Customers give the thumbs-up to Waitrose's price match initiative

SUPERMARKET chain Waitrose saw sales jump 9.4 per cent in the first week of its campaign to price match market leader Tesco on 1,000 branded products.

Waitrose said customers responded well to the price initiative, which covers staples such as Heinz baked beans and household basics including Persil.

It is the first time the chain has adopted price-matching tactics associated with cheaper rivals such as Leeds-based Asda and Bradford-based Morrisons.

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The supermarket said the move follows strong growth in its own-branded goods, which were launched in March 2009 and now make up 17 per cent of sales.

But Seymour Pierce analyst Freddie George said the size of last week's sales increase suggested the price-match initiative had not had the same impact as the introduction of the chain's Essentials basics range 18 months ago.

Waitrose said the brand price matching campaign performed "particularly well" in its five Yorkshire stores in Sheffield, Willerby, Otley and Harrogate and the newly opened store in Meanwood (Leeds).

"Yorkshire customers are clearly responding to the message they can get excellent value on their favourite brands," said a spokeswoman. "It's only been going a week, but the sales lift in some stores is far higher than we expected. We're confident that over time it will become as popular as Essentials."

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She added that the Meanwood (Leeds) store, which opened last week, had seen a "fantastic" first week's sales.

Waitrose is also planning to open a convenience store in The Core shopping centre in Leeds city centre at the end of November, creating 60 new jobs.

Price match items will be monitored twice a week to ensure they are kept in line with the commitment to match prices at Tesco.

The move comes at a competitive time in the food retail sector, with products such as bread and milk being discounted despite rising commodity prices.

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Market leader Tesco, number two player Asda, number three Sainsbury's and number four Morrisons have all cut the price of a sliced white loaf despite wheat prices being up to 60 per cent more expensive than three months ago.

Waitrose said that there was strong demand for ready meals, with its 'Menu From' range up nearly 40 per cent, hot pies up a fifth and ready-to-cook stir fry up 19 per cent.

Now in season, sales of English plums rose 366 per cent.

There was strong demand for wine with Spanish wine up 67 per cent, low alcohol varieties up 63 per cent, and local and regional beer and ales up by nearly a third.

Rob Collins, Waitrose personnel director, said that with 11 weeks to go until Christmas, shoppers are already stocking up on traditional favourite drinks such as Baileys, which saw sales rise by a quarter.

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"Sales of Christmas puddings have surged by 100 per cent on last year with Christmas cake up 22 per cent, boxed Christmas cards also up 22 per cent and gift wrap up 15 per cent year-on-year," he added.

Waitrose – part of the John Lewis Partnership – generates 4.5bn a year in sales, with operating profits of 268m in its last financial year.

Elsewhere in the John Lewis business, department store sales rose 14 per cent. Analyst Freddie George said it had been an outstanding week for the department stores division, fuelling hopes that the sector will be able to ride out current worries over the impact of austerity measures. "We are becoming more and more confident about the outlook for the general retail sector," he said.

Shoppers get a taste for autumn

As the weather turned autumnal last week, Waitrose said tinned soup sales rose by 23 per cent, with Duchy soup sales up 131 per cent.

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Home-made soup was also popular and ingredients for chef Heston Blumenthal's cream of mushroom soup were top sellers as customers decided to cook from scratch.

Sales of Cooks' Ingredients Chinese and Porcini mushrooms soared by 372 per cent, with leeks up 74 per cent. The other ingredients, which included onions, vegetable stock and double cream, rose by nearly a quarter.

Customers also bought the ingredients for chef Delia Smith's salmon with saffron couscous crust and tomato and olive vinaigrette.