Has Britain hit peak Greggs? Baker suffers summer sales slump
However, the chain's boss said she remains committed to plans to open 140 to 150 net new stores over the course of 2025.
The FTSE 250-listed firm, which flagged a drop in footfall earlier this month, told investors a 'challenging start to 2025' had seen Greggs struggle against 'snow and strong winds in January and unusually hot weather in June'.
Greggs said the weather had a 'material impact on consumer behaviour' and sales, which inched 2.6 per cent higher on a like-for-like basis over the period.
Total sales were up 7 per cent to just over £1billion thanks to new store openings, but the 'phasing of cost headwinds' contributed to a 14.3 per cent fall in pre-tax profits to £63.5million.
Boss Roisin Currie said: 'After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead.
'Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers.
'The outlook for cost inflation is unchanged and we are making great progress in building the supply chain infrastructure that will support the next phase of growth.'
Are even more stores the answer?
Greggs opened 87 new stores over the first half but also shut 56, bringing the total size of its estate to 2,649 shops and keeping it on track for 140 to 150 net new openings over the whole year.
Currie told the PA news agency Greggs can expand to 'significantly more than 3,000' sites across the UK.
Greggs shares were down 5.1 per cent to 1,556.01p in early trading on Tuesday, bringing losses since the start of the year to around 45 per cent.
Recent weakness is a reversal of Greggs' performance over recent years, as the group's profits continued to beat expectations. Its shares had added almost 150 per cent between their Covid-era low and the end of last year.
Robinhood UK lead analyst Dan Lane said: 'Greggs isn't the plucky market darling anymore and today's results show how hard it is to keep up with the boomtime years.
'Slowing sales growth and noticeable profit drops are a real issue but as much as Greggs talks about expansion, that's not a sure-fire way to course correct.'
He added that Greggs' UK footprint 'already serves vast swathes of the country' so more stores 'won't necessarily unlock underserved customer appetites'.
Zoe Gillespie, wealth manager at RBC Brewin Dolphin, said: 'This will do little to address fears the UK has hit "peak Greggs", but the company has been through significant challenges before and come through stronger on the other side.
'Sales are still heading in a positive direction, the store estate is expanding, and the commitment to innovation is delivering popular new products.
'Greggs also has plenty of cash to deploy and drive its investment programme forward.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Rhyl Journal
2 hours ago
- Rhyl Journal
Red Lion pub has closed following dispute with council
The Red Lion has been a popular part of Holywell's High Street down the years. Aside from during the Covid-19 pandemic, when such venues were forced to close for some time, the pub has served the community since around the mid-1700's. But, there was shock and disappointment earlier this month when staff announced it would be closing for good last Sunday (July 27). In a Facebook post, they said: "It's with great sadness to let you all know the Red Lion will be calling last orders for the final time this Sunday, July 27. Thank you to each and every customer that has come through our doors." Punters took to that post to recall the 'good nights' they had shared there and to wish the team well. When contacted to ask why the pub was closing down, the team said they had been in a dispute with Flintshire Council over the upstairs property. After the previous tenant had passed away suddenly, lease holder John Roberts claims the upstairs area of the pub was viewed as his 'second home' by the council. And that, he claims, led to him being charged over £3,500 a month in business rates and council tax. John told us: "This has been going on for the last three years by now, and it's been an absolute joke. "I've asked someone from Flintshire Council to come out and have a look at the property upstairs, as we've had nobody living in it for years, but nobody has been out to see us to check we're telling the truth, instead they just want their money." John added: "How they can call it a second home I don't know, as it's a part of the pub. We stock a lot of stuff up there and we have had to go up there to fetch things all the time, from the freezer and that. "But, I've decided I'm just not going to fight it any more to be honest. I'm not too upset about having to close, I'm more p****d off at the council for the way they've treated the whole situation." In response to the claims made by Mr Roberts, David Barnes, Revenues and Procurement Manager for Flintshire Council, said: "Many public houses, including the Red Lion in Holywell, qualify for full or tapered small business rate relief and/or Retail, Leisure, and Hospitality Rate Relief. These schemes are designed to support small businesses. "Public houses often have mixed use where the domestic part is typically subject to council tax and the non-domestic part is subject to business rates. "The council is unable to comment on the specific circumstances of this case, as it involves individual's council tax details that are subject to data protection and confidentiality requirements. "However, the council will always work constructively with individuals and businesses to assist and support where possible, and we would urge the taxpayer to contact the council on 01352 704848'.
Reuters
2 hours ago
- Reuters
Moderna quarterly sales beat Street estimates on COVID booster sales, cost cuts
Aug 1 (Reuters) - Moderna (MRNA.O), opens new tab topped Wall Street sales expectations and reported a lower-than-expected second-quarter loss on Friday, driven by robust Spring COVID booster demand and aggressive cost cuts. However, its shares fell more than 4% in premarket trading after the company lowered its 2025 sales forecast to $1.5 billion to $2.2 billion, cutting $300 million from the top end, as UK revenue deliveries shifted into early 2026. Moderna said 40% to 50% of that revenue will be recognized in the third quarter of 2025, with the rest expected in the fourth. The Cambridge, Massachusetts-based vaccine maker reported quarterly revenue of $142 million, a 41% drop from last year, but still ahead of analyst estimates of $112.9 million, according to LSEG data. On an adjusted basis, Moderna posted a quarterly loss of $2.13 per share, less than $2.97 a share loss analysts had projected. Moderna finance chief James Mock attributed the results to spring COVID booster shot uptake, which was down 11% year-over-year but higher than anticipated, and $800 million in cost cuts in the first half of 2025. "I don't think analysts thought we could get that much (in costs) out of the business," he said. Mock added that the spring sales boost could signal solid demand for COVID vaccines this autumn. The Spikevax COVID-19 shot delivered $114 million in sales, beating the expected $87 million for the quarter, but a far cry from its 2022 pandemic peak, when the vaccine brought in $18.4 billion. The company did not disclose sales for mRESVIA, its RSV vaccine, saying they were negligible. Analysts had expected $1 million in quarterly sales for that shot. Moderna said it plans to cut operating costs by $400 million in 2025, bringing them down to $5.9 billion to $6.1 billion. It had previously projected cuts of $4.7 billion to $5 billion by 2027. The company on Thursday said it would cut around 10% of its global workforce, shrinking to under 5,000 employees by year's end, as part of its move to trim operating expenses. Mock said the job cuts would affect nearly every function at the company. Moderna is counting on new mRNA products such as its experimental COVID-flu combo shot to offset slumping COVID vaccine sales and a slower-than-hoped rollout of the RSV shot. Moderna, which voluntarily withdrew its COVID-flu combo shot approval application in May, said it is working with regulators to clarify data requirements for resubmission.
South Wales Argus
2 hours ago
- South Wales Argus
Greggs customers disappointed to see sandwich discontinued
For years, hungry customers were able to feed their appetite with a Greggs sandwich – the Mexican Chicken Oval Bite but now they can only opt for its replacement. The sandwich had consisted of spiced chicken and salad topped with chipotle mayonnaise, reports The Sun. The newspaper said the replacement for the popular sandwich is the Sweet & Spicy Chicken Oval Bite. Discontinued UK sweets/chocolates Greggs said the sandwich is 'packed with slices of spicy chicken breast, pineapple chilli sauce, sliced mild Cheddar chilli cheese, crispy onions, spicy mayo and mixed leaves in a seeded roll'. While the replacement is now available on the menu, fans of the Mexican Chicken Oval Bite have shared their disappointment at the sandwich disappearing from Greggs' shelves. On Reddit, someone said it had been their 'go-to sandwich for about 15 years'. Another said: 'Damn these were one of my favourites. Also one of the few sandwiches my daughter would eat!' This Greggs customer said: 'Well there goes my greggs buying. I used to only get the Mexican chicken in one form or other. I don't like too much spice, and they were perfect.' Recommended reading: Another Reddit user offered Greggs fans some hope: 'They've been replaced by the spicy chipotle baguette and They're very similar'. A Greggs spokesperson told Newsquest: 'The Mexican Chicken Oval Bite is taking a well-deserved rest to make room for our brand-new Sweet & Spicy Chicken Oval Bite which has recently landed in shops.' The news of the menu change follows Greggs' exciting holiday giveaway that offered a three-night all-inclusive package holiday at the four-star Iberostar Selection Marbella Coral Beach for the price of the iconic menu item - a sausage roll. The giveaway is now closed.
