Greggs bakery in Midlothian to close early next year
Retailer reveals dip in sales growth due to 'softer' conditions on the high street.
Bakery chain Greggs has reported a drop in sales growth as it gears up to close a Scottish factory, affecting more than 100 jobs.
The retailer's sales in the first quarter were hit by weak high street trading. It said like-for-like sales grew 3.7% in the period but this was down from 6% growth in the same period last year.
Greggs revealed on Monday that its bakery in Loanhead, Midlothian, where 107 staff are employed, will shut in the second quarter of 2017
It is cutting three bakeries and up to 355 roles throughout the UK as part of a five-year, £100m restructuring plan.
A spokesman said: "The smallest site at Sleaford is now being closed and we expect to close our Twickenham bakery in the fourth quarter of 2016 followed by Edinburgh in the second quarter of 2017."
A consultation with 355 affected staff has begun, and Greggs has vowed to invest instead in its nine remaining bakeries.
The spokesman added: "As has been widely reported, conditions on the high street were softer in March before recovering in recent weeks. These conditions were reflected in our own performance."
Greggs said a refurbishment programme and revamping its product ranges had provided a boost.
It said new products, such as its teriyaki chicken noodle and falafel with houmous, had been a hit with customers.