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Waitrose reverses on plans for new stores to revamp existing ones with wine bars instead | Waitrose reverses on plans for new stores to revamp existing ones with wine bars instead |
(about 1 hour later) | |
Waitrose, the supermarket arm of the John Lewis partnership (JLP), has scrapped plans to open new stores, opting to revamp existing ones with wine bars and bakeries instead. | Waitrose, the supermarket arm of the John Lewis partnership (JLP), has scrapped plans to open new stores, opting to revamp existing ones with wine bars and bakeries instead. |
Rob Collins, managing director at Waitrose, said the group has halted plans to open seven new supermarkets. The decision resulted in a £25m charge that pushed John Lewis’s profits for the six months to July down nearly 75 per cent to £56.9m. | |
The British upmarket grocer plans to focus on existing shops instead. | The British upmarket grocer plans to focus on existing shops instead. |
“We are shifting the focus of our investment towards our existing branches meaning that the rate we open new shops will slow down,” a spokeswoman for Waitrose told The Independent. | |
“Our hospitality business has generated strong growth and will play a big part in our branch programme going forward,” she added. | |
Waitrose “hospitality” sales from more than 200 in-store cafes, bakeries, wine and juice bars rose 7.1 per cent in the first half of the financial year. | |
As a result new plans for London include introducing more outlets with wine bars and juice bars, popular with Waitrose’s middle class clientele and similar to the supermarket’s branch in King’s Cross. | |
“We plan to increase both the depth and pace of investment in our existing stores,” Sir Charlie Mayfield, chairman of JLP, said. | |
“This will enable us to get the best value from our estate,” he added. | |
Other supermarkets such as Tesco and Sainsbury’s have also cut plans to open more stores as consumers switch from big weekly shops at out-of-town hypermarkets to buying more online and locally. | |
The plans were announced as the John Lewis Partnership posted a 14.7 fall in pre-tax profit to £81.9m, excluding exceptional charges. | |
Sir Charlie said the fall reflects “market conditions” and “steps we are taking to adapt the Partnership for the future”. | |
He added the result of the EU referendum in June had no impact on its sales so far. | He added the result of the EU referendum in June had no impact on its sales so far. |
Andy Street, John Lewis managing director, previously said the depreciation of sterling versus the US dollar in the wake of Britain’s vote to leave the EU could potentially become a major issue for the company. | |
Additional reporting by Reuters | Additional reporting by Reuters |
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