AN ANALYSIS OF

WAITROSE
CONTENTS
• BACKGROUND
• PESTEL
• TWO KEY FACTORS
• SWOT ANALYSIS
• COMPATETIVE ANALYSIS
• SEGMENTATION
• SUMMARY AND RECOMENDATION
Background
Started in Acton, London; now has over 300
branches across the UK (Jones et al., 2019).
• Ethical Sourcing: Committed to quality and
ethical sourcing practices (Brown & Green,
2020).
• Partnerships: Collaborates with local
farmers and suppliers (Johnson & White,
2017).
• Sustainability: Leader in reducing food
waste and promoting reusable packaging
(Wilson, 2021).
• Ownership: Part of John Lewis Partnership
(Robinson, 2016).
PESTEL ANALYSIS
 3. Social factor
Consumer taste & fashion
a. 40% multiple sites before buying
online.
b. 30% going to stores (Smith, 2023)
c. Garnered approximately 15%
consumer preference for online
shopping in Uk.
Source; (smith,2023)
Source; (statista, 2024)
Social trends
a. Facebook: 3B+ monthly active users,
largest globally.
b. Facebook, WhatsApp, Messenger,
Instagram, each with 1B+ users.
c. Overall Usage: Social media had
3.96B users in 2022.
Source; (Dixon, 2024).
4. Technological
Disruptive technologies
a. AI Estimated economic impact in
2025: $X trillion per year.
b. Technology estimated economic
impact in 2025: $X trillion per year.
c. Robotics estimated economic
impact in 2025: $X trillion per year.
source; (Vailshery, 2022)
New computer systems
a. UK CP households: 1.1 million
increase from 2024-2029.
b. demographic, and technological
trends across 150+ countries.
c. Data sources for KMI include
international and national statistical
offices.
Source; (Degenhard, 2024).
 5. Environmental factor
Weather
a. UK's wind speed averages in Q1
and Q4, in winter.
b. 2023 wind speeds: 6.9 knots (Q2)
to 9.2 knots (Q1); most years
average at least 8 knots annually.
c. UK rainfall heaviest in winter; Q4
2023.
source; Burgueño Salas, (2024).
Carbon emissions
a. Domestic transportation: Largest UK
CO₂ source since mid-2010s, one-third of
total emissions in 2022.
b. Historic shift: Electricity supply was
main polluter.
c. UK's historical impact: Released nearly
80 GtCO₂ since Industrial Revolution, 8th
largest carbon polluter.
Source; (Tiseo, 2024).
6. Legal factor
Minimum wages
a. April 2024: for adults over
21 set at £11.44 per hour.
b. Under 18 workers:
increasing to £8.60 for ages
18-20.
c. Living wage: legal minimum
wage, £12 per hour UK-wide.
Source; (clark, 2024)
Sales of goods
a. Volume of secondhand
goods sold in Britain, Jan 2016
to Dec 2023.
b. Seasonally adjusted
estimates: Measured using RSI,
published in index form with
2019 as reference year.
c. Dec 2023: Sales volume
index 81.4 source; (Sabanoglu,
2024).
Strength

a. Waitrose annual sales revenue in 2023: £6.75

billion.
b. Eighth largest grocery retailer in the UK.
c. Appeals to higher disposable income
consumers.
d. Reputation as an "upmarket" supermarket.
e. Traditionally concentrated in the South of
England.
f. Part of the John Lewis Partnership.
g. Operates grocery and 'little Waitrose'
convenience stores.

Source; (Bedford, 2023)

Threats
a. Competition from major UK retailers: Tesco,
Sainsbury’s, ASDA, Morrison’s, Aldi, Co-op,Lidl pose
significant threats to Waitrose.

b. Ever-changing food retailing environment:

Maintaining standards and quality becomes challenging
for Waitrose.

c. Price wars initiated by Aldi and Lidl: Impact market

shares and profit margins of Waitrose.

d. Economic slowdown in the UK: May push customers

towards discounters, affecting Waitrose as an "upmarket
brand" .

Source; (Waitrose, n.d.).

Weakness
a. Perceived as catering primarily to high
earners, limiting its customer base.
b. Reputation as an "upmarket" retailer may
deter some potential customers.
c. Loss of business due to perception issues.
e. Struggling to compete with market leaders
like Tesco and discount retailers like Aldi and
Lidl.
f. Closure of several stores in 2020 adds to
competitive challenges.

Source; (Butler, 2019).

Oppourtunity
a. Diversification into non-food items: Provides
additional revenue streams.
b. Global expansion through franchise
agreements and exporting: Opens up new
markets.
c. Expanding home delivery options: Reaches
more customers, attracts younger demographics
who prefer online shopping.
source; (Waitrose, 2022).
PESTEL
1. Political 2. Economical factor
Tax rates Inflation
a. Tax increasing over the year a. Uk inflation ; march 2024, 3.2%, down from
b. In 2022/23 income tax 3.5% previous month.

receipts Rose to t£246.8B from b. double digital inflation; seven months from
£r220.61B The prior year. sep 2022 to march 2023 peak 11.1% in

c. Basic rate 20% applies to £12.5k to £50k income. oct 2022.

d. Higher ate 40% applies to £50 -£150k income. (CLARK,2024). C. Historical: Last similar rise in 1992, peaked at 8.4%.

Change in government Consumer spending

a. Total Managed Expenditure a. uk consumer spending hit £1.5 trillion in 2022

(TME) in 2022/23: £1.15 trillion
b. Represents government spending
For the fiscal year.
c. Equivalent to Approximately 45%
Of GDP:
D. Indicates the proportion of TME
Relative to the gross domestic product
Of the united Kingdome (CLARK,2024)
rising steadily since2005.
b. Household consumption includes various goods
and services such as, licenses, housing,
beer and cigrates.
c. Scotland's household expenditure consistently grew since 2009, exceeding £100
billion in 2018.
d. The 2009 expenditure dip aligned with the UK-wide recession.