by Sarah Hills FoodBizDaily.com London
March 12 2010 - Waitrose own-label range of products that were introduced last year and new store openings helped the grocer win over more customers in 2009.
Waitrose, part of the John Lewis Partnership, has released its full year results, ended 30 January 2010, during which time the group invested £25m in price competitiveness through the essential Waitrose range of more than 1,400 everyday products.
Overall, gross sales were up by 9% in 2009 to £4.5bn. Like-for-like sales grew 3.6%, excluding petrol and operating profit before property gains increased by 26.8%, to £268.2m.
Charlie Mayfield, chairman of John Lewis Partnership, said: “Waitrose has made enormous progress in the year with significant investment in both price and in the development of new shops, new formats and strategic partnerships.
“This, combined with the tremendous success of essential Waitrose has made the Waitrose brand more accessible to more customers in more parts of the United Kingdom. Each week up to 400,000 more people are now choosing to shop at Waitrose.”
Looking ahead, the group said: “Despite a very challenging start to the year, the financial performance of the Partnership has been robust and puts us on a confident footing for future growth.”
Essential Waitrose was launched in March 2009 to reach a broader audience, offering a clear entry price point “with no compromise on quality”. The brand is said to account for 17% of sales currently, with sales expected to reach £750m in 2010.
In the premium category, Waitrose also launched indulgent desserts range, Seriously, and restaurant-quality ready meals, Menu From. Both are said to be performing strongly.
Meanwhile the average basket size has increased by 8.4%, which represents almost one extra item in every basket.
The supermarket accelerated space growth, opening 25 new shops in 2009, with a further 22 planned for 2010 and scope for further expansion of the convenience format.
The year also saw more strategic partnerships, with Waitrose opening in five Welcome Break outlets and more planned, while Waitose products are being trialled at Shell forecourts, with similar trials in Boots stores expected this year.
In addition there are plans to open shops in Bahrain, Oman and Abu Dhabi later this year.
Following the success of the group, John Lewis partners, as co-owners, will share £151.3m in cash, which is 15% of pay.
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Waitrose Limited
Address: Southern Industrial Area Bracknell, RG12 8YA GBR
Telephone: +44-1344-424-680
Fax: +44-20-7592-6333
About Waitrose Limited
Waitrose Limited operates about 200 Waitrose supermarkets in London, southern England, the Midlands, East Anglia, Wales, and Scotland. Founded in 1904 by Wallace Wait and Arthur Rose, it was acquired in 1937 by John Lewis Partnership, one of the UK's largest retailers. The grocer plans to upgrade more than 75% of its stores over the next couple of years. Improvements will include new checkout and self-checkout counters, refrigeration equipment, and more space for fresh foods. Outside the food aisle, Waitrose plans to strengthen its non-food offering of clothing and housewares in its Food & Home store. A partnership with Internet grocer Ocado delivers Waitrose groceries to homes in London and Hertfordshire.