Greggs Sales Dip: Hot June Impacts Pastry Demand

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Greggs Issues Profit Warning As Heatwave Dents Hot Food Sales

Newcastle Upon Tyne – greggs, The Uk’s Prominent Bakery Chain, Has Announced That The Unusually High Temperatures During Last Month’s Heatwave Negatively Impacted Sales And Profits. The Searing Heat Led To A Decrease In Customer Demand For Their Signature Hot Pastries,Prompting The Company To Revise Its Full-Year Earnings Expectations.

Stock Plummets After Profit Warning

Shares In greggs Experienced A Significant Drop, Plummeting Nearly 13% As Investors Reacted Sharply To The Profit Warning.This Announcement Came Just A Day After The uk Recorded Its Hottest Day Of The Year, With Temperatures Soaring To Almost 35 Degrees Celsius (95 Degrees Fahrenheit).

The Company Reported That Sales at Its 2,085 Directly Operated Shops Increased By 2.6% In The Six Months Leading Up To June 28. However, The Initial Momentum In May was Followed By A Marked Slowdown In Growth As The Heatwave Altered Consumer Spending Habits.

Greggs Acknowledged That June’s Sales Were Adversely Affected By The Extreme Heat, Which Drove Up Demand For Cold Beverages But Together Reduced overall Foot Traffic into Their Stores.

Sales Figures And Expansion Plans

Despite the Recent Setback, Greggs Reported A Total Sales Increase Of 6.9% Year-On-Year For The First Half Of The Year, Reaching £1 Billion. The Bakery Chain Remains Focused On Its Expansion Strategy, Aiming To Open Between 140 And 150 New Locations This Year.

However, The Company Has Adjusted Its Expectations, Now Anticipating That Full-Year Operating Profits Will Be “Modestly Below” The Levels Achieved In The Previous Year, Primarily Due To the Heatwave's Impact.

Derren Nathan, Head Of Equity Research At Hargreaves Lansdown, Noted That “Sausage Rolls May not Be The First Thing Consumers yearn For When Temperatures Get Into The 30S, And That’s been The Case For Greggs.”

While Sales Of Cold Drinks Increased In June, The Decline In Footfall And Preference For Lighter Options Took A Toll On Overall Sales performance. Like-For-Like sales, While Still Positive, Only Showed A Respectable 2.6% Increase For The First Half Of The Year.

Earlier Successes And Current Challenges

In May 2025,Greggs Had Reported A Surge in Sales Following The Introduction Of New Menu Items such as Iced Drinks,Pizza boxes,and Macaroni Cheese,Which Became Popular On Social Media. Sunny Weather Had Also Played A role in Boosting Sales Earlier In The Year.

However, The Second Warmest June On Record In The Uk, With England Experiencing Its Hottest june Ever, Combined With The Met Office's Confirmation Of A 34.7C (94.5F) Temperature In London, Undermined This Progress.

Greggs' Share Price Has Decreased By More Than 38% This Year,reflecting Broader Concerns About Slower Sales Growth.

Did You Know? Greggs introduced vegan sausage rolls in 2019, which quickly became a customer favorite and contributed significantly to their sales growth.

Price Adjustments And Operational Footprint

Earlier This Year, Greggs Increased the Price Of its Sausage Rolls By 5P To £1.30, Citing Rising Wage, Tax, And Food Costs. This Price Adjustment Was Part Of An Average 4% Increase On Key Items, including Coffee And Doughnuts.

The Company Explained that It Had No Choice But To Pass On The Rising Costs To Consumers After A Significant Percentage Of Its Workforce Received A 6.1% Pay Rise In January.

Greggs Operates A Ample Network Of 2,085 Shops, With 564 Locations Being Franchised.

In The First Half Of This Year, Greggs Opened 87 New Shops And Closed 56, Remaining Confident In Achieving Its Target Of 140 To 150 Net New Openings By Year's End.

Greggs’ Performance Snapshot

To what extent did the june 2025 heatwave, compared to previous years’ average temperatures, impact Greggs’ sales, particularly their pastry and baked goods categories?

Greggs Sales dip: How hot June Weather Impacted Pastry Demand

The UK’s favorite bakery chain, Greggs, often experiences fluctuations in sales.While factors such as savvy marketing and low prices contribute to their success, external elements, like the weather, can significantly influence consumer purchasing habits. this article delves into a potential Greggs sales dip related to the hot June weather, exploring the impact of heat on pastry demand and providing insights for businesses in the food industry.

Understanding the Impact of Summer Heat on Pastry Consumption

Summer months in the UK frequently enough herald a shift in consumer preferences. While Greggs is known for its iconic sausage rolls and other baked goods, the demand for these items can wane during periods of extreme heat. This decline is driven by several factors:

• Changes in appetite: Hot weather frequently diminishes appetite, leading customers to opt for lighter, fresher alternatives.
• Desire for refreshing options: Consumers lean toward cold drinks, salads, and sandwiches rather than warm pastries.
• Outdoor activities: More people frequent parks, beaches and outdoor space during summer, which can lessen the foot traffic.

Analyzing the Relationship: Hot Weather and Customer Preferences

The core products, such as the sausage roll, frequently enough face challenges in the face of rising temperatures. Instead, consumers might seek cooling treats and beverages during a heatwave. This shift could translate directly into a measurable dip. Understanding the relationship between consumer behavior and weather patterns is essential for any business operating in the food sector,especially bakeries.

Potential Strategies for Greggs and Similar Businesses

To mitigate the potential impact of hot weather on pastry sales, businesses such as Greggs may implement several strategies.

• Diversifying the Menu: Introduce or increase options for cold meals like salads, cold sandwiches, and fruit-based desserts that appeal to consumers in summer.
• Promotional Campaigns: Create promotions that center around heat to maintain and increase profits.
• Adaptable Marketing Strategies Adjust marketing activities to focus on the summer season.

Alternative Marketing Strategies for Bakery Chains

Beyond menu diversification, effective marketing campaigns can drive business during hot weather. This could involve:

• Highlighting refreshing options: Promote coolers and drinks.
• Bundled deals: Offer combo deals,like a cold drink with a pastry or salad.
• Geo-targeted advertising: Use this tool to target customers in areas with cooler alternatives.

Metric	Value	Notes
H1 Sales Growth	2.6%	Slowed due to heatwave
Total H1 Sales	£1 Billion	Up 6.9% year-on-year
New store Openings (H1)	87	56 closures
Share Price Drop	~13%

Menu Item	Seasonal adaptation	Marketing Focus
Sausage Roll	Smaller portions, light sauces.	Pair with cold drinks offers.
Breakfast items	Salads and light breakfast items.	Focus on summer breakfast meal deals.
Cakes	Focus on lighter,fruit-filled cakes.	Social media campaigns and promotional offers.

real-World Example and Market Behavior

While specific sales figures for June 2025 are unavailable, analyzing previous years’ data would showcase the potential relationship between the weather and the consumer activity. This is why the data analysis of seasonal patterns is significant.

Here is a simplified example of how the weather impacts consumer choices.

• May 2024: Normal temperatures; steady sales for pastries.
• June 2024 Heatwave. Sales of cold drinks increase,reducing pastry demand by 10%.
• July 2024: Sales are good, so the businesses introduced new cold items resulting in higher profit.

Conclusion

The impact of hot weather on pastry demand is a complex issue. By understanding consumer behavior, adopting appropriate marketing strategies and offering new menu options, businesses like Greggs can increase or maintain sales. Continuous adaptation will be the key to thriving in the dynamic food industry.