Greggs proclaims plans to close 4 UK factories that might value 740 jobs | Greggs

Greggs has introduced plans to shut 4 of its factories, in a transfer that might end in 740 job losses over the subsequent two and a half years.

The bakery chain stated it was consulting on the closures, which might initially value £60m when together with disruption prices and redundancy funds however then may create £20m of financial savings every year by 2028.

The proposed cuts come as Greggs reported stronger gross sales progress in its most up-to-date quarter at 7.7%, up from 7.2% within the first half of the 12 months. The firm stated the closures, “whereas tough, are essential” to make sure it could actually develop within the “most cost-efficient method”.

It stated: “Our instant precedence is to minimise the impression on our folks the place doable. We will enter right into a session interval shortly to work with commerce unions and worker representatives of these affected to refine and develop these proposals.”

The closures may have an effect on factories in Enfield, north London, Penrith in Cumbria, Kelso in Roxburghshire, Scotland, and Seaham in County Durham. It will proceed to run distribution operations from Enfield. The proposals may additionally have an effect on manufacturing operations at its Treforest web site in Wales, however this may proceed as a distribution centre for corporate affairs.

Greggs has grown to change into Britain’s greatest fast-food corporate affairs because of the recognition of its low-cost pastries, truffles and sizzling drinks. It has expanded quickly this 12 months, with 57 internet new openings, as a part of its plan to open between 100 and 110 retailers by the top of 2026.

Iced matcha lattes and an even bigger vary of salads and rooster rolls additionally helped to spice up gross sales over the summer time, the corporate stated. However, Greggs advised traders on Wednesday that whereas stronger gross sales had “modestly improved” its outlook for this 12 months, “there are indicators of larger inflationary pressures in 2027”.

Alex Pugh, an analyst on the capital allocation dealer Freetrade, stated that whereas the bakery chain “has survived a heatwave and a value of residing disaster … a £1.50 sausage roll may very well be an actual take a look at of loyalty”.

Earlier this 12 months the corporate raised the cost of its bestseller sausage roll by 5p, taking it to £1.35 in most retailers. It additionally elevated the value of a latte by 10p, taking it to £2.25, because it regarded for methods to fight rising wage, vitality and packaging prices.

Shares in Greggs rose by 7.3% in early buying and selling on Wednesday morning, making it the very best performer throughout the mid-cap FTSE 250 index and taking its year-to-date rise to 17%. Greggs, which is headquartered in Newcastle, employs greater than 33,000 folks across the UK.