Waitrose’s free coffee offer hitting local businesses hard

The retailer Waitrose are once again in the coffee related headlines. Not long after their free coffee incentive for myWaitrose remembers was met with what The Independent called a ‘middle class revolt’ and now the high-end supermarket has been drawing the ire of local shop-owners and politicians in Merseyside.

After Waitrose adopted the practise of giving away a free cup of coffee to reward card customers late last year, they became inundated with comments such as ‘I think seeing people walking round the store holding on to takeaway cups of tea and coffee looks quite ridiculous and brings down the image of Waitrose.’

Not to mention one angry customer who stated that it was very ‘disconcerting seeing people carrying cups of hot coffee around Waitrose whilst they text and push trolleys with their bellies.’

The move pushed the company upwards in the coffee market as the ploy saw them become the second largest provider of coffee in the United Kingdom, though their normal customer base seemingly did not agree.

Meanwhile, whilst the media whipped up a storm over the apparent snobbiness of Waitrose customers, it was reported that Mark Price, the managing director of Waitrose, questioned the viability of reward cards when customers wanted an immediate recompense. Ironically perhaps, it is their loyalty scheme that has landed them in hot water this time.

Speaking during a debate in Parliament last week, Labour’s Bill Esterson, MP for Sefton Central, said that he had been told by local newsagents that Waitrose’s offer of a free hot drink and a newspaper when the customer spends over £5 was causing a massive problem in his constituency.

The discussion in the House of Commons was centred on the topic of independent retailers.

‘The impact on the newsagent has been disastrous, with a big drop in trade. Not only are newspaper sales down, but so too is their other trade. Neighbouring shops in the village have also lost out as customers of the newsagent no longer call in,’ Esterson stated to fellow Members.

Obviously, it was not long before Waitrose responded to these comments. A spokesperson said on the issue: ‘The myWaitrose card is our way of rewarding our customers with offers they like – one of these is a free hot drink. Many businesses on the High Street, from hairdressers, to nail bars, to garages, offer their customers a drink. Many of the big coffee chains give their loyal customers a free cup of coffee.’

The battle lines have been drawn. 

But they key difference here is that Waitrose is a supermarket and therefore is effectively in competition with every other outlet nearby. Smaller, independent coffee shops would find the likes of Starbucks and Costa – and each other – as natural competitors, not a multi-million pound  supermarket.

Many people grab a coffee after going shopping, simply receiving one free of charge could do a lot of damage to stores that are fighting tooth and nail to survive anyway in this climate. Waitrose can’t really be blamed – they are, after all, a business – but the bigger picture needs to be maintained as the prospect of identikit high-streets and shopping centres run by corporate chains would be a very soulless and sad place to inhabit.