Pledge of convenience
Waitrose has figured prominently in the news of late with it announcing shoppers are buying more premium products after the cost squeeze, as well as it planning to open 100 convenience locations across the UK in a £1bn drive.
The latter is something of a surprise. It will mark Waitrose’s first new opening in six years. The supermarket chain has not revealed where it will be opening most of its new stores, but does say the second will also be located in Greater London.
New stores will begin popping up by the end of the year, the retailer says, with the first set to open in Hampton Hill, west London. Four of the new stores will reportedly be larger ones, while 100 will be ‘Little Waitrose’ locations.
Waitrose executive director, James Bailey, said the new stores will feature “more of what people expect from us and love such as counters, unequalled service and a lot more fresh food.”
The business says the investment will see stores upgrading their service counters “at a time when many food retailers are removing theirs.”
The retailer points out the groundwork behind the scenes means it can now focus on growth through new shops and ensuring “our existing ones are providing great shopping experiences that match the quality of our products,” said Bailey.
The move comes at a time when Waitrose begins to regain market share, recording its strongest growth since November 2023 in the three months to August 4.
Is the expansion wise?
The UK high street has plenty of convenience stores, with Tesco Express, Sainsbury’s Local, and Co-op having a heavy presence. This trio are also well entrenched through their ranges, promotions and competitive pricing.
At the beginning of this piece, Waitrose and premiumisation is mentioned. Waitrose is well known for its upmarket positioning, and entering the convenience market will mean setting out its stall differently from the incumbents. A suite of differentiators have been trailed, including an award-winning wine selection given greater prominence; more third party collaborations; and a new and exclusive partnership with Crosstown doughnuts to refresh the bakery offering.
It’s hard to ignore the challenge of price sensitivity with ongoing rising living costs and inflation, in addition to consumers favouring lower-priced options. This type of purchase behaviour will be hard to replace and Waitrose will have to work with its suppliers to encourage shoppers to trade up. Waitrose is regarded as the most expensive supermarket chain, according to the Which? retail watchdog.
In Waitrose’s favour, the convenience sector is growing, and the move could be a shrewd one if changing consumer habits and a preference for more frequent, smaller shopping trips continue.
Waitrose has a chance to prove it recognises, understands, and values shoppers. However, it has a short window to impress them before they walk away.
- Rodney Jack, editor, Food & Drink Technology.
Keep in touch via email: rodney@bellpublishing.com Twitter: @foodanddrinktec or LinkedIn: Food & Drink Technology magazine.
