Innovation in the UK Retail Sector - Nesta

Vignette 5.6: Waitrose
Context: Innovating in sustainable development, retailer-supplier relations
Innovation in the UK Retail Sector
Example: Waitrose is looking for innovative ways in delivering the ‘triple bottom line’, in terms of economic, social and
environmental performance. The supermarket is championing seasonal British produce from local producers. This is part of its
‘transport optimisation’ initiative to reduce food miles by ensuring more effective utilisation of its lorry fleet. The company is also
allowing local producers to deliver directly to stores. While this has positive effect on local farming communities and satisfies the
growing consumer need for local produce this also needs to be balanced in environmental terms. The retailer’s own research
suggests that in logistical terms growing flowers, for instance, in Kenya and flying them in to the UK could be more energy
efficient than growing these flowers in glasshouses in the Europe and transporting them by road to the UK.
The supermarket’s relationship with farmers is increasingly built on its own farming experience. In Leckford north Hampshire,
Waitrose operates 4000 acre farm. The farm has more than 1,000 cattle, 12,000 hens, an apple orchard and mushroom producing
facilities which are the sole supplier of white mushrooms to the supermarket. The farm has been in ownership of John Lewis
since 1946 and although it is far from being the major provider of agricultural produce for the Group it nevertheless is a source of
practical experience about understanding the challenges of modern farming. “Such insights are invaluable at a time when
supermarket-supplier relationships have come under scrutiny from regulators at the Competition Commission” (Davey, 2007;
John Lewis, 2007).
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