The Co-op will buy four Waitrose stores following news that owner John Lewis Partnership failed to make a profit in the last six months.
John Lewis set out its strategy yesterday, saying the retail sector “was going through a period of generational change” with greater market uncertainty. The group decided to dispense with five Waitrose outlets as part of its plan to strengthen the balance sheet.
A statement ahead of its financial report said: “We expect the Partnership’s half year profits before exceptional items – which are always much lower and more volatile than the second half – to be close to zero this year.”
They did however expect Waitrose to make a profit as the grocery sector enjoys two years of sustained growth, despite intense competition.
Co-op announced they would take on four of the Waitrose stores, located in Manchester, Birmingham, and London.
Stuart Hookins, Co-op director of property portfolio and development, said: “We are pleased to have worked with Waitrose to agree the purchase of four of its convenience stores. Our acquisition and refit programme forms a fundamental part of our food strategy. Our aim is for stores to be at the heart of local life, creating stronger communities and offering great quality products conveniently, when and where our members and customers need them.”
Earlier this year, the Co-op revealed plans to open around 100 new food stores in 2018, and has seen four consecutive years of like for like sales growth in its core convenience business.
The John Lewis Partnership stated that Waitrose will focus on “core customers”, with plans to extend their range of exclusive products. They added they will also focus on health and wellbeing foods, describing it as a “fast growing category that appeals strongly to core customers”.
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