In an effort to stem the sales decline, this upmarket retailer turned to a British staple for lunch.
What does your meal choice say about you
You’d be surprised at how many people take this question seriously. There are many people on the internet who rate and review different lunchtime combinations. Meal Deal Talk UK/EU is a Facebook group with more than 40,000 subscribers, while YouTube reviews can garner thousands of views.
Waitrose is now looking to get in on the action. The upmarket grocery store, which had avoided offering a sandwich for lunch for years, is now launching its first meal deal.
The middle class grocer will offer a main dish, a side dish and a beverage for PS5 in line with Pret or Tesco’s “posh” meal deal.
Waitrose and its lunchtime customers are both feeling the impact of this launch. was once a brand for shoppers who wanted a special treat. Now, it’s competing with everyone from Boots and Tesco.
Why?
Waitrose reports that more people are working in offices and more of them will be eating lunch on the move.
Jennifer Moscardini said that more people were working in offices and traveling to find great meal deals.
Since 2020, sales of sandwiches have increased by 40 percent. A meal deal may boost these numbers even more.
It is difficult to ignore the supermarket’s poor performance.
The supermarket’s profits dropped by PS126m and sales were down 3pc. This downturn caused a PS234m profit loss for John Lewis Partnership which owns this supermarket.
Waitrose has been struggling in a market that is highly competitive, as people are shopping around more for groceries due to the rising cost of living. German discounters Aldi, and Lidl are the biggest winners. They have lured hundreds of thousands British shoppers from traditional supermarkets.
Karen Green, an industry expert, says: “They have been called out as not being a good value. So I think it was inevitable.”
Waitrose hopes that its meal deal will help them regain their magic, bringing shoppers back to the store where they hope they’ll be tempted by more than lunch.
Green says: “[Meal deals] drive footfall. When people are forced to return to the office they’ll ask: “Where can I get lunch?” I will treat myself at Waitrose. It’s not an extravagant treat. “But I know that it will be five dollars and I may get something of great value.”
The meal deal was originally created by Boots to sell more sandwiches in mass production. It has now become a staple of British lunchtime.
Greencore, the largest sandwich maker in the world, says that more than half the sandwiches sold at British supermarkets can be covered by this offer.
Waitrose’s own offer, launched despite its general avoidance of the mass market is not without risk.
The DNA of supermarkets does not include discounts and deals. A meal deal, which is an egalitarian affair, could damage its image as a high-end retailer.
Green believes that, in general, this will be a very successful strategy. She says that having a meal does not make the deal more affordable. “Waitrose has a slightly older consumer base, so they may benefit from this by attracting customers of a younger age group.”
She notes that Waitrose’s meal deal is at the top of the market due to its PS5 price.
“They’re not going down to PS3.50, or something else which I think would have been too painful for them.”
Waitrose is already in the middle of the price war that has gripped the supermarket industry, a sign they are ready to make a few bargains.
In January, it announced a price cut on a wide range of products, including bread, beef mince and chicken, valued at around PS100m. It then followed this up in June with another round of reductions, such as those for products like chicken, bread, beef, and other staples.
Richard Hyman, retail consultant with Thought Provoking Consulting believes that the store shouldn’t worry about the lower end of market.
Waitrose’s premium prices should reflect its confidence in the quality of its products. It should celebrate its premium pricing – customers do not expect to get a superior shopping and food experience at low prices.
Marks & Spencer, the recently resurgent retailer, has also been a growing threat to Waitrose.
Marks & Spencer has steadily encroached on Waitrose territory. The company has spent the last four years shedding stores that were underperforming and investing in new, high-spec food halls. If John Lewis’s rival, which is owned by the same company, goes too low-end, wealthy shoppers might look elsewhere.
Waitrose’s meal offer is, unsurprisingly, more expensive than basic meal deals from Tesco, Sainsbury’s Asda, and Morrisons. Their main offers are priced at PS4 or less. Rivals also have some “premium deals” with prices closer to Waitrose’s.
Sainsbury’s found out in 2016 that the stakes were high when they removed their more expensive Taste the Difference sandwiches, then part of the PS3 offering.
The removal of the items caused outrage amongst shoppers, who claimed that the supermarket had ruined their lunch break.
Green says that there was a backlash when suddenly you couldn’t get anything but a “chop and spread” sandwich, like tuna or egg mayonnaise.
It sounds sad, but if your job is really boring, it will be the highlight of your entire day. “If your lunch fails you, the day is ruined.”
Waitrose’s lesson: Get the meal deal wrong and you will pay for it.
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