UK pastry chain has plans for two new factories and 800 more branches, despite sales falling in 2025 and analysts questioning brand’s direction
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Scooped by
Graham Watson
onto A-Level Business Management January 3, 9:12 AM
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This article highlights a company that, for a long time, has been one of the nation's darlings, Greggs. However, the proposed expansion of Greggs, with investment in two new factories and the stated intention to add another 800 stores to their portfolio, has received a mixed reception.
For some, given falling sales in 2025, it smacks of desperation, although you might argue that poor macroeconomic performance has affected sales more than anything intrinsic to the company itself. However, think about what Business Management concepts you might be able to apply - the product life cycle? What about the marketing mix? Or the implications of income elasticity of demand which may, or may not, be part of your syllabus but which is certainly a concept that you should become aware of.
I rather like the comment of analyst, Dan Coatsworth: “Greggs is at a massive strategic turning point and the bosses need to do something,” he said. “Banging the drum saying nothing is wrong is not cutting the mustard. What’s wrong with doing what you do now and doing it really well?”