British bakery and fast food chain Greggs said sales growth slowed further in the early weeks of 2025, with 'challenging' weather conditions in January, and as its chief executive warned of a 'tough' year ahead.
Greggs, famous for its sausage rolls, steak bakes, vegan alternatives and sweet treats, said like-for-like sales in company-managed shops rose 1.7% in the first nine weeks of the year, having disappointed with a rise of 2.5% in the Christmas quarter which it blamed on lower consumer confidence.
Those figures compared to growth of 5.5% for 2024 as a whole. Shares in the group are down 25% so far this year.
Tough Market Conditions
"Looking ahead to 2025, the macroeconomic landscape remains tough. Inflation remains elevated, and many of our customers continue to worry about the cost of living," CEO Roisin Currie said in a statement.
January's outcome was hurt by snow and rain, while Greggs said it had seen 'improved trading' in February.
Though official data showed British retail sales rose in January, consumer confidence surveys show households remain in a fairly glum mood, with confidence particularly low among lower-income shoppers.
Despite the tough backdrop, Currie said she was confident of managing inflationary headwinds and delivering another 'year of progress' in 2025 after reporting a 13.2% increase in underlying pretax profit to £189.8 million ($241.1 million) for 2024, on total sales up 11.3% to 2.01 billion pounds.
As well as opening new stores, Greggs' strategy to grow sales is centred on broadening its appeal to existing and new customers through expanding its menu, extending opening hours into the evening, increased delivery capabilities through Just Eat and Uber Eats and building loyalty with the Greggs App.
