Waitrose has achieved substantial profit growth, attributed to customer increase and high availability.
- For the half-year ending 27 July, Waitrose reported a £75 million rise in adjusted operating profit.
- Sales have increased by 5%, with customer numbers growing by 300,000 over ten consecutive quarters.
- John Lewis Partnership’s transformation plan is cited as a driving factor in Waitrose’s success.
- In-store initiatives and partnerships have bolstered Waitrose’s market position.
In a notable achievement, Waitrose has reported a significant profit increase for the 26 weeks ending 27 July. The company’s adjusted operating profit surged by £75 million, reflecting the effective execution of its strategic initiatives aimed at enhancing customer satisfaction and operational efficiency.
Sales at Waitrose saw a rise of 5%, underpinned by a volume increase of 2% and a slightly over 2% rise in average item prices. This growth is closely linked to Waitrose’s ability to expand its customer base, gaining 300,000 additional shoppers over ten consecutive quarters, a record that underscores the brand’s strong market positioning.
Nish Kankiwala, the CEO of John Lewis Partnership, which operates Waitrose, emphasised the positive trajectory by stating that the results confirm the success of the group’s transformation plan. Kankiwala expressed confidence in substantially higher year-end profits, marking a notable improvement from the position two years prior.
The supermarket chain has also focused on enhancing its offerings through various initiatives launched this year. Notably, Waitrose has collaborated with Yotam Ottolenghi to enhance its culinary range, partnered with Gail’s bakery for in-store cafes, revamped its No.1 premium range, and teamed up with the nutrition brand Zoe. These moves have collectively improved customer engagement and brand loyalty.
Further strengthening its competitive edge, Waitrose embarked on a store modernisation programme with a significant refurbishment of its Finchley Road branch, and plans to update eight more locations in late 2024. Such initiatives not only enhance the shopping experience but are also anticipated to contribute positively to the company’s performance during peak trading periods.
Waitrose’s concerted efforts in customer growth and strategic partnerships have positioned it well for continued success.
