Two-thirds of independent deli and farm shop owners consider Waitrose to be a bigger threat to their business than Tesco, a recent survey has revealed.
The poll, conducted by the Guild of Fine Foods - whose 618 members represent around 25 per cent of the deli and farm shop sector in the UK - showed that two-thirds of store owners consider Waitrose to be more of a problem than any other retail chain, and three out of five store owners thought that Waitrose’s expansion programme was bad news.
Bob Farrand, guild director, said: “Waitrose actively mimics delis and farm shops with speciality and locally sourced foods, but often at lower prices because of its buying power. There’s no doubt it’s more of a threat than, say, Tesco or Asda. But there are things fine food retailers can do to differentiate themselves.” Farrand explained that ‘express’ formats such as Tesco Express and Sainsbury’s Local are welcomed by members, because of evidence that indicates they attract more people to the high streets where they open.
The news comes as Waitrose unveiled its new-look store in Marylebone, London last week, the chain’s first “premium” fresh food supermarket, the concept of which has been based on research of the habits of more than 2,000 regular customers.
Until recently, Waitrose outlets have tended to be located in the same region as the store’s Berkshire headquarters, but managing director Mark Price has established an unprecedented expansion campaign.
The retailer is planning a revamp of its existing 183 stores, and over the next decade it aims to double annual sales from £3.7 billion to £8bn and open stores beyond its traditional stronghold in the South East. Two stores opened in Edinburgh last year and more are planned in the north.
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