The Safeway stores Waitrose has picked up in the north of England are a perfect fit for its upmarket format, new research has revealed.
Analysis conducted by CACI has revealed that the Safeway store Waitrose has acquired in Harrogate - the furthest north in its estate - has the closest fit to the typical demographic profile of the Waitrose shopper.
Contrary to popular belief, says CACI, Waitrose will do well in the north. “Harrogate was a wise
purchase and should perform well, tapping into the latent demand from the large number of wealthy executives, secure families and affluent greys who dominate the Harrogate catchment and are the mainstay of Waitrose.”
Stores in Willerby (Hull), Otley (West Yorkshire), and Sandbach (Cheshire) also have a reasonably strong fit to the typical Waitrose customer profile, while Lincoln and Southport are likely to perform moderately, predicts CACI.
Although the Sheffield Safeway store did not fit so well, Waitrose could pick up business from prosperous professionals in the catchment.
Ironically, the stores with the worst fit to the Waitrose customer profile were the most southerly sites in Dartford (too many struggling families) and Worthing (too many prudent pensioners) claims CACI. The one exception to this rule was Farnham, Hampshire, where Waitrose should benefit from the high number of wealthy executives in the catchment.
Morrisons is keeping tight-lipped about the remaining Safeway stores it must divest. However, Sainsbury said it was in negotiations to buy 20 stores from three other retailers in a bid to realign its portfolio with its brand.
Some of these are likely to be Safeway stores, although other retailers looking to sell larger stores include the Co-operative Group and Somerfield.