Greggs Warns Customers Price Rises Are Inevitable Amid Cost Pressures
Greggs has announced that price increases are unavoidable due to rising employment costs and lower consumer confidence affecting sales
Greggs, Price Rises, Employment Costs, Consumer Confidence, London, UK
London: Greggs is sounding the alarm about price hikes. They mentioned that the cost of hiring people is going up, which means customers can expect to pay more for their favorite treats. Last year, they noticed that lower consumer confidence was already affecting sales.
The bakery chain pointed out that rising employment costs will lead to overall price increases. However, they believe that wage hikes might help consumers a bit.
Interestingly, Greggs was among over 70 businesses that reached out to Chancellor Rachel Reeves last year. They warned that changes from the October Budget would make price increases a sure thing.
On Thursday, Greggs reassured everyone that they’ve managed to handle cost increases in recent years while still offering good value. They’re confident they can keep that up.
In a fun twist, they shared a post about keeping warm in January with their Spicy Vegetable Curry Bake. It’s a tasty way to beat the chill!
Despite the challenges, Greggs reported a 2.5% growth in sales for the fourth quarter. They noted that the market has been tougher in the latter half of the year.
For the first time ever, Greggs hit £2 billion in annual revenue for 2024, which is an 11.3% increase from 2023. However, sales during the festive season didn’t quite match the previous quarter’s 5% growth.
Chief executive Roisin Currie mentioned that lower consumer confidence is still affecting foot traffic and spending on the high street. But she’s optimistic about their value-for-money offerings and the quality of their fresh food.
In July 2024, Greggs raised prices on several items, including a 5p increase on their beloved sausage rolls. It looks like customers will need to brace for more changes ahead!