Greggs improves outlook while proposing four factory closures

Greggs ($GRG) reported a 7.7% increase in third-quarter sales, including 3.4% like-for-like growth in company-managed shops, and modestly improved its full-year outlook. Alongside that trading update, it began consultation on plans to close four manufacturing sites over approximately two and a half years, potentially affecting around 740 roles as production moves into its reshaped network.

The proposed changes would require about £60 million of cash expenditure, including £40 million of capital investment, and are expected to generate £20 million of annual pre-tax cash operating-cost savings. Those benefits would emerge across 2028 and 2029 rather than immediately. New distribution facilities will temporarily increase overhead in 2027. The closures and associated job losses are proposals subject to consultation, not completed actions, and Greggs did not publish a quantified replacement profit forecast.

Sources:

• Greggs RNS via Investegate
• London Stock Exchange release record