Last month marked the first time that Waitrose gained grocery market share in two years. While it’s a modest 0.1 percentage point uptick, it begs the question of whether this could be the start of a new chapter for the upmarket grocer after a difficult few years.

Three years ago, the grocer had 5% market share, compared to 4.5% today. Troubles at cost-cutting parent company John Lewis Partnership, which just two years ago lost an eye-watering £234m, alongside market challenges amid the cost-of-living crisis and some self-inflicted wounds such as poor availability has hurt Waitrose.

However, could this be the start of a resurgence?

Retail Economics Josh Holmes says that the market share gain does signal that “its back-to-basics strategy is starting to yield results”.

And the grocery has put in the grunt work to get these results.

Waitrose retail director Tina Mitchell admits: “We’ve worked hard for this growth, investing millions of pounds in the past year to lower hundreds of prices while refusing to compromise on the quality and animal welfare that sets us apart.

“Investment in supply chain has resulted in record levels of availability and we’ve realigned working hours across our shops meaning we have more partners in store when our shops are busiest.”

Holmes agrees: “Superior customer service, reliability, and quality produce have traditionally set Waitrose apart, but these core values had been neglected amidst cost-cutting and turbulence at the top. It’s therefore promising to now see Waitrose doubling down on what makes it special. The establishment of a new head office team focused on ensuring the highest customer service standards is a positive step, alongside integrating AI technologies to improve availability levels.”

He adds that its recent spate of price cuts although “better late than never”, has helped the retailer better compete on price and encourage more shoppers to do a bigger weekly shop.

IGD global insight leader Bryan Roberts has a similar take on what is finally driving green shoots at Waitrose, highlighting “a discernible improvement in availability, particularly in key areas such as produce and chilled,” coupled with “what appears to be a renewed sharpness in promotional activity, our sense would be that the overall value proposition has improved”.

Savvy Marketing chief executive Catherine Shuttleworth agrees that availability as well as innovation has helped to change the customer perceptions in recent months.

In June, Waitrose relaunched its premium No.1 range with nearly 200 new and improved products alongside a packaging design refresh, which it said has been created to ensure “a premium feel for all the range and to reflect the high quality of the products inside”.

Just two months prior, the grocer partnered with Ottolenghi to bring the brand’s range of sauces and spices “to the masses”.

Shuttleworth says that this collaboration allowed Waitrose to offer “innovative surprises” to its shopper base.

“Consumers are crying out for inspiration at the high end and if it can satisfy that, I think that its got some chance of driving its market share in a positive way,” she adds.

Mitchell asserts that Waitrose is “not complacent”.

“We’re always striving to do more for our customers. We’ll be investing in customer service training for all our partners, modernising our shops and continuing the flow of inspiring new product development, which saw us launch the Ottolenghi range to such acclaim earlier this year.”

For Shuttleworth, Waitrose’s future success will be down to “a very clear strategy about how its going to win back customers that its lost and take share from other retailers”.

Waitrose unveiled some of its plans earlier this year, which include transforming its estate over the next three years and also opening its first new shops in almost a decade.

Outgoing chair Sharon White has said the convenience sector is a top expansion priority for the supermarket.

“I think having a bigger presence for Waitrose locally and with more local ranges is a massive opportunity for us,” she said last month.

Shuttleworth believes focusing on its store estate will attract customers back to Waitrose, however she adds that “shops have got to be a top standard” and a lot will have to be invested in to ensure this.

Holmes agrees that improving the in-store experience will be “critical” for the retailer.

“Many of its stores are tired, undermining its premium image, while inconsistent store standards and service levels have also been a significant factor in holding back market share growth. The £1bn investment in modernising its store estate, including refurbishing 80 stores, cannot come soon enough. Creating a more engaging and inviting shopping environment with enhanced service propositions will help Waitrose compete more effectively with rivals such as M&S.”

As upmarket retailers, Waitrose and M&S have long been pitted against one another. With M&S on a great run right now, observers have even expected it to leapfrog Waitrose in the near future.

In June, M&S CEO Stuart Machin claimed: “You could argue we should have overtaken [Waitrose] already. I might even be arguing that internally here.”

Food has been a star-performer at M&S as it marches ahead with its impressive turnaround. Sales in the divison jumped 13% last year to £8.2bn as adjusted operating profit in its food arm jumped from £248m to £395.3m in its last financial year.

Holmes says thar M&S’ transformation has “set the bar for other retailers”.

“It’s achieved it through relentless product innovation and improvements to the store experience, alongside a sharp pricing strategy that balances value and quality. By launching 1,300 new products and refreshing 20% of its range, M&S has kept its offerings exciting and relevant.

“Its investment in modernising store environments has also been crucial, creating a more inviting shopping experience that delights customers.”

Holmes adds that its ‘Remarksable Value’ range has “positioned M&S competitively on price while maintaining its premium quality image,” while the retailer “effectively leveraged data and personalisation through its Sparks loyalty programme, enhancing customer engagement and driving sales”.

“These strategic moves, combined with a commitment to maintaining high standards of quality and service, have set M&S apart and can serve as a valuable blueprint for Waitrose and other retailers.”

However, it also makes for stronger competition for Waitrose.

Holmes says: “Waitrose must elevate its game to keep up with a resurgent M&S, which means the battle for market share will only get fiercer. Both retailers are vying to attract a similar customer, and if Waitrose isn’t proactive or fails to respond effectively, M&S will continue to gain ground.”

Shuttleworth adds: “Waitrose know that M&S have got them in their sights. M&S see Waitrose shoppers as low hanging fruit, but they might get a surprise if Waitrose’s strategy pays off.”

There is a big opportunity out there for Waitrose right now as inflation starts to ease and customers look to treat themselves once more.

Holmes says: “With inflation normalising and consumer confidence on the recovery path, factors beyond price will play a more influential role in purchasing decisions. This presents trading-up opportunities for grocers – but only if they deliver the quality, service, and rewarding experience that shoppers expect.”

However, he notes that it’s not just each other that M&S and Waitrose are competing for slightly more affluent customers anymore.

“The strong trading momentum at Tesco and Sainsbury’s also cannot be ignored, as both are enhancing their premium offerings. There’s a reason why the UK grocery market is often labelled the most competitive in the world,” he says.

Holmes notes that it is still “early days” in terms of a market share turnaround for Waitrose and “sustained growth will depend on consistently delivering on these improvements”.

While there is much to be done to turn the modest market share rise into a staggering one, Waitrose has a plan and according to experts, it is starting to pay off.