Waitrose has revealed that it is planning to open 100 more convenience stores over the next five years as part of a £1bn investment programme for new sites and refurbishments.
The plans were unveiled alongside today’s opening of a revamped outlet in Finchley Road, north London. This marks the start of a phase of expansion for Waitrose, with it set to open its first new store in six years in Hampton Hill, west London, by the end of this year. This will be followed by another in the capital in early 2025.
The five-year programme includes the opening of up to four large supermarkets and the Little Waitrose outlets, some of which will be relocations from existing sites.
Around 150 older stores, almost half of its estate, will be refurbished, with the investment focused on the areas that differentiate the chain from its rivals. This includes upgrading service counters, giving its wine selection greater prominence, adjusting its product offering to respond to local demand, more third-party collaborations, and dedicating extra space to on-demand grocery orders.
The Finchley Road branch has undergone a six-week revamp and will act as a testbed for several new concepts. New features include an updated refrigeration system, the first fully chilled beer, wine and spirits department, a new-look bakery that includes a partnership with Crosstown doughnuts, and a dedicated parmesan section. It will also have a made-in-branch baguette station, a hot chicken and salad counter, and the chain’s first hot wok counter in collaboration with Sushi Daily, which will serve ready-to-eat meals.
James Bailey, the chain’s Executive Director, said: “Waitrose will always offer fantastic food, but the groundwork we have undertaken behind the scenes in recent years means we 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.
“The transformation of our Finchley Road store marks the next evolution of our journey to create a great shopping experience for our customers, underpinned by a high-quality product offering tailored to the local area, and the quality service we are synonymous with. In designing the store, we have taken time to understand how our customers like to shop, and used this knowledge to introduce new concepts that will be tested and rolled out nationally as we continue to work towards the Waitrose of the future.”
After a tough period in which it came under pressure from its key rival Marks & Spencer and the cost of living crisis, Waitrose has recently begun to regain market share. The uptick comes ahead of the arrival of Jason Tarry, the former Tesco exec who will replace Sharon White as Chair of the John Lewis Partnership next month. He is expected to oversee a return to prioritising retail at the group after White’s strategy of diversification.
Nish Kankiwala, Chief Executive Officer of the John Lewis Partnership, said today: “Our investment in our Waitrose store portfolio is already yielding strong results, with customers responding positively.
“As our retail-driven plan continues to gain traction, our growing number of shoppers and increasing customer satisfaction scores are clear indicators of its success. This is a result of our unrelenting focus on improving the customer experience of our retail businesses, taking the love that exists for both brands and making sure customers are rewarded with better shops, the highest quality products, and the best service.”
NAM Implications:
- Waitrose Total investment Plan covers:
- Upgrading service counters
- Giving its wine selection greater prominence
- Adjusting its product offering to respond to local demand
- More third-party collaborations
- Dedicating extra space to on-demand grocery orders
- If any of these represent possible opportunities for collaboration…
- …why wait for rivals to show the way?
