Waitrose Announces Major Shift in Loyalty Scheme by Offering Free Coffee to Members Without Minimum Spend as Part of New Strategy to Recover in UK Grocery Market

Waitrose Announces Major Shift in Loyalty Scheme by Offering Free Coffee to Members Without Minimum Spend as Part of New Strategy to Recover in UK Grocery Market

Waitrose is shaking things up in its fight against rival Marks & Spencer, offering customers free coffee again without the usual requirement to make a purchase.

The retailer, part of the John Lewis Partnership, recently sent out emails to members of its loyalty scheme, MyWaitrose, announcing that they can now claim a free hot drink simply by being a member—no minimum spend required.

However, shoppers will still need to bring their own reusable cup to collect the coffee from a self-service machine.

Strategic Move to Regain Market Share

This move comes as part of Waitrose’s ongoing efforts to recover from a period of struggle.

The brand has been losing ground to M&S, especially among middle-class shoppers, a market it once dominated.

Jason Tarry, who took over as Waitrose’s chairman last autumn, has been at the helm of a leadership shake-up.

Notably, CEO Nish Kankiwala has transitioned to an advisory role, signaling a change in strategy to improve the retailer’s fortunes.

The Evolution of Waitrose’s Coffee Offer

Waitrose’s MyWaitrose loyalty scheme, introduced in 2011, originally offered free coffee with no purchase required.

However, this changed in 2017 when a purchase was made mandatory to claim the beverage.

The offer was then completely scrapped during the COVID-19 pandemic in 2020.

Free coffee made a return in 2022 through a partnership with Caffe Nero, but customers were still required to make a purchase and use a reusable cup.

The latest change removes the purchase requirement altogether, offering more flexibility to members.

A Broader Strategy to Compete with M&S

Jason Tarry’s leadership has brought about significant changes within Waitrose, including restructuring and a sharp focus on customer service.

The retailer is investing in growth, with plans to open up to 100 new convenience stores across England, Wales, and Scotland as part of a £1 billion investment over the next five years.

While Waitrose is making efforts to modernize, challenges remain—such as its recent slip in market share to M&S.

For the first time, M&S surpassed Waitrose in grocery market share, showing just how much competition has intensified in recent years.

The Challenges Ahead for Waitrose

Despite these initiatives, Waitrose faces an uphill battle.

Retail analysts have pointed out that while the company is making strides in improving its offerings, it may still be lagging behind M&S in key areas.

Richard Hammond, CEO of analytics firm Uncrowd, noted that M&S is delivering a more “special” experience for customers, with its stores increasingly seen as a destination for high-quality, treat-like products.

While Waitrose is trying to lower prices, Hammond believes the brand has lost some of its premium edge in the process.

The Road Ahead: Quality and Experience at the Forefront

Zoe Mills, a retail analyst at GlobalData, believes Tarry has the experience to rejuvenate the John Lewis Partnership.

However, she warns that Waitrose must strike a delicate balance between remaining price-competitive and maintaining its premium image.

As the brand continues to focus on customer growth, its ability to offer high-quality products at the right price will determine whether it can successfully compete with M&S in the future.

The retailer’s strategy is clear: improving customer experiences while investing in its stores and expanding its reach.

Whether this will be enough to reclaim its former position in the market remains to be seen.

This article was published on TDPel Media. Thanks for reading!

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