Greggs to close four factories with 740 jobs at risk

Greggs is proposing to close four of its manufacturing sites, a move that could see around 740 roles made redundant over the next two and a half years, the bakery chain announced today.

The sites earmarked for closure are in Enfield, North Lakes, Pettigrews and Seaham, the company said. Distribution operations at Enfield would continue unchanged.

Greggs said the proposals, which are subject to consultation, would carry cash costs of around £60m, made up of capital expenditure of about £40m together with disruption costs and redundancy payments. The company expects the changes to deliver an annual cash saving in pre-tax operating costs of around £20m, which it anticipates will be realised across the 2028 and 2029 financial years.

The announcement came alongside the group’s third-quarter trading update. Greggs said it had launched a consultation exercise today and would work with trade unions and employee representatives of those affected to refine and develop the proposals. It said its immediate priority was to minimise the impact on its people where possible.

Six manufacturing sites would remain

If the changes go ahead, Greggs would run its manufacturing operations across six sites: Clydesmill, Gosforth, Balliol, Leeds, Manchester and Derby.

Some manufacturing and packing activities would move between sites. Tinned bread would no longer be made at Gosforth, and the range of products made at Clydesmill and Manchester would be reduced, although manufacturing would continue at both. The proposals would also affect manufacturing at Treforest in Wales, which would continue to operate as a distribution centre.

Greggs said the plans followed a comprehensive review of where its future manufacturing activity should be located, and that its retail shop estate would not be affected.

The company said it is a vertically integrated business and that owning and operating its own manufacturing and logistics network remains a key strength. It said its investment in additional capacity to serve at least 3,500 shops would enable further growth and create more jobs.

In its interim results for the first half of 2026, published in July, Greggs said its new National Distribution Centre in Derby would be fully operational by the end of this year, including its first production line on the site, with a second centre in Kettering planned to open in 2027.

Roisin Currie, chief executive of Greggs, said: “Greggs is a strong and growing business, and we continue to invest significantly in our future.

“To continue building a successful business for the future, we must keep evolving alongside changing customer expectations. We want to ensure Greggs remains a strong, sustainable business for decades to come.

“Greggs manufacturing and logistics network remains a key strength of the business, and these proposals are intended to strengthen our manufacturing network, improve efficiency and ensure we remain well placed for the future while continuing to deliver the quality, value and service our customers expect.”

Third-quarter trading

Total sales rose 7.7 per cent in the 13 weeks to 26 September compared with the same period last year, Greggs said, while like-for-like sales in company-managed shops increased by 3.4 per cent. The company said trading improved across the quarter, helped by new product launches and more settled weather in August and September.

Over the first 39 weeks of the year, total sales were up 7.4 per cent and like-for-like sales were up 2.6 per cent, according to the update.

Greggs, which employs 33,000 people, has grown its estate from 2,181 shops in 2021 to 2,796 at 26 September. It has opened 95 shops and closed 38 so far this year, including 20 relocations, and continues to expect around 100 to 110 net new openings in 2026. In May it announced that it would open its first shop outside the UK, at Tenerife South Airport.

The company said it expects like-for-like cost inflation of around 2 per cent in 2026, but that there are signs of greater inflationary pressures in 2027. Greggs raised prices on selected items in October 2025, citing higher employment costs.

Greggs said its two new distribution centres would increase costs in 2027 before contributing to profitable growth thereafter. It added that improved trading in recent months and continued strong cost control now led it to expect a “modestly improved outcome” for 2026.

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