MSE News: Waitrose to scrap "confusing" offer

Doc_N

After those appalling results announced 4 days ago, and the ultimate ignominy of Aldi acquiring the Waitrose store in Camden it's getting rid of, it's very clear that Waitrose and John Lewis are a spent force.

Nice company, once, and nice stores, but times change and John Lewis hasn't.

Far too expensive, and now that the affluent middle have discovered Aldi (and are actually boasting about shopping there) there's no going back.

£50 for a trolleyfull in Aldi or getting on for £100 for that same trolleyfull in Waitrose? Not a difficult choice.

pumpkin89

The affluent middle may have discovered Aldi but actually Waitrose has not lost its appeal for its core customers - the top 5% or so by income. About 15 years ago they had a big push into middle England and tried to widen their appeal, but the customers they pulled in (as you can tell from reading the messages here) weren't very profitable. It won't necessarily hurt them to retreat to their more profitable, less price sensitive market.

Doc_N

pumpkin89 wrote: »

The affluent middle may have discovered Aldi but actually Waitrose has not lost its appeal for its core customers - the top 5% or so by income. About 15 years ago they had a big push into middle England and tried to widen their appeal, but the customers they pulled in (as you can tell from reading the messages here) weren't very profitable. It won't necessarily hurt them to retreat to their more profitable, less price sensitive market.

Don’t you believe it! Waitrose needs a certain critical mass to survive and it certainly can’t do that on the top 5% by income.

It needs the affluent middle class shoppers that a few years ago wouldn’t have dreamed of shopping anywhere else but now boast about how much they’ve saved at Aldi. Five years ago they wouldn’t have gone near the place.

It’s a complete sea change in attitudes and Aldi is the new darling. M&S have also hurt Waitrose with much higher quality foods since Waitrose cut corners to reduce their costs.

This can only get worse for them.

pumpkin89

Don!!!8217;t you believe it! Waitrose needs a certain critical mass to survive and it certainly can!!!8217;t do that on the top 5% by income.

It needs the affluent middle class shoppers that a few years ago wouldn!!!8217;t have dreamed of shopping anywhere else but now boast about how much they!!!8217;ve saved at Aldi. Five years ago they wouldn!!!8217;t have gone near the place.

Have a look at https://www.kantarworldpanel.com/en/grocery-market-share/great-britain/snapshot/17.06.18/

It only goes back to October 2014, but Waitrose's market share really hasn't changed since then, whereas Aldi and Lidl have both seen theirs increase 50%. So their growth, contrary to your opinion, isn't coming at the expense of Waitrose.

Doc_N

pumpkin89 wrote: »

Have a look at https://www.kantarworldpanel.com/en/grocery-market-share/great-britain/snapshot/17.06.18/

It only goes back to October 2014, but Waitrose's market share really hasn't changed since then, whereas Aldi and Lidl have both seen theirs increase 50%. So their growth, contrary to your opinion, isn't coming at the expense of Waitrose.

I take your point, but, as the FT said in March, the biggest problems in John Lewis were with Waitrose, where operating profits before exceptionals dropped 32 per cent. Price cuts had to be made to make the 'Essential Waitrose' brand more competitive, and cost-price inflation wasn't passed on - those two key decisions helped increase sales, and thus market share, but have seriously dented profit margins.

Aldi and Lidl are very profitable, because of their particular business model. Waitrose is not, and maintaining market share at the cost of profits just isn't sustainable.

epm-84

pumpkin89 wrote: »

Have a look at https://www.kantarworldpanel.com/en/grocery-market-share/great-britain/snapshot/17.06.18/

It only goes back to October 2014, but Waitrose's market share really hasn't changed since then, whereas Aldi and Lidl have both seen theirs increase 50%. So their growth, contrary to your opinion, isn't coming at the expense of Waitrose.

Waitrose have opened a significant number of Little Waitrose stores in recent years and they've also expanded in to the North West of England - meaning they now compete directly with Booths Supermarkets who pride themselves on high quality local produce. It was claimed last year Booths were doing badly as they had lost customers to other supermarkets like Waitrose, if Waitrose's market share is constant then they must be losing existing customers to other supermarkets at the same rate as they gaining them from rivals like Booths.

Doc_N

Just received the usual monthly batch of £8 off £40 vouchers - worthwhile if there's a decent offer you can take advantage of as well (there was for me).

Worth watching out for the Waitrose envelope, maybe?

dlusman

Realistic vouchers for me today . save £2 when you spend £10 ( and four of them ) use by 7th October . This is the lowest min spend I have seen

Snakey

I'm jealous! Mine came through today - £4 off a £40 spend (I don't think I've ever reached half that, even when stocking up on offers. I only even qualify for the free paper about once a month). Nothing else, just those.

I am going to stop bothering to scan my card, I think. I was only carrying on doing it in the hope that they would send me some personalised offers for things I would actually use - wasn't that supposed to be what they were doing, in return for getting rid of the "Deleted_User"?

Tigger1000

Huh? I got the usual £4 off £40 this morning. Nothing off anything else.



And I thought they were offering a free something in the cafe? Yesterday all there looked to be was 50% off, not free!


Not bothering to show my card any more