Waitrose flourishes in the heat
Waitrose, the upmarket supermarket chain owned by the John Lewis
Partnership. A programme of store openings and refurbishments also
helped the company's first half performance.
Waitrose, the supermarket division of the UK's John Lewis Partership, benefited from the hot summer weather and new store developments to post a double-digit increase in sales in the first half of the year.
The 11 per cent increase in sales to £1.3 billion (€1.9bn) at Waitrose was driven by increased sales of fresh food such as salads during the heat wave in July and August, and by the chain's ability to keep its shelves stocked with these popular items despite the fact that the heat also reduced crop sizes.
New store openings also contributed to the good performance from the retailer. Four new outlets which opened in the second half of 2002 and three in the first half of 2003 helped offset the drop in sales from the company's store in Finchley which was closed for eight weeks during the period as the result of a fire.
Waitrose said that it was also continuing to extend its existing branches wherever possible, with two refits completed during the half.
On a like-for-like basis, Waitrose sales were up 5 per cent on the same period a year earlier, which the company said made it one of the better performers in the UK supermarket sector.
The solid performance - which far outshone that of John Lewis' other main business, department stores - was also helped by the chain's efficient stock and cost control programmes, leading to higher trading profits per branch. These in turn allowed the company to cover the cost of new store developments and higher pre-opening costs during the half year.
As far as the first few weeks of the second half of the year are concerned, Waitrose has continued its excellent performance, with sales up 12 per cent after the first seven weeks in the group's 143 stores.
Only one new outlet is due to open during the half - Waitrose has a deliberate policy of concentrating new store openings in the first half, presumably to allow it to concentrate its efforts in the second half on the all-important Christmas period - although 13 stores will be given a 'face lift' as part of a scheme called Laser 2 during the half.
Waitrose - as part of the John Lewis Group - is just about the only UK food retailer not to be overly concerned with the rapid pace of consolidation in the market over the last few months. This has also allowed it to concentrate all its efforts on developing its business, generally perceived as offering a more upmarket product range than most of its rivals.
