1. News
March 24, 2020

Covid-19: Greggs to temporarily close stores to help contain spread in UK

UK’s bakery food-on-the-go retailer Greggs has decided to temporarily close its stores to support efforts to contain the spread of the coronavirus (Covid-19).

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The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
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  • Which industry sectors are most vulnerable to reduced consumer demand?
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by GD50 Custom
Enter your details here to receive your free Whitepaper.

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UK’s bakery food-on-the-go retailer Greggs has decided to temporarily close its stores to support efforts to contain the spread of the coronavirus (Covid-19).

The retailer operates more than 2,050 outlets in the country and the closure will help maintain social distancing.

With 25,000 employees, the company has converted its stores to only provide a takeaway service.

Greggs chief executive Roger Whiteside said: “We are in the process of arranging financing to cover the possibility of a closure period of anything from six weeks to three months.”

“In order to protect our financial position, we are reducing cash expenditure to protect our liquidity in the short-term whilst continuing with key long-term strategic programmes.”

The company has plans to finish existing shop projects. New shop openings and planned refurbishments, as well as building work, will be postponed or delayed.

The company expects to take off £45m from 2020 capital expenditure plans. It will also not pay 2019 final dividend and stop share purchases programme.

However, these initiatives will not include its automated cold store project.

The company’s preliminary results announced on 3 March saw its shop like-for-like sales grow by 7.5% in the nine weeks to 29 February 2020.

The ‘most recent week to 21 March 2020’ witnessed its sales reduce to 9.9% and has been decreasing each day, according to the company.

Despite the drop in sales, Greggs could maintain a strong balance sheet and expects to have £60m cash at bank at the end of this week.

Greggs joins the list of other companies, including McDonald’s, Nando’s, KFC, Costa Coffee, Subway and Pizza Express who have already announced similar measures.

Total confirmed cases of coronavirus have reached 351,377 globally while death toll from the outbreak has reached 15,340.

Confirmed cases in the UK reached 6,726 while the death toll rose to 335.

UK Prime Minister Boris Johnson announced that cafes, pubs, and bars, as well as shops, theatres and leisure centres, must be closed to protect public health.

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.