Waitrose is poised for growth following positive half-year results, achieving £75m increase in operating profit.
- Customer numbers have risen by nearly two million over two years, marking ten consecutive quarters of growth.
- Despite past supply challenges, Waitrose has achieved a record availability of 96.5%, ensuring product consistency.
- Customer satisfaction has notably improved, supported by efficient store operations and adaptable checkout options.
- Future growth plans include opening 100 new convenience stores and revamping existing outlets for broader market reach.
Waitrose has unveiled a promising trajectory with a substantial £75m rise in its adjusted operating profit, alongside a 1.2 percentage point uptick in gross margin. The company’s strong half-year results underscore the effectiveness of its ongoing transformation strategy, as stated by John Lewis Partnership CEO Nish Kankiwala. The full-year profit forecast remains optimistic, signalling robust future growth.
The upmarket grocer has seen significant customer growth over ten consecutive quarters, translating to nearly two million additional shoppers since two years ago. This growth is supported by competitive positioning, drawing customers from various competitors and catering to diverse dining occasions such as lunchtime and dinner. Waitrose Executive Director James Bailey highlights growth in existing stores and online platforms, without new store openings in the past six years.
Waitrose’s profits have been bolstered by achieving a record availability rate of 96.5%. This milestone addresses previous supply chain challenges exacerbated by adverse weather conditions impacting agriculture sectors. According to Bailey, the retailer currently experiences no major supply chain disruptions and anticipates full stock levels by Christmas.
Enhancements in customer satisfaction are attributed to more adaptable and effective store operations, allowing for increased staffing during peak times. Waitrose commits to maintaining diverse checkout experiences, resonating positively with shoppers. This is part of a broader £1bn investment in store expansion and refurbishment programmes that aim to maintain high satisfaction levels.
The strategic expansion of Waitrose includes opening 100 new convenience stores over the next five years, starting with a Little Waitrose in Hampton Hill. The company is also focusing on the modernisation of existing stores, with recent renovations such as the Finchley Road site outperforming expectations. New features include updated refrigeration and specialised stations, set to enhance customer experience and competitiveness.
Waitrose’s strategic initiatives highlight its commitment to growth, quality, and enhanced customer experiences in the competitive market landscape.