Greggs CEO Roisin Currie says increased costs resulting from the recent Budget will not hinder the company's expansion plans across the º£½ÇÊÓƵ.
In an interview with Reuters, Ms Currie acknowledged that the rise in National Insurance contributions and the National Living Wage would add tens of millions of pounds to the company's expenses.
But she said this would not slow down Greggs' growth plans, which involve opening around 150 new shops annually, with the goal of reaching 3,500 locations in the near future. The company recently opened its 2,500th shop and is focusing on expanding to petrol forecourts, retail parks, and transport sites.
Despite being one of 75 º£½ÇÊÓƵ retailers to sign an open letter to Chancellor Rachel Reeves warning of the potential consequences of increased business costs, including job losses and higher prices, Ms Currie said that Greggs would only implement price increases of "pennies" and that its employee bonus scheme, which distributes 10% of profits to staff, would remain "absolutely sacred."
She added: "Our shop growth plan, our supply chain investment, none of that changes. We are still absolutely going for growth."
In its latest trading update released at the beginning of October, Greggs reported a 10.6% increase in sales for the last quarter. This growth was attributed to new menu items, extended opening hours, and a boost in digital sales, reports . The company also emphasised significant investments in its production and distribution facilities, including new sites in the Midlands and the South.
The impact of the National Insurance rise has been underscored by various business groups. Rain Newton-Smith, chief economist of the Confederation of British Industry (CBI), commented that the Budget took firms "off guard" and could potentially hamper investment and job creation.
Despite this, the Chancellor is set to address the CBI later on Monday, maintaining that there is "no alternative" to tax increases, standing firm against criticism of the £25bn hike in firms' national insurance contributions (NICs).
A Government spokesperson defended the fiscal strategy: "Last month we delivered a once-in-Parliament Budget to wipe the slate clean and deliver change by investing to repair the NHS and rebuild Britain, while ensuring working people don't face higher taxes in their payslips. That meant difficult choices to repair the public finances and to put public finances on a firmer footing. However, the alternatives were more austerity, more decline and more instability that would have left businesses and working people worse off."
