax widened from £7.4m to £7.8m in FY25.

“We are pleased to have delivered strong year-on-year growth,” commented a Gail’s spokesperson. ”This performance is underpinned by the increasing demand for high-quality, nutrient dense food, and by the support of the communities we serve. We will continue to build on this momentum by growing with purpose and remaining committed to improving access to good food.”

Expansion at pace

Gail’s opened 36 new shops during the period including its first southwest location, in Bristol – it has since added two more in the city plus other sites in Bath, Salisbury, and Marlborough. “We intend to continue this wider national growth in the year ahead,” said the company.

This puts it on track to reach the target outlined by Gail’s MD Nick Ayerst during MCA’s Innovation Conference in October where he said the firm had “ambitions to get to 300 bakeries from the 180-odd it is today”.

Gail’s, which was named Bakery Retailer of the Year 2025 at the Baking Industry Awards, is also expanding in the travel sector, opening at London train stations and most recently at Gatwick’s South Terminal. Its products continue to sell successfully at Waitrose stores and online.

The brand maintains a focus on sustainable bakes, having launched The Wheat Project initiative earlier this year to champion bread made from wheat that supports biodiversity and restores soil health. Included within the core key performance indicators is the company’s commitment to a 100% increase in usage of regenerative flour by February 2026. It reported a 178% year-on-year increase in loaves made with regenerative flour and is aiming to be sending 70% of its waste to recycling or composting facilities by the end of this year (up from 60% in 2024).

The group’s retail business was once again its fastest growing and most profitable division, but it also saw another rise in wholesale revenue, which went from £83.7m to £96.4m during the period. Investments in production capabilities were made in the year with more lines moving into its new second central bakery in Milton Keynes.

Trading as The Bread Factory, the company’s wholesale division operates three other bakery manufacturing sites in Hendon, northwest London (which contains a dedicated gluten free bakery unit); St Albans; and Manchester, where it is to relocate to a larger factory next year.

Dan Barrett was internally promoted to MD of The Bread Factory earlier this year, assuming oversight of grocery and foodservice supply for brands including Gail’s, Bertinet, and The Flour Station.