Waitrose sales growth held back by lower food prices
Waitrose saw its sales edge up by 0.2% in the week ending 21 February as falling food prices impacted sales growth.
The retailer said its customer numbers and volumes both rose in the week but year-on-year sales growth was held back by lower prices.
Waitrose finance director Tom Athron said: “We continue to face tough comparatives as a result of our strong growth this time last year. However, compared with the same week two years ago our total sales excluding fuel are 7.1% higher.
“It was reported last week that the rate of inflation faced by households has fallen to the lowest level on record and food price deflation accelerated in January.
“This is starkly illustrated by the examples of carrots – 60p a bag now compared to £1 last year – and broccoli for which prices have more than halved since the same time last year – £1.40 per kg now versus £2.90 per kg 12 months ago.
“This means that falling food prices are having a drag effect on our turnover, despite our positive growth transaction and volume growth.”
Waitrose said it saw strong demand for Fairtrade products in the week as it looked ahead to the start of Fairtrade Fortnight which runs from 23 February to 8 March.
The growth also coincided with the retailer signing a new partnership with the Fairtrade Foundation in which the two organisations will collaborate to share best practice and their experience regarding sustainable supply chain models.
