Greggs Plans Four Factory Closures Despite Sales Growth
Greggs has announced plans to close four manufacturing sites and cut approximately 740 jobs over the next two and a half years, as the company moves to consolidate its production network despite reporting sales growth in the third quarter of 2026.
The proposed restructuring follows a review of Greggs’ in-house manufacturing operations and forms part of its wider investment in production and distribution capacity. The changes are expected to involve around GBP60m in cash costs, including approximately GBP40m in capital expenditure, alongside redundancy payments and disruption costs.
Once completed, Greggs expects the program to generate annual pre-tax operating cost savings of around GBP20m, anticipated across the 2028 and 2029 financial years.
The consolidation comes as the company continues to invest in larger production and logistics facilities. New National Distribution Centres in Derby and Kettering are expected to provide capacity to support at least 3,500 shops. The Derby facility is set to begin frozen storage and picking operations in the final quarter of 2026, alongside the commissioning of a new sweet product production line. The Kettering site is expected to become operational in 2027, with increased levels of automation.
The restructuring plans were announced alongside positive third-quarter trading results. Greggs reported total sales growth of 7.7% for the 13 weeks ended September 26, while company-managed shop like-for-like sales increased by 3.4% compared with the same period in 2025.
Year-to-date total sales increased by 7.4%, with like-for-like sales up 2.6%. Greggs attributed the improved trading performance partly to continued menu innovation and more settled weather conditions during August and September.
Recent launches included the Steak & Stilton Bake, seasonal hot drinks, sandwiches and sweet products, while the company also reported increased demand for protein-led options and functional drinks.
Greggs has opened 95 shops and closed 38 so far this year, including 20 relocations, resulting in 57 net new openings. The company operated 2,796 shops as of September 26 and continues to expect between 100 and 110 net new openings during 2026.
Cost inflation expectations remain at approximately 2% on a like-for-like basis for 2026. Following stronger trading in recent months and continued cost control, Greggs said it now expects a modestly improved outcome for the full year.
