Waitrose Flouts Price Slash Tactic in Supermarket War with Different Focus
In response to the changes impacting UK food retail, such as the rise of discount stores such as Aldi and Lidl, Waitrose boss Mark Price has said that their strategy is to do the 'opposite of what everyone else is doing'. Instead of looking to slash prices lower than rivals, Waitrose will continue focusing on promotions and providing value to members of its loyalty scheme.
Although Waitrose has its eye on the ball in terms of offering competitive or equal pricing to Tesco and Sainsbury's, the retailer will not change its tactic of investing the £500m it spends annually on over 1,800 promotions it runs every week - as opposed to cutting its price tags permanently.
Waitrose also aims to offer better value to its myWaitrose members, which now number 4.5 million and account for 70% of sales (a significant increase from less than 1 million a year ago).
Chairman Mark Price commented: "We are very happy if everyone else moves from promotions to every-day low prices because we will be differentiated as a business where you can come and get great promotions. There is an attractiveness in saying 'if you are a myWaitrose customer we'll give you better and better value and we'll give you better and more of it'. That feels like a real point of difference."
Price further added that Waitrose aims to be "everything that the discounters aren't" through a strong focus on service, range and making coming to its stores a good experience.