Waitrose to open convenience stores in pursuit of £27bn market
Waitrose plans to launch its first grocery convenience store early next year to take on Marks & Spencer, Sainsbury's and Tesco.
The John Lewis Partnership-owned grocer has hired the consultant Anthony Wysome, a former senior project manager at Waitrose, as head of convenience to spearhead its push into the fast-growing £27.4bn market for small shops.
The revelation that Waitrose is to pit itself against Tesco Express, Sainsbury's Local and M&S Simply Food is particularly unwelcome news for Marks & Spencer, which unveiled like-for-like food sales down 4.5 per cent last week and parted company with food director Steve Esom.
A Waitrose spokeswoman said: "We would hope to be trialling a shop within six to nine months."
The Waitrose convenience stores are likely to be sized between 3,000 sq ft and4,000 sq ft.
Andrew Kasoulis, an analyst at Credit Suisse, said: "The obvious one that Waitrose will trade against would be M&S Simply Food. But convenience stores are difficult to get right, and if Waitrose is successful in this market it will be a while before they hurt anyone."
Waitrose's convenience store plans follow the launch this year of its market-town stores, which are typically sized about 13,000 sq ft.
In May, Waitrose unveiled its first market-town store in St Neots, Cambridgeshire. It opened another in Buckingham, Buckinghamshire, last month, and will unveil another in Brackley, Northamptonshire, next week.
The market-town stores offer a higher proportion of fresh food and locally sourced produce.
The grocery expert IGD said that sales in the UK convenience sector grew by 5.1 per cent to £27.4bn in 2007, which is faster than the overall grocery market.
Separately, the specialist homewares retailer Dunelm, which has 76 stores, vowed to continue its expansion, despite posting a 2.4 per cent fall in like-for-like sales in the 13 weeks to 28 June.
Dunelm's chief executive,Will Adderley, said that it will open "at least" eight stores and recruit about 1,000 employees, including store and support staff, over the next year. He said: "We generate good cash flow and we have a strong balance sheet and shareholder base to fund the expansion."
We’ll tell you what’s true. You can form your own view.
At The Independent, no one tells us what to write. That’s why, in an era of political lies and Brexit bias, more readers are turning to an independent source. Subscribe from just 15p a day for extra exclusives, events and ebooks – all with no ads.
Comments
Share your thoughts and debate the big issues
Please be respectful when making a comment and adhere to our Community Guidelines.
You can find our Community Guidelines in full here.
Please be respectful when making a comment and adhere to our Community Guidelines.
Community Guidelines
You can find our Community Guidelines in full here.
Follow comments
Vote
Report Comment
Subscribe to Independent Minds to debate the big issues
Want to discuss real-world problems, be involved in the most engaging discussions and hear from the journalists? Try Independent Minds free for 1 month.
Already registered? Log inReport Comment
Delete Comment
Subscribe to Independent Minds to debate the big issues
Want to discuss real-world problems, be involved in the most engaging discussions and hear from the journalists? Try Independent Minds free for 1 month.
Already registered? Log inAbout The Independent commenting
Independent Minds Comments can be posted by members of our membership scheme, Independent Minds. It allows our most engaged readers to debate the big issues, share their own experiences, discuss real-world solutions, and more. Our journalists will try to respond by joining the threads when they can to create a true meeting of independent minds. The most insightful comments on all subjects will be published daily in dedicated articles. You can also choose to be emailed when someone replies to your comment.
The existing Open Comments threads will continue to exist for those who do not subscribe to Independent Minds. Due to the sheer scale of this comment community, we are not able to give each post the same level of attention, but we have preserved this area in the interests of open debate. Please continue to respect all commenters and create constructive debates.