Interviews  >  Graham Heald: What's in store?

The arrival of Waitrose in the Channel Islands appears to have caused something of a stir. Nick Kirby speaks to Graham Heald, the company's Director in the islands, about how the business is going.

You'd think that the opening of a couple of supermarkets on Jersey and Guernsey would hardly cause a hoo-ha, but that was definitely not the case when mainland stalwart Waitrose acquired five stores a year ago with the intention of bringing its respected brand to the islands.

From St Helier to St Peter Port there was a mixture of excited gossip and open scepticism about exactly what the retailer intended to do with the sites it had bought from Sandpiper CI. It was all happening so quickly!

In truth, Waitrose had wanted to open shops in the Channel Islands for around a decade, but it was only recently that suitable sites became available. From acquiring the shops in June last year, the keys were handed over in February this year and an incredibly fast turnaround saw all of the shops – three in Jersey and two in Guernsey – opened by 14 April, after a multi-million-pound investment and makeover.

Waitrose now employs around 660 staff – or ‘Partners' – throughout the Channel Islands. More than 260 of those are newly created posts with the remainder being former employees of Sandpiper CI. But just how well have the stores been received and have they delivered on a number of initial promises?

Graham Heald, Director of Waitrose Guernsey and Waitrose Jersey, spoke to businesslife.co about the ups and downs of launching such a major venture.

How easy have you found setting up shop in the Channel Islands?

In many ways it's been incredibly easy, because we have been welcomed with open arms in the islands by our new Partners, customers and suppliers, but it's definitely had its challenges. It's the first time we've really ventured out of the UK, so we've had to deal with the fair stretch of water between Southampton and the islands – and this has brought us into contact with international maritime law, international systems development, and learning how to operate in a different legislative and tax regime. What's more, things are different across the islands as well, so there has been a huge amount for us to learn. And we've been treading carefully in terms of really understanding what the customers are looking for and what our new Partners need.

You say you were welcomed with open arms, but did you have to mount a PR offensive?

When we first arrived, there was some awareness of Waitrose and the John Lewis Partnership here in the islands, but it's been really good to talk through with people what that really means. We are a long-term business with a great heritage and we're committed to trading forever and a day on the islands, and that has been really well received.

Yes, we had to help people understand the long-term view we take. Also, we're not shareholder led – the people who work in the Partnership are the owners – and I think that was a real surprise, particularly to the people in our branches and those we brought over as part of the acquisition.

Your aim was to keep as many of the existing staff as possible. Were any of them nervous about what you had to offer?

I think that some thought “it's too good to be true – where's the catch?” But when we took over, we wanted all the people in the branches to stay with us, and we pretty much achieved that. Then we recruited new people on top. But yes, there was a little bit of scepticism and some nervousness, as you would expect, as it is a massive transition for people to make.

Was there any difference setting up in Jersey as opposed to Guernsey, and how were you met by the bureaucracy?

The reality is we don't know everything about the Channel Islands, so that means we have been willing to learn. What surprised me is how open and supportive the States on both islands have been. Yes, there are differences and each island is really passionate about its own identity and the produce it sells – and you have to be in tune with that.

One thing that did happen is that the initial marketing campaign didn't quite go smoothly – one advert showed the wrong location, for instance.

Well, we don't live in a perfect world – and we're certainly not perfect! These things are unfortunate and disappointing, but we learn and continue to learn. Opening a food shop is a complex business, so there are bound to be some challenges along the way. The great thing is that people have treated it with humour.

Do you have plans for more stores in the islands, and is this part of a planned expansion into Europe?

We're always interested in good sites and we think there is probably room for a little more competition in the islands, but we need to get these five branches performing at the level we want them to first. On Europe, we will always be ambitious outside of the UK – for me this is a platform to more expansion.

Can we expect to see John Lewis here?

Well we stock a reasonable number of John Lewis lines in the stores. Red Houses, for instance, has extended non-food on its first floor. But you probably need to ask John Lewis about their plans for expansion!

What has customer feedback been like?

It's been overwhelmingly positive. One element of feedback is Partner response – as they are customers as well – and seeing their response along with customer feedback since we have opened has been enlightening.

We've spoken to customers from day one and said we won't always get everything right straight away, but tell us when we get it right and tell us when we get it wrong and we will try to sort that out.

But the great thing is that every branch is exceeding our expectations at the moment – the best response is customers coming back and shopping.

There is a perception that you are expensive. How have people responded to your prices?

Many customers have found us more affordable than they had first expected. That's because we've invested in the price of many of our products. We've made sure that we have taken the duty and VAT savings that we have made directly off the cost of our products, so there are a significant number of lines that are cheaper on the Channel Islands than in the UK.

When we listened to customers in some of the early work we did, they said that they felt that they were always being ripped off because they know there is a cost of importing products, but where are the duty and VAT savings? We think about half of what we are selling is cheaper or the same price as in the UK. This can be especially good value for wine lovers like myself!

One of your big USPs is that you source local produce. How have you found your experience in that area?

We knew that the islanders were really passionate about their products, and you only have to go the restaurants, the markets and specialist shops to see how good those products are. The islands already have a reputation for great food and that just played into what we do well, working with local and regional suppliers.

Over a couple of days on both islands we ran workshops and sessions with a number of local suppliers to talk about what were looking for and what excites us, but also to ask people to come and show us their wares. We've now got more than 550 different lines from the Channel Islands on our shelves and we want to keep on doubling that.

Did you encounter any hostility from other local retailers?

There were some very public statements made by all of the big retailers saying that actually they welcome competition. I think people have thought “what do Waitrose stand for?” and have upped the ante – that's what a competitive market means, from my perspective. For us it's no surprise that other retailers are going back and investing in their branches, their training and their people, and I think that's really good for the islands.

Looking forward, what is next for Waitrose on the islands?

I've worked in this business for almost 25 years now, and what I've learned is that customers want something different tomorrow than they do today, and that customer expectations in terms of price and quality continue to challenge us. So we have to listen to what the customers are saying, respond positively and try to stay ahead of the curve so we can continue to give them what they want. We have some fine-tuning to do in learning about how to trade on the islands. These are very new challenges, so there is plenty to keep us busy!

Add a Comment