Innovation in the UK Retail Sector - Nesta
Innovation in the UK Retail Sector - Nesta
Innovation in the UK Retail Sector - Nesta
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Vignette 5.6: Waitrose<br />
Context: Innovat<strong>in</strong>g <strong>in</strong> susta<strong>in</strong>able development, retailer-supplier relations<br />
<strong>Innovation</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong> <strong>Retail</strong> <strong>Sector</strong><br />
Example: Waitrose is look<strong>in</strong>g for <strong>in</strong>novative ways <strong>in</strong> deliver<strong>in</strong>g <strong>the</strong> ‘triple bottom l<strong>in</strong>e’, <strong>in</strong> terms of economic, social and<br />
environmental performance. The supermarket is champion<strong>in</strong>g seasonal British produce from local producers. This is part of its<br />
‘transport optimisation’ <strong>in</strong>itiative to reduce food miles by ensur<strong>in</strong>g more effective utilisation of its lorry fleet. The company is also<br />
allow<strong>in</strong>g local producers to deliver directly to stores. While this has positive effect on local farm<strong>in</strong>g communities and satisfies <strong>the</strong><br />
grow<strong>in</strong>g consumer need for local produce this also needs to be balanced <strong>in</strong> environmental terms. The retailer’s own research<br />
suggests that <strong>in</strong> logistical terms grow<strong>in</strong>g flowers, for <strong>in</strong>stance, <strong>in</strong> Kenya and fly<strong>in</strong>g <strong>the</strong>m <strong>in</strong> to <strong>the</strong> <strong>UK</strong> could be more energy<br />
efficient than grow<strong>in</strong>g <strong>the</strong>se flowers <strong>in</strong> glasshouses <strong>in</strong> <strong>the</strong> Europe and transport<strong>in</strong>g <strong>the</strong>m by road to <strong>the</strong> <strong>UK</strong>.<br />
The supermarket’s relationship with farmers is <strong>in</strong>creas<strong>in</strong>gly built on its own farm<strong>in</strong>g experience. In Leckford north Hampshire,<br />
Waitrose operates 4000 acre farm. The farm has more than 1,000 cattle, 12,000 hens, an apple orchard and mushroom produc<strong>in</strong>g<br />
facilities which are <strong>the</strong> sole supplier of white mushrooms to <strong>the</strong> supermarket. The farm has been <strong>in</strong> ownership of John Lewis<br />
s<strong>in</strong>ce 1946 and although it is far from be<strong>in</strong>g <strong>the</strong> major provider of agricultural produce for <strong>the</strong> Group it never<strong>the</strong>less is a source of<br />
practical experience about understand<strong>in</strong>g <strong>the</strong> challenges of modern farm<strong>in</strong>g. “Such <strong>in</strong>sights are <strong>in</strong>valuable at a time when<br />
supermarket-supplier relationships have come under scrut<strong>in</strong>y from regulators at <strong>the</strong> Competition Commission” (Davey, 2007;<br />
John Lewis, 2007).<br />
Page 42