// Waitrose reports its first loss in 10 years, blaming the supply chain crisis & Covid-19 related costs
// The supermarket also reported a decline in revenues as customers demand softened in the second half of the year
Waitrose has reported a statutory loss of £2.3m for last year – its first loss in 10 years – as the supply chain crisis and Covid-19 related costs took its toll
According to the supermarket, its profit margins have been “significantly diluted” by the “inflationary pressures within supply chains, higher levels of absence due to Covid-19 and higher fulfilment costs as a result of the increased levels of online trade”.
Revenues at the premium grocer also fell 0.9% to £6.8 billion for the year ending 29 January 2022, according to accounts filed on Companies House.
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Waitrose said sales dipped as customer demand softened in the second half of the year compared to the previous year, as much of the UK returned to more normal shopping patterns and the hospitality sector rebounded”.
Despite rising inflation and energy prices Waitrose said it remained “focused on investing significantly in our Partnership Plan to transform and grow our business”.
Profit at the John Lewis Partnership-owned supermarket was also impacted by its £90m investment in 18 shop refurbishments, alongside expanding its ecommerce capacity, and the opening of 10 new Waitrose cafes.
As a result, Waitrose’s partnership with Deliveroo resulted in £1m being generated in weekly sales.
The company added that it plans to continue to invest in its store estate, with another 23 major refurbishments planned for 2022/23.