Waitrose is focusing on expanding its growth strategies as it reports positive financial results for the first half of the year.
- The supermarket chain has experienced consistent customer growth for the past ten quarters, gaining market share for the first time in two years.
- Waitrose has achieved a record 96.5% availability, overcoming past supply chain challenges.
- The company plans to enhance customer satisfaction through improved store operations and a choice of shopping methods.
- Significant expansion includes plans to open 100 new convenience stores and revamp existing locations.
Waitrose has reported a strong financial performance for the first half of the year. The adjusted operating profit increased by £75 million, and the gross margin rose by 1.2 percentage points. Chief Executive Officer Nish Kankiwala has attributed these results to the success of the company’s transformation plan, which aims to see significant profit growth by the end of the year.
One of the key factors driving this growth is the consistent increase in customer numbers over the past ten quarters. Waitrose has gained nearly two million more shoppers compared to two years ago and increased its grocery market share by 0.1 percentage points in July. This growth has largely been achieved without opening new stores, relying instead on existing shops and online offerings. Waitrose Executive Director James Bailey highlighted that this growth comes from a variety of market segments, as well as increased spending on different eating occasions.
Another contributor to Waitrose’s growth is the record availability rate of 96.5%, which comes after a challenging period of supply chain disuptions affecting the grocery sector. Despite past challenges, such as adverse weather conditions impacting supply, Waitrose is optimistic about maintaining strong availability throughout the autumn season, ensuring robust operations for the upcoming Christmas period.
Store operations have been a focal point for Waitrose in improving customer satisfaction. By enhancing efficiency and flexibility, Waitrose has ensured more staff availability during peak shopping times, which has subsequently increased customer satisfaction. Waitrose remains committed to offering customers a choice in shopping methods and has seen improved satisfaction scores in its self-checkout experience, following a two-year renewal programme.
Looking ahead, Waitrose is planning substantial store expansion and refurbishment. The company intends to open 100 new convenience stores over the next five years, with the first set to launch shortly in southwest London. In addition to new openings, Waitrose has embarked on a comprehensive store modernisation programme, with recent refurbishments showing promising results in sales performance.
Waitrose’s comprehensive strategies in customer growth, store operations, and expansion reflect its commitment to maintaining its competitive edge and enhancing customer satisfaction.