Following today’s release of Waitrose & Partner’s figures for the 52 weeks ending 27th January 2025; Eleanor Simpson-Gould, senior retail analyst at GlobalData, a leading data and analytics company, offers her view: “Waitrose & Partners has achieved a commendable 4.4% uplift in its latest results for the 52 weeks ending 27 January 2025. A strong H1 performance of +5.0% drove this growth and will ensure a market share increase for the grocer in the food & grocery sector as more consumers visit its stores. While its results over the festive period were softer than rival Marks & Spencer’s, in which food revenue sales rose 8.7% for the 13 weeks to the 28 December 2024, Waitrose & Partners’ 5.3% reported growth for the Christmas period is ahead of the likes of Tesco and Sainsbury’s. Furthermore, John Lewis Partnership will be emboldened by a doubled operating margin of 3.0% and an 86% growth in adjusted operating profit, boosted by investments in availability and productivity improvements. As Waitrose enters a new financial year, which will be fraught with rising costs and food inflation, the premium grocer must prioritise retaining margin.
“Waitrose opened its first new store in six years during the period. The Hampton Hill location is the first of 100 new convenience stores planned for the next five years. In addition, the grocer has been steadily expanding its partnership with Shell and Welcome Break locations – a prudent expansion area, given that the UK food & grocery convenience market is forecast to grow by 3.9% in 2025. While Waitrose is joining the grocery convenience race, it is doing so at a slower pace than the traditional grocers. This more gradual process will give it time to select the best opportunities for long-term growth as the convenience market evolves.
“Following a weak start to the “New Lower Prices” campaign launched in February 2023, the scheme is now making headway. Volumes rose 2.6% for the year, and the partnership has more than doubled its investment in the scheme from £61 million to £150 million. As food inflation rises again, Waitrose must be agile in keeping prices low on essentials and offering opportunities for consumers to trade up. Waitrose’s partnerships with Gymkhana, GAIL’s bakery, Ottonlenghi and WildFarmed have been apt choices that will strengthen the grocer’s proposition. Waitrose must continue its focus on third-party expansion alongside its own-brand offering.”
