Greggs, the beloved British bakery chain known for its sausage rolls and steak bakes, has sparked public concern after confirming the closure of 56 stores across the UK during the first half of 2025.
The news follows a turbulent period marked by fluctuating consumer demand, adverse weather conditions, and broader retail pressures. With falling profits and reduced store openings, questions have arisen about the company’s long-term strategy.
Is this a sign of decline or a calculated move towards future growth? This blog explores Greggs’ recent decisions, the reasons behind them, and what it means for the future of this high street staple.
Why Has Greggs Closed 56 Stores Across the UK in 2025?
The closure of 56 Greggs outlets in early 2025 has raised pressing questions about the company’s current health and direction.
While the bakery chain continues to hold a strong presence on the UK high street, recent developments suggest a pivot in its operational strategy.
- The company cited a “challenging start” to the year, with January snowstorms and June heatwaves significantly reducing footfall and in-store purchases. These weather patterns severely disrupted trading rhythms.
- Greggs reported that closures without relocation surged by 61% compared to the previous year, an unusual spike for a brand known for steady expansion.
The company isn’t retreating from the market entirely. Instead, it’s prioritising a “disciplined estate expansion” strategy. While 56 stores were shut, many of these were underperforming branches in saturated areas or older units not aligned with evolving customer habits.
How Has the ‘Challenging Start’ to 2025 Impacted Greggs?
The start of 2025 brought unforeseen challenges that directly impacted Greggs’ performance. These included a mix of environmental, economic, and consumer-related factors.
Adverse Weather Conditions
- Snowstorms in January affected mobility and deterred footfall.
- A sudden June heatwave discouraged hot food purchases, typically a key driver of Greggs’ midday sales.
Reduced Consumer Spending
- With inflation easing but real wages still catching up, shoppers continued to save rather than spend.
- Customers on modest incomes were especially cautious, impacting core sales in budget-friendly locations.
Macroeconomic Pressures
- Broader retail patterns indicated weakening high street demand across sectors.
- UK consumers appeared to shift priorities toward essentials or alternative food outlets.
Together, these conditions dampened like-for-like sales growth and forced Greggs to take a critical look at its estate model and expansion timeline.
How Have Cost Pressures and Market Conditions Affected Profit Margins?
Despite a 7% rise in total revenue to £1.03 billion during the first six months of 2025, Greggs experienced a notable 14% drop in pre-tax profits, landing at £63.5 million.
This decline underscores how rising operational costs continue to chip away at earnings, even in a growing market.
The impact of external market conditions, such as cost-of-living concerns and inflation-linked supply costs, was profound. Coupled with unpredictable weather affecting footfall, Greggs had to absorb increased labour, logistics, and raw material expenses.
These pressures collectively diluted profit margins, even as top-line revenue remained relatively healthy.
Is Greggs Scaling Back or Strategically Restructuring?
Greggs’ decision to shut stores is not indicative of a retreat but rather a strategic recalibration. The company’s leadership has emphasised its commitment to a long-term vision, guided by sustainable growth and operational efficiency.
Instead of rapid expansion, the company is implementing what it calls a “disciplined estate expansion” strategy. This includes reviewing underperforming sites and choosing to invest in more promising retail locations.
The shift is particularly visible in Greggs’ preference for setting up outlets in transport hubs, supermarkets, and retail parks, where consumer demand remains robust.
At the core of this strategy is a focus on modernisation, cost efficiency, and meeting the changing needs of customers. The closures, therefore, serve more as a trimming of excess rather than a signal of withdrawal from the market.
Where Have Greggs Stores Closed – And Why Those Locations?
Store closures in 2025 were not random. They were based on performance metrics, geographical saturation, and evolving consumer traffic patterns. Greggs has confirmed several high-profile shutdowns, mostly concentrated in older, less efficient sites.
Many of these branches were either underperforming or located in areas where newer stores had emerged with better footfall and sales.
Here’s a list of some of the confirmed closures and closure dates:
| Location | Closure Date |
| Ilford, East London | June 2025 |
| Fitzroy Street, Cambridge | March 31, 2025 |
| Lytham, Lancashire | March 28, 2025 |
| Foleshill, Coventry | January 4, 2025 |
| Amersham, Buckinghamshire | January 18, 2025 |
These closures were driven largely by local demand fluctuations, lease expirations, and strategic relocations. In many cases, store functions were absorbed by newer outlets within the same town or nearby retail zones.
How Is Greggs Balancing Store Closures with New Openings?
While Greggs has closed 56 stores, it has also opened 87 new branches during the same period. This simultaneous contraction and expansion reflect a realignment rather than a cutback.
Greggs’ leadership remains committed to scaling the brand, but with increased precision. This expansion is heavily focused on sites that align with changing customer behaviours.
- New stores are prioritised in:
- Retail parks
- Motorway service stations
- Supermarket partnerships
- Commuter zones
- Store formats are becoming more adaptive:
- Smaller express outlets
- Self-service kiosks
- Drive-thru concepts in high-traffic corridors
This dual-pronged strategy allows Greggs to refine its estate while laying foundations for future reach and relevance.
What Are the Plans for Expanding Beyond the Current 2,649 Stores?
Greggs has publicly stated its goal to grow its UK footprint to “significantly more than 3,000” outlets. This ambition remains despite short-term closures. The company is achieving this through:
Optimised Location Planning
The company is expanding into underrepresented regions and entering new spaces such as retail parks and supermarkets to reach more customers.
Infrastructure Expansion
To support this growth, Greggs has opened a new logistics hub in Derby and plans to launch a major distribution centre in Kettering by 2027, strengthening its supply chain.
Product Innovation and Menu Expansion
Greggs continues to refresh its menu with healthier options, seasonal items, and new product launches to meet evolving consumer tastes.
These efforts highlight Greggs’ flexible, forward-thinking approach in a rapidly changing retail landscape.
Is There Consumer Fatigue or Have We Really Reached ‘Peak Greggs’?
The notion of “peak Greggs” has surfaced in media discussions, particularly in light of recent closures. However, Greggs’ leadership strongly refutes this suggestion.
While some experts claim the brand may be suffering from overexpansion or a saturated menu, Greggs continues to see demand in untapped markets. The CEO has indicated there are significant areas in the UK without access to a Greggs outlet.
Moreover, the business is adapting to shifts in public taste. Over 30% of its menu now consists of healthier items, and innovations like turmeric shots, salads, and lighter sandwiches are helping retain modern consumers. The idea of “consumer fatigue” appears premature, especially given Greggs’ evolving model and loyal base.
What Are Industry Experts Saying About Greggs’ Future on the High Street?
Analysts offer a mixed yet insightful perspective on Greggs’ trajectory. Some view the drop in profits and store closures as temporary setbacks in a longer-term success story. Others caution that the decline in footfall and growing market competition signal deeper issues.
- Mark Crouch notes that the slowdown in Greggs’ sales may reflect a broader decline in high street retail appetite, not just waning interest in pastries.
- Zoe Gillespie mentions the impact of weather conditions and lower consumer confidence as influential factors behind performance.
- Russ Mould raises concerns about whether the business has become stale or overextended.
Still, most agree that Greggs maintains a strong value proposition and retains a resilient brand identity. The next 12–24 months will be critical in determining whether the current shake-up is a blip or a fundamental turning point.
Conclusion
Greggs is not closing down in the UK, but rather reshaping its business to better align with current market realities. The 56 store closures in 2025 reflect a period of reflection and strategic realignment, not a sign of decline.
With new openings, infrastructure investments, and a forward-thinking leadership team, the brand appears ready to adapt and grow.
While challenges such as changing consumer behaviour and economic pressures persist, Greggs continues to evolve its offerings and operations. For now, the nation’s love for its sausage rolls seems far from over.
Frequently Asked Questions
Has Greggs confirmed a complete list of store closures in 2025?
No, the company has confirmed some closures but has not released a complete nationwide list.
Are Greggs’ franchise stores affected by these changes?
The closures primarily impact company-managed outlets, not franchise-operated locations.
Will Greggs reduce menu items to address criticisms of a ‘bloated menu’?
There’s no confirmed reduction, but Greggs has adjusted offerings based on seasonal and health trends.
How does Greggs plan to compete with rising health-conscious food trends?
Greggs is offering more healthy options like salads and lighter meals to meet modern dietary preferences.
Is the company still profitable despite the closures?
Yes, Greggs remains profitable with over £1 billion in sales, though pre-tax profits declined by 14%.
What are Greggs’ plans for its new supply chain infrastructure?
They are expanding logistics with a new site in Derby and a major distribution centre planned in Kettering.
How is Greggs’ stock performance reflecting these business changes?
Greggs’ stock is down over 40% this year, reflecting investor caution amid evolving market conditions.
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