Bold claim: Greggs’s profits are slipping as UK shoppers tighten belts, revealing cracks in the high-street bakery success story. But here’s where it gets controversial: can the chain turn the corner by leaning into growth and smarter pricing? And this is the part most people miss: even with a profits dip, the business is broadening its footprint and adapting to changing consumer habits.
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Greggs, the well-known high-street bakery famous for its sausage rolls and steak bakes, has reported a decline in annual pre-tax profits as it grapples with tougher market conditions. For the year ending 27 December, statutory pre-tax profits dropped 17.9% to £167.4 million compared with the previous year. The company also signaled a slowing pace of like-for-like sales growth at the start of the new year.
Over the past year, Greggs has faced pressure from cautious shoppers whose spending power has been squeezed by higher living costs, increased taxes, and rising wage pressures. Some customers have even turned to weight-management treatments, which can affect frequency of visits to quick-service eateries.
Last year, chief executive Roisin Currie asserted that she did not believe Greggs had reached a peak in its growth, noting that the company has historically rebounded from downturns. She emphasized a track record of resilience during challenging periods.
In its latest update, Greggs indicated that easing inflationary pressures could support stronger consumer spending going forward, even as broader grocery price pressures re-emerge and geopolitical tensions threaten to push costs higher in food input markets.
Despite the tough backdrop, Greggs stressed that its retail operation remains resilient and employs more than 33,000 people. The company attributed part of the profit decline to difficult market conditions and an unusually hot stretch of weather that reduced foot traffic and altered shopping behavior.
Currie suggested some of these headwinds might ease in the current year. She stated that, in 2026, a combination of cooling inflation and ongoing demand for convenient, on-the-go meals could help sustain consumer activity.
Looking ahead, Greggs said it began 2026 planning for a challenging year but remained optimistic about growth opportunities. While consumer confidence and disposable income are still under pressure, the brand expects improved conditions to support stronger activity.
In terms of sales and expansion, Greggs reported total annual sales of £2.15 billion, up 6.8% from the previous year, driven by a continued program of new store openings and a strong performance in the delivery segment and evening trade. Net store openings reached 121 in 2025, lifting the footprint to 2,739 locations.
For 2026, Greggs plans around 120 additional openings and maintains ambitions to grow to well over 3,000 UK shops over the longer term. The push to increase late-day traffic remains a key strategy, with nearly three-quarters of stores now staying open past 5pm.
Market reactions among analysts were mixed. Some, like Shore Capital’s Darren Shirley, described the trading environment as lacking standout momentum. Others, such as Aarin Chiekrie of Hargreaves Lansdown, highlighted Greggs’ strategic shifts: expanding store numbers to improve accessibility, tailoring menus to evolving customer tastes, and extending hours to capture more evening customers—the chain’s fastest-growing day-part.
Overall, Greggs continues to navigate a difficult consumer landscape while pursuing growth through store expansion, menu adaptation, and extended hours. Shareholders and observers will be watching whether easing inflation and stronger evening demand can translate into sustained profit improvements in the coming year.
