The Newcastle-based high street bakery chain Greggs plans to shut down three of its twelve bakery stores which is expected to affect 355 jobs. The premium bakery chain under the new management headed by Roger Whiteside is undergoing massive changes. The company, which has over 1700 outlets crosswise UK, has announced a £100m restructuring plan. In a bid to change its supply chain and expand the stores numbers to 2000, the company has decided to close down the store that are not suitable for long term investment. According to the decision,the sites in Edinburgh, Twickenham and Sleaford in Lincolnshire will cease to operate. This will allow the company to focus more on the remaining nine sites. The resources from the closed bakeries will go to these sites.
Chief executive Roger Whiteside said: “These are difficult changes that we believe are needed to support the long-term growth of the business. unfortunately not all are suitable for long-term investment due to their location and size.” Whiteside announced his five year plan to transform the firm two years back. Eyeing at the Britain’s £6bn a year “food to go” market, the transform plan did good in the first two years as the total sales escalated 5% to £835.7m.
Shares rose 14% following the current announcement which came as Greggs reported a 25% rise in profits before exceptional items to £73m for the year to 2 January. Greggs recorded strong sales growth in sandwiches, new healthier ranges such as salads and no added sugar drinks. Soups and coffee also sold well.Like-for-like sales increased 4.2% in the first eight weeks of its new financial year, recovering from a fourth-quarter dip, and the firm forecast another year of underlying growth.