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Here’s Why Greggs Share Price Fell Today

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Updated: 28 August 2020

Greggs PLC (LON: GRG) share price fell 2% on Friday after the bakery chain was forced to shut its Leeds distribution centre after COVID-19 outbreak among staff.

Less than twenty employees tested positive for COVID-19, forcing the baker to deep clean the entire distribution centre.

“What is more problematic for Greggs, in our view, is the wider impact of coronavirus upon consumer behaviour and markets, notably the slowing down of its development plans and the disruption to trade, particularly in travel hubs and business centres that working from home brings to the British food system,” analysts from Shore Capital commented.

“We would expect the shift in footfall from major urban centres to the suburbs to provide some compensating trade for Greggs’ outlets located in the suburbs.”

Greggs share price fell as COVID-19 outbreak in Leeds shut its plant August 2020

Analysts add that other plants will now have to pick up extra work, but they don’t expect a major hit on the company's finances.