Waitrose Issues Profit Warning After Significant Investment In Business

Upmarket supermarket Waitrose has issued a profit warning following the huge investment made in the…

Upmarket supermarket Waitrose has issued a profit warning following the huge investment made in the business over the past year.

It is the retailer's second profit warning in just three years.

Mark Price, managing director at Waitrose, warned investors that the supermarket's “unprecedented investement” in the business over the past twelve months will impact the profit in its interim results on September 1.

Significant investment in the myWaitrose loyalty card scheme, price-matching promotions and campaigns affected the profits of the supermarket, said Price.

Waitrose forecast a 4.5% sales rise for the six months to July 26.

Waitrose opened 15 new stores in the financial period, compared to four for the same period last year.

The retailer also invested in its online store and launched new marketing initiatives such as a breakfast series on Channel 4.

Promotions also hit the supermarket's profits.

Waitrose cut the price of key staples such as bread and milk to compete with discounters Aldi and Lidl.

Price wrote to staff to inform them of the profit warning: "As you know, we are in a period of unprecedented investment and this will have an impact on the profit we report next month."