Waitrose has done it again. The supermarket has reported full-year sales and profits growth that its bigger rivals would kill for.
Like-for-like sales grew by 3.4% and encouragingly growth accelerated in the second half of the year. Unlike last year, when operating profits dropped 5.2%, this time around Waitrose also grew its profits by 12.2%.
The supermarket has undoubtedly benefited from its increased focus on value. More promotions and the extension of Brand Price Match to match Tesco on all branded lines has undoubtedly chimed with the mood of a deal-hungry Britain.
But what Waitrose has done especially well is innovate. The supermarket launched 4,700 new or improved own-label products in 2012 – 1,000 more than in 2011. And it is not just a numbers game. Some of the new products give consumers a good reason to shop at the supermarket ahead of rivals, such as the growing range of Heston from Waitrose products and its new Love Life free-from range.
Waitrose has also been innovative in other ways. A good example is how John Lewis customers can buy products online and collect them in Waitrose stores. Over the Christmas period Waitrose handled 300,000 such orders – that represents a lot of customers who are likely to have picked up some Waitrose groceries at the same time.
With more innovations in prospect – last week it announced its first drive-through click & collect service and it plans to spend £1bn expanding the successful Essential Waitrose range – there is little reason to doubt that it can continue the good momentum.
