Greggs Sales Slow as Heatwave Keeps Customers Away in July

In July 2025, the UK experienced its hottest summer in decades, with temperatures soaring above 40°C in some regions. This extreme heatwave significantly impacted consumer behavior, leading to a noticeable decline in foot traffic across various retail sectors. Among the businesses affected was Greggs, the UK’s leading bakery chain. Known for its hot pastries and hearty meals, Greggs saw a reduction in sales as customers opted for lighter, cooler alternatives during the scorching days. Despite these challenges, the company reported a 6.1% increase in sales for the third quarter, indicating resilience and adaptability in a changing climate.

Overview of July Sales Performance

Greggs reported a 6.1% increase in total sales for the third quarter, compared to the same period the previous year. However, like-for-like sales in company-managed shops rose by only 1.5%, a slowdown from the 2.6% growth in the first half of the year. The company attributed this dip to the unusually hot weather in July, which deterred customers from visiting stores.

Impact of the Heatwave on Consumer Behavior

The July heatwave led to a shift in consumer habits. With temperatures exceeding 40°C, many customers preferred to stay indoors or seek cooler environments, reducing foot traffic to high street stores. Traditional hot items like sausage rolls and steak bakes saw a decline in sales, while demand for cold beverages and lighter, cooler foods increased. This change in consumer preference posed challenges for Greggs, known for its hot baked goods.

Greggs’ Response to the Heatwave

In response to the heatwave, Greggs introduced several measures to adapt to changing consumer preferences. The company expanded its menu to include high-protein options like egg pots and protein shakes, catering to health-conscious customers. Additionally, seasonal items such as the pumpkin spice latte and toffee fudge muffin were introduced to attract customers seeking refreshing treats. These efforts aimed to maintain customer interest and drive sales during the hot summer months.

Expert and Analyst Insights

Analysts observed that while Greggs’ overall sales increased, the slowdown in like-for-like sales growth indicated the impact of the heatwave on consumer behavior. The introduction of new menu items and seasonal offerings was seen as a strategic move to diversify the product range and appeal to a broader customer base. However, some experts cautioned that the company’s reliance on hot baked goods might need to be reassessed to mitigate risks associated with extreme weather conditions.

Broader Industry Context

Greggs’ experience reflects a broader trend in the UK food and retail market, where extreme weather events are influencing consumer behavior and sales performance. Businesses across various sectors are adapting to these changes by diversifying their product offerings and exploring new sales channels. The shift towards healthier and cooler food options is becoming more pronounced, prompting companies to innovate and align their products with evolving consumer preferences.

Conclusion

Despite the challenges posed by the July heatwave, Greggs demonstrated resilience by adapting its product offerings to meet changing consumer demands. The company’s ability to innovate and diversify its menu positions it well for future growth. As extreme weather events become more frequent, businesses like Greggs will need to continue evolving to stay relevant and maintain customer loyalty. The long-term outlook for Greggs remains positive, with ongoing efforts to expand its store network and enhance its product range.

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This content is for informational purposes only and is not financial advice. Always conduct your research.