Greggs has issued a warning that the increasing cost of employment will lead to price hikes across its product range, citing “lower consumer confidence” towards the end of last year as a factor impacting sales. The bakery chain stated that “employment costs will result in further overall cost inflation, although wage increases should provide support to consumers”.
Last year, Greggs was among over 70 businesses that penned a letter to Chancellor Rachel Reeves, cautioning that the changes announced in the October Budget would inevitably lead to price increases. The London-listed company added on Thursday: “Greggs has demonstrated its ability to mitigate cost inflation in recent years whilst retaining its value leadership, and we are confident we can continue to do so.
It comes as Greggs’ fourth quarter sales grew 2.5% as it pointed to a ” This comes as Greggs reported a 2.5% growth in sales for the fourth quarter, despite facing a “more challenging market backdrop” in the second half of the year.
(Image: PA Wire/PA Images)
The results for the quarter ending December indicate that Greggs achieved £2 billion in annual revenue for the first time ever in 2024, marking an 11.3 per cent increase compared to 2023. However, sales, including popular items like sausage rolls and Festive Bakes over the Christmas period, fell short of the 5 per cent growth seen in the previous quarter.
Chief executive Roisin Currie noted that lower consumer confidence “continues to impact high-street footfall and expenditure”.
However, she added optimistically, “Our value-for-money offer and the quality of our freshly prepared food and drink position us well to meet the headwinds we expect to see in the year ahead, and we remain confident in the significant long-term opportunity for growth.”
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