In the dynamic world of grocery retail, Marks & Spencer (M&S) and Waitrose have found themselves in a tight race for market share. Recent data reveals that both giants have achieved a grocery market share of 4.5% for the year ending September 7, as reported by Worldpanel.
Insights into M&S’s Growth
M&S’s grocery share is composed of 4% from its brick-and-mortar stores and an additional 0.5% attributed to its online partnership with Ocado. This growth trajectory reflects the company’s strategic focus on expanding its market presence, aiming to reach a target of 4.5% grocery market share through its own stores by 2028.
Alex Freudmann, M&S’s food managing director, expressed optimism about the growing number of customers choosing M&S for their grocery needs. Whether it’s quick dinners or family essentials, Freudmann emphasized that both in-store and online, M&S is outperforming the grocery market in both value and volume.
Waitrose’s Position
On the other hand, Waitrose’s grocery share has seen a slight decline from 4.6% earlier in the year to its current 4.5%. Despite this dip, its revenues increased by 4.3% year-over-year, demonstrating that the brand continues to maintain a solid customer base.
The Rising Star: Ocado
Alongside M&S and Waitrose, Ocado has showcased impressive growth, with an 11.9% increase in year-on-year sales as per Worldpanel’s latest report. This surge has elevated its grocery market share from 1.8% to 1.9%. Notably, M&S products account for a significant portion of Ocado’s revenue, highlighting a strategic partnership that benefits both retailers.
M&S’s Food Strategy
Freudmann’s remarks underscore M&S’s commitment to not only expanding its grocery offerings but also to evolving its food business in a competitive landscape. The firm’s long-term aim is to double the size of its food operations, signaling a robust growth strategy aimed at capturing a larger share of the market.
Understanding Grocery Market Data
It’s worth noting that Worldpanel employs different criteria when measuring grocery market share. Their methodology does not classify M&S as a traditional grocer, which could lead to variations in reported figures. They provide a comprehensive view of grocery performance, focusing solely on expenditures made at main store tills, excluding other factors such as petrol and in-store concessions.
New Leadership in Fashion and Home
In a related move, M&S has recently appointed Jon Rolls as its director of commercial and operations for fashion, home, and beauty. With prior experience at Primark, where he was instrumental in planning and executive operations, Rolls is expected to bring fresh insights to M&S’s retail strategies, particularly in the fashion sector.
In conclusion, as M&S and Waitrose navigate the competitive grocery landscape, the emphasis on customer choice and strategic growth will be pivotal. M&S’s efforts to innovate and expand its food business, combined with the rising influence of online partnerships like Ocado, position the brand for potential future success in the retail market.
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