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<\/p>\nA major bakery chain has unveiled plans to launch 40 new stores across England before February 2026 amid the widespread store closures that have swept Britain’s high streets in recent years.<\/p>\n
Gail’s has confirmed its intention to open dozens of new stores, even as the company reported pre-tax losses of \u00a37.8million in its latest financial results.<\/p>\n
The expansion strategy marks a significant push beyond the capital, with the chain having already established its first sites in England’s south west during the previous financial year.<\/p>\n
This aggressive growth comes as the company recorded revenues of \u00a3278million for the year ending February 2025, representing a 20 per cent increase from the previous period.<\/p>\n
A major bakery chain is set to open dozens of new stores across England <\/p>\n
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GETTY \/ PA <\/p>\n
The expansion included 36 new cafes during the past financial year, with management indicating their intention to maintain this momentum across various regions nationwide.<\/p>\n
The widening losses, which increased from \u00a37.4million the previous year, resulted from substantial investments in store expansion and rising operational costs.<\/p>\n
Staff numbers grew by approximately 500 employees, bringing the total workforce to more than 4,000 by February’s end.<\/p>\n
Despite the losses, the company’s 20 per cent revenue growth demonstrates strong consumer demand for its offerings, which include sourdough loaves priced from approximately \u00a34.80.<\/p>\n
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Gail’s is expanding <\/p>\n
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The bakery also operates a wholesale division supplying products to retailers including Waitrose and Ocado, though management acknowledged this segment faces “very competitive” market conditions whilst attracting customers through “quality at reasonable prices”.<\/p>\n
Britain’s retail sector experienced 12,804 store closures during 2024, equating to 35 shutdowns daily across high streets, shopping centres and retail parks, according to PwC data.<\/p>\n
This represents the second-lowest closure rate in a decade, with only 2022 recording fewer shutdowns.<\/p>\n
However, certain sectors are bucking this downward trend, with convenience stores emerging as the fastest-growing retail category as major supermarket chains accelerated their smaller-format expansion.<\/p>\n
Coffee shops maintained robust growth, achieving more than one net opening weekly throughout 2024, with chains establishing new sites in out-of-town locations, drive-through formats and city centres as workers returned to offices following pandemic disruptions.<\/p>\n
The retail division represents the “faster growing and more profitable part” of Gail’s operations, according to company directors.<\/p>\n
Management acknowledged the “very competitive” nature of both retail and wholesale markets, stating that continued growth requires providing “innovative world-class food in attractive neighbourhood bakeries”.<\/p>\n
The expansion aligns with broader retail trends showing leisure-focused businesses dominating growth categories, with consumers increasingly prioritising experiences over traditional physical retail.<\/p>\n
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Store openings across the UK have slowed to 25 daily, down from the mid-2010s peak of 34 per day, though this marks an improvement from pandemic levels as chains adapt to changing consumer behaviours.<\/p>\n