Waitrose rides recession as middle classes spurn Tesco
The cheese counter at a Waitrose supermarket in London. Shoppers have returned to the upmarket store as recession fears have eased. Photograph: Frank Baron
Consumers’ concerns about the recession appear to be on the wane, with middle-class shoppers who tightened their belts and experimented with discount supermarkets last year making their way back into Waitrose.
- this blog is all about food, ingredients and where to buy good quality food from – add a marker to my allaboutgrub map to tell others about great places to eat out or places to buy great food from -
As the Supermarkets go from strength to strength will this have an effect on the downturn. The supermarket go on a big employment drive will this take the sting out of the recession.
But this growth in the supermarkets will have a down side, if the supermarkets continue to open new stores (small and large) then the smaller local produce shops will disappear even more than ever.
New jobs created
Iceland created 2,500 Jobs
Waitrose create 4,000 new jobs
Sainsbury's create 5,000 new jobs
Tesco create up to 10,000 new jobs
Creating up to 5,000 new jobs
Seasonal Produce
I work for a food manufacture. I think we should start buying seasonal produce, this will halp local producers and local growers. local produce. Why should we be able to buy strawberry’s in December, we buy so much food from around the world, do we care about who and how our food is manufactured.
A Morrisons customer in Tynemouth. The company wants to add 90,000 sq metres of store space in coming years Photograph: Owen Humphreys/PA
Morrisonshas pledged to create 5,000 jobs this year, buckingthe rise in unemploymentas it looks to grow despite the economic downturn.
Britain’s fourth-largest supermarket group said this morning that it would create new positions across its chain of stores. The new roles will include working on Morrisons’ butchery, fish and bakery counters, said the personnel director, Norman Pickavance, although full details were not available.
“Even in these challenging economic conditions, Morrisons is committed to hiring and training new people to keep retail as the engine room of the economy and support our continuing growth,” Pickavance said.
One of the largest supermarket changes in Britain “Tesco” has suffered over the Christmas period. It was the worse performing on the top four supermarkets. This article is in direct contrast to Sainsbury’s bumper Christmas sales.
The Article
Tesco will this week report the weakest Christmas trading of the big four supermarkets as doubts set in over its ambition to become “Britain’s biggest discounter”.
Analysts expect Tesco to post a 2.5% increase in like-for-like sales, lagging behind a field led by Morrisons, with an estimated 9%, nearly 7% at Asda and 4.5% at Sainsbury’s.
Last year Tesco introduced a range of discount brands such as “Country Barn” cornflakes and “Daisy” washing up liquid to compete with Aldi and Asda. Analysts fear that the cheaper brands cannibalise sales: because these brands cost less, Tesco must sell more to stand still.
“This is the first big mistake Tesco has made in a decade,” said Planet Retail analyst Bryan Roberts.
The supermarkets fared better than non-food specialists during a tough holiday season for the retail sector with results from specialists such as Currys and Argos, also due on Thursday, expected to make grim reading as consumers deferred spending on non-essential items. Tesco chief executive Sir Terry Leahy will say that consumers let go of the purse strings to buy “special” Christmas treats for their families.
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