Greggs Sales Affected by Hot Weather in June

The UK’s biggest bakery chain, Greggs, reported a decline in sales and profits last month due to the heatwave. Customers were less interested in hot pastries in the high temperatures, causing a 13% drop in shares.

The company's 2,085 shops saw a 2.6% sales growth in the first half of the year, but this slowed down in June due to the hot weather. Total sales were up 6.9% to £1bn, with plans to open 140 to 150 new stores this year.

Greggs expects full-year profits to be slightly lower than last year due to the heatwave impact. The rise in temperatures led to increased demand for cold drinks, affecting footfall and pastry sales.

Despite a successful expansion into new products earlier in the year, the heatwave negatively impacted sales growth. The company had to raise prices on items like sausage rolls, coffee, and doughnuts to offset rising costs.

Greggs remains confident in opening new stores and managing its franchise operations, despite the challenges posed by the weather and cost increases.

According to the source: The Guardian.