Waitrose calls in cost cutters for battle to revamp stores
Grocer plans overhaul to win back customers lost to the discounters as rising prices squeeze budgets
WAITROSE is planning to fight back in the battle for customers with a major revamp of swathes of its ageing store estate.
The supermarket has been cutting costs to free up cash for an overhaul of its 332 stores. Sources said a complete refresh would cost up to £250m, although the amount of money currently available is less than this.
The revamp comes as it fights to stem a decline in market share over the past year and win back shoppers from the German discounters Aldi and Lidl.
Its market share has fallen from 5pc to 4.7pc over the last 12 months as cost of living pressures have begun to bite, according to Kantar.
The John Lewis-owned grocer is now executing a turnaround plan masterminded with US consultants Bain.
On their advice, Waitrose has reduced its product range in an effort to reduce “duplication” and boost sales.
Changes initiated include cutting the range of yoghurts Waitrose stocks by 10pc, while water brands have been dropped in favour of kombucha, and sports and energy drinks.
The chain has also begun stocking more exclusive products, such as plantbased foods made in partnership with blogger Ella Woodward, known professionally as Deliciously Ella. (Ms Woodward is related to the founder of rival Sainsbury’s.)
Waitrose claimed yoghurt sales have risen nearly 10pc since it reduced its range. Steps to try to make Waitrose more efficient are understood to have been orchestrated by executive director James Bailey and commercial director Charlotte Di Cello, who are keen to free up capital that can then go back into modernising stores. The Sunday Telegraph reported in January that Waitrose had delisted products from Warburtons in 2022, saying the baker’s performance “didn’t meet our expectations”.
Ms Di Cello said: “We continue to have the widest breadth of range in the market in the areas that matter to our customers most such as Cook’s ingredients, wines and counters.”
Bain’s work, which was centred around improving efficiencies within stores, began in the middle of last year and has since been completed.
Boston-headquartered Bain is one of the best-known management consultancies and claims to have worked with over 60pc of the 500 biggest companies in the world.
The share prices of US companies that have hired Bain have outstripped those that have not, according to research. However, it was mired in controversy last year over its work in South Africa.
Bain remains barred from tendering for UK government contracts after the Cabinet Office found it had acted with “grave professional misconduct”.
A South African corruption commission uncovered “collusion” between Bain and former president Jacob Zuma in a “state capture” plan that would have facilitated possible corruption.
Bain has repaid the fees for the work and said at the time of the Cabinet Office ban it “apologised for the mistakes our South African office made”. A spokesman added that it was “disappointed and surprised” by the decision and it was considering other options for review of the UK decision.
The push to improve efficiency is part of a wider drive to cut costs within the John Lewis Partnership. The Telegraph reported last week that the Partnership was in advanced talks over selling its golf club where employees could get a lower-priced membership.