Waitrose - Improvements all around for Christmas
15 December 2016
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So, as we kick off the 12 days (ish) of Christmas as we roll into the peak season, it's time to review each retailer in isolation and then compare and contrast versus the year before.
It's been a bit slow on the emails front but there's loads to come given the changes in the market, lots of developments and the market in general is very strong this year.
There are always improvements all round to be had, but everyone feels strong in their own right and most of it will come down to the momentum. It's noteworthy that Asda increased their premium range sales (on Kantar, not a clear reason in store for that, bar the seasonal range lines), but the momentum isn't with the chain at the minute.
Momentum is with Morrisons though, and their premium growth is explained by 'The Best' relaunching in October which has fuelled sales, a very good relaunch indeed there.
It's a bit high level to focus on premium sales growing so close to Christmas, a bit 'so what'? Turkey sales often grow in December or Mince Pies generally selling strongly around Christmas.... Premium aside, it's noteworthy to see that Tesco continue their strong performance...
Another retailer who continues to grow respectably on Kantar are Waitrose. Of course, Christmas is a peak time for them; with trade up opportunities everywhere and their affluent customer base a dream to work with....
The chain are also scaling back their new store ambitions and focusing on the existing estate, including stores that haven't had money spent on them for some time. There is a lot to be said for improving the core estate offer for those everyday customers....
However it's fair to say that Waitrose haven't always made the most of their customer base at Christmas. Last year's efforts were solid enough, but there were significant levels of stock left over post Christmas, and the lack of a clearly defined premium tier harmed the overall offer.
It wasn't weak but there were several opportunities not taken advantage of, and lots of clearance around which didn't necessarily point to a strong seasonal period for them.
Of course, Waitrose performed on a like for like basis but there's always more to shoot for. That's the thing with food retail. The job is never finished, just like you can't complete Championship manager for example.
This year - Waitrose are perhaps in the running for 'most improved' in terms of the wider offer across the store for Christmas.
Even Heston has calmed himself down and landed a couple of lines that are curiously interesting - rather than Christmas tree smoked Mince Pies (again). Anyone for Bacon and Banana trifle?
Maybe not... But it's great to see lines like that filtering through; it will attract interest and it's a nice line to feature for Christmas.
In terms of the wider offer; Waitrose are very cohesive and signage and product link together well. Wider signs are linked to the packaging which carries the same design, aiding the customer who can then easily see what the Christmas ranges are and where they are located on shelf.
Their TV advert featuring the Robin flying home is also flagged in store; with the bird appearing on signage alongside shelf fins around the store for the kids to find and solve the puzzles.
Like M&S last year, Waitrose have embarked on their '1 day deals' which focus on a different product each day on a promotion. Some days feature samples of popular products too.
Crackers for example were on half price over the weekend; a decent deal to drive trade pre Christmas.
The party food deal (Thursday) alongside half price Christmas desserts (weekend) shows that they're also including lines that will be popular. However availability is the balance that needs to be struck; worst case scenario is customers making a journey to store and the availability is then lacking..
That is the same for many promotional packages however. But the one day deals especially given the limited time of the deal and the interest that it sparks with customers.
This is the first Christmas for Waitrose 'One' of course, their premium range (launched May) which pulls together a number of former brands under one banner.
The range isn't overloaded into stores given the wider quality of the own label range, but it is around in categories. Not like that Tesco campaign a few years back which basically advertised every single Finest product to the detriment of the entire Christmas offer. Dark days of Philip Clarke there....
Some of the Waitrose 'one' work in Gammon and Meat is impressive, with the Bakery artisanal breads also striking.
The wider range should perform well this Christmas; given the focus that 'One' will have in areas specific to Christmas nearer the big day in particular.
Another area that has been entirely under played by Waitrose in previous years is the non-food category. Despite being the food division of John Lewis, the wider non food range for Christmas hasn't always been as sharp as it should have been.
This year, again there is a demonstrable step on with a sharper range of decorative items for Christmas.
The non food trend is notable across the market this year - everyone has an end or two of non food items like Mugs, Plates and other lines for Christmas. Items that are purchased and then put away for each Christmas appears to be a growing trend.
So there we have it; the first retailer in focus is Waitrose for these '12 days of Christmas' and they're in good shape.
Notable progression in all aspects of the offer, it just fits together so much better than the year before. Non food is sharper and the food offer is cohesive with signage and branding for the own label aligning nicely too.
Should be a good Christmas for Waitrose (it usually is) but this year, there's a feeling that they're starting to push on with their own offer and enhance their appeal to a greater number of customers, rather than just being a food retailer of the middle class and almost simply 'turning up' for the sales.
1 day down, 11 to go (we'll have to cram a couple in!) Towards the other end of the market next, with Lidl and their Christmas offer in focus.
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From the Grocery Insight newsletter archive, first sent to subscribers on 15 December 2016. Steve now writes at read.groceryinsight.com. See also the blog archive and briefings.