[ad_1]
Greggs has stated that it is still facing challenging conditions for customers, following a decline in annual profits, largely due to cautious consumer spending.
Chief Executive Roisin Currie noted that while inflationary pressures are easing, customer sentiment remains low. The Newcastle-based retailer reported that its cost inflation has significantly decreased, falling from around 6% last year to approximately 3% this year.
Currie told the Press Association: “We have come into 2026 planning for another challenging year.
“When you look at consumer confidence and disposable income, you can see that the backdrop is still tough out there.”
Currie expressed optimism that these easing pressures could support consumer spending in 2026, but she also recognised that demand remains fragile. The high-street chain, known for its products such as sausage rolls and steak bakes, has seen a slowdown in sales growth at the beginning of the new year.
Despite these challenges, Greggs emphasised its resilience in what it describes as a “challenging market.” The company employs over 33,000 people across the United Kingdom.
In the past year, Greggs has faced pressure from cost-of-living constraints on shoppers, increased tax and labour costs, and a rise in weight-loss treatments, all of which have affected food consumption trends.
However, Currie pointed to emerging “green shoots” in the trading environment, suggesting that some pressures may ease in the coming year.
Analysts indicate that consumer-focused businesses remain sensitive to factors such as real wage growth, energy and food inflation, employment conditions, and interest rate movements. While inflation is slowing, recovery in demand is likely to be gradual rather than immediate.
[ad_2]
Source link
