Greggs shares slump as sales slowdown fuels investor doubts

Greggs Plc (LSE:GRG) shares have fallen about 43% from their peak, reflecting a broader downturn in the UK retail sector. While like‑for‑like sales in company‑owned stores rose 2.4% in 2025, overall sales growth has slowed sharply, with last‑year comparable sales increasing less than half the 5.5% recorded in 2024 and far below the 13.7% rise in 2023. The market now values the baker's shares at a forward P/E of 12.5, well below the 10‑year average of 22‑23, suggesting they may be cheap relative to earnings. Analysts cite potential catalysts such as easing cost‑of‑living pressures, expansion of evening trading, higher digital revenues, and margin improvements from new factories and distribution sites. The company still targets a network of 3,000 stores, focusing on profitable travel‑venue locations. Despite the current dip, some investors view the low valuation as a long‑term buying opportunity if the sales trend reverses.