Waitrose announces USD 1.31M investment in store expansion

UK – Waitrose, a British supermarket chain, is planning a significant expansion and modernization of its stores across the UK, driven by a £1 billion (USD 1.31 million) investment over the next three years.

This comes as the upmarket retailer reports strong growth in supermarket sales, fueled by warm weather and strategic price cuts.

Waitrose intends to open to 100 new convenience stores over the next five years, marking one of the retailer’s most significant periods of growth.

The investment will also enhance 150 existing stores, nearly half of its current estate. The first new Waitrose store in six years is set to open later this year in Hampton Hill, pending planning approval, with another in Greater London to follow early next year.

“We are focused on growth through new shops and ensuring our existing ones provide great shopping experiences that match the quality of our products,” said James Bailey, Executive Director at Waitrose.

He added, “The transformation of our Finchley Road store marks the next evolution of our journey to create a great shopping experience for our customers.”

Waitrose is also testing new concepts at its John Barnes store in Finchley Road, London. These include upgraded service counters, expanded sections for award-winning wines, and flexible layouts to better cater to local demand.

The retailer is also increasing collaborations with third-party providers and dedicating more space for on-demand grocery orders. These innovations are part of Waitrose’s vision to create a shopping experience that reflects the needs and preferences of modern consumers.

“In designing the store, we have taken time to understand how our customers like to shop,” Bailey explained. “We are using this knowledge to introduce new concepts that will be tested and rolled out nationally as we work towards the Waitrose of the future.”

The announcement coincides with a surge in supermarket sales across the UK, driven by warm weather, reduced prices, and easing inflation.

According to data from NIQ, total till sales grew by 5.5 percent in the four weeks ending August 10, 2024, marking the largest growth in supermarket sales this year.

The heatwave in early August, coupled with retailer price cuts, boosted sales, particularly in the produce category, which saw an 11.8 percent increase in value.

The data also highlighted strong performance from retailers like M&S and Ocado, with significant growth in fresh foods, summer indulgences, and groceries.

“Retailers will be pleased to have maintained shopper spend beyond Euro 2024, with the warm summer weather adding a boost to sales,” said Mike Watkins, UK Head of Retailer and Business Insight at NIQ.

However, he noted that inflation remains a concern for nearly one in three households, making loyalty and membership schemes crucial for maintaining shopper engagement.

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