"We have come into 2026 planning for another challenging year. When you look at consumer confidence and disposable income, you can see that the backdrop is still tough out there. Currie expressed optimism that easing pressures could support consumer spending in 2026, but also recognised that demand remains fragile."
"Greggs has faced pressure from cost-of-living constraints on shoppers, increased tax and labour costs, and a rise in weight-loss treatments, all of which have affected food consumption trends. However, Currie pointed to emerging green shoots in the trading environment, suggesting that some pressures may ease in the coming year."
"Analysts indicate that consumer-focused businesses remain sensitive to factors such as real wage growth, energy and food inflation, employment conditions, and interest rate movements. While inflation is slowing, recovery in demand is likely to be gradual rather than immediate."
Greggs reported declining annual profits amid challenging consumer conditions, though cost inflation has decreased from 6% to approximately 3%. Chief Executive Roisin Currie acknowledged that while inflationary pressures are easing, consumer confidence and disposable income remain weak, creating a tough backdrop for 2026. The retailer has experienced slowdown in sales growth at the year's start and faces headwinds from cost-of-living constraints, increased tax and labour costs, and changing food consumption trends. Despite these pressures, Greggs identified emerging positive signs in the trading environment. Analysts note that consumer-focused businesses remain sensitive to wage growth, inflation, employment, and interest rates, with demand recovery expected to be gradual.
Read at London Business News | Londonlovesbusiness.com
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