Greggs confirms Derby site

By Liza Helps Property Editor Logistics Matters

THE UK baker confirmed the news in a trading update on Tuesday this week. The facility is set to open in 2026 and forms part of the wider plan "to support longer-term growth" at the bakery firm.

Greggs said: “We have entered into an agreement for lease on a site at SmartParc SEGRO Derby for a facility that will be the focus of our increased manufacturing capacity needs whilst also supporting expansion of our logistics network capacity.

“The landlord is currently constructing the building, following which we will develop and install the first phase of manufacturing and logistics equipment through 2025 and 2026.

“In addition to the self-funded capital expenditure to install the equipment a leased right-of-use asset of circa £65 million will also be recognised on the commencement of the lease.”

The trading statement also confirmed that eh company was progressing with a land acquisition for a further distribution  facility in the East Midlands.

“We are progressing negotiations on the purchase of land in the Corby/Kettering area, where we will develop a National Distribution Centre for chilled and ambient goods. This site will significantly extend our logistics capacity across the network to circa 3,500 shops and deliver efficiencies through semi- automated storage and picking solutions. We aim to exchange contracts on the purchase of the land in the coming months.”

Schemes in the area that could accommodate facilities of this natire include Tritax Symmetry’s Symmetry Park Kettering and GLP’s Magna Park Corby scheme, which last week announced  that it had entered a contrcat with Nike for a brand new 1 million ft2 plus UK  headquarters and distribution centre.

Greggs performed well in the first 19 weeks of 2024 with Like-for-like sales in company-managed shops growing by 7.4%. Total sales in the 19 weeks to 11 May 2024 were £693 million (2023: £609 million).