Greggs has experienced its worst sales growth since the pandemic, which was influenced by unfavorable weather conditions at the start of 2025. Additionally, there is evidence that consumers are cutting back on snacks, which has contributed to the decline in sales. Greggs’ shares dropped by more than 10% as sales growth at established stores decreased to 1.7% in the nine weeks since late December. This slowdown followed a previous decline in growth, which was halved to 2.5% in the previous quarter.

The company attributes the decline in sales to “challenging weather conditions” in January and is confident in managing inflationary challenges this year.

Despite the recent decline, Greggs will distribute an £20.5m profit bonus to 80% of its workforce, after achieving annual sales of over £2 billion.

According to Julie Palmer, a partner at advisory firm Begbies Traynor, Greggs’ momentum is slowing due to reduced footfall on high streets and challenges in finding locations for new outlets. She also highlighted the impact of rising costs due to the national living wage and employer’s national insurance contributions.

Source: https://www.theguardian.com/business/2025/mar/04/greggs-sales-weather-bakery-price-sausage-rolls