The “buzz is back”. OK, so it’s still losing money, but the John Lewis Partnership turnaround is “definitely working”, throwing off cash, paying down its debt and all set to deliver “significantly higher” profits in the all-important second half. And while there’s understandable focus on the improved fortunes of John Lewis, there’s increasing confidence that the Waitrose recovery is accelerating.

Sales in the first half were up 5%, volumes up 2%. Customer numbers increased for the 10th consecutive quarter bringing in two million more customers than two years ago.

Investment in supply chain systems is paying for itself with record availability, according to the retailer. while customer service has also improved thanks to the “better matching of hours”, where an extra 17,000 shop floor hours at the weekends has been offset by even greater midweek savings.

We’re seeing signs of this in the recent Grocer 33 mystery shopping survey results. Having scooped the Grocer Gold customer service award for the fourth consecutive year in July, Waitrose is already stretching its lead as it seeks a fifth, with six wins out of the first 11 store of the week prizes in the current Grocer 33 year, including four wins in the past five weeks. Across the past five shops it has offered up two full baskets and just three out-of-stock items.

As an exciting (and much needed) £1bn store opening and refurb programme rolls out, another box being ticked is range improvement, with the relaunch of the Waitrose No 1 range giving its premium offer much better shelf standout. It has also introduced exciting tie-ups with Ottolenghi, Zoe and Gail’s Bakery. A £5 lunchtime meal deal, which inexplicably did not exist until last year, is also increasing share of lunchtime spend. And the return of the free disposable coffee cups might not be great for the environment but it’s sure to do wonders for footfall and a bit like the return of Never Knowingly Undersold feels like more evidence that Waitrose has rediscovered its mojo.

That still leaves two areas of the report card that need improvement: price and loyalty. Waitrose boss James Bailey says it invested another £40m into its value proposition in H1 but in an increasingly competitive space, that doesn’t feel like enough and in contrast with the customer service side, recent Grocer 33 performances in our price comparison surveys suggest it is becoming less not more competitive, as evidenced by gross margins up a whopping 120bps.

And while rivals have been rolling out loyalty pricing, Waitrose’s loyalty programme is underwhelming and convoluted, and plans to update it – in a pan-JLP integration – are much delayed. We are still unsure if and when it will land next year.

Supermarket loyalty has changed so much in the past year that customers now expect a much better deal every time they shop. So more tailored and relevant schemes for each area of the partnership may still be the best way forward.

For Jason Tarry, the Tesco veteran who will replace Sharon White as JLP chairman next week, it must be great to know that so much of the current strategy appears to be working. And for Waitrose, at least, it is clear which areas he should be focusing on first.

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