Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Greggs Faces Profit Margin Pressure Amid Rising Wage Costs

by May 15, 2024
May 15, 2024
Greggs Faces Profit Margin Pressure Amid Rising Wage Costs

Greggs, the popular high street bakery chain, is grappling with rising wage costs, which are impacting its profit margins despite a notable increase in first-quarter sales.

Roisin Currie, Chief Executive of Britain’s largest bakery chain, highlighted that the “majority of cost inflation pressures that we face this year is wages,” underscoring that labour costs remain the biggest financial burden for the company. Greggs anticipates its overall inflation for the year to be between 4% and 5%, primarily driven by wage increases, which offset easing pressures in other parts of the supply chain.

Currie, 52, stated that Greggs would continue to monitor and review price increases regularly. While the company does not have a fixed plan for pricing, she emphasized the need to remain flexible and responsive to ongoing economic conditions, reviewing their stance on a week-to-week and month-to-month basis.

Founded in 1939 by John Gregg as a small bakery on Tyneside, Greggs recently celebrated the milestone of operating 2,500 shops nationwide. The company plans to expand further, with between 140 and 160 new shop openings expected this year. The expansion includes more outlets in supermarkets, petrol stations, and travel locations, as well as a broadened delivery service through a partnership with Uber Eats, following a successful trial with Just Eat.

Despite the economic challenges, Greggs has managed to attract cash-strapped customers with its affordable products, outperforming many in the hospitality sector. The company even claimed to have overtaken McDonald’s as Britain’s most popular breakfast spot this year.

This momentum has continued into the new financial year, with Greggs reporting a 7.4% rise in like-for-like sales for the first 19 weeks, driven by its aggressive store expansion strategy. Total sales reached £693 million.

Greggs maintained its full-year forecasts, with analysts predicting a rise in pre-tax profit to £185 million, up from £168 million last year. Analysts at Peel Hunt noted that while the past couple of months have been slightly slow in like-for-like sales, this would not affect overall forecasts.

Greggs continues to navigate the challenges posed by rising wages while leveraging its expansion plans and affordable pricing to maintain its market position and drive growth.

Read more:
Greggs Faces Profit Margin Pressure Amid Rising Wage Costs

0
FacebookTwitterGoogle +Pinterest
previous post
Taylor Swift’s Eras Tour to Boost UK Economy by Nearly £1 Billion
next post
Scotland’s first producer of green chemicals launches crowdfunding campaign

You may also like

UK on track for nationwide full-fibre broadband rollout...

March 22, 2025

What Automatic Planning and Scheduling Means for Your...

August 25, 2025

Skills crisis holding back the majority of SMEs...

September 26, 2023

How To Get The Best Remortgage Deals?

May 15, 2023

As wealthy Americans flee Trump’s chaos Britain is...

May 3, 2025

UK businesses struggle to recruit staff needed to...

July 21, 2023

Tory peer Lord Young, ‘Mr Entrepreneur of Whitehall’...

December 10, 2022

Kitchen Splashbacks: A Must-Have for First-Time Homeowners

January 18, 2024

Banks prepare to tighten supply of new mortgages

April 14, 2023

Hospitality hit as consumers cut back

September 23, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Three Years of Sounding the Debt Alarm at Cato and on the Debt Dispatch

      August 27, 2025
    • Trump Administration Rightly Attacks EU Tech Regulations but Tariffs and Censorship at Home Harm Americans 

      August 27, 2025
    • White House demands all Gaza hostages return home ‘this week’ amid stalled talks

      August 27, 2025
    • Bankruptcy, Hell, and Exit Barriers

      August 27, 2025
    • Trump’s DC Death Penalty Crusade Threatens More Tyranny of the Minority

      August 27, 2025
    • Tom Hartley Jnr completes sale of Mansour Ojjeh’s extraordinary McLaren collection

      August 27, 2025

    Categories

    • Business (8,897)
    • Investing (2,246)
    • Politics (16,500)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved