Sun, sea and sausage rolls as Greggs opens first travel store outside UK

Greggs announced the news alongside its trading statement for the first 19 weeks of 2026, which showed 2.5% like-for-like sales growth in company-managed stores against the same period last year. Greggs said that this had increased to 3.3% in the most recent 10 weeks. 

Headline sales growth was higher at 7.5%, reaching £800m, with 20 net openings against 2025 and additional revenue from partnerships with franchisees and grocery retailers. As of May 9, Greggs operates 2,759 stores across the UK. 

The Tenerife outlet will be one of 120 net openings Greggs is targeting across the full year. The retailer said the store on the Spanish island will open in the “coming weeks”.

“Tenerife South is a destination for millions of UK and international passengers each year and represents an excellent opportunity to test our offering in an international travel hub,” it said in a statement released alongside the results.

The baked goods specialist has broadened its product base recently, adding a new chicken roll in April that Greggs said has become a “customer favourite”. It also launched matcha drinks that have “proved extremely popular – marking an important step in appealing to new and younger customers”.

Greggs confirmed that there was no change in its 2026 cost inflation expectations, predicted to be around 3% on a like-for-like basis, adding that it has forward purchase agreements in place to cover around five months of its food and packaging needs. 

However, it cautioned: “We are monitoring the situation in the Middle East and should the conflict continue and become prolonged we, like all food retailers, will likely see higher overall cost inflation through the end of 2026 and into 2027.”

Greggs said that it expected to make good profit progress in the first half of the year, “partly reflecting a weak comparator period but also good operational cost control”.

Operational costs associated with its new frozen product manufacturing and logistics facility in Derby will not be felt till the second half of the year, Greggs said. 

The Derby site will be operational this year, with its new national distribution centre in Kettering on course to open in 2027.