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What does Greggs' restructuring plan include?

Greggs has announced a plan that could affect 740 jobs as it looks to simplify its production network in the United Kingdom. The company has proposed closing its North Lakes site in Cumbria, Pettigrews Kelso in Scotland, Seaham in County Durham and Enfield in Greater London. Distribution operations at Enfield are expected to continue.

The plan will also affect production at the Treforest site in Wales, although the location will remain in operation as a distribution centre. The company said store operations will not be affected by the proposed changes and added that the process is expected to be rolled out gradually over the next two and a half years. Consultation with staff is due to begin shortly, and Greggs stressed that no final decision has yet been made.

What do the savings target and sales figures show?

The company expects the restructuring to deliver around £20 million in savings in the 2028 and 2029 financial years. However, the transformation is expected to cost about £60 million, including disruption to operations and redundancy payments.

Operational figures, meanwhile, point to a positive picture. Greggs said like-for-like sales in managed shops rose by 3.4%, while total sales growth for the three months ended 26 September was 7.7%. Despite tough market conditions and pressure on consumer budgets, the company has opened 95 new shops this year, closed 38 and lifted its total store count to 2,796.

What changes are planned on the production line?

The restructuring is not limited to closing some sites. Greggs plans to shift part of its production elsewhere and increase the use of external suppliers for some products:

  • The range of products made at the Glasgow Clydesmill and Manchester sites will be reduced.
  • Production of boxed bread at the Gosforth site will stop.
  • Some products will be sourced from specialist suppliers.

Sarah Woolley, general secretary of the BFAWU, the Bakers, Food and Allied Workers Union, said the announcement creates significant uncertainty for workers, their families and the local communities affected. Greggs chief executive Roisin Currie said the aim is to make the production and logistics network more efficient so it can adapt to changing customer expectations. The company, which employs 33,000 people in the UK, said most of its workforce is based in stores.

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