Gail’s to open 40 new bakeries by February 2026
Trading was strong during the period with healthy growth across established locations and continued gains in its food service wholesale business
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Gail’s has revealed plans to open 40 new bakeries across England by February 2026 as the group steps up its plan to expand beyond London, following growth in both its retail and wholesale divisions for the year ended 27 November.
While sales rose by 20% to £278m, pre-tax losses widened slightly to £7.8m from £7.4m during the period as investment in new stores and production capacity increased costs such as staff pay and utilities. The bakery chain opened 36 sites including its first bakeries in the south west during the year.
According to the group’s filing at Companies House, trading was strong during the period with healthy growth across established locations and continued gains in its food service wholesale business, supplied from bakeries in London, Manchester and Bath.
The company had more than 4,000 employees at the end of February – roughly 500 more than the previous year – after a recruitment drive to support the larger estate.
In the strategic report, directors said the group’s focus remained on expanding both the Gail’s retail estate and its established wholesale channels. They said growth in wholesale would come from offering “the highest levels of service and quality at reasonable prices” to existing customers, while attracting new clients with “unparalleled quality of ingredients and products”.
Directors added that the retail business was the “faster growing and more profitable part” of the group, although the market “remains very competitive”. Among the key developments was continued investment in production, with more manufacturing lines moving into new central bakeries in Milton Keynes, where further development of the wholesale operation is planned.
Top line growth in both divisions was described as the main engine of profit and earnings, with revenue and EBITDA rising 20% year-on-year. Operating margin fell from 9.5% to 9.2%, while gross margin slipped from 38.8% to 38.2% due to rising staff and utility costs. The group also recorded a loss on the value of an interest rate swap used to hedge debt costs until September 2026.
Directors said the company intended to “continue this wider national growth” in the coming year, with 40 new bakery openings planned and a similar pace of expansion expected thereafter.
