Waitrose has opened its first full-sized supermarket in eight years as part of a broader effort to expand and modernize its physical and online presence amid rising competition from Marks & Spencer (M&S). The new 18,000-square-foot store, located in Cricklewood, northwest London, features meat, fish, and sushi counters, a dry-aged beef cabinet, and a bakery. Another large store is set to open next month in Hale Barns, Greater Manchester.

The openings form part of a £1 billion five-year investment plan unveiled in 2024, which originally targeted four large supermarkets and 100 convenience stores. However, the company has since shifted focus toward opening stores in what it describes as “the right locations,” emphasizing quality over quantity. In addition to the large new stores, Waitrose announced the acquisition of four smaller sites, including a neighbourhood shop in Oakham, Rutland, and three convenience stores in Bedminster (Bristol), Chalk Farm (north London), and Springstead Village (Cambridge). These smaller outlets are slated to open from 2027.

Analysts have noted that the growing emphasis on convenience stores reflects wider trends in the UK grocery market, particularly influenced by planning restrictions that have constrained expansion efforts by discount chains such as Aldi and Lidl.

Waitrose, which is owned by the John Lewis Partnership and operates over 300 supermarkets nationwide, reported a 4 percent increase in sales to £4.3 billion for the six months ending August 1. Despite this revenue growth, the retailer’s adjusted operating profits declined by £7 million to £103 million, a downturn it attributed to higher operational costs during the summer heatwave and investments in price reductions. Over the same period, the wider partnership’s pre-tax losses widened to £89 million from £34 million.

The grocery sector remains highly competitive, with Waitrose seeking to maintain its share of the middle-to-upper-class market segment amid mounting challenges. According to data from Worldpanel by Numerator, Waitrose’s share of the UK grocery market held steady at around 4.4 percent year-on-year.

Meanwhile, M&S, which has a significantly larger footprint with over 1,000 stores across the UK, has been increasing its food market share. The retailer recently announced plans to reduce prices on selected organic products and to price-match competitors, including Sainsbury’s and Waitrose, in an effort to attract price-conscious consumers.

The contrasting strategies of both retailers illustrate the ongoing dynamics in the UK grocery market, where competition is intensifying amid changing consumer behaviours and economic pressures.