Greggs tops £2 billion - but warns prices will rise

A national baker founded on Tyneside’s streets has hailed its “significant long-term opportunities” after smashing the £2 billion sales barrier.

Greggs says it shrugged off falling consumer confidence to notch the counter-top record in “another year of good progress”.

However, the Newcastle-founded pasty and sausage roll maker has warned it will be forced to increase prices this year to mitigate rising employment costs.

The move comes after the business – alongside 80 fellow retailers – wrote to Chancellor Rachel Reeves to caution October’s Budget would mean “certain” cost hikes.

Roisin Currie, chief executive, said: “Employment costs will result in further overall cost inflation, although wage increases should provide support to consumers.

“We have demonstrated our ability to mitigate cost inflation in recent years while retaining value leadership, and we are confident we can continue to do so.”

The plan was revealed in a trading update for the year to December 28, which showed total sales had increased 11.3 per cent on the previous 12 months to £2 billion.

Bosses say the progress was aided by the opening of a record 226 new stores and continued demand for its breakfast offer, which features savoury rolls and porridges, as well as pizza box and bundle deals, and a recently introduced over-ice drinks range.

And they say its momentum will be further strengthened by supply chain moves, with a Derby-based frozen product making and distribution hub planned to open in 2026 and a new national distribution centre, in Kettering, Northamptonshire, earmarked for mid-2027.

Roisin added: “2024 was another year of good progress.

"We enter 2025 with a strong pipeline of new shop opportunities, and we continue to broaden our menu and enhance our digital capabilities.

“While lower consumer confidence continues to impact high street footfall and expenditure, our value-for-money offer positions us well to meet the headwinds we expect to see in the year ahead.

“We remain confident in the significant long-term opportunity for growth.”

Greggs began life selling eggs and yeast to North East families from a bicycle in the 1930s.

It now operates from more than 2600 shops, which stretch from the Scottish Highlands to Cornwall and into Northern Ireland.

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