Greggs: Heatwave hits sales at bakery chain

While like-for-like sales rose 2.6 per cent overall in the six months to June 28, it said growth slowed in June as “high temperatures impacted consumer purchasing patterns”.

“Like-for-like sales in June were impacted as very high temperatures affected the UK, increasing demand for cold drinks but reducing our overall footfall,” it added.

Greggs said it now expects that annual operating profits could be “modestly” lower year on year.

The UK has seen temperatures soar since late June, with the country experiencing its hottest day of the year so far on Tuesday, with temperatures exceeding 34C.

The Met Office confirmed that 34.7C was recorded at St James’s Park in central London on Tuesday afternoon, beating a 34.4C reading recorded in Writtle, Essex earlier in the day.

Greggs said half-year results are set to show lower operating profits for the first six months as it came up against strong trading from a year earlier.

“Whilst acknowledging that comparative like-for-like sales are less demanding in the second half of the year, in light of the current trading conditions the board now anticipates that the full-year operating profit could be modestly below that achieved in 2024,” the group said.

The update said: “Our shop opening activity continued to bring the Greggs offer to more customers. In the first half of 2025 we opened 87 new shops and closed 56 shops, leaving a total of 2,649 shops trading as at 28 June (comprising 2,085 company-managed shops and 564 franchised units).

“We remain confident in achieving 140 to 150 net openings for the full year.

“Refurbishment activity has been biased to the first half of 2025, with 108 refits being completed in H1 (the first half of the year) and around 50 more planned for the second half of the year.”

The statement added: “The company will publish its 2025 interim results on 29 July 2025.

“The board expects first half operating profit to be lower than H1 (the first half of) 2024, reflecting the stronger comparative trading performance in H1 2024 and the phasing of refurbishments and cost recovery initiatives across the current year.

“For the full year, our cost inflation outlook remains unchanged and planned cost mitigation measures are expected to enhance second half performance.”

Earlier this year, CEO Roisin Currie said it is part of the company’s strategy to open larger stores, shutting some smaller high street stores down as a result.

She said the group’s expanded range of products, click and collect and delivery service means some of its traditional shops are not fit for purpose.

Ms Currie told the PA news agency that there was also a “significant” cost caused by thefts in some areas, driving the company to launch security initiatives, which also include body-worn cameras.

Greggs was founded by Newcastle businessman John Gregg in the 1950s, when he opened Greggs of Gosforth.

The business has grown rapidly over the last 20 years and specialises in savoury products such as baked goods, sausage rolls, sandwiches and sweet items including doughnuts and vanilla slices.

Julie Palmer, Partner at Begbies Traynor, said: "Greggs has built a huge and loyal following, but it appears even the nation’s favourite sausage roll maker can lose its appeal when the mercury rises.

"This morning's trading update confirmed that the early summer heatwave took the edge off its sales. It appears that just as a heatwave can bring customers to pub gardens, it has the reverse effect on hot, baked goods.”