Verdict comment: Waitrose Christmas trading update

Online was crucial for Christmas 2011. Last year's snow prevented some orders from being delivered, but in 2011 customers returned to a revamped and expanded online offer from Waitrose. This led to sales growth of 49% through this channel in the seven days before 25 December 2011. Sales of WaitroseEntertaining, the party food catering service, also grew by 29%. Many of these orders also relied on delivery services which were hampered last year.

Consumers trading up

However, according to Cliona Lynch, senior retail analyst at Verdict, the driving force behind Waitrose' increased sales for Christmas 2011 was the continuing consumer desire to trade up. "This is particularly evident at Christmas where entertaining friends and family with indulgent foods is a priority. Consumers increased spend on entertaining at home to compensate for less disposable income in dining out over the festive season. The quality and added value associated with Waitrose' Christmas offer negated some of the shopper price sensitivity which has risen with inflation throughout 2011."

According to Lynch, the strength of Waitrose' quality food message, backed by a strong Christmas marketing campaign, innovative festive product range and brand ambassadors Heston Blumenthal and Delia Smith ensured that sales growth in Christmas 2011 has set the grocer up for a strong start to 2012.