Waitrose's James Bailey wants to make the supermarket «more accessible». Photo: Paul Grover for The Telegraph
Waitrose has vowed to ditch poorly run and outdated stores in an attempt to become more «accessible» and attract a wider audience.
James Bailey, chief executive of John Lewis-owned Waitrose Partnership, said it was determined to ensure the company's stores were in the «right location and in the right postcode» following cost restraints in recent years.
Mr Bailey said: “Over the last two or three years, due to Covid-19 and rising cost of living issues — and a bit before that — we've had to be careful about the stores we invest in.
“The partnership is now in a position where it can now reinvest in this shopping complex and we have some really big, well thought out plans for how we go back in time.”
p>It comes after The Telegraph revealed in March that the supermarket was cutting costs to free up money to overhaul its 332 stores. Sources said at the time the complete revamp would cost up to £250 million, with restructuring experts brought in to help decide where costs could be cut to reinvest in aging stores.
John Lewis is set to cut costs of £600 million. costs from the business in the coming years, on top of the £300 million already cut.
Mr Bailey said he would like to move a number of stores to locations that were more efficient and cost-effective, such as those using solar power and LED lighting. It is understood that some Waitrose stores have not received significant investment in more than a decade.
He added: “The majority of our stores are in the correct postcode, but some may be in the wrong location in that postcode. So if you're a Waitrose customer and you're shopping on the high street or in some of the older stores, the store itself might be on three floors.
“It can be really terribly organized and it's just not a very modern place to shop.”
Waitrose expects there to be a similar number of large stores in the city. completion of the major refurbishment, although more properties will have John Lewis mini stores inside. The company is also actively opening new small convenience stores, which are sold under the name Little Waitrose.
Mr Bailey said a store overhaul program was under way to make Waitrose «more accessible and attractive to more people».
Historically, it was considered a supermarket aimed at middle-class shoppers in suburban towns and villages. However Mr Bailey said: «It's one of the Waitrose myths that we have a very specific type of customer and they only come from certain parts of the country and no one else.»
Over the past year, he said the supermarket had attracted 800,000 new shoppers to its stores.
Mr Bailey added: “That's more people from all over the country just picking up one or two more occasions to pop in come shopping with us. This is a solid boost.”
It comes as bosses try to turn around John Lewis' wider business amid concerns the retailer has fallen out of favor with shoppers. Forecasts made earlier this year suggested that by the end of 2023, Marks & Spencer would overtake John Lewis as Britain's biggest retailer.
John Lewis admitted this month that its recovery would take longer than planned.
Under a five-year partnership plan launched in 2020, Dame Sharon White, chairman of John Lewis, promised that the company would make annual profits of £400 million by 2026.
However Dame Sharon admitted John Lewis would not reach that target and said the partnership was unlikely to achieve it before 2028.
Mr Bailey said: “I think it would be very sensible and practical say: look, a couple of unusual years have passed when inflation was at this level, and customer sentiment was exactly like that. The path is still very attractive, but of course it will take another couple of years. It's just common sense.»
As well as upgrading stores, Waitrose will invest more in cutting prices as part of its bid to revive its fortunes.
Since Mr Bailey took over, Waitrose's share of the grocery market fell from 5.1% to 4.6% at the start of 2020, according to Kantar data experts.
Mr Bailey said this was a result of wider economic challenges facing households.
He added: “We have cost of living issues that customers have faced over the last 12 or 18 months and we continue to there is, and consumer confidence has taken such a big hit.
“As a premium brand, you expect to be a little behind the competition in the market. It's okay, we can live with it.»
But Mr Bailey said the supermarket had recently changed direction and the number of products sold in its stores was no longer declining.
He said: “Certainly we have seen discounters attracting some customers. but as consumer confidence grows again, shoppers are reconsidering where they shop each week and we're attracting more of those customers back. This must be true for us to grow customers in the way we have.”
Since the start of the year, Waitrose has cut prices on hundreds of products in an attempt to win back customers.
Despite However, the numbers show that it still remains noticeably more expensive than its competitors. According to consumer advocacy group Which?, a basket of groceries at Waitrose is more than 20% more expensive than Aldi and 11% more expensive than Asda.
Mr Bailey said the survey measured price rather than value, which was more important to its customers.
He said, “You are literally not comparing apples to apples. Which? They do a great job, but they look at things in one dimension and that's not how customers think and buy. Some of our confidence comes from the fact that more and more people are choosing to shop with us.»
Earlier this month, Waitrose warned staff that jobs were at risk as the retailer overhauled its business in a bid to boost productivity. .
The supermarket chain has told some employees they will have to change shifts to ensure its store floors are adequately staffed during its busiest times.
Mr Bailey said the staff proposals would allow Waitrose to «save money on things that customers won't notice.»
He added: «Customers don't care how the baked beans arrive To the market». shelf.
“What they really care about is do they see someone when they walk in and are they greeted well? Do they have fantastic advice on their shelves?
However, the changes caused dissatisfaction within the organization. At the staff forum, some partners said they felt undervalued in their roles, while others warned that changing night shifts would mean stores would not be fully staffed when they reopen.
Mr Bailey said , that he did not notice any signs of decline in morale. took a hit
He added: “Most partners care deeply about the business. Almost exclusively people say, “This is great, this is inspiring.”
“We're tackling some problems that have been around for a while, and we have to be honest about it. At the end of the day, we are co-owners in this business, so we have to act like co-owners and think long term. The opportunity is there, let's work hard to achieve it together.”
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