11th Aug 2005 11:02
Lewis(John) PLC11 August 2005 Press Information 11th August 2005 Waitrose to acquire five additional stores from Morrisons Waitrose, the supermarket division of John Lewis Partnership, today announcesthat it has entered into an agreement to acquire five additional stores from WmMorrison, subject to approval by the Office of Fair Trading. The five stores arelocated in Durham, East Grinstead, Lewes, St. Katherine's Dock (London) andWilmslow. This acquisition builds on the 19 stores acquired from Morrisons in March 2004,which spearheaded Waitrose's drive North and its strategy of becoming a nationalsupermarket group. These stores were successfully integrated into the group in2004 and have since been trading well. In total, these acquisitions have addedin excess of 600,000 sq ft of selling space, an increase of some 24% over thepast 18 months. The total number of Waitrose stores by the year end will be 173. Today's acquisition continues the expansion of Waitrose as a national retailer,building on its presence in its heartland territory and continuing its move intonew trading regions. Each of the stores being acquired will continue to beoperated by Morrisons until completion (expected to be mid October - earlyNovember 2005) and they will then be converted to Waitrose stores, in a phasedprogramme over the following weeks. The conversion process is expected to becompleted in time for Christmas trading. The cost of this acquisition is not being disclosed but this, together with theconversion costs, are fully covered by funding arrangements already in place forthe Partnership. Waitrose has been trading strongly across the board with sales for the 26 weeksending 30 July 2005 up 18.4% as the company's long term strategy for growthdelivered in key areas, with like for like sales up 4.4% (ex. petrol). • Market share stands at almost 4% (Source: TNS, January 2005);• Waitrose maintains its position as one of the fastest growing fresh food retailers in the UK;• Waitrose firmly establishes itself as a national player, with over 50% of sales now coming from outside the Home counties. Commenting on the acquisition, Steven Esom, Managing Director of Waitrose, said: "We are delighted to have been able to add these stores to the ones we acquiredfrom Morrisons in 2004. Their performance has proven that Waitrose can tradesuccessfully in new territories and that the appeal of a quality fresh foodoffering is nationwide. Today's deal builds on our strategy to make Waitrose anational supermarket brand and is a further demonstration of our ambition togrow the business. We look forward to welcoming the employees of these storesinto the business over the coming months and sharing with them the uniquebenefits of the John Lewis Partnership." -Ends- Press enquiries: WaitroseJaney Berry, Head of Press & PR Tel: 01344 825 985Gill Smith, Media & Communications Manager Tel: 01344 825 165 Hogarth Partnership Tel: 020 7357 9477James Longfield/Georgina Briscoe Notes to Editors A high resolution photograph is available to the media free of charge from theWaitrose Press Office. Please call Gill Smith on 01344 825 165. About Waitrose Waitrose currently has 167 branches (excluding the 5 branches mentioned todayand Lichfield, a new branch due to open later this year) dedicated to offeringquality, value and customer service. Nationally, Waitrose has almost 4 % shareof the retail food market. In the South of England, where it has its mainpresence, its market share is 7 %. The first shop was opened in 1904, in Acton by Wallace Waite, Arthur Rose andDavid Taylor. The John Lewis Partnership acquired the business in 1937 and thefirst Waitrose supermarket opened in 1955. Proposed stores being acquired: Durham, County Durham18,880 sq ft / 92 employees East Grinstead, West Sussex19,900 sq ft / 154 employees Lewes, East Sussex17,400 sq ft / 105 employees St. Katherine's Dock, London17,100 sq ft / 157 employees Wilmslow, Cheshire25,320 sq ft / 115 employees This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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