Greggs cuts jobs as 60% of consumers eating lunch out less, says GlobalData

Following today’s news (Tuesday 29 September) that bakery chain Greggs faces possible job cuts following the end to the furlough scheme;

Chloe Stephenson, Consumer Analyst at GlobalData, a leading data and analytics company, offers her view on the chain’s current challenges:

“With a heavy reliance on in-store purchases, Greggs won’t be the only high-street bakery to have witnessed record-low footfall. As per GlobalData’s COVID-19 Recovery Tracker, 60% of UK consumers plan to stop or eat lunch outside of the home less often.

“To offset the decline of in-store sales, Greggs’ recent partnership with Just Eat offers a delivery service for the nation’s favourite baked goods for the first time ever. Greggs already has a reputation for its agile business strategy that meets the changing demands of its consumers, such as its highly anticipated vegan sausage roll. This new online offering may help the bakery maintain sales despite job cuts by meeting the demands of the 29% of UK consumers ordering more restaurant takeaways than before*.

“However, brand loyalty may become a thing of the past. Online delivery sites such as Just Eat essentially serve as comparison sites for consumers to choose the best option for them based on cuisine, localism or price. Moreover, with a national shift towards supporting small independent businesses following COVID-19, going local is now a top priority or significantly more important for 28% of UK consumers*. Within a highly competitive landscape, this may come as more bad news for Greggs.”

*GlobalData’s COVID-19 Recovery Tracker: Week 8 – UK

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