Are the British people 'suffering in water and fire'? Yet Christmas sales far exceeded expectations.

Boots reported increased sales over the Christmas period, which also marked the biggest-ever digital sales day in Black Friday history. Walgreen Boots Alliance, Boots’ parent company, stated in its latest trading update that growth in both online and retail sales helped Boots UK achieve an overall sales increase of 4.3% year-on-year. Online sales accounted for 18% of Boots’ total business—double the pre-pandemic level—while retail sales rose by 8.7%, offsetting declines in pharmacy sales and pandemic-related services such as vaccinations. Pharmacy sales fell by 0.9% in October–December 2022, due to lower demand for COVID-19 services compared with the same period last year. Footfall increased by 8%, supporting higher retail sales. Greggs Greggs reported an 18.2% sales increase for the final quarter of 2022 versus the same period in 2021. Full-year 2021 sales grew by 17.8%. In its trading update, Greggs noted that industrial action and adverse weather had less impact than the disruption caused by the pandemic. Regarding the sales growth, the company stated: “This reflects favorable trading patterns over the Christmas period, as well as comparatively weak trading conditions in the prior-year quarter, which were impacted by Omicron-related disruption.” The company opened 186 new stores and closed 39 during the year. It expressed greater optimism for the coming year, telling investors: “We enter 2023 in a strong financial position, enabling us to invest in store and supply chain capabilities to serve more customers across the UK.” Budget constraints may not be bad news for Greggs. The company said: “Although market conditions in 2023 will remain challenging, our freshly prepared food and drinks offer exceptional value for money, helping consumers manage their budgets without compromising on quality or taste.” B&M Discount retailer B&M also upgraded its full-year profit forecast: revenue rose 12.3% to £1.56 billion for the 13 weeks ended 24 December. As a result, pre-tax profit is expected to exceed analysts’ expectations, landing between £560 million and £580 million. Double-digit inflation-driven price hikes, high energy costs, and supply-chain difficulties have triggered a cost-of-living crisis, eroding disposable income and were expected to dampen economic activity over the Christmas period.

Beating McDonald’s: How this bakery achieved a comeback through low pricing.

Whether seasoned industry experts or globally renowned consulting firms, nearly all agree: driven by shifts in market dynamics and consumer demand, low-price retail is set to thrive—and value-for-money consumption has emerged as the new direction of consumer evolution. Professor Chen Liping of Capital University of Economics and Business is a staunch proponent of this view. McKinsey, in its report titled 'McKinsey China Consumer Report 2023: The Era of Resilience', argues that while ‘downtrading’ has not occurred, consumers are becoming smarter and more proactive in seeking discounts and promotions—finding ways to spend less while obtaining the same goods. Whether due to macroeconomic cycles or evolving consumer needs, the passion and frenzy ignited by technology, the internet, and capital have subsided; the essence of retail has reasserted its dominance. As a quintessential economic activity, retail is ultimately sustained—not by traffic or subsidies—but by cost efficiency, operational effectiveness, and customer experience. Beyond various membership discount stores, what other affordable retail brands merit attention? Retail Kr Star—a Chinese retail insights platform—has spotlighted Greggs, a beloved British retail brand renowned for its affordability. As the UK’s largest bakery chain, Greggs was founded in 1939 and now operates over 2,200 outlets, primarily selling traditional British baked goods—including sandwiches, bread, cakes, and pastries. Within the UK, Greggs wields greater influence than McDonald’s or Starbucks and remains one of the country’s most successful retailers. “The UK is Greggs’ domain,” declared The Guardian. Greggs generated £1.23 billion in sales in 2021 and aims to expand to 3,000 stores by 2027. Selling 2.5 million sausage rolls weekly and 50,000 doughnuts per hour—these figures are proud hallmarks of this beloved British bakery. Greggs began with a handcart delivering fresh eggs and yeast to households in Newcastle upon Tyne, Northeast England. After opening its first shop in 1951, Greggs rapidly ascended to legendary status in Britain’s bakery-chain industry. Britons quip: “Ghosts of local bakeries slain by Greggs haunt every high street across the land.” Spanning generations, Britons’ loyalty to Greggs is passed down like heritage. Pop star Ed Sheeran, Hollywood actor Jake Gyllenhaal, and even former UK Prime Minister Boris Johnson are devoted fans. YouGov, the polling firm, ranks Greggs as the UK’s most popular food brand—its competitors unable to break Greggs’ ‘psychological grip’ on British food culture and trends. So what core competencies make Greggs’ business model unreplicable by rivals? Affordability is a universal law. A hot sausage roll for just £1 delivers supreme joy to students and low-income groups. Few places in the UK let you enjoy a delicious meal for £1—but Greggs does. And for just £1.50 more, you can add a freshly ground cup of coffee. The same combo would cost £5–£6 at Costa Coffee—the UK-based rival also present in China.

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Sep 29, 2026

Greggs raised its annual profit outlook after Q3 underlying sales growth accelerated due to new products and settled weather. Company-managed shop sales rose 3.4% in the 13 weeks to September 26.

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Britain's Greggs Raises Profit Outlook on Improved Trading

Britain's Greggs Raises Profit Outlook on Improved Trading

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