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Waitrose

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Waitrose
Company typeSubsidiary
IndustrySupermarket
Founded1904[1]
FounderWallace Waite, Arthur Rose, David Taylor[2]
Headquarters
Bracknell
,
England, UK
Number of locations
255[3]
Area served
UK
Key people
Mark Price, Managing Director
Tony Solomons, Retail Director
Mark Williamson, Commercial Director
Tom Athron, Finance Director
David Jones, Supply Chain Director

Rupert Thomas, Marketing Director
Kevin Berry, Systems Director
Rob Collins, Personnel Director[4]
ProductsFood
Revenue£5046.8 million[5]
£173.5 million[5]
£123.3 million
Number of employees
42,900[6]
ParentJohn Lewis Partnership
Websitewww.waitrose.com

Waitrose Limited is an upmarket chain of supermarkets in the United Kingdom and is the food division of the British retailer and worker co-operative the John Lewis Partnership. Its head office is in Bracknell, Berkshire, England.[7] As of January 2011, Waitrose has over 240 branches across the United Kingdom and a 4.2% share of the market, making it the 6th largest grocery retailer in the UK.

The company claims to differentiate itself from its competitors by offering high quality food and good customer service. As a result, it has the reputation of being more expensive and is popular with the middle classes.[8]

The company has a Royal Warrant to supply groceries, wine and spirits to Queen Elizabeth II.[9] As of 1 January 2011 Waitrose has a Royal Warrant to supply groceries, wine and spirits to Prince Charles.[10] It formerly held a Royal Warrant for Her Majesty Queen Elizabeth, The Queen Mother.

The company has a long-term goal of opening 400 branches across the UK by 2017 and doubling its revenue to £8bn by 2016.[11]

History

Founded in 1904 by Wallace Waite, Arthur Rose and David Taylor, Waitrose began as a small grocery store, Waite, Rose & Taylor, in Acton, west London.[6] In 1908, two years after David Taylor had left the business, the name "Waitrose" (a portmanteau of the remaining founders' names) was adopted. In 1937, the company, consisting of 10 stores and 160 employees, was taken over by the John Lewis Partnership.[6]

Typical Waitrose branch in Barry
Waitrose branch in Cheadle Hulme, built in 2007 was Waitrose's first purpose-built retail outlet in Northern England
A Waitrose in Marlborough High Street
A Waitrose in Wallingford
A Waitrose Petrol Station in Lincoln
A Waitrose 'Community Matters' charity token.

In 1955, the chain opened its first supermarket in Streatham, London and continued to expand throughout London and the South East during the 1960s. In the 1970s, Waitrose opened branches in Hampshire, Bedfordshire, Essex and Cambridgeshire.

In 1981, counter service was introduced for fresh meat, fish and cheese, and in 1983, Waitrose became the first major supermarket chain to sell organic food.

In 2000, Waitrose purchased 11 stores from rival Somerfield.[12]

In order for Morrisons to meet competition regulations following its acquisition of Safeway, it was required to sell 52 of the Safeway stores. The first batch of 19 stores were sold to Waitrose in 2004,[13] and in August 2005, it purchased a further five Safeway stores. This took the firm as far north as Durham (now closed),[14] fitting with its long term strategy to evolve into a national retailer. In December 2005, Waitrose also bought another store at Biggin Hill, south east London, from Morrison's. In July 2006, Waitrose announced it had purchased another six stores from Morrison's and also a former Safeway regional distribution centre in Aylesford, Kent.

In June 2008, Waitrose announced the acquisition of four Woolworth's store sites for conversion to Waitrose branches in Chiswick, Battersea (Clapham Junction), Edgware Road (Marylebone) and Chapel Market, Islington. All these stores are now trading.[15]

In January 2009, Waitrose announced that they had acquired 13 sites from The Co-operative Group. One site in Melksham, Wiltshire was bought from Somerfield and opened on 18 March 2010.

The firm signed a deal with Alliance Boots which will see Boots operating branded pharmacies and retailing health and beauty products through Waitrose stores; in return Boots stores will sell Waitrose food products.[16]

In September 2009, Duchy Originals, the struggling organic food business started by Prince Charles was rescued by Waitrose, who has agreed to an exclusive deal to stock the range, and to pay a small fee to charity. In return, Prince Charles has graced a number of Waitrose stores, and dined with senior Waitrose executives and their spouses.[17] In August 2010, the Duchy range was relaunched with many new lines under the Duchy Originals from Waitrose brand.[18]

In 2010, Waitrose announced the acquisition of five supermarkets in the Channel Islands, three on Jersey and two on Guernsey, from Sandpiper CI, subject to the agreement of regulatory authorities. Waitrose have already been supplying the stores over the last two years with over 3,000 Waitrose own label products. The stores began reopening as Waitrose from February 2011.

Wednesday 4 August 2011 Waitrose opened a new store in Littlehampton.

Brand and marketing

The logo of Waitrose prior to the re-brand in 2003

The current Waitrose logo was designed by Monotype fonts and Interbrand,[19][20] to replace the traditional Waitrose logo.

Advertising for Waitrose emphasises the chain's unique selling points. For example, its differences in production processes, emphasising the quality of products or the expertise of their partners (staff). Recent marketing has also attempted to portray the chain as more ethical than other supermarkets, especially with regards to Fairtrade produce.

It was announced on 20 May 2008 that Waitrose would be sponsoring Reading F.C. for the 2008–09 season.[21]

In March 2010, Waitrose released a series of adverts, in print, online and on national television, featuring celebrity chefs Delia Smith and Heston Blumenthal.

Essential Waitrose

Departing from earlier practice, the chain introduced an entry level range of products called "essential Waitrose". The marketing of essential Waitrose centres around the tagline "quality you'd expect at prices you wouldn't". 1,400 new and existing products have been rebranded with this name using simple white-based packaging.

Brand Price Match

Prior to Christmas 2010 Waitrose launched a campaign matching Tesco's price on 1000 branded products. Updated weekly it would seek to dispel the myth that shopping in Waitrose on everyday items would be any more expensive than shopping in Tesco by directly matching the price with that of its rival.


Corporate practices

Waitrose donates a portion of its profits to a group of charities on a proportional basis, whilst individual Waitrose branches manage their own charitable donations and local decisions are made on which charities are to be supported. This is a system called 'Community Matters', where customers are invited to choose who they want money to be donated to.[22]

The supermarket launched the Waitrose Foundation in 2005, providing funds for education, worker facilities and health services among other things for fruit growers in South Africa. This was expanded to Ghana and Kenya in 2009.[23] Waitrose's vegetable varieties include organic varieties.[24]

Employment practices and benefits

Main article: John Lewis Partnership

As part of the John Lewis Partnership, all of Waitrose's employees are assigned the title of Partner, co-owners of the business. As such, they receive certain benefits, most notably the Partnership bonus, usually around 10–20% of a Partner's yearly salary in a lump sum paid in March (the highest bonus percentage in recent years has been 22%). The annual partnership bonus for 2011 was 18%. After three months service, Partners receive an orange discount card which entitles them to 15% discount in Waitrose and 25% in John Lewis Department Stores on most goods. Due to lower margins, discount is 12% on some (mainly electrical) goods in the department stores. The department store discount (25%/12%) also applies on johnlewis.com, but only if the partner has, and uses for the transaction in question, John Lewis's store credit card, the 'Partnership Card'.

In 2005, the business introduced a 'Mystery Shopper' programme to score its branches on the service they provide. The mystery shopper grades the branch on its presentation and on the service the branch provides at its service counters, checkouts, wine department and shop floor.

The employee levels in core branches are: Partner, Specialist, Customer Service Assistant (CSA), Team Leader, Assistant Section Manager (ASM), Section Manager (SM), Department Manager (DM) and Branch Manager (BM). In convenience branches the levels are: Partner, Team Manager, Assistant Store Manager, Store Manager. Above BMs are ten area managers known as Head of Retail Operations (HoROs), working with Registrars who are impartial of management and seek to safeguard the constitution which underpins the Partnership, then the two regional directors (north and south), the director of retail and finally at the top, the managing director, Mark Price. Price reports to the chairman of the John Lewis Partnership, Charlie Mayfield. Waitrose offers many different management courses, including the Retail Management Training Scheme (RMT) where people leaving school train to become section managers within two years, continuing to become department managers three years later and a Graduate Scheme that sees people achieving department manager level within two years. These schemes are very competitive and fulfilling.

Waitrose also offers industrial placement schemes for students studying a 4 year sandwich degree. This gives them the opportunity to work in branches, leading up to a section manager role within the year. They also offer limited placements at their head office in Bracknell; this gives students experience in departments such as Buying, Marketing and Personnel.

Stores

Waitrose branches are largely concentrated in the south-east of England and in Greater London. In 2003, its most northernly English branch was in Newark, Nottinghamshire.[25] Outside of major cities, stores are often located in smaller settlements between larger population centres, such as at Newport (sited between Telford and Stafford) and Kenilworth (between Leamington Spa and Coventry).

Waitrose stores vary considerably in size. For example, the smallest branch, Fitzroy Street, Cambridge, occupies 3,000 sq ft (280 m2) of retail space and the largest, Southend-on-Sea, over 56,000 sq ft (5,200 m2).[26] The average Waitrose occupies a retail space of around 18,000 sq ft (1,700 m2).

Waitrose offer a self-service system known as 'Quick Check'. Customers must register to use the system and upon entering the store they will be issued with a hand-held PDA with built-in barcode scanner, allowing them to scan and pack items as they are taken from the shelf; unpacked items from the produce and bakery departments can be self-weighed and labelled, and then scanned, at self-service scales located in their respective departments. The customer then pays his/her bill at the 'Quick Check' counter by returning the PDA to the cashier terminal, which will ring up the total bill.

Internationally, Waitrose holds a licensing agreement with Spinneys of Dubai, United Arab Emirates, which operate two purpose-built branches, of which the first opened in the Dubai Mall in October 2008.[27]

Waitrose products are also supplied to Manx retailer Shoprite (Isle of Man).

Convenience and Little Waitrose Stores

Announcing its foray into the convenience sector in July 2008,[28] Waitrose opened its first convenience store in Nottingham in December of that year.[29] In September 2009, it was announced that a large-scale roll-out of the concept was planned, opening up to 300 stores in 5 to 10 years. The new arm will operate in a two-tier environment, with the majority of sites expected to trade from 2,000-3,000 sq ft and up to one third trading from a larger 5,000-7,000 sq ft floor plate.[30] A trial of a 'Little Waitrose' fascia on smaller floor plate stores may yet lead to brand differentiation of some or all of the convenience estate.[31]

As of May 2011, there were 18 convenience branches.[32]

John Lewis Foodhall

Waitrose operates food halls in key stores of sister chain John Lewis. The stores are officially branded 'John Lewis foodhall, from Waitrose', and carry many Waitrose own-brand product lines. The first John Lewis Food Hall opened at the flagship London Oxford Street department store in October 2007; a second opened at the Bluewater branch in August 2009.

Waitrose Food & Home

There are 6 Waitrose stores across the UK large enough to offer a range of John Lewis products. These stores are located in Canary Wharf, Cheltenham, Rushden, Salisbury, Southend and Meanwood.

Welcome Break

In May 2009, Waitrose started a franchise deal with the motorway service station operator Welcome Break.[33]

Online presence

Ocado

In January 2000, the online food retailer Ocado was launched with the John Lewis Partnership as a principal supplier and part owner. The Ocado service is only available in certain areas of Britain. Ocado uses a central warehouse to service their deliveries. In November 2008, the John Lewis Partnership transferred its shareholding, then 29%, into its staff pension fund. It also agreed a five year supply deal with the business, replacing its previous one year rolling deal.[34] This deal was amended in 2010 to a ten year agreement to supply products to Ocado.[35] In February 2011, John Lewis Pension trust divested itself of its Ocado shares.[36]

Waitrose.com

Waitrose operates its own delivery service, Waitrose.com (previously WaitroseDeliver), which is only available in certain stores, delivering goods ordered through the Internet and serviced from the local branch. This service should not be confused with Ocado, which is a separate business. Waitrose.com also hosts the online ordering system for Waitrose's special order food and cakes service "Waitrose Entertaining" as well as ordinary online grocery shopping. Waitrose became the first supermarket to abolish all delivery charges as of May 2009.[37]

Some stores also deliver after customers shop in-store, branded as "Waitrose Delivery Service".

Market share

Graph showing Waitrose's UK market share

Kantar Worldpanel reports that Waitrose currently has a 4% share of the food market up 0.1% from 2006, and additionally a 18% and 10% share of the organic food and fish markets respectively.[38]

There have been concerns expressed by members of the Guild of Fine Food retailers that Waitrose is competing with quality independent grocers and farmers' markets, more than other supermarkets.[39]

Awards and acclaims

2006
  • Multiple Retailer of the Year (Re:Fresh)[40]
2007
  • Best High Street Retailer for Customer Service (Which?)[41]
  • UK's Favourite Retailer (Verdict Research)[42]
  • Multiple Retailer of the Year (Re:Fresh)[43]
  • Best Business Initiative (Re:Fresh)[44]
  • Seafood Multiple Retailer of the Year (Seafood Awards)[45]
  • Best Animal Welfare Practice (RSPCA)[46]
  • Best Supermarket [for Wines] (Decanter World Wine Awards)[47]
2009

2011 Best Supermarket Which? award 2011

See also

References

  1. ^ "Our Founder". John Lewis Partnership. Retrieved 2009-02-25.
  2. ^ "Founders". Ciao. Retrieved 2010-02-25.
  3. ^ "About us". John Lewis Partnership. Retrieved Feb 13, 2011.
  4. ^ "Waitrose Management Team". John Lewis Partnership. Retrieved 2009-02-25.
  5. ^ a b "Partnership Brochure" (PDF). John Lewis Partnership. Retrieved 2009-02-25. [dead link‍]
  6. ^ a b c "Company History". Waitrose. Retrieved 2009-02-25.
  7. ^ "Head Office Location". John Lewis Partnership. Waitrose head office Waitrose Limited Doncastle Road Southern Industrial Area Bracknell Berkshire RG12 8YA
  8. ^ "March of the middle-class food stores". This Is London. 18 June 208. Retrieved 4 April 2010.
  9. ^ Womack, Sarah (2002-12-02). "Waitrose awarded a Royal Warrant". London: Telegraph. Retrieved 2009-02-25.
  10. ^ http://www.waitrose.presscentre.com/Press-Releases/Another-Royal-Warrant-for-Waitrose-69d.aspx
  11. ^ Smithers, Rebecca (2007-07-03). "Forget Tesco: the bigger threat to small shops may be Waitrose". London: Guardian. Retrieved 2009-02-25.
  12. ^ "Somerfield sells stores". BBC News. 2000-01-26. Retrieved 2009-02-25.
  13. ^ Finch, Julia (2000-03-26). "Waitrose buys former Safeway stores". London: Guardian. Retrieved 2009-02-25.
  14. ^ "Waitrose closes loss-making store". BBC News. 2009-01-24. Retrieved 2009-02-25.
  15. ^ Finch, Julia (2008-06-19). "Is Woolies finished?". London: Guardian. Retrieved 2009-02-25.
  16. ^ Retail Week on Waitrose-Boots deal and convenience expansion
  17. ^ Smithers, Rebecca (2009-09-10). "Waitrose in deal with Prince Charles's Duchy Originals food company". The Guardian. London. Retrieved 2010-05-27.
  18. ^ "Duchy Originals – THE NEW FACE OF BRITISH ORGANIC FOOD". Duchy Originals. 2010-08-02. Retrieved 2010-08-05.
  19. ^ "Monotype". Monotype. Retrieved 2009-02-25.
  20. ^ "Interbrand Portfolio". Interbrand. Retrieved 2009-02-25. [dead link‍]
  21. ^ "John Lewis weekly dept store sales fall". International Herald Tribune. 2008-06-20. Retrieved 2009-02-25.
  22. ^ "Raising Money For Charity". Waitrose. Retrieved 2009-02-25.
  23. ^ "Waitrose Foundation". Waitrose. Retrieved 7 March 2011.
  24. ^ "Origins of our food". Waitrose. Retrieved 2009-02-25.
  25. ^ http://www.andidas.com/academic/babm/RetailMarketing_WaitroseTraineeGuide_by_andidas.pdf
  26. ^ "New Waitrose store for Nottingham". This Is Nottingham. 2008-10-01. Retrieved 2009-02-25.
  27. ^ "Waitrose in Dubai deal to open first stores abroad". Reuters. 2007-12-31. Retrieved 2009-02-25.
  28. ^ http://www.independent.co.uk/news/business/news/waitrose-to-open-convenience-stores-in-pursuit-of-16327bn-market-863051.html
  29. ^ "Waitrose First Convenience Store Opens For Business". 2008-12-11. Retrieved 2011-06-05.
  30. ^ "Waitrose to open 300-strong network of convenience stores". 2009-09-24. Retrieved 2011-06-05.
  31. ^ "Little Waitrose opens in London". Retrieved 2011-06-05.
  32. ^ {{Cite web |url=http://www.waitrose.presscentre.com/Press-Releases/Waitrose-launches-Good-To-Go-brand-to-support-convenience-growth-6fc.aspx |title=Waitrose launches Good To Go brand to support convenience growth |date=2011-05-09 |accessdate=2011-06-06}
  33. ^ "Waitrose agrees first franchise deal with Welcome Break". Waitrose Press Office. 2009-04-01. Retrieved 2009-04-03.
  34. ^ "Ocado gets five-year John Lewis backing". This Is Money. 2008-11-08. Retrieved 2009-02-25.
  35. ^ "Waitrose and Ocado Announce New 10 Year Branding and Sourcing Deal". John Lewis Partnership. 2010-05-10. Retrieved 2011-03-07.
  36. ^ "Ocado shares hit after John Lewis sells stake". BBC. 2011-02-11. Retrieved 2011-03-07.
  37. ^ "WaitroseDeliver". Waitrose. Retrieved 2009-02-25.
  38. ^ "Interview: Waitrose MD Mark Price". Country Life. 2008-12-30. Retrieved 2009-02-25.
  39. ^ Smithers, Rebecca (2007-07-03). "Forget Tesco: the bigger threat to small shops may be Waitrose". London: The Guardian. Retrieved 2009-05-09.
  40. ^ "Re:Fresh Awards Winners 2006". Re:Fresh. 2006-05-11. Retrieved 2009-02-25.
  41. ^ "Waitrose and John Lewis named top of the shops by Which?". Webwire. Retrieved 2009-02-25.
  42. ^ "Waitrose is UK's favourite shop". BBC News. 2007-03-08. Retrieved 2009-02-25.
  43. ^ "Re:Fresh Awards Winners 2007". Re:Fresh. 2007-05-10. Retrieved 2009-02-25.
  44. ^ "Sainsbury's double winner at retail awards". Fresh Info. Retrieved 2009-02-25.
  45. ^ "A night of celebration for Seafood Award winners". Fish Update. 2009-03-23. Retrieved 2009-02-25.
  46. ^ "Past Winners 2007". RSPCA. Retrieved 2009-02-25. [dead link‍]
  47. ^ "Decanter World Wine Awards gives Waitrose Top Accolade". Decanter. 2007-09-05. Retrieved 2009-02-25.
  48. ^ "Verdict déjà vu". John Lewis Partnership. 2009-01-16. Retrieved 2009-02-25.
  49. ^ "Waitrose Voted Top Food Retailer for Customer Service". Waitrose Press Office. 2009-01-19. Retrieved 2009-02-25. [dead link‍]
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