Amidst rising profitability, Waitrose outlines strategic growth initiatives for 2024.
- The supermarket has experienced consistent customer growth over the last ten quarters.
- A notable improvement in supply chain availability has contributed to recent successes.
- Customer satisfaction enhancements are a key focus for maintaining growth.
- Plans include significant store expansions and renovations to remain competitive.
Waitrose has announced a promising set of half-year results, showcasing an increase in adjusted operating profit by £75 million alongside a gross margin uplift of 1.2 percentage points. According to Nish Kankiwala, the Chief Executive Officer of John Lewis Partnership, these figures affirm the efficacy of the company’s transformation strategy, with an optimistic outlook for substantial full-year profit growth.
The growth in customer numbers is one of the drivers behind this success. Waitrose Executive Director, James Bailey, highlighted that nearly two million additional shoppers have chosen Waitrose over a span of ten consecutive quarters. This expansion has occurred without any new store openings for over six years, indicating a robust like-for-like growth from existing outlets and online channels. Kantar data supports this trend, revealing a modest gain in grocery market share for the first time in more than two years.
Success in improving its supply chain and maintaining a ‘record availability’ of 96.5% has been another significant factor. Despite facing challenging conditions, such as adverse weather impacting various agricultural sectors, Waitrose reports no current disruptions in its supply chain. James Bailey expressed confidence in their preparations for the upcoming Christmas season, predicting the strongest offering ever.
Enhancements in customer satisfaction underpin the retailer’s performance improvements. Bailey notes the deployment of more efficient store operations, enabling better staff availability when most needed. The commitment to providing purchase choices remains strong, with innovations in checkout processes, such as the renewal of self-checkout systems, significantly elevating the customer experience.
Looking towards the future, Waitrose plans a substantial expansion with 100 new convenience stores set to open over the next five years, starting with a new location in Hampton Hill, London. The ongoing store modernisation programme also continues, as evidenced by the refurbishment of the Finchley Road store, among others. This strategic investment aims to align with market trends, competing with refined offerings from rivals while capitalising on the rise of convenient top-up shopping.
Waitrose’s strategic initiatives reflect a comprehensive approach to securing sustained growth and increased market competitiveness.
