Sunday 27 November 2011

Why the Waitrose and Allied Boots agreement is the real deal!

You may have noticed in recent months, Allied Boots (Boots) stores comprising a Waitrose food outlet. The new strategy is aimed at attracting the ever increasing convenience customer on the high street. For years Waitrose has being playing catch up in an ever growing convenience market, with many similar competitors, Sainsburys Local and Tesco Express, adopting these distribution channels in the past. Yet the move to expand into this type of  channel through an existing and highly recognized brand name on the high street is unique. Consequently the synergy will bring about positive benefits for both companies. 

Waitrose to sell food in Boots

The footfall of Boots will increase, having the prestige image of Waitrose combined with the prestige image of Boots will no doubt offer continued benefits. Whilst continuing to use Boots brand name and footfall recognition for its cosmetics and health, it will encourage Waitrose to explore to a new type of outlet. According to Marketing Magazine, Waitrose has set an initial target of 300 boots stores to enter, based on feedback and customer perception this number is certainly set to increase.  

Whilst Waitrose outlet stores won't be large in size, the stores will comprise essential products aimed at consumers picking up goods on the go. The recent expansion of their 'essential' range reinforces this strong marketing message, of convenience. Under the umbrella of the Boots advantage loyalty scheme, consumers can qualify for points on Waitrose products too. What is not certain is whether consumers will be allowed to redeem points on Waitrose products, but only time will tell and as of yet Waitrose does not offer a similar loyalty scheme employed by many of its larger competitors. The move will enhance Waitrose health and cosmetics section and offering a bigger variety of products. In remains to be seen whether Waitrose will follow similar patterns of larger stores such as Tesco or Sainsburys and have an in-store pharmacy in Waitrose larger store formats. 

Finally Waitrose has stuck an exclusive deal with the high street retailer, according to Alan Treadgold, head of retail strategy at advertising agency Leo Burnett, 'The deal puts two middle-England brands together. There is a natural fit because of the confidence customers have in both'. Similarly the move reinforces that the British high street is still indeed British, with many national stores facing closure from foreign products, that are cheaper and more affordable the move should bring back confidence to the rest of the high street sector. 

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