Waitrose md David Felwick is predicting record profits this year, despite profits for the year to January 27 dropping 11% to £57m. Sales for the same period were up 13% at £2,095m. Felwick said: "Profits during the first half of last year were depressed by the costs associated with the acquisition of the 11 Somerfield stores, such as refitting, recruitment and training. "However we achieved a record sterling profit in the second half." A lot of the sales increase last year was attributable to the 11 Somerfield stores, five new openings and a relocation, but Felwick said like for like sales growth was about 3.5%. He said sales for the first quarter this year were up 14% on last year and running at 3% above target. Felwick added: "We are seeing the benefit of the extra branches, having taken the costs on the chin last year, and we are on target for a record profit for Waitrose this year." Felwick said the Waitrose Deliver trial at four stores had proved successful, producing significant incremental sales, and the service would be extended to 30 additional stores by Christmas. "Waitrose Deliver has proved a very good vehicle for taking secondary customers and converting them into primary customers and for attracting new customers." Felwick also revealed that the acquisition of Somerfield stores in the south west beyond the limits of its previous home territory had prompted Waitrose to draw up plans to break out of its current sales "box". He said: "We are starting a development programme to move further to the south west and the north west." Currently the northernmost Waitrose store is at Newark, but he said Cheshire was one new area it was looking at. {{NEWS }}

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