Robert Lindsay
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Sales from Waitrose stores tumbled 10.7 per cent last week, the biggest weekly fall so far this year, with many of the stores failing to meet their budgets.
But until the last two weeks, Waitrose had been a stellar performer, winning share from Marks & Spencer and the other supermarkets.
The partnership blamed later school holidays and poor weather for much of the £9 million sales dive to £75.37 million. Every region of the country saw a sales drop with the worst being a 16 per cent fall in the south and west.
The sales fall in the week to April 5th, is an acceleration of a 4.6 per cent drop the previous week, which included the Easter Monday bank holiday. The figures also looked bad because the same week last year fell over Easter when the stores received a big sales boost.
The John Lewis department stores managed to keep sales ahead, up 2 per cent, partly due to the second week of a TV advertising campaign, but within that figure strong sales of electricals such as flat screen TVs masked falling sales of higher margin homewares, which were down 6.1 per cent in the week.
Andy Banks, head of supply chain for John Lewis, commented "sales of furniture remain hard to win".
The dire performance of Waitrose dragged down the overall sales performance of the Partnership by 6.1 per cent to £124 million.
In March chairman Charlie Mayfield warned that interest rate cuts may not prevent a severe downturn on the high street this year.
Although he announced record annual profits alongside the biggest staff bonus for a decade – 20 per cent of pay – he warned that trading had become far more challenging since the new year.
Like-for-like sales across John Lewis’s department stores rose only 0.9 per cent in the five weeks to March 1, compared with more than 6 per cent before Christmas.
A bumper Easter for the store helped bring the figures back up.
Mr Mayfield said at the time of the results: “The conditions we are facing this year are quite different to this time last year. There’s no doubt the market has toughened.
“I can’t remember a time when there has been such an unrelenting run of bad news from the financial sector. The question was always whether the problems would spill over into consumer markets, but from much of what we see that is very clearly happening.”
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Peter Smith 'cannot face going to Tesco' but then tells us what people are doing there.
Pin your ears back - we take bags - and we get points for doing it, so you're wide of the mark there.
As for Waitrose - they trade on the snob element which is very evident to all from the postings here.
For myself - no one has my undivided loyalty - price and quality are not just at one - choose according to the deals and products you yourself use.
Janet Wood, Kirkby Stephen, Cumbria
Try Aldi, or Lidl instead folks. The days of bumper profits are numbered for the complacent conglomerates.
John, skipton, yorkshire
Waitrose is a wonderful social meeting place, it is well laid out and provides a delicious selection of food.
A wise shopper will buy some of this from there and some of that from somewhere else. Nowadays , one has to be pretty disciplined with the shopping list. It is true that Waitrose will have to cut prices on a few basic lines-- generally speaking though they give good value in everything.
The shop in Dorchester is just the right size, and no-one grumbles about quality. Their bakery products are something else! mmm
Mrs Maggie Snook, Wool , , Dorset UK
I am not surprised to read of the downturn in their sales. They have recently expanded their previously excellent store in Finchley Road. It is so vast that the area which covers prepared dishes and fresh meat is invariably deserted - you have to do a "right turn" to get there - so most people just turn left and confine their purchases to the rest of the store. Compared with it's former glory, it is a disappointment. Too much variety and too much walking! I agree about the high prices too.
Georgette Behar, London, England
Waitrose is about quality, Tesco and the others are about volume turnover. I cannot stand going to Tesco etc as you end up in huge queues and faced with a vast choice of products that we just don't need. In Waitrose the choice is carefully selected and they care about customers so you never have to wait much at checkouts. Waitrose also really supports local producers and is making an effort on plastic bags etc. I now see lots of people going in with all sorts of different bags to avoid using new plastic bags. You don't see that at Tesco's.
Pete Smith, Stroud, Gloucestershire
What are you talking about? Waitrose is the best value supermarket out there.
Do a comparison of Waitrose Canary Wharf, Tesco Lewisham, Sainsbury's Greenwich Peninsula, M&S Greenwich, Asda Isle of Dogs.
Game set and match to Waitrose on price, quality and range of products. I've noticed the Waitrose staff tend to me more helpful as well.
James, Tesco Convert, Greenwich
Pop into Lidl's ..Their curry's are half the price and supplied by Noon foods who also supply Waitrose with theirs!
Adrian McCarthy, Stratford Upon Avon,
Tried Sainsbury's, tried Tesco, in my humble opinion Waitrose is by far the best value for money. The food is fresh, the cans and packets undented. I'm an OAP by the way.
Mike, Winchester, UK
I agree with Peter of London. Waitrose is very expensive, although their fresh produce is exceptionally good. They appear to cater on the basis that everyone is having a dinner party every day of the week. They need to look to the basics.
One thing that I find irritating is that they have now started showing tickets on their shelves, showing that certain products are the same price as J. Sainsbury. This doesn't seem like competition to me. It seems more like price rigging.
John, London,
I stopped shopping in Waitrose a year ago, switched to Tescos and saved about £100 per month on my shopping bill without a compromise on quality or choice.
So as people start to face a downturn in their disposable income the canny ones will start to look for better value food.
If Waitrose are going to keep in the game then they have go to slash prices
Peter, London, UK