A 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.
Gail's has confirmed its intention to open dozens of new stores, even as the company reported pre-tax losses of £7.8million in its latest financial results.
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.
This aggressive growth comes as the company recorded revenues of £278million for the year ending February 2025, representing a 20 per cent increase from the previous period.
A major bakery chain is set to open dozens of new stores across England
|GETTY / PA
The expansion included 36 new cafes during the past financial year, with management indicating their intention to maintain this momentum across various regions nationwide.
The widening losses, which increased from £7.4million the previous year, resulted from substantial investments in store expansion and rising operational costs.
Staff numbers grew by approximately 500 employees, bringing the total workforce to more than 4,000 by February's end.
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 £4.80.
Gail's is expanding
| PAThe 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".
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.
This represents the second-lowest closure rate in a decade, with only 2022 recording fewer shutdowns.
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.
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.
The retail division represents the "faster growing and more profitable part" of Gail's operations, according to company directors.
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".
The expansion aligns with broader retail trends showing leisure-focused businesses dominating growth categories, with consumers increasingly prioritising experiences over traditional physical retail.
The high street has been hit with store closures in recent months. | PAStore 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.
Earlier this year, the Centre for Retail Research forecast 17,350 store closures would take place over the year marking a sharp hike from the 13,479 shuttered in 2023.
As part of her Budget 2024 reforms, the Chancellor raised the rate paid in National Insurance contributions for employers to 15
In 2024, there was a 28 per cent jump in store closures compared to the previous year, with experts now warning of further deterioration ahead.