Greggs has posted a slowdown in like-for-like sales in its Q4 trading period, which reached 3.5% growth following 5% in the previous quarter.

Shares in the UK’s largest bakery chain have fallen by more than 14% as a result, after the company blamed a decline in sales on weaker consumer confidence.

Greggs has faced criticism for raising prices since Christmas, including a 5p hike in the price of its sausage rolls to £1.30, as part of an average 4% price rise on its key items that also includes coffee and doughnuts.

However, chief executive, Roisin Currie, said the bakery chain was entering 2025 with a “strong pipeline” of new shop opportunities, and that it would continue to develop its supply chain capacity to deliver on the company’s growth strategy.

“Whilst lower consumer confidence continues to impact high street footfall and expenditure, our value-for-money offer and the quality of our freshly-prepared food and drink position us well to meet the headwinds we expect to see in the year ahead, and we remain confident in the significant long-term opportunity for growth,” added Currie.

Investment director at AJ Bell, Russ Mould, commented that the “public outrage” over Greggs adding another 5p to the price of a sausage roll to £1.30 “shows how sensitive consumers are to price hikes”.

“The cost of food has kept going up and we’re reaching a tipping point where people are saying enough is enough, and they’re cutting back on non-essentials,” Mould added.

“Greggs’ sausage rolls now cost 30% more than in 2022 when you could get one for £1. Some people will stomach the higher price, but others will buy less often or not at all, which means Greggs needs to come up with a new game plan. After all, it continues to open new stores and costs are mounting up.

“Greggs is good at product innovation and it will be interesting to see if it launches a ‘cheap treat’ item where it can bank on high sales volumes to keep the tills ringing non-stop.”

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