Greggs Bakery Faces Sales Challenges Amid Hot Weather
Unseasonably High Temperatures Impact Performance
In the heart of the U.K., renowned bakery chain Greggs has recently encountered significant challenges due to unusually high temperatures. The soaring temperatures in June have notably affected customer turnout, leading to a notable decrease in sales. This trend has been closely watched by both industry analysts and investors.
On Wednesday, following a trading update, Greggs experienced a steep 15% drop in its share prices. The update revealed that despite a 2.6% growth in like-for-like sales and total sales reaching £1.03 billion ($1.4 billion) in the first half of 2025, the extreme heat took a toll. The warm weather, marking the second-hottest June recorded in the U.K., shifted consumer preferences. While demand for cold beverages surged, the overall customer footfall declined, affecting sales of their signature hot items.
Customer Preferences Shift During Heat Waves
Greggs is known for its popular menu items, including sausage rolls, chicken bakes, and the viral Mac & Cheese dish. However, the latest weather conditions raised questions regarding the sales of these hot offerings. With temperatures soaring to approximately 33 degrees Celsius (91 degrees Fahrenheit), many British consumers opted for lighter, cooler options instead.
It remains to be seen how deeply impacted Greggs’ hot sales were during this period. The company plans to share more concrete details on affected products when it publishes its interim results for 2025 at the end of July.
Looking Ahead: Profit Warnings and Expansion Plans
Despite the current headwinds, Greggs demonstrated a commitment to its expansion strategy, maintaining its goal of opening 140 to 150 new outlets this year. However, the firm warned that, under the present trading conditions, its full-year operating profit might come in slightly lower than what was achieved in 2024.
Market analysts have voiced concerns regarding the brand’s demand trends, particularly given its reputation for affordability and convenience. Mark Crouch, a market analyst at eToro, highlighted that a decrease in customer visits raises questions, especially when foot traffic is typically expected to be robust.
Crouch indicated that while it may be challenging to sell traditional hot items like sausage rolls during a heatwave, broader consumer economic pressures need consideration. Although inflation appears to be stabilizing, many consumers remain cautious about spending.
Consumer Trends Under Scrutiny
The business environment is evolving, and consumer habits are shifting as conditions change. Greggs, a well-known name in the U.K. food scene, must adapt to meet these changing demands. The recent summer heatwave serves as a clear reminder that weather patterns can have a significant impact on food sales, influencing not just Greggs but potentially other retailers and food providers as well.
As the company gears up for its interim report, stakeholders will be eager to see how Greggs navigates these challenges while continuing to build its presence across the U.K.
Conclusion
Greggs is facing an interesting phase as it balances seasonal fluctuations in customer preferences with long-term growth objectives. The upcoming results will be crucial in determining how effectively the bakery handles these pressing issues amidst evolving consumer behavior.
