Daily Newsletter

05 April 2024

Daily Newsletter

05 April 2024

Waitrose deepens price cuts in bid to regain market share

The company is facing increased price competitiveness from its primary rival, M&S.

Luke Martin April 04 2024

In a continued effort to offer customers better value and compete with rivals, British supermarket Waitrose is lowering prices on more than 200 of its everyday grocery items.

This marks the company's fifth price cut initiative since February 2023, bringing the supermarket’s total investment in lower prices to £130m ($164.5m).

The reductions focus on staples such as chicken breasts, potatoes, butter, and cream, with an average decrease of 7%.

Fresh produce sees an even steeper discount, averaging 10% lower than normal.

Notably, 40% of these discounted products carry the Waitrose Good Health certification, catering to customer demand for healthy options at competitive prices.

“Our commitment to giving our customers great value for money continues with our latest investment in price,” said Charlotte Di Cello, Waitrose's commercial director.

“As always, our quality won’t change but our prices will drop allowing customers to enjoy great value with no compromise,” added Di Cello.

This aggressive price strategy comes amidst intensifying competition within the mid-tier grocery segment in the UK.

Waitrose’s primary rival, Marks & Spencer (M&S), has seen significant sales growth in recent months, attracting customers with its own price reduction efforts.

Waitrose is actively countering this challenge. The John Lewis Partnership, Waitrose’s parent company, plans to renovate 80 stores over the next three years and enhance customer service initiatives.

This renewed focus on core retail operations aligns with the recent decision to prioritise profitability within the sector, streamlining the business and reducing costs.

Last month, the John Lewis Partnership reported it had emerged from a three-year period of financial losses, returning to profitability, with Waitrose appearing as the driving force behind this.

Sales for the grocery chain enjoyed a 5% rise to £7.7bn, bolstered by a record number of customers choosing Waitrose.

While Waitrose navigates a competitive landscape, the latest price cuts demonstrate a clear commitment to regaining market share by offering customers a compelling combination of quality, health-conscious options, and affordability.

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