Budget health and wellness retailer Grape Tree is embarking on an ambitious UK expansion plan in a bid to take on Holland & Barrett.
Grape Tree – which currently has 177 stores – aims to reach 200 by early next year, with 50 more planned during 2026.
“We’re a little ray of sunshine in retail,” founder and managing director Nick Shutts told The Grocer. It has opened 60 stores since the beginning of 2024, at a rate of three new stores a month.
The retailer is known for its bulk-buy bags of pumpkin seeds, dried fruit and top seller almonds. It also stocks vitamins, supplements and “related confectionery” like chocolate-covered raisins and brazil nuts, and had been able to capitalise on growing demand among shoppers for health and wellness products and backlash against UPF.
Last year, Grape Tree doubled capacity at its now 68,000 sq ft Black Country packaging plant and distribution centre in order to facilitate the growth.
It is primarily targeting premium high street locations, or as Shutts said, “locations where there is no chewing gum on the pavement and no young men with hoodies”. However, it is also looking for market towns, shopping centres, and increasingly locations in student towns, where its bulk value message resonated.
Recent openings include stores in Crystal Peaks in Sheffield, Ormskirk, Amersham and Harrogate.
“We like to be near to a Holland & Barrett when we are choosing a store,” Shutts said. “It gives customers the ability to get a feel [for the brand].” He admitted there were “synergies” between Grape Tree and Holland & Barrett, which is partway through its own ambitious expansion plan.
However, Grape Tree’s vertical integration meant it would “always be able to sell at half their price”, Shutts said.
The expansion plan is being led by Shutts’ son Oliver, who joined the business in 2023 as acquisitions manager. It would be funded mainly through cash reserves and “a bit” of borrowing. “It’s not an expensive rollout,” Shutts said. The majority of the openings had gone under the radar, as the retailer preferred “soft launches”.
“We like to let our products speak for themselves,” Oliver Shutts said. The business has also refurbished around 30 of its existing stores this year, and is working on relocation plan for others, Shutts said.
“We’ve really moved on our fit out. We’re doing some really fantastic fit outs so the shops speak for themselves.”
Grape Tree founded after Julian Graves closed down
Shutts Sr is a well-known face in the health and wellness world, having founded and grown the chain Julian Graves throughout the early 2000s, before selling the business to Holland & Barrett.
He founded Grape Tree, along with Nigel Morris, in 2013 after Julian Graves was closed down. Grape Tree “cherry-picked” some of the best Julian Graves locations, as well as some of the former team, he said.
Turnover hit £84m this year and was on track to pass £100m next, Shutts said. Latest accounts for 2023 show Grape Tree, which files as JG Foods, turnover grew from £38.3m to nearly £52.4m. Profit was £1.5m.
Shutts is now the 100% owner after buying out Morris’ share last year. The store expansion has been supported by a renewed advertising campaign, fronted by TV star Dr Ranj Singh.
No comments yet