Greggs’ Boo‑Boo: When the Sun Makes the High Street Chill
In a snack‑flavor‑filled update from the UK’s favourite bakery, Greggs announced that its pre‑tax profits had slipped by 14% over the first half of 2025. The culprit? A relentless mid‑year heatwave that turned footfall into a one‑person affair.
Key Numbers
- 2019‑20 Profit – £63.5 million in the first six months
- 2024‑25 Profit – £74.1 million (YoY)
- Total Sales – £1.03 billion (+7%)
- Like‑for‑Like Sales – +2.6%
- Franchise Growth – +4.8%
Greggs attributes the drop to “challenging market footfall” and a “phasing of cost headwinds” that hit hardest in the first half. They also point to a storm‑y winter in January and an oh‑so‑hot June that nudged consumer moods.
Market Analyst Chimes In
Mark Crouch of eToro says the 14% swing isn’t just about the weather. He warns that a 50% melt‑away in market value may stem from Greggs’ expansion strategy stretching margins at a time when shoppers are getting leaner.
“Greggs’ strategy might be on a warm trail now, but if enthusiasm dips, so will the brand’s sweet tooth,” says Crouch.
What It Means for You
While the average Brit is feeling the heat, the bakery’s numbers remind us that even the best‑selling sausage roll can feel the pinch of economics. Inflation easing and real wages climbing should theoretically lift sales, but Greggs’ numbers suggest the high street’s appetite is broader than a single flavour.
Bottom line: The bakery is nudged to focus on tightening margins and re‑igniting footfall enthusiasm—because no one likes a burnt basket.
