Waitrose 'to kill off delis' with plans to revamp 183 stores specialising in fine food

The chain plans to refurbish its 183 stores, upgrading them to fine food outlets with specialist cheeses, hams and fresh produce, in a move that will grab trade from small independents.

The concern has been flagged up by the Guild of Fine Food Writers, which suggests Waitrose is a bigger threat than the likes of Tesco, Sainsbury's and Asda.

The move by Waitrose appears to have been triggered by the arrival in the UK of the US organic food giant Whole Foods Market.

The company opened a flagship organic food store on three floors in Kensington earlier this month and plans more than 40 others across the country.

The John Lewis brand is determined not to be outsmarted by its US rival and aims to more than double sales to £8 billion a year over the next decade.

A survey for the Guild's official magazine Fine Food Digest found two thirds of store owners said that they considered Waitrose to be more of a worry than any other retail chain.

In addition three out of five store owners thought that Waitrose's programme of expansion was bad news for delis and farm shops.

The guild's director John Farrand said that the store owners were right to be worried.

He told trade magazine The Grocer: "Waitrose actively mimics delis and farm shops with speciality and locally sourced foods but often at lower prices because of its buying power.

"There is no doubt that it is more of a threat than, say, Tesco or Asda."

The guild says that Waitrose's latest TV campaign, which explains its commitment to local sourcing, was only heightening fears among specialists that they would lose customers to the chain.

One retailer, Dianne Brown of Provender Brown in Perth in Scotland said: "My biggest fear would be Waitrose opening in our area.

"While it may not offer everything we do, I would expect it to have a devastating impact."

Waitrose rejected the attack. A spokesman said: "As the vast majority of Waitrose shops are in town centre locations, our experience suggests that we complement other established retailers by helping to drive footfall to town centres.

There are many examples of Waitrose shops with successful small-scale food shops on their doorsteps."

The Waitrose proposals amount to a refurbishment of its existing 183 stores, moving them upmarket. The first of its new premium outlets is in Marylebone High Street, London, which opens on Thursday.

The London store is a testbed for various new concepts and some of these will be gradually rolled out across the company's other supemarkets.

The firm's managing director, Mark Price, said: "We feel our customers are willing to pay more for better food, so we are introducing additional premium lines.

"By offering better quality in our fresh food ranges we will be able to take customers from all our competitors."

The upmarket Waitrose will showcase a new store design and a greater product range. New features will include a 'Time of Day' counter serving ready to eat healthy meal options.