Greggs raises prices across menu after yearly sales top £2 billion

In the UK, the bakery chain Greggs faced a slowdown in sales growth during the last quarter of 2024, primarily due to declining consumer confidence. For the three months ending December 28, 2024, like-for-like sales growth was reported at 2.5%, a decrease from 5% in the previous quarter. Chief Executive Roisin Currie emphasized that reduced foot traffic and tighter spending among customers have resulted in the company needing to work harder to attract patrons to their stores. In response to increasing operational costs, Greggs announced price hikes on various products, including its iconic sausage rolls. The national price of the sausage roll rose by 5p to £1.30, although regional variations exist. These price adjustments were attributed to several factors, including a significant increase in wage costs attributed to consumer wage inflation and a rise in the employer national insurance tax rate. Currie noted that the company aims to balance protecting customer prices with the need to pass on minimum price increases. Despite these challenges, Greggs achieved record annual revenue of £2 billion for the first time in 2024. However, the company experienced a drop in share prices following the announcement, highlighting market skepticism regarding its ability to maintain sales growth amid economic pressures. Other retailers are also feeling the effects; many have indicated that price increases are inevitable due to rising employment costs. Looking ahead, Greggs remains cautiously optimistic about its long-term growth opportunities. Currie stated that enhanced wages for about two-thirds of the staff, who received around a 6% pay increase at the start of 2025, could ultimately help stimulate consumer spending in the economy. Nevertheless, the company is bracing for ongoing inflationary challenges as the market environment remains unpredictable.