Greggs reports improved trading following heat-affected July
Greggs has revealed its sales rose in recent months but it blamed unusually hot July weather and a tough consumer backdrop for a slowdown in growth.
The high street bakery chain, with 2,675 shops in the UK, has continued to expand its estate across the country.
It reported a 6.1 per cent increase in sales over the third quarter of 2025, compared with the same period a year ago.
On a like-for-like basis, which strips out the impact of new shop openings, sales growth across company-managed shops slowed to 1.5 per cent year on year.
It also marks a slowdown from the 2.6 per cent like-for-like growth recorded over the first half of the year.
Unusually hot weather held back sales in July as shoppers made the most of the sunny conditions, but trading got on the front foot again in August and September, Greggs told investors.
The bakery chain highlighted the expansion of its menu, including high-protein options like egg pots and protein shakes, and seasonal items such as its pumpkin spice latte and toffee fudge muffin.
It has also continued to open new shops recently in Tesco and Sainsbury’s as part of a partnership with the supermarket chains, as well as relocating smaller shops to better locations.
It said: “In the year to date we have opened 130 new shops and closed 73 shops (including 39 relocations), resulting in 57 net new openings and a total of 2,675 shops trading at 27 September 2025 (comprising 2,096 company-managed shops and 579 franchised units).
“Openings in the third quarter included further supermarket locations in partnership with Tesco and Sainsburys and the relocation of traditional high street stores that will benefit from additional space and facilities to support further growth.
"For the year as a whole, we now expect around 120 net new shop openings, slightly lower than our previous estimate, reflecting the timing of opportunities.
"Our pipeline remains strong into 2026 as we extend access to Greggs in under-penetrated catchments whilst relocating smaller existing shops to better locations."
Greggs said investment in supply chain capacity is progressing well, supporting its estate’s growth plans.
The statement added: “The testing of automation capabilities at our new frozen product manufacturing and logistics facility in Derby is proceeding in line with plan, with the site on track to open in 2026.
“The construction phase for our new chilled and ambient National Distribution Centre in Kettering is nearing completion, as planned, and the focus will move to fitting out the facility ahead of bringing it into operation in 2027.”
Commenting on outlook, Greggs said: “Greggs continues to make progress despite challenging market conditions, evolving its offer further and making the brand more convenient for a wider range of customers through disciplined estate expansion.
"Our two new distribution centres in Derby and Kettering are on track to open in 2026 and 2027 respectively and will support the next phase of this growth.
"Operational costs have been well managed and the outlook for cost inflation in 2025 is marginally improved.
"The board’s expectation for the full year outcome is unchanged and we remain clear on the strategic opportunities that lie ahead.”
Greggs was founded by businessman John Gregg in 1939, starting as a delivery service for eggs and yeast in Newcastle before opening its first shop in 1951 in Gosforth.