- Greggs plans to close four factories.
- About 740 jobs are at risk.
- Sales rose 7.7 per cent in the latest quarter.
Greggs is planning to close four factories and put around 740 jobs at risk as the bakery chain restructures its manufacturing operations.
The closures will affect manufacturing sites in Enfield in Greater London, North Lakes near Penrith in Cumbria, Pettigrews in Kelso, Scotland, and Seaham in County Durham.
Greggs will continue to operate its distribution operations from the Enfield site.
The changes are expected to take place over the next two-and-a-half years, with parts of the manufacturing process relocated to other facilities.
Greggs expects the restructuring to cost around £60m, including disruption costs and redundancy payments. However, the company estimates it will save around £20m across its 2028 and 2029 financial years.
Why is Greggs closing the factories?
Greggs said the changes are part of an overhaul of its food manufacturing operations, rather than a response to falling sales.
The company reported that retail sales increased by 7.7 per cent in the three months to September 26 compared with the same period last year.
Trading improved through the quarter, with Greggs pointing to new product launches and more settled weather in August and September.
The contrasting figures highlight the reason behind the restructuring: Greggs is growing its sales while changing how its products are manufactured and distributed.
The company has not said that all 740 roles will disappear permanently, with the final impact depending on the consultation process and how manufacturing is reorganised across its network.
The proposed closures will therefore take place over an extended period rather than immediately.
Greggs has been expanding its shop network while investing in its supply chain and manufacturing operations. The latest move is intended to reshape that network and generate savings in the years ahead.
The company will now begin the process of consulting affected employees as it works towards implementing the manufacturing changes.
