Footwear Retailing - UK - August 2010

ISSUES IN THE MARKET
Key themes
Definitions
Abbreviations
FUTURE OPPORTUNITIES
Look beyond the shoes
Using technology
Different displays
Accessories
MARKET IN BRIEF
Difficult times and some positive signs
Moving off the bottom
Market leaders losing customers
Shopping habits
Shopping attitudes and target groups
The shape of the sector going forward
Specialists vs non-specialists
BROADER MARKET ENVIRONMENT
Key points
Demographics
The Election
The deficit
Interest rates
Implications for consumers
Implications for footwear retailers
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
COMPETITIVE CONTEXT
Key points
Spending on footwear and spending on clothing
Figure 1: Consumer spending on clothing and footwear at current prices, 2005-09
Figure 2: Consumer spending on clothing and footwear at constant 2005 prices, 2005-09
Impact of recession
Inflation
Figure 3: Clothing and footwear inflation, 1997-2009
SECTOR SIZE AND FORECAST
Key points
Retail forecasts
Figure 4: UK: Footwear specialists’ sales, 2005-15
Outlook
Fashion retailers
Other specialists
Specialists share of all non-food retailing
Figure 5: Footwear specialists’ sales as % all non-food retailers’ sales, 2005-15
Outlet and enterprise data
Figure 6: UK: Footwear Retailers, number of outlets and enterprises, 2003-08
CHANNELS OF DISTRIBUTION
Figure 7: Footwear: Estimated channels of distribution, 2009
Specialists
Department stores
Supermarkets
Home shopping
Clothing and sports shops
Other
RETAIL COMPETITOR ANALYSIS
Key points
Leading retailers
Mergers, acquisitions and administrations
Non-specialists
Share of spending on footwear
Figure 8: Retailers of footwear: Share of all footwear spending, 2009
Leading players
Figure 9: UK: Leading footwear retailers, 2008/09
Market shares
Figure 10: UK: Leading retailers’ share of specialists’ sales, market share, 2008/09
RETAIL ADVERTISING AND PROMOTION
Advertising expenditure by retailer
Figure 11: Advertising spend, by footwear retailers and brands, 2005-09
Advertising expenditure by media
Figure 12: Footwear: Advertising, by media used, 2009
Figure 13: Footwear: Advertising, by media used, 2009
BRAND ELEMENTS
Key points
Brand map
Figure 14: Attitudes towards and usage of footwear retail stores, May 2010
 BRAND QUALITIES OF FOOTWEAR RETAIL STORES
Clarks for function, Faith for fashion
Figure 15: Personalities of various footwear retail stores, May 2010
 EXPERIENCE OF FOOTWEAR RETAIL STORES
High street dominates, but Clarks capturing most sales?
Figure 16: Consumer visitation of various footwear retail stores, May 2010
 BRAND CONSIDERATION FOR FOOTWEAR RETAIL STORES
Clarks most considered, other specialists have lower knowledge
Figure 17: Consideration of various footwear retail stores, May 2010
 BRAND SATISFACTION FOR FOOTWEAR RETAIL STORES
High street favourites have highest satisfaction
Figure 18: Satisfaction with various footwear retail stores, May 2010
 BRAND COMMITMENT TO FOOTWEAR RETAIL STORES
Clarks first choice, but repertoire shopping the norm
Figure 19: Commitment to various footwear retail stores, May 2010
 BRAND INTENTIONS FOR FOOTWEAR RETAIL STORES
Marks & Spencer has best retention
Figure 20: Future usage intentions for various footwear retail stores, May 2010
 BRAND RECOMMENDATION FOR FOOTWEAR RETAIL STORES
Top high street stores most recommended
Figure 21: Recommendation of various footwear retail stores, May 2010
 JD SPORTS
What the consumer thinks
Figure 22: Attitudes towards the JD Sports store, May 2010
 SHOE ZONE
What the consumer thinks
Figure 23: Attitudes towards the Shoe Zone store, May 2010
 FAITH
What the consumer thinks
Figure 24: Attitudes towards the Faith store, May 2010
 BARRATTS
What the consumer thinks
Figure 25: Attitudes towards the Barratts store, May 2010
 CLARKS
What the consumer thinks
Figure 26: Attitudes towards the Clarks store, May 2010
WHO SHOPS WHERE?
Key points
Where people buy footwear
Figure 27: UK: Footwear, who shops where?, May 2010
Trend data
Figure 28: UK: Footwear, shopper numbers, 2004-10
Customer profiles
Figure 29: UK: Customer profile of footwear shops, May 2010
Cross shopping
Figure 30: UK: Places from where footwear bought for self in the last 12 months, by places from where footwear bought for self in the last 12 months, May 2010
FOOTWEAR SHOPPING HABITS
Key points
Shopping habits
Figure 31: UK: Footwear, shopping habits in the last year, May 2010
Habits by age and affluence
Figure 32: UK: Footwear, shopping habits, by age and affluence, May 2010
Shopping habits of shoppers at particular chains
Figure 33: UK: Shopping habits in the last 12 months, by places from where footwear bought for self in the last 12 months, May 2010
FOOTWEAR SHOPPING ATTITUDES
Key points
Shoe shopping attitudes
Figure 34: UK: Attitudes to shoe shopping, May 2010
Trends in shopping attitudes
Who looks for what?
Figure 35: UK: Attitudes to shoe shopping, by age and affluence, March 2010
Attitudes of shoppers by outlets used
Figure 36: UK: Places from where footwear bought for self in the last 12 months, by statements on shopping for shoes in the last 12 months, May 2010
Figure 37: UK: Places from where footwear bought for self in the last 12 months, by statements on shopping for shoes in the last 12 months, May 2010
TARGET GROUPS
Figure 38: UK: Statements on shopping for shoes in the last 12 months, by target groups, May 2010
Figure 39: UK: Demographic profile of key target groups, May 2010
Where target groups shop
Figure 40: UK: Places from where footwear bought for self in the last 12 months, by target groups, May 2010
Target group shopping habits
Figure 41: UK: Shopping habits in the last 12 months, by target groups, May 2010
A JONES & SONS PLC
Figure 42: A Jones & Sons Plc: Sales as share of footwear, leather goods in UK, 2004-08
Background
Financial performance
Figure 43: A Jones & Sons Plc: Group financial performance, 2005-09
Store portfolio
Figure 44: A Jones & Sons Plc: Outlet data, 2005-09
Retail offering
BARRATTS PRICELESS
Figure 45: Stylo Plc: Sales as share of footwear, leather goods in UK, 2004-09
Strategic evaluation
Recent history
Financial performance
Figure 46: Stylo Plc: Group financial performance, 2004/05-2008/09
Store portfolio
Figure 47: Stylo Plc: Outlet data, 2004/05-2008/09
Retail offering
Market positioning
Brands
Product offer
Pricing
Advertising and marketing
e-commerce and home shopping
Space allocation
BRANTANO (MACINTOSH RETAIL GROUP)
Figure 48: Brantano: UK sales as share of UK footwear specialists’ sales, 2005-09
Strategic evaluation
A turnaround plan?
Recent history
Financial performance
Figure 49: Brantano: Financial performance, 2005-09
Store portfolio
Figure 50: Brantano: Outlet data, 2005-09
Retail offering
e-commerce and home shopping
C&J CLARK
Figure 51: C&J Clark: Sales as share of footwear, leather goods in UK, 2005-09
Strategic evaluation
Recent history
Financial performance
Figure 52: C&J Clark Group: Group financial performance, 2005/06-2009/10
Store portfolio
Figure 53: C&J Clark Group: Outlet data, 2005/06-2009/10
Retail offering
Market positioning
Brands
Product offer
Pricing
Advertising and marketing
e-commerce and home shopping
THE DUNE GROUP
Figure 54: Dune Group: Pro-forma sales as share of footwear, leather goods in UK, 2004/05-2008/09
Strategic evaluation
Recent history
Financial performance
Figure 55: Dune Group: Group financial performance, 2004/05-2009/10
Store portfolio
Figure 56: Dune Group: Outlet data, 2005-10
Retail offering
Market positioning
Brands
Product offer
Pricing
Advertising and marketing
e-commerce and home shopping
Space allocation
FOOTLOCKER LTD
Figure 57: Footlocker Ltd: Sales as share of sports in UK, 2004-08
Background
Financial performance
Figure 58: Footlocker Ltd: Group financial performance, 2004-08
Store portfolio
Figure 59: Footlocker Ltd: Outlet data, 2004-08
Retail offering
KURT GEIGER LTD
Figure 60: Kurt Geiger Ltd: Sales as share of footwear, leather goods in UK, 2004-08
Strategic evaluation
Recent history
Financial performance
Figure 61: Kurt Geiger Ltd: Group financial performance, 2004/05-2008/09
Store portfolio
Figure 62: Kurt Geiger Ltd: Outlet data, 2004/05-2008/09
Retail offering
Market positioning
Brands, product offer and pricing
Advertising and marketing
e-commerce and home shopping
OFFICE HOLDINGS LTD
Figure 63: Office Holdings Ltd: Sales as share of footwear, leather goods in UK, 2004-08
Strategic evaluation
Recent history
Financial performance
Figure 64: Office Holdings Ltd: Group financial performance, 2004/05-2008/09
Store portfolio
Figure 65: Office Holdings Ltd: Outlet data, 2004/05-2008/09
Retail offering
Market positioning
Brands, product offer and pricing
Advertising and marketing
e-commerce and home shopping
RUSSELL & BROMLEY LTD
Figure 66: Russell & Bromley Ltd: Sales as share of footwear, leather goods in UK, 2004-08
Strategic evaluation
Recent history
Financial performance
Figure 67: Russell & Bromley Ltd: Group financial performance, 2004-08
Store portfolio
Figure 68: Russell & Bromley Ltd: Outlet data, 2004-08
Retail offering
Market positioning
Brands, product offer and pricing
Advertising and marketing
e-commerce and home shopping
SCHUH LTD
Figure 69: Schuh Ltd: Sales as share of footwear, leather goods in UK, 2004-08
Strategic evaluation
Recent history
Financial performance
Figure 70: Schuh Ltd: Group financial performance, 2004/05-2008/09
Store portfolio
Figure 71: Schuh Ltd: Outlet data, 2004/05-2008/09
Retail offering
Market positioning
Brands, product offer and pricing
Advertising and marketing
e-commerce and home shopping
SHOE ZONE GROUP LTD
Figure 72: Shoe Zone Group Ltd: Sales as share of footwear, leather goods in UK, 2005-09/10
Strategic evaluation
Recent history
Financial performance
Figure 73: Shoe Zone Group Ltd: Group financial performance, 2004-10
Store portfolio
Figure 74: Shoe Zone Group Ltd: Outlet data, 2005-09/10
Retail offering
Market positioning
Brands
Product offer
Pricing
Advertising and marketing
e-commerce and home shopping
TWINMAR LTD
Figure 75: Twinmar Ltd: Sales as share of footwear, leather goods in UK, 2004-08
Strategic evaluation
Background
Financial performance
Figure 76: Twinmar Ltd: Group financial performance, 2004-08
Store portfolio
Figure 77: Twinmar Ltd: Outlet data, 2004-08
Retail offering
e-commerce
APPENDIX – BROADER MARKET ENVIRONMENT
Background tables
Figure 78: Trends in the age structure of the UK population, 2005, 2010 and 2015
Figure 79: Trends in the age structure of the UK population, 2005, 2010 and 2015
Figure 80: Trends in the age structure of the UK population, 2005, 2010 and 2015
Figure 81: Forecast adult population trends, by socio-economic group, 2005, 2010 and 2015
Figure 82: Forecast adult population trends, by lifestage, 2005, 2010 and 2015
Figure 83: GDP, PDI, consumer expenditure and savings, at current prices, 2005-15
Figure 84: GDP, PDI, consumer expenditure and savings, at constant 2010 prices, 2005-15
APPENDIX – WHO SHOPS WHERE?
Figure 85: Places from where footwear bought for self in the last 12 months, by demographics, May 2010
Figure 86: Places from where footwear bought for self in the last 12 months, by demographics, May 2010 (continued)
Figure 87: Places from where footwear bought for self in the last 12 months, by demographics, May 2010 (continued)
Figure 88: Places from where footwear bought for self in the last 12 months, by demographics, May 2010 (continued)
Figure 89: Places from where footwear bought for self in the last 12 months, by demographics, May 2010 (continued)
Figure 90: Places from where footwear bought for self in the last 12 months, by places from where footwear bought for self in the last 12 months, May 2010
Figure 91: Places from where footwear bought for self in the last 12 months, by places from where footwear bought for self in the last 12 months, May 2010 (continued)
APPENDIX – FOOTWEAR SHOPPING HABITS
Figure 92: Shopping habits in the last 12 months, by demographics, May 2010
Figure 93: Shopping habits in the last 12 months, by demographics, May 2010 (continued)
Figure 94: Shopping habits in the last 12 months, by places from where footwear bought for self in the last 12 months, May 2010
Figure 95: Shopping habits in the last 12 months, by places from where footwear bought for self in the last 12 months, May 2010
Figure 96: Shopping habits in the last 12 months, by places from where footwear bought for self in the last 12 months, May 2010
Figure 97: Places from where footwear bought for self in the last 12 months, by shopping habits in the last 12 months, May 2010
Figure 98: Places from where footwear bought for self in the last 12 months, by shopping habits in the last 12 months, May 2010 (continued)
APPENDIX – FOOTWEAR SHOPPING ATTITUDES
Figure 99: Statements on shopping for shoes in the last 12 months, by demographics, May 2010
Figure 100: Statements on shopping for shoes in the last 12 months, by demographics, May 2010
Figure 101: Statements on shopping for shoes in the last 12 months, by statements on shopping for shoes in the last 12 months, May 2010
Figure 102: Statements on shopping for shoes in the last 12 months, by statements on shopping for shoes in the last 12 months, May 2010
Figure 103: Places from where footwear bought for self in the last 12 months, by statements on shopping for shoes in the last 12 months, May 2010
Figure 104: Places from where footwear bought for self in the last 12 months, by statements on shopping for shoes in the last 12 months, May 2010
Figure 105: Shopping habits in the last 12 months, by statements on shopping for shoes in the last 12 months, May 2010
Figure 106: Shopping habits in the last 12 months, by statements on shopping for shoes in the last 12 months, May 2010
APPENDIX – TARGET GROUPS
Figure 107: Target groups, by demographics, May 2010
Figure 108: Places from where footwear bought for self in the last 12 months, by target groups, May 2010
Figure 109: Shopping habits in the last 12 months, by target groups, May 2010