A huge bakery chain has revealed its plans to open 40 new branches in England. High streets across the UK have experienced a significant number of closures in recent years, affecting a range of businesses – from supermarkets and fashion retailers to banks and fast food chains. 

Now, a major chain known for its delicious baked goods has brought good news for its customers as it will be expanding its network with the new stores expected to open before February 2026. Gail’s has confirmed that it will be opening new stores.

The chain currently has 185 stores across the UK and is experiencing rapid expansion. In the year leading up to February 2025, Gail’s opened 36 new branches, and the company plans to maintain this pace. 

In the same period, it reports revenues of £278 million, a 20% increase from the previous period, reports GB News.

However, in its latest financial results, the company reported pre-tax losses of £7.8 million. The losses, which increased from £7.4 million the previous year, resulted from investments in store expansions and rising operational costs.

The number of employees increased by approximately 500, bringing the total number of staff members to over 4,000.

Despite the losses, the revenue growth indicates the high demand customers have for the goods the company sells.

In addition to its own branches, the bakery operates a separate division that supplies products to retailers such as Waitrose and Ocado. Although management recognises that this segment faces “very competitive” market conditions, it draws customers through offering “quality at reasonable prices”.

They also noted that Gail’s retail division represents the “faster growing and more profitable part” of its operations while acknowledging he “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 wider retail trends that reveal leisure-focused businesses dominating growth categories, with customers prioritising experiences over traditional physical retail.

A Gail’s representative informed the Propel trade publication: “We are pleased to have delivered strong year-on-year growth.

“This performance is underpinned by the increasing demand for high-quality, nutrient dense food, and by the support of the communities we serve. We will continue to build on this momentum by growing with purpose and remaining committed to improving access to good food.”