24/09/2009

Waitrose Targets M&S Food

Supermarket chain Waitrose has announced plans to open a network of convenience stores - and to sell Waitrose-branded food in Boots stores.

The company has bucked the economic trend and has fared well, despite expectations that it would be hit by the recession.

The fresh marketing move is seen as a direct challenge to upmarket rival Marks & Spencer.

Today, Waitrose said it was looking to open 300 smaller high street outlets in total.

The stores would only be 2,000-4,000 sq ft in size and would be adjacent to Marks' Simply Food outlets.

The John Lewis-owned company said it would also be opening nine grocery outlets at Welcome Break motorway service stations and would trial Boots products in some of its high street stores.

The company has seen off the worst of the economic gloom with its Essentials food range proving popular with consumers.

Partly as result of the budget line, Waitrose was the fastest growing of Britain's main grocery chains in the 12 weeks to September 6, according to the latest data by market researchers TNS WorldPanel.

Last week it reported a 15.7% rise in first-half operating profit to £121.1m.

(BMcC/GK)

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