Greggs said that the closure of sites in Edinburgh, Twickenham in London and Sleaford in Lincolnshire was part of a £100million investment to upgrade its bakeries over the next five years.
Advertisement
Roger Whiteside, chief executive of Greggs.
For the year to 2 January 2016 total group sales grew by 5.2% to £835.7m.
Greggs are planning to axe 355 jobs and shut three of its 12 bakeries in the UK.
Mr Whiteside said: “With growing concern over obesity this is a strategically important area of development and we were particularly proud to be awarded the 2015 IGD Health and Wellness Award in recognition of our work in improving the nutritional value of our products”.
The plans appeared to pay off last year, with the company reporting a 25 per cent rise in annual profit to £73m compared with £58.3m the previous year.
The company announced a £100mln investment programme in manufacturing and distribution operations, but three bakeries failed to make the cut and will be closed, resulting in up to 355 redundancies.
The group, which now runs 12 bakeries and just under 1,700 shops, said the posts will be axed as a result of the reorganisation.
Newcastle-based Greggs said it plans to expand its Clydesmill bakery in Glasgow where it will create a “centre of excellence” in Scotland.
“Greggs took a gamble by offering sugar free drinks, fruit, soup and salads but boy has it paid off. These items certainly aren’t the brand’s bread and butter but by diversifying their product range and positioning stores in convenient places like service stations the risk has clearly paid off”.
Advertisement
“The consumer outlook remains positive with disposable incomes expected to grow further in 2016”, the company said. “These are hard changes that we believe are needed to support the long-term growth of the business; however our immediate priority is to work to minimise the negative impact on our people, many of whom have worked in these roles for a significant number of years”.
