UK supermarket operator Waitrose has announced its intentionto increase its involvement in the country’s convenience market, with plans fornew, smaller formats and joint initiatives with retailers in other sectors.
Theretailer has confirmed that it has sealed strategic relationships with tworetailers, Welcome Break and Boots UK, that it said would accelerate itspresence in convenience.
Theagreement with Welcome Break follows a successful trail arrangement with themotorway service station operator, under which Waitrose opened franchisedoutlets on two major road arteries – the M40 at Oxford and the A1-M25 at SouthMimms.
Waitrosesaid that the small branches have made a big impact, reaching up to 9mmotorists and creating 50 new jobs.
Thissuccessful Waitrose model will now be rolled out to a further nine WelcomeBreak sites over the coming months, the first three of these are planned forNovember 2009, with the retailer adding that there was “potential foradditional stores in the future”.
Waitrose isalso in discussions with pharmacist Boot UK over the trial sale of “very selectiveproduct ranges in each others’ stores”, including Waitrose-sourced food.
In astatement, Waitrose managing director Mark Price said: “Working with partnersof this quality, with their strong reputations and extensive representation,will mean we make a dynamic entry into convenience and fully exploit thebusiness opportunity.”
Theretailer has already made successful moves into convenience formats of between464-650m2, opening a branch in Nottingham in December 2008 and a second out letin Bristol in March 2009.
Waitrosesaid both branches were performing well and said two further shops would beopened shortly – Crouch End in North London on 8 October and Oxted, Surrey inearly December.
Thesupermarket operator said it also had plans to trial smaller 185-371m2 storesnext year, with a view to eventually opening some 300 convenience branches inthe UK.
Waitroselast week reported strong growth for the half year ending 1 August 2009, withgross sales up 7.4 per cent, operating profit up 18.7 per cent and customernumbers up by nearly 6 per cent overall.
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