Waitrose’s £1 billion gamble: Millions more Scottish shoppers to get alternative to Tesco, Morrisons and M&S

Scotland is in line for more Waitrose stores after the John Lewis-owned supermarket business outlined record £1 billion expansion plans.

The employee-backed business is looking to open up to 100 convenience shops over the next five years as part of a bumper investment in its chain of supermarkets. The new outlets across England, Scotland and Wales will be the first openings in six years for the upmarket grocery group. It will put it head to head with supermarket giants Tesco, Sainsbury’s and Morrisons, which have been ramping up their convenience market presence, along with Marks & Spencer and its increased focus on food, including within motorway service areas.

Waitrose, which has more than 45,000 staff, has traditionally focused on the market south of the Border but the past few years has seen it push into Scotland with larger stores in Edinburgh, Stirling and around Glasgow. It also has a couple of “Little Waitrose” operations located at service stations.

Waitrose said its meat and fish counters were being given a new look and upgrades 'at a time when many food retailers were removing theirs'.

Bosses said the £1bn would be spent on launching the new stores, building on that Little Waitrose convenience model, and improving 150 existing ones, almost half the 329-strong UK-wide chain. It is also transforming a shop in London’s Finchley Road to trial new services, products and concepts over the next year. This will help the group draw up a blueprint for all its shops which will be shared in 2025.

A spokesman for the firm confirmed that it had plans to open more shops in Scotland though the precise locations for the new branches have yet to be disclosed.

James Bailey, executive director of Waitrose, said the “groundwork we have undertaken behind the scenes in recent years” means the company can now steam ahead with opening new shops and “ensuring our existing ones are providing great shopping experiences that match the quality of our products”.

He added that new in-store concepts will be tested and rolled out nationally “as we continue to work towards the Waitrose of the future”. The first new Waitrose store is set to be in Hampton Hill, London, later this year, followed by another in the UK capital early next year.

Bosses said the £1bn would be spent on launching the new stores, building on the Little Waitrose convenience model, and improving 150 existing ones.

Investment will focus on innovations such as chilled departments for wine and beer, and a dry aged beef cabinet and dedicated parmesan section in shops. It will also focus on expanding collaborations with other sellers including Crosstown doughnuts and Hot Wok meals provided by Sushi Daily.

The Finchley Road branch will be the first to feature a hatch where food delivery riders, like Deliveroo and Uber Eats, can make collections outside the store’s opening hours.

Waitrose said its meat and fish counters were being given a new look and upgrades “at a time when many food retailers were removing theirs”.

The investment follows a recent recovery in Waitrose’s market share. Data from industry analyst Kantar revealed that in the three months to August 4, Waitrose recorded its strongest growth since November 2023.

John Lewis Partnership chief executive Nish Kankiwala said: “Our investment in our Waitrose store portfolio is already yielding strong results, with customers responding positively. As our retail driven plan continues to gain traction, our growing number of shoppers and increasing customer satisfaction scores are clear indicators of its success.

“This is a result of our unrelenting focus on improving the customer experience of our retail businesses, taking the love that exists for both brands and making sure customers are rewarded with better shops, the highest quality products, and the best service.”

News of the rebound and fresh investment comes just ahead of the arrival of Tesco veteran Jason Tarry, who is set to replace Dame Sharon White as chairperson of Waitrose parent John Lewis Partnership. The group announced a return to profit this March but opted not to restore its coveted annual bonus for the “partners” who jointly own the business.

Last year, John Lewis announced that it would not be handing staff a bonus for only the second time since 1953 after the retail giant slumped to a full-year loss. Bosses said the partnership would increase cost-cutting efforts to complete a turnaround of the group’s financial performance.

John Lewis Partnership (JLP), which runs the eponymous department store chain, including two Scottish sites, in Edinburgh and Glasgow having closed its Aberdeen branch, and the Waitrose supermarket business, recorded a £78 million loss before exceptional items for the year to January 28, 2023. That marked a slump from a £181m profit the previous year, with the group blaming “inflationary pressures”. White apologised to staff that they would not receive a bonus payment following a “tough set of results”.

Meanwhile, a new study has named Aldi as having the best value supermarket own-brands. The research, conducted by saving outfit BravoVoucher.co.uk, analysed 15 items from each big UK supermarket’s own-brand range to determine which has the lowest overall cost. These items included brown bread, butter, beans, chopped tomatoes and milk. Asda was ranked in second place with Tesco in third spot.

Marco Farnararo, chief executive and co-founder at Bravo Savings Network, said: “Due to economic uncertainty, such as the cost-of-living crisis, own-brand products have soared in popularity, and more shoppers have leaned towards cheaper products instead of leading brands. Switching from your favourite brands can seem like a big move, but the money you save on items where you may not even taste a difference will dramatically cut down costs on your food shopping.”

John Lewis: Bonus blow and massive cost-cutting as retail icon slumps to £78m loss