Waitrose has announced the closure of seven supermarkets, affecting nearly 700 jobs, as part of its ongoing cost-cutting measures. Three stores in Bromley (London), Oadby (Leicestershire), and Wollaton (Nottinghamshire) have been sold to Lidl, while a fourth in Sandhurst (Berkshire) is being sold to an unnamed buyer. Sites in Marlow (Buckinghamshire), Stevenage (Hertfordshire), and a convenience store at British Airways headquarters near Heathrow will close in autumn.
The move comes as German discounters Aldi and Lidl continue to gain market share, now controlling nearly 14% of the UK grocery market, up from 10% three years ago. Waitrose director Mark Gifford said the decision was not taken lightly but was necessary for the long-term profitability of the business. Affected staff are being consulted, with options including potential redeployment within the John Lewis Partnership.
This is the second round of closures this year, following the sale of five unprofitable stores in March, which resulted in 440 job losses. Waitrose's parent company, the John Lewis Partnership, has been under pressure after a 45% slump in annual profits led to the lowest staff bonus in 66 years. Despite a profit rise of 18% at Waitrose, the retailer is investing heavily in its online grocery service ahead of ending its distribution deal with Ocado in 2020.
Industry analysts note that traditional supermarkets are increasingly closing underperforming stores to compete with discounters. Bryan Roberts of TCC Global said that Aldi and Lidl are confident they can make these sites profitable, as there is significant untapped demand for their stores.
