Gail’s Bakery is evolving into a retail powerhouse, with its physical stores now driving the bulk of its growth. While the company is known for supplying supermarkets like Waitrose, Ocado, and Amazon, recent financial results show a divergence in performance. Retail sales surged by nearly 23%, more than double the growth rate of the wholesale division.
This data supports the company’s decision to aggressively expand its physical footprint, with plans to add 40 new cafes to its existing 185 sites. It appears that while customers enjoy buying Gail’s bread with their online grocery order, they prefer the experience of visiting the bakery in person.
The shift toward a retail-dominant model comes with higher overheads. The company reported widened losses of £7.8m, largely due to the costs associated with running physical spaces—energy, staff, and rent. In contrast, wholesale operations are typically lower margin but lower overhead.
Despite the costs, the brand is committed to the high street. Spending £51m on pre-opening costs signals a belief that the physical store is the best vehicle for the brand’s “nutrient-dense” ethos. A spokesperson highlighted the support of communities as a key driver for this strategy.
As Gail’s continues to grow, balancing these two arms of the business will be crucial. But for now, the strategy is clear: the future of Gail’s lies in the cafe experience, not just on the supermarket shelf.