Greggs Plans Factory Closures While Shop Numbers Keep Growing
Greggs has proposed closing four UK factories, putting up to 740 jobs at risk over the next two and a half years. The Guardian
The sites named are Enfield, Penrith, Kelso and Seaham. Enfield would keep distribution work if manufacturing ends there. That means storing products and sending them to shops. Manufacturing at Treforest in Wales would also be affected, with Treforest staying on as a distribution centre.
Greggs puts the upfront cost at £60m, including disruption costs and redundancy payments, the pay given when jobs are cut. It expects the changes to save £20m a year by 2028.
The plan is part of a manufacturing restructuring, a reorganisation of where food is made. The Wall Street Journal Greggs is headquartered in Newcastle and employs more than 33,000 people in the UK. In its Q3 trading update on 30 September 2024, the company said construction of its new frozen product manufacturing and logistics facility in Derby was progressing in line with plan. London Stock Exchange The London Stock Exchange has congratulated Greggs on its 40-year anniversary as a London-listed company. London Stock Exchange
The proposal came alongside continued growth in sales and shop numbers. Greggs reported sales growth of 7.7% in its most recent quarter, up from 7.2% in the first half of the year. It had 57 net new shop openings in 2026, which means openings minus closures, as part of a plan to open between 100 and 110 shops by the end of 2026. In preliminary results announced on 3 March 2025, Greggs reported opening a record 226 new shops, compared with 220 in 2023, and closing 81 shops, comprising 28 closures and 53 relocations. London Stock Exchange Earlier in 2026 Greggs raised the price of its sausage roll by 5p to £1.35 in most shops and increased the price of a latte by 10p to £2.25. Shares rose by 7.3% in early trading on 30 September 2026.
Looking at what this means for the business, contraction in one area sits beside expansion in another. It is similar to replacing several small kitchens with one large central kitchen to cut costs per meal. Four manufacturing sites would close. Distribution would remain at Enfield and Treforest. New capacity in Derby was already in development. The financial shape is cost now and repeat savings later. Investors welcomed it at first, judging by the share price rise.
The broader context here is how a high-volume food retailer supplies a growing chain of shops. More shops need reliable supply. Older or smaller bakeries can be costly to run. Centralising frozen production and logistics can lower the cost of each item. It can also concentrate risk in fewer places. Consultation, the formal talks with staff before job losses, will test the timetable. The two-and-a-half-year horizon allows time for phased transfer, redundancy terms and disruption planning. For staff at Enfield, Penrith, Kelso, Seaham and Treforest, the split between manufacturing and distribution roles will matter. For management, the test will be whether £20m in annual savings by 2028 arrives without weakening availability while new shops are still added.
