Greggs is considering closing four of its manufacturing sites over a two-and-a-half-year period, putting around 740 roles at risk of redundancy.
In a Q3 trading update published this morning (30 September), the bakery chain revealed it had launched a consultation on the proposed closures which it said were necessary to ensure it continued to meet capacity requirements for future growth in the most cost-effective manner.
Greggs has yet to confirm which locations it is thinking of shuttering – its website states it has 14 manufacturing and distribution sites across the UK. It said as a vertically integrated business, the owning and operating its own manufacturing and logistics network remains a key strength.
“Our immediate priority is to minimise the impact on our people where possible,” said the company. “We will enter into a consultation period shortly to work with trade unions and employee representatives of those affected to refine and develop these proposals.”
Greggs revealed that the proposed manufacturing consolidation would result in cash costs in the region of £60m, comprising around £40m capex together with disruption costs and redundancy payments. It is anticipating an annual saving in pre-tax operating costs of roughly £20m, which would be realised across the 2028 and 2029 financial years.
The company is meanwhile building new national distribution centres in Derby and Kettering to support capacity for its target of 3,500 shops. Construction is said to be progressing well, with the Derby site expected to commence use of frozen storage space and picking activity in the final quarter, alongside commissioning a new sweet product production line.
The Kettering facility will be operational in 2027, Greggs said, with increased automation enabling upstream picking of chilled and ambient goods which will release capacity of its existing radial distribution centres.
In the year to date, the bakery chain has increased its estate by 57 shops to have a total of 2,796 trading locations (comprising 2,157 company-managed shops and 639 franchised units) as of 26 September. Among the new openings were a first supermarket ‘bitesized Greggs’ at Tesco Southwark Superstore and a 50th drive-thru site, in Sunderland.
Greggs said it was expecting between 100 and 110 net new openings during 2026, with the ‘Greggs Express’ self-service concept continuing to be tested in franchised locations and two more planned for this year to join the 10 currently installed.
In terms of trading performance, Greggs delivered 7.7% revenue growth in Q3 2026 whilst like-for-like sales in company-managed stores rose by 3.4% compared to the same period last year. Trading improved across the quarter due to the successful launch of new products and return of the Steak & Stilton Bake, as well as more settled weather in August and September, noted the company. Year-to-date total sales are up 7.4% with LFL sales up 2.6%.
“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,” said the company. “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.”
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