Greggs (LSE:GRG) reported a 7.7% increase in total sales during the third quarter of 2026 and announced proposals to restructure its manufacturing operations, which could result in four site closures and around 740 redundancies.
Like-for-like sales at company-managed shops increased 3.4% during the quarter. Greggs said trading was supported by menu development and stable summer weather.
The company now expects a modest improvement in its financial outcome for 2026, while reporting that cost inflation remains within its expectations.
Greggs Targets Up to 110 Net New Shops
Greggs has opened a net 57 new shops during the year to date and continues to expect between 100 and 110 net openings during 2026.
The retailer operates more than 2,700 shops across the UK through company-managed and franchised locations.
Its expansion includes formats such as drive-thru locations, smaller supermarket outlets and Greggs Express installations within franchised sites.
Manufacturing Proposals Could Affect Around 740 Roles
Alongside its trading update, Greggs announced proposals to consolidate its manufacturing network and has begun a consultation process with affected employees.
Under the proposals, four manufacturing sites could close and approximately 740 roles could be made redundant over a period of around two and a half years.
As the proposals remain subject to consultation, the site closures and redundancies have not been presented as final decisions.
Restructuring Expected to Cost Around £60 Million
Greggs estimates that the proposed manufacturing changes would require approximately £60 million of restructuring expenditure.
If implemented, the company expects the programme to generate annual pre-tax operating cost savings of approximately £20 million from 2028 to 2029.
The proposed changes form part of wider investment in Greggs’ supply chain and manufacturing capacity.
New Distribution Centres Support Capacity Expansion
Greggs is investing in new national distribution centres in Derby and Kettering as it expands its logistics infrastructure.
The company said the facilities will incorporate additional storage and automation and are intended to provide supply chain capacity for at least 3,500 shops.
Greggs operates a vertically integrated model incorporating manufacturing and logistics alongside its retail estate, selling bakery products, hot and cold food and beverages.
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