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Waitrose ploughed into London's convenience store wars today with plans to open up to 300 neighbourhood branches.
The “posh grocer,” which last week unveiled a 19 per cent rise in profits, said it wanted to make a huge push into local high streets with shops the size of M&S's Simply Food outlets.
The new stores are likely to be concentrated in big cities, particularly London where Waitrose is growing rapidly.
Managing director Mark Price said: ”We want to be in every part of London where people don't have access to Waitrose already.”
Waitrose also said it planned to start selling its food through branches of Boots, while it will stock the chemists' healthcare products. There will also be nine small branches at Welcome Break motorway service stations.
The chain has successfully tested medium-sized branches in Nottingham and Bristol. A third will open in Crouch End next month and a fourth in Oxted, Surrey, in December.
It plans to try four or five of the smallest sized branches next year with some in London. Mr Price said they would focus on fresh food “to eat now, to eat tonight or in the next 24 hours” far more than most existing convenience stores.
Britain's £29 billion convenience store market is dominated by Spar, which has 2,557 outlets, Budgens (2,037) Co-op,(1,700), Costcutter (1,600) and Tesco, (around 1,500). Sainsbury's has 268 and M&S 82.
Tim Danaher, editor of Retail Week, said: “The convenience store sector has seen huge growth for Tesco, Sainsbury's and M&S. Standards in these stores often leave a lot to be desired. It will be interesting to see if Waitrose can deliver top quality convenience retailing.”
Waitrose is thought to be having “a good recession”. In March it launched a range of cheaper Essentials to fight its reputation for being expensive. This month it unveiled a deal with Prince Charles's struggling brand Duchy Originals. Part of the John Lewis Partnership, Waitrose has 47 branches in greater London — with two more by the end of the year in Crouch End and Clerkenwell.
In 2011 it is opening new branches in Stratford and Raynes Park and plans another in Wimbledon.
In the last 18 months it has opened in Islington, Croydon, Chiswick, Clapham Junction, Edgware Road and Bayswater.
