What is the UK food retail market like at present?
Competition is the most ferocious I have known in my 25 years in retail. Currency fluctuations have increased costs and there is the economic and political uncertainty that we hear about every day. Last year, UK household spending grew at its slowest rate in five years. It’s not surprising that the when and where of how customers shop is changing. What we are experiencing is a reset across the whole of the UK food sector.
How did the Waitrose business perform last year?
Our full-year results were announced last month and show that sales have increased, but it was a tough year. Operating profit before exceptional items was down 32%. Our conscious decision not to pass on a number of price increases protected our sales and volumes but put a strain on our margins.
How are Waitrose responding to the changing market?
Our size, at just over 5% of the UK grocery market, allows us to be agile in our response to the market. We increasingly recognise that customers want a deeper experience and look to new products. In 2017, Waitrose launched 2,500 lines and we are opening a new food innovation centre. Wherever we are innovating, customers are noticing and that is leading to increased demand and spending.
Post-Brexit, will the UK import lower-standard cheap food from third countries?
When we are so good at farming in the UK, I ask myself how could that be a good idea? If we brought in food with lower standards from other parts of the globe, that would have a very serious impact on UK agriculture which would change the face of our countryside. If we drop our standards, that is a very, very slippery slope.
How can the UK maintain its food standards after Brexit?
There are four areas that I believe the UK must focus on to make sure we remain leaders in quality food production. The first two areas are that we do not compromise on food safety or animal welfare standards in any way. Thirdly, we must remain very clear in country-of-origin food labelling. The final priority is the competitiveness of UK farming.
What is the John Lewis Partnership?
Our founder, John Spedan Lewis, set up the partnership in 1929 when he decided to give his family business away to his employees. From that point on all employees became partners and began to share the risks and the rewards of the business. We are governed by a constitution which sets out how all directors can be held to account by the partners who own the business.
Title: Managing director.
Company: Waitrose.
Turnover: £6.25bn (€7.1bn).
Share of UK grocery market: 5.2%.
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