Greggs to Close Cambridge Location Amid Expansion Plans
A prominent bakery chain with over 2,600 branches across the UK is preparing to shut down one of its locations within hours. The beloved pastry and sandwich outlet, Greggs, will close its store on Fitzroy Street in Cambridge on March 31. Although the closure is imminent, staff will be relocated to nearby branches whenever possible.
For customers in the area, the nearest alternative Greggs will be located in Station Square, which is just over a mile away. The announcement of the closure has sparked disappointment among loyal patrons. One customer expressed their sadness on Facebook, stating, “I nearly cried at reading the news that the Grafton Greggs is closing.” Another user, tagging a friend, lamented, “Actually, what do we do during exams, lad.” A third commenter simply conveyed their dismay with the words, “It’s over.”
This Cambridge branch is not alone in its fate; earlier this year, a location in Amersham, Buckinghamshire, permanently closed its doors in January. Similarly, another Greggs shop on Foleshill Road in Coventry also shut down at the beginning of the year. Despite these closures, Greggs remains committed to its ambitious expansion plans.
In fact, the chain, which currently operates just over 2,600 outlets, is set to open between 140 and 150 new shops this year. Roisin Currie, the company’s boss, affirmed that the chain would continue with its growth plans despite facing financial challenges. She stated in January, “There are still places where you cannot access Greggs. We are confident in the continuing growth of Greggs.”
Why are Retailers Closing Shops?
Empty storefronts have become a common sight across many British high streets and often symbolize the decline of town centers. The Sun’s business editor, Ashley Armstrong, outlines the reasons behind the wave of retail closures. Many retailers are shutting their shops due to decreasing profitability, primarily driven by the surge in online shopping. Declining in-store sales coupled with rising labor costs have made it increasingly difficult for shops to remain viable.
The British Retail Consortium predicts that the Treasury’s hike in employer National Insurance Contributions (NICs) starting April 2025 will cost the retail sector a staggering £2.3 billion. At the same time, the national minimum wage is set to rise to £12.21 per hour, with the minimum wage for workers aged 18-20 increasing to £10 per hour, representing a £1.40 jump. In certain instances, retailers may close a store only to reopen a new one at a different location on the same high street, adapting to the evolving dynamics of the area.
However, when a major shop closes, it often leads to a decrease in foot traffic across the local high street, thereby putting additional shops at risk of closing. Retail parks are becoming more favorable among shoppers who prefer the convenience of easy, free parking, especially as local councils have increased parking charges in town centers. Consequently, many retailers, including Next and Marks & Spencer, have opted to close high street stores in favor of larger spaces in more successful retail parks.
In some cases, store closures occur when a retailer goes bankrupt, as seen with Carpetright, Debenhams, Dorothy Perkins, Paperchase, Ted Baker, The Body Shop, Topshop, and Wilko, among others. It is becoming increasingly common for a rival retailer or private equity firm to acquire the intellectual property rights of a defunct chain, allowing them to maintain the brand and sell products online. They may eventually open a limited number of stores if there is sufficient consumer demand, but these are rarely as numerous or located in the same areas as the original stores.
The Centre for Retail Research (CRR) has issued a warning that approximately 17,350 retail sites are projected to close this year. Despite the challenges, Ms. Currie noted that while “consumer confidence has fallen, disposable income has actually improved, so I think we will see an improvement when consumer confidence rebounds.” This statement comes as Greggs celebrates over £2 billion in sales for 2024, marking an 11.3 percent increase from the previous year’s £1.8 billion. Additionally, the firm successfully opened 226 new shops in 2024.
The High Street Struggles
While Greggs has managed to achieve financial success, the high street continues to face significant challenges. Recent data from the Office for National Statistics (ONS) indicates that online retail sales have grown from 5 percent of all retail sales in 2008 to an impressive 27 percent in 2022. Consumers have also been grappling with rising costs due to high inflation, which has strained their finances.
A House of Lords report published last year acknowledged that the dominance of retail on high streets has become “something of the past.” There is an increasing demand for restaurants, leisure activities, and public services, such as health centers and libraries, within town centers. The Centre for Retail Research’s latest analysis reveals that 13,479 stores, averaging 37 closures each day, permanently shut down in 2024. Among these, 11,341 were independent shops, while 2,138 closures involved larger retailers.
Expectations for the coming year suggest an even higher number of closures, with forecasts indicating that around 17,350 stores may close in 2025. This surge in closures is attributed to the impending April increase in National Insurance Contributions (NICs) and the rising national minimum wage.