Greggs, Britain’s largest bakery chain, has confirmed it will not increase prices again this year, even as the company reports a sales slowdown during the third quarter.
CEO Roisin Currie announced that there are “no plans to increase prices this year,” noting that costs are stabilizing faster than expected. Earlier this year, inflation, largely driven by rising wages, had led to price rises, with the cost of Greggs’ signature sausage roll rising by 5p in July. Currie suggested that future price increases could be influenced by statutory minimum wage increases expected next year.
Despite easing cost pressures, Greggs experienced a drop in sales over the summer, leading to a 5.8% drop in its share price to £29.42. Yet the share has risen more than 20% in the past year. Currie attributed weaker sales in July and August to a combination of bad weather, economic uncertainty and unrest in several cities, which damaged some stores. However, sales recovered in September as people returned to work, and Greggs expects further growth with the launch of its autumn menu, featuring seasonal favorites such as pumpkin spice lattes and a new pumpkin spice doughnut.
Greggs continues to expand its footprint, with more than 2,500 outlets nationwide, and plans to open 160 net new stores this year. The bakery chain is focused on growing its presence in supermarkets, petrol stations and travel hubs, and has also expanded its delivery partnerships with Uber Eats and Just Eat. Analysts remain optimistic about Greggs’ long-term growth, with some predicting a 10% increase in pre-tax profits this year.