Impact of COVID-19 on Waitrose: Challenges and Strategies

This report evaluates the impact of COVID-19 on Waitrose, a British supermarket, and discusses the challenges faced by the retail industry. It explores the changes in consumer behavior and the shift towards online shopping. The report also provides strategies for Waitrose to overcome the challenges and minimize the negative impact of the pandemic.

Professional
Development and
Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
Background of the situation:............................................................................................................4
Research methodology:....................................................................................................................5
Presentation of Research:.................................................................................................................6
Analysis of findings:......................................................................................................................10
4Ps of marketing...................................................................................................................10
Porters five forces.................................................................................................................11
Maslow's Hierarchy of needs.........................................................................................................12
Recommendations & Conclusions:................................................................................................13
Conclusion:....................................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Professional development is based on the learning of individuals so that there can be
maintaining of credentials for academic degrees. It is related to formal course work, attending
conferences, and learning of new opportunities in practice. It is based on intensive collaboration
for the development of ideas. The present report is based on making a detailed evaluation of the
external situation because of an outbreak of the COVID 19 virus (Sher, 2020). The situation of
Lock-down in various parts of the world has resulted in varying degrees of restrictions since
March as lock-down situations are prevailing in areas of Scotland, England, and Northern Ireland
(Schünemann and et. Al 2020). There is an evaluation of the situation of COVID 19 and the way
it is affecting retail brands across different parts of the world. Further to deal with this situation,
effective strategies are formulated so that there can be minimization of the negative impact of
this virus on the present functioning of organizations.
Research Aim: "To analyze the impact of COVID 19 on the performance & productivity of
Waitrose".
Objectives:
 To evaluate the present external situation of COVID 19.
 To analyze the challenges faced because of the changing external environment by
Waitrose.
 To formulate suitable strategies to deal with the negative impact of COVID-19.
Questions:
1) What is the basic impact of the present situation of COVID 19?
2) Determine some of the challenges faced because of the prevailing external environmental
conditions?
3) What can be some of the effective strategies that can be formulated to deal with the
impact of the COVID 19 virus?
Background of the situation:
Present Scenario: The present situation of the COVID 19 pandemic has continued to
transform the growth across various industries the immediate impact is varied according to the
nature of the industry (Giones and et. al 2020). Different research reports are offering detailed

insights into the impact of COVID 19 at the industry level especially since this situation has
affected the retail sector of the UK. The fears across the UK have already affected the global
economy as the key markets across the world have lost 20-50 percent of the value. Many
institutions and committees have made forecasts related to the growth of the global economy in
the year 2021.
Overview of the company: Wait-rose is a brand of British supermarket that was founded in the
year 1904 and it was acquired in 1937 by employee-owned retail John lewis partnership that is
selling groceries under this brand. Its head offices are present in England, Waitrose is having 335
shops across different parts of the UK including convenience shops and a 5.1 percent share of the
market is leading it to be the eighth largest retail brand in the UK. They are also exporting
products across 52 countries and have major locations in the Middle East.
According to the viewpoints of Fiona Briggs, 2020 Martin George is the head of a customer at
Waitrose. George has discussed some of the challenges that Waitrose as a retail brand is facing
in the situation of panic because of the outbreak of the Covid virus. He said that the customer
preferences because of the lockdowns scenario have completely shifted towards online shopping
where they are now just focusing on online delivery of products (Responding To COVID-19: Six
Things Retailers Should Do To Keep Calm And Carry On 2020).
Research methodology:
Methods of research:
Quantitative method: In quantitative analysis main emphasis is on objectivity and
statistical measurements of data that has been collected through questionnaires and surveys.
Here, several mathematical tools and techniques are used by the researcher to draw a meaningful
conclusion. There are different statistical tool such as correlation, regression, and more are used
so that data can be analyzed in a better manner (LIU and HAO, 2018). In addition, it also helps
to provide reliable and authentic information as here mathematical & statistical tools are applied
that are essential to measuring the data in a significant manner.
Justification: The quantitative analysis is very helpful to analyze thevariiosu facts and figures
that are to be used in the present research report for analyzing the present covid situation.
Qualitative method: This method of research is helpful to get detailed information. Here,
the researcher collects information through face-to-face interaction with respondents. Different
types of ways such as interviews focus groups are used in this method to get in-depth

information from respondents (Bairagi and Munot, 2019). It comprises collection as well as
analysis of non-numerical data such as opinions, experiences of individuals that further help the
researcher to reach a meaningful conclusion. Here, an investigator can easily get some additional
information apart from the main subject of research.
For the current research qualitative techniques are used to get detailed information from
respondents that are essential to make appropriate analysis.
Justification: In the present research report there can be the use of various qualitative techniques
that are very helpful to have essential information from the target segment of respondents. The
various viewpoints of employees working presently in Waitrose can be very useful in reaching
relevant recommendations and conclusions.
Data collection methods:
For research, it is essential to collect data and information so that researcher can attain
predefined objectives. Some crucial sources of data collection are given as under:
Primary Source: Here, data is gathered by the investigator through observation, survey,
and other techniques. Data gathered from this source is completely raw as it is collected by the
researcher for the first time.
Justification: primary sources of information will help in having a high amount of authenticity
and reliability of the collected information directly from the respondents.
Secondary sources: This is also considering as one of the important sources of data
collection under which information is gathered through websites, publications, and articles.
It is analyzed that for the present report secondary source of data collection has been
used. Here researcher collected necessary information from different sources that are already
published and used by some other researcher.
Justification: Some of the information will be collected from secondary sources because some
areas may not include the present relevant data through primary methods. For this purpose, there
is a need to use online available sources. Journal articles are useful for the purpose to collect the
secondary form of information that is relevant information related to the impact of COVID 19 on
the present situation of wait rose.
Inductive approach: In this, the main emphasis is on the formulation of a new and
evolved theory. This has an association with qualitative research and here a new phenomenon is

developed for research. The main aim of this approach is to bring some new and innovative
methods that will be useful for individuals (Clandinin, Cave and Berendon, 2017).
Deductive approach: It is based on the test and experiment of predefined theory. Here,
emphasis is given to causality rather than the development of a new theory & approach.
Justification: In the present research work deductive approach will help in focusing on the
existing information. It is related to using various principles that are related to existing theories.
In the present research, an investigator is applying the existing theories so that there can be a
proper analysis of the available information on various aspects of COVID 19 and its impact on
Waitrose functioning.
Presentation of Research:
To analyze the present external situation of Covid 19
According to Adam Barsby, (2020), it is analyzed that Covid 19 has put a significant
impact on the overall retail industry within a country. It has become a reason for the recession in
various countries where people are even not able to meet their necessities (Resnick and et. al
2016). Here, the pandemic influenced the income level of individuals as due to the recession
several people have lost their jobs. In addition, it affected the economy of different countries by
influencing trade practices all over the world (Mahmud and et. Al 2020). Here, it is analyzed
that post-pandemic nearly 60 % of people are purchasing groceries online. For this, the
organization is required to manage its online platforms efficiently so they will be able to meet
with needs and wants of customers effectively.

(Source: COVID-19: Consumers change how they shop, work and live, 2020)
The Overall Impact of the COVID 189 scenario can be analyzed from the above-represented
graph that indicates that there has been a complete change scenario of the present mindset of
people and consumers towards the shift of their purchases. In the retail sector, there has been 75
percent of limiting of food waste and 67 percent of the shopping is more health-conscious, in
both the cases the 90 percent of customer grouped are Likely to continue with their present
habits. According to the survey, nearly 60 to 85% of internet users within China, Asia, and South
Africa are likely to avoid personal interaction thus prefer to purchase products and services
online.
To analyze the challenges faced because of the changing external environment by Waitrose
According to Fedrica, (2020), the current pandemic situation has brought several changes
in an external environment that will affect the entire retail industry in a significant manner. It is
monitored that several challenges have been evolved due to the current pandemic. These
challenges are affecting the overall sales and profit margin of organizations (Debata, Patnaik,
and Mishra, 2020). In the context of Waitrose, managers have to make several changes in their
existing business model due to the current pandemic. Now, they have to take care of social
distancing norms, hygiene, and sanitization within outlets. For this, they are required to invest
huge money. It is considered a greater challenge for those retailers that are working at a large

level. They are required to recruit more staff for effective queue management that will incur a
huge cost for an organization (Hwang, Nageswaran, and Cho, 2020). Now, customers give more
preference to online shopping so, managers need to provide an efficient platform to consumers
where they can easily found necessary products and services. Managers are also required to
provide proper gateways for online payment. For this, it is crucial to hire efficient staff members
who have good technical knowledge (Daniel and Harland, 2017).
Formulate suitable strategies to deal with the negative impact of COVID-19
According to the viewpoints of Duncan Brewer, 2020 organizations have to focus on monitoring
the direct impact of the COVID virus on their employees.
(Source: COVID-19 and the retail sector: impact and policy responses, 2020)
The retail sector countries of 5 prevent of GDP in every country, the COVID 19 has dramatically
affected the sector that is leading to shocks of massive between brick and motor stores to online
shops that is essential versus non-essential products. The above graph indicates that there has
been a complete change in the overall demand for various retail sector products that are essential
versus nonessential retail products. So there is a need to ensure that the retail sector is mainly
focusing on enhancing their supplies of essential products. The graph indicates that essential
items include grocery, food retailers, and pharmacy. Other non-essential products include some

appliances, luggage, travel accessories, gifts, and special event items. According to the survey,
the economy of the UK is shrinking by 14 % due to the ongoing pandemic. In addition to this,
business entities are likely to face negative impacts in an upcoming couple of quarters due to
pandemics.
For this there is a need of Shifting from business continuity to crisis management scenario:
 Retail brands are revisiting the business continuity plans to reassure their colleagues and
customers is that they can manage their supply chain constants and demand shocks by
prioritizing the critical business activities.
 Waitrose can focus on the creation of a contingency plan for dealing with a situation of
disruption. In this here can be an opportunity to outperform their less agile competitors so
that a proper foundation can be built up based on more digital nimble for the coming
future period.
Challenges faced:
While collecting the relevant information in the context of present research work the
major challenges faced are related to the identification of the right sources that can provide a
reliable form of information (Bretas and Alon, 2020). There has been no use of primary
information the research is based on available secondary sources of information that is collected
and further evaluated to achieve the laid objectives of the research. The challenges were dealt
with the identification of the sources from where authentic information can be collected. So there
has to be the identification of online sources which can be relevant to collect the information that
is crucial for research.
Analysis of findings:
4Ps of marketing
The four Ps of marketing are the key factors that are included within the marketing of
products as well as services. In addition to this, it is mainly used by organizations to analyze key
factors for their business, involving what customers want, how their goods and services meet the
requirement, how they compete with rivals, and how their goods, as well as services, are
perceived at the marketplace. The 4Ps of marketing is discussed below about Wait-rose:

Product: It is referred to as a commodity or an item that is offered by an organization to
create value for customers and to meet their requirements as well. About Waitrose, it is a British
supermarket that sells groceries and food products such as cheese, sausages, cherries, dairy
products, organic food and drink, meat, fish, and so on.
Price: It is determined that Waitrose follows a competitive pricing strategy as it helps a
company to attract a large number of people and enhance its sales as well as profitability. In
addition to this, it is analyzed that the price of its product is reasonable because of which it has a
high customer base.
Place: Waitrose is a brand of a big supermarket that has various distribution channels to
cater to its customers. In addition to this, it has more than 20 outlets globally that show the
respective organization has a high market presence. Moreover, it has developed an application
where customers order products online that leads to an increase in sales as well as profitability
(Naeem, 2020).
Promotion: To promote its offerings, Waitrose makes use of both offline and online
marketing. In addition to this, it uses social media platforms such as Facebook, Insta gram, and
YouTube, and so on. It helps in reaching a large number of people within a stipulated period that
affects its sales and market performance positively.
Analysis: from the above-mentioned analysis it can be said that in the context of Waitrose the
present situation of declining sales because of COVID 9 can be managed by focussing on their
online delivery channels.
Porters five forces
It refers to a critical analysis of the strength of a company to fight with its competitors
and survive in the dynamic business environment by maintaining its strong brand image in the
marketplace. It defines the competitiveness of an organization and enhances its ability to
dominate in the market. Porter's five forces of Waitrose are as follows:
Competitive Rivalry: In this key strengths and position of a company concerning its
competitors is been analyzed, it gives a clear position to a workforce and tells about its goodwill
in the marketplace. In context to Waitrose, one of its top competitors is Marks and Spencer with
net revenue of $12.6 Billion which is greater than Waitrose revenue by 4.4 billion dollars (Dodds
and Hess, 2020).

Supplier Power: It refers to the flexibility of changes in prices made by suppliers. If an
organization has a large number of suppliers it would be difficult for its suppliers to make any
changes in prices as the company will purchase raw material from any different supplier. In
relation with Waitrose, it gets supply from a huge number of suppliers so it is difficult to make
any changes in prices as other suppliers might offer the same raw material at lesser prices (Kim,
2020).
Buyer power: It refers to the power of buyers to drive down the MRP set up by the
company. If the number of buyers for a product or service is high in number then buyer power is
high and similarly when the number of buyers is low in number buyer power is low. With
regards to Waitrose, it has a huge number of buyers across the world, in this scenario, it can be
said that companies' buyer power is high.
The threat of substitution: It refers to the substitution of a particular company’s
product or service from any other company’s product or services due to availability of the same
at much cheaper rates or better quality. With regards to Waitrose, the threat of substitution is
high as the company deals with food products that have the highest substitution available in the
open marketplace.
The threat of new entry: It refers to the entry of a new product or service in an existing
market. It is a threat to existing businesses as it may lead to an increase in competition providing
a wide market area to consumers. If we talk about Waitrose, it can be said that the company is
well established and have a good reputation amongst its customers in the marketplace. Any new
entrance in the market will not affect its working. So it can be said that it has a low threat of new
entry.
Analysis: from the above-made analysis of Waitrose it can be said that in the present situation of
COVID 19 impact the Waitrose has to lose the online delivery partnership with Ocado, the
online grocery business has been difficult. There is a need to prepare for enhancing the delivery
slots to 250,000 every week from the 60,000 pre COVID era. The biggest competitor brand of
Waitrose is Amazon has recently announced after the spread of the pandemic that there are
stakes of fresh grocery delivery services that are announcing that parts of the southeast of
London may have same-day food delivery. This leads to Waitrose's need for some urgent
strategies that can help in coping up with this situation of declining sales. So it can be analyzed
that Waitrose can form strategic alliances with competitors like Amazon. The high-end customer

demographic of Waitrose can help in providing a relatively captive audience and additional
pressures. On marks and Spencer is also a competitor brand that has alerted their online services
of delivery at a large scale. This leads to more requirements for Amazon to use timely measures
to shape organizational productivity in this changing COVID scenario.
Maslow's Hierarchy of needs
It relates to the fact that employees working in an organization possess some basic needs
and expect them to be fulfilled by the company to meet its goals virtually. It comprises five
human needs which are as follows:
Physiological needs: These are a basic need which is to be provided by the company to
its employees such as food, water, clothing, sleep, etc. With context to Waitrose, the company
provides special attention in fulfilling these needs and treats these needs as a priority which
should be given to its employees in any aspect.
Safety needs: It refers to providing enough safety to employees working in a workforce
to express their thoughts in an organization. Waitrose, promises job security to its employees,
and its employees are given equal chances to express their thought in the planning process of
management of a company.
Love and belongingness need: It refers to need which tells about the importance of an
employee to an organization. With regards to Wait-rose, leaders of a company take necessary
steps for realizing to its employee that their existence is important for completing organizational
objectives.
Esteem needs: It is of two types, internal and external needs. Internal needs consist of
confidence, freedom, self-respect, etc. and external needs consist of power, attention, status, and
many more (Sinem, Känzig and Surico, 2020). About Waitrose, it gives appreciation to its staff
members in front of all the members of the company which leads to enhancement of their power
and status effective.
Self-actualization needs: It refers to the realization of one potential and ability to do
work. It evaluates a person's ability and helps them in approaching growth opportunities. If it is
talking about Waitrose, it provides training and development sessions to its staff members that
lead to the development of both personal and professional skills in an appropriate manner
(Worthington and Bodiess, 2017).

Analysis: From the above-made analysis of the motivation technique on Waitrose there is to use
and make an employee-owned partnership deals with its various present competitor brands.
There is a need for a transformation in the business to deliver commitment and a plan that can
make a huge difference in this post COVID scenario. Another strategy that can be used by
Waitrose in this scenario is to have a virtual shopping experience for their customers through
zoom. This requires a competent and skilled workforce that can help an organization in
performing the required medications and changes internally in the organization.
Ansoff Matrix
It is also known as a product expansion grid that is adopted by an organization to plan as
well as analyze strategies for growth. In the present situation of COVID-19, a business entity
needs to develop effective strategies to maintain remain in the marketplace and gain growth as
well. This matrix involved four strategies that are mentioned below:
Market penetration: In this strategy, an organization uses its products as well as
services in the existing market intending to raise market share. It takes place by declining the
price of the product to attract new customers, increasing promotions, and acquiring a competitor
in the same marketplace.
Product development: Herein, an organization produces a new product within the
existing market. This strategy takes place by executing various ways that are forming strategic
partnerships, enquiring about competitors' products and merging resources to develop a new
product, investing in research and development to develop a new product. This strategy is
employed when an organization has a strong understanding of the current marketplace and can
innovative solutions to meet the requirements of the existing market.
Market development: This is a strategy stated that an organization enters into a new
market with the existing product which means expanding into a new market, customer segments,
and new geographic regions. This strategy includes entering into the foreign market, entering
into the domestic market and marketing to different customer segments, and so on. An
organization needs to gain proper knowledge about the new market before offering its products
as well as services.
Diversification: Herein, the company enters a new market with the new product. It is
analyzed that diversification strategy involves high risk as both product development and market

development are required. It is determined that diversification strategy sometimes offers the
greatest potential for increased sales and revenue effectively.
From the above discussion, it can be said that as per the present situation that market
penetration is the effective and appropriate strategy for Waitrose. This strategy helps in attracting
more number of the customer within the existing market and is involved less risk. It also assists a
company to enhance its sales by spending fewer resources and time as well.
Pareto principle:
The Pareto principle is named after the economist Vilfredo Pareto that specifies that 80
percent of the consequence is coming from 20 percent of the causes. So there is asserting of an
unequal relationship between the input and the outputs. The principal is serving as a general
reminder that the relationship between output and input may not be balanced. It is sometimes
also known as the Pareto rule 80/20 rule.
In the present situation, the Pareto principle can be applied to the situation of the COVID
virus where it can be said that 80 percent of the outcomes are resulting from 20 percent of causes
that are for identification of inputs that can lead to more productivity. Managers are willing to
identify the factors that are critical for the success of a company (Sharma and et. al 2020). There
is a situation where people are avoiding the use of cash. At the end of March 2020, 22 percent of
consumers across the globe are willing to buy only one product in physical stores.
Recommendations & Conclusions:
Recommendations:
'There are some of the recommendations that have been drawn based on the above-made analysis
as mentioned below:
 A retail brand like Wait-rose has to encourage its customers to have a more personalized
in-store experience. Other digital technologies are also playing a crucial role in this such
as Wait-rose can use edge computing and vision so that retailers can learn how to shop
and they react to offers of products on the store's shelf.
 Wait-rose can focus on the way consumers are making their purchase decisions in this
COVID 19 pandemic along with the point of the customer journey the omnichannel
strategy remains very essential for Wait-rose.
 Based on analysis of the ans off matrix and to deal with the challenging situation of the
COVID 19 virus Waitrose can presently emphasize market penetration as one of the

strategies. Approaching a new market will require a large amount of investment so
Waitrose can focus on the use of their present existing loyal customer base and the
existing product range to enhance their market share.
 One of the challenges that are faced Waitrose in his COVID situation of scarcity of a
competent workforce. There s a high amount of unemployment as many people have lost
jobs in this changing situation because of the non-functioning of many industries due to
lockdown restrictions. This can be used as an opportunity by Waitrose as they can work
towards approaching such an unemployment segment of people to hire based on the
specific skill requirement. The competent employees can contribute towards dealing with
the scarcity of resources to implement their new digital marketing strategies to enhance
the market share in the COVID pandemic situation.
 Many competitor brands of Waitrose have implemented strategies that include having a
better approach to the existing segment of customers. Social media marketing can be
adopted by Waitrose. The challenge of challenges of cybersecurity can be dealt with by
having proper protection measures so that important does not get leaked.
The above discussed are some of the recommendations that can be adopted by Wait-rose
to deal with the challenging situation of the external environment. It will also assist them
to form suitable measures to maximize their sales and revue at the same time maintaining
the level of customer & employee satisfaction level.

Conclusion:
It can be summarized from the above-made discussions that the present covid situation
has affected different industries differently. Organizations have to focus on the development of
measures that can assist in dealing with the situation of declining revenue because of the scenario
of a reduction in purchasing power of people. There has been an increasing threat from declining
customer demand and a threat from available discounted models. The UK economy is facing
huge threats as people have lost their jobs there is no employment and a complete shift towards
focusing on just essential products to satisfy their demands.

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