Footwear Retailing - UK - April 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Value of the footwear market in the UK remains unmoved in 2018
Figure 1: UK footwear sales, best- and worst-case forecast, 2013-23
Footwear specialists and clothing retailers continue to struggle
Figure 2: Estimated distribution of spending on footwear, by type of retailer, 2015-18
Unseasonable weather affected 2018 footwear sales
Figure 3: Year-on-year difference of UK monthly mean temperature and footwear retail sales, 2018
People concerned about Brexit, despite earnings outstripping inflation
Figure 4: Average weekly earnings (total pay) vs inflation, January 2016-December 2018
Companies and brands
Clarks continues to struggle
JD Sports remains the largest footwear retailer in the UK
Figure 5: Estimated market shares for top 10 retailers of footwear, by value, 2017 and 2018
Online footwear sales reached £2.3 billion in 2018
The consumer
Trainers are the most popular style across all categories
Figure 6: Styles of women’s footwear purchased, February 2019
Figure 7: Styles of children's footwear purchased, February 2019
Sports Direct remains the most popular retailer for footwear
Figure 8: Retailers footwear has been purchased from, February 2019
Quality is the most important factor when choosing a retailer
Figure 9: Top factors in deciding where to purchase footwear, February 2019
People buy footwear out of necessity
Figure 10: Reasons footwear was bought, February 2019
The opportunity in non-leather shoes
Figure 11: Footwear shopper behaviour towards more ethical shopping, February 2019
What we think
ISSUES AND INSIGHTS
Importance of getting online right
The facts
The implications
More innovation needed in the sector
The facts
The implications
Figure 12: Dr. Martens DIY customisation tour, with tattoo artist Adam Vu Noir, 2019
Growing demand for sustainable footwear
The facts
The implications
Figure 13: Zalando’s sustainability filter in action, 2019
THE MARKET – WHAT YOU NEED TO KNOW
Value of the footwear market in the UK remains unmoved in 2018
Women’s and children’s shares of the footwear market grow.
Footwear specialists and clothing retailers continue to struggle
Unseasonable weather affected 2018 footwear sales
Bad year for department stores
People concerned about Brexit
MARKET SIZE AND FORECAST
Value of the footwear market in the UK remains stagnant in 2018
Figure 14: UK footwear sales, best- and worst-case forecast, 2013-23
Footwear forecast
Figure 15: UK footwear sales, at current and 2018 prices, 2013-23
Uncertainty surrounding Brexit
Women’s and children’s shares of the footwear market grow
Figure 16: UK footwear sales, segmented by market value and percentage share, 2016-18
Figure 17: UK footwear sales, segmented by women’s, men’s and children’s, % share, 2016-18
Forecast methodology
CHANNELS TO MARKET
Footwear specialists and clothing retailers continue to struggle
Figure 18: Estimated distribution of spending on footwear, by type of retailer, 2015-18
Sports and pureplay retailers gain share
Figure 19: Estimated distribution of spending on footwear, by type of retailer, 2015-18
MARKET DRIVERS
Sportswear continues to grow
Figure 20: Sportswear and outdoorwear categories purchased, September 2018
Number of school-aged children predicted to increase
Figure 21: Projected year-on-year percentage population change, based on 2016 projections, by age at last birthday, 2013-22
Figure 22: Projected (2017-based projections) UK population at mid-years, by age at last birthday, 2013-22
Figure 23: Products purchased for the start of the school term, October 2018
Unseasonable weather affected 2018 footwear sales
Figure 24: Year-on-year difference of UK monthly mean temperature and footwear retail sales, 2018
Footfall continues to decline
Figure 25: Year-on-year footfall change, by location, January 2015-January 2019
Bad year for department stores
Fewer people purchased fashion items over the summer
Figure 26: Trends in items respondents have purchased for themselves, September and December 2017-18
People concerned Brexit will negatively affect their ability to spend…
Figure 27: Economic outlook consumer tracker, January 2019
…despite earnings outstripping inflation
Figure 28: Average weekly earnings (total pay) vs inflation, January 2016-December 2018
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Clarks continues to struggle
LK Bennett goes into administration
JD Sports buys Footasylum
Online footwear sales reached £2.3 billion in 2018
Footwear advertising expenditure increases 40% in 2018
Multi-brand retailers struggle to differentiate themselves
LEADING FOOTWEAR RETAILERS
Leading specialists struggle
Clarks sales and profits decline
LK Bennett goes into administration
Figure 29: Leading footwear specialists: UK revenues, 2014-18
Kurt Geiger head office shake-up amid expansion plans
Over-reliance on department stores hits specialists
Shoe Zone’s store strategy proves a success, as sales and profits grow
Figure 30: Leading footwear specialists: UK outlet numbers, 2014-18
Dune focuses on international expansion
Sales per outlet
Figure 31: Leading footwear specialists: estimated UK sales per outlet, 2014-18
Operating profit
Figure 32: Leading footwear specialists: UK operating profits, 2014-18
LEADING NON-SPECIALISTS
JD strengthens its position as top non-specialist retailer
JD Sports buys Footasylum
Figure 33: Leading non-specialist retailers: estimated footwear sales (excluding VAT), 2014-18
Sports Direct’s UK sales slip as it continues buying spree
M&S increases focus on footwear
Retail offering
Figure 34: Leading non-specialist retailers: positioning, offer and brands stocked, 2019
MARKET SHARE
JD Sports bolsters its lead
Figure 35: Estimated market shares for top 10 retailers of footwear, by value, 2017 and 2018
Figure 36: Estimated market shares for top 20 retailers of footwear, 2014-18
ONLINE
Online footwear sales reached £2.3 billion in 2018
Technology makes online shopping easier
Figure 37: Size? use of Fit Finder sizing tool, 2019
Pureplay retailers expand footwear offering
Figure 38: Estimated online sales of footwear, 2014-18
Distribution
Figure 39: Estimated distribution of online sales, 2014-18
Case study: Amazon’s share of the market is growing
LAUNCH ACTIVITY AND INNOVATION
Smart shoes
Figure 40: Jimmy Choo Voyager mobile phone app, 2019
Shoes with ‘learning insoles’
Footwear collaborations
Puma teams up with Porsche
Figure 41: Porsche Design Speedcat Jamming, 2019
Jaguar Land Rover and Clarks collaborate on menswear collection
Dr. Martens collaborations
Figure 42: Dr. Martens x BAPE, 2018
ASICS x Vivienne Westwood
Figure 43: ASICS x Vivienne Westwood collection, 2019
GZ x Rita Ora
Size? sells exclusive adidas Originals Colnago collection
Mytheresa and Tod’s
Figure 44: Mytheresa’s exclusive collection with Tod’s, 2018
Limited editions
adidas x TfL
Mahabis collaborates with Penguin
Figure 45: Mahabis x Penguin Modern Classics, 2018
Footwear launches
Dune launches new affordable fashion-forward footwear brand
Mr Porter’s brand launches footwear
Figure 46: Mr P. boots, 2019
Sustainable footwear
Nike’s VaporMax 2
Allbirds opens first UK store
Figure 47: Allbirds London store, 2018
M&S uses social media influencers for footwear collection
Figure 48: Erica Davies, one of the bloggers M&S collaborated with for its blogger footwear collection, 2019
Creative footwear retail concepts
Nike’s new New York City flagship is its most innovative yet
Figure 49: Nike’s new flagship store in New York, 2018
Merging the physical retailing with online
Lloyd offers home delivery from airport stores
Footwear vending
ECCO opens new unit in shopping centre
Figure 50: ECCO’s new store in St David’s in Cardiff, 2019
Dr. Martens factory
Socially minded endeavours help brands stand out from the crowd
ADVERTISING AND MARKETING ACTIVITY
Total advertising expenditure up 40.4% year on year
Figure 51: Total above-the-line online display and direct mail advertising expenditure on footwear, 2015-18
Budget-friendly brand Newchic is sector’s highest-spending advertiser
Figure 52: Total recorded above-the-line, online display and direct mail total advertising expenditure on footwear, by leading advertisers, 2015-18
Key campaigns
Skechers advert courts controversy
Parley for the Oceans plastic campaign
Clarks back-to-school campaign
Dune: Clothes are overrated
Figure 53: Dune London’s ‘Clothes are Overrated’ campaign, 2019
Use of influencers in campaigns
JD Sports teams up with fashion blogger Lily Kitten
Kurt Geiger releases campaign with Susie Bubble for London Fashion Week
Figure 54: Kurt Geiger’s ‘Colourful Characters’ campaign featuring Susie Lau, 2019
Half of total advertising expenditure spent on digital advertising
Figure 55: Total above-the-line online display and direct mail advertising expenditure on footwear, by media type, 2018
Leading advertisers’ advertising spend by media type
Figure 56: Leading advertisers’ total recorded above-the-line, online display and direct mail total advertising expenditure on footwear, by media type, 2018
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 57: Attitudes towards and usage of selected brands, March 2019
Key brand metrics
Figure 58: Key metrics for selected brands, March 2019
Brand attitudes: Clarks stands out for customer service and being trustworthy
Figure 59: Attitudes, by brand, March 2019
Brand personality: Schuh, Office and Footasylum are seen as fun brands
Figure 60: Brand personality – macro image, March 2019
Brand personality: Hotter perceived to be expensive
Figure 61: Brand personality – micro image, March 2019
Brand analysis
Foot Locker struggles to differentiate itself
Figure 62: User profile of Foot Locker, March 2019
Office stylish and aspirational but impersonal
Figure 63: User profile of Office, March 2019
Clarks high brand awareness and usage
Figure 64: User profile of Clarks, March 2019
Schuh fun and stylish
Figure 65: User profile of Schuh, March 2019
Footasylum suffers from low awareness and usage
Figure 66: User profile of Footasylum, March 2019
Hotter expensive and somewhat boring
Figure 67: User profile of Hotter, March 2019
C&J CLARK 
What we think
Brings in former Geox boss as chief executive
UK manufacturing a missed opportunity in maintaining brand heritage
Creates single stock pool to boost online sales
New store design to continue rollout?
Launches children’s literacy skills initiative
Company background
Company performance
Figure 68: C&J Clark (UK and ROI): group financial performance, 2013/14-2017/18
Figure 69: C&J Clark (UK and ROI): outlet data, 2013/14-2017/18
Retail offering
DEICHMANN SCHUH
What we think
Filling in gaps in European network
Continues with growth of smaller formats
Franchise move could show way ahead in Balkans and Eastern Europe
Pursues younger consumers
Company background
Company performance
Figure 70: Deichmann Schuh: group financial performance, 2013-18
Figure 71: Deichmann Schuh: outlet data, 2013-18
Retail offering
FOOT LOCKER EUROPE
What we think
Shifts investment focus towards digital
Revamping its store base
Invests in tie-ups with brands
Buys into the second-hand trainer market
Company background
Company performance
Figure 72: Foot Locker Europe: group financial performance, 2014/15-2018/19
Figure 73: Foot Locker Europe: outlet data, 2014/15-2018/19
Retail offering
THE CONSUMER – WHAT YOU NEED TO KNOW
Trainers are the most popular style across all categories
More people shop online for footwear
Sports Direct remains the most popular retailer for footwear
Quality is the most important factor when choosing a retailer
People buy footwear out of necessity
The opportunity in non-leather shoes
TYPES OF FOOTWEAR BOUGHT
Heeled styles prove to be least popular
Figure 74: Styles of women’s footwear purchased, February 2019
Trainers are the most popular style across all categories…
Figure 75: Styles of men’s footwear purchased, February 2019
Figure 76: Gucci sport sandals, 2019
…and are also the style most likely to be bought for others
Women are most likely to buy footwear for others
Figure 77: Footwear bought, by gender of buyer, February 2019
Men purchase fewer styles of footwear
Figure 78: Repertoire of styles purchased, by gender, February 2019
TYPES OF CHILDREN’S FOOTWEAR BOUGHT
Trainers continue to be more popular purchase than school shoes…
Figure 79: Styles of children's footwear purchased, February 2019
…as they prove popular for children of all ages
Figure 80: Styles of children's footwear purchased, by age of children in household, February 2019
Households with children aged 5-11 purchase the most styles
Figure 81: Repertoire of styles purchased, by age of children in household, February 2019
WHERE FOOTWEAR IS BOUGHT
Online purchasing grows across all ages
Figure 82: Channels used for footwear purchasing, by age, February 2019
Specialist stores prove most popular…
Figure 83: Types of retailer footwear was purchased from, February 2019
…particularly with in-store shoppers
Figure 84: Type of retailers footwear was bought at, by channel used, February 2019
Sports Direct most popular retailer for footwear
Figure 85: Retailers footwear has been purchased from, February 2019
Sports retailers prove more popular with male shoppers
Figure 86: Percentage who shopped for footwear at a sports retailer, by age and gender, February 2019
Figure 87: Nike campaign with the then 9 year old skateboarder, Sky Brown, 2018
Younger shoppers buy footwear from several retailers
Figure 88: Repertoire of retailers purchased from, by age, February 2019
CHOOSING A FOOTWEAR RETAILER
Quality is the most important factor when choosing a retailer
Figure 89: Top factors in deciding where to purchase footwear, February 2019
Highlighting quality can make footwear retailers stand out
British-made more important for older shoppers
Figure 90: People who ranked ‘sells British-made footwear’ as a top factor in deciding where to purchase footwear, by age, February 2019
REASONS FOR BUYING FOOTWEAR
Most buy footwear out of necessity
Figure 91: Reasons footwear was bought, February 2019
A quarter purchased footwear based on the weather
Figure 92: Kurt Geiger’s Rita boot in pink, 2019
Women more likely to buy shoes for different events
Figure 93: Events footwear was bought for, by gender, February 2019
Figure 94: Repertoire of reasons used for purchasing footwear, by gender, February 2019
BEHAVIOUR TOWARDS FOOTWEAR
Comfort, quality and range of sizes more important than fashion
Figure 95: Footwear shopper behaviour towards comfort, quality, and fashion, February 2019
The way people shop for footwear is changing
Figure 96: Behaviour towards shopping for footwear, by age, February 2019
Figure 97: Making of the Diemme Arket Anatra boot, 2019
Online seen to have a price advantage
Figure 98: Footwear shopper behaviour towards online and offline purchasing of footwear, February 2019
Young, male shoppers are most susceptible to online endorsements
Figure 99: Behaviour towards influencers, by age and gender, February 2019
Consumers are concerned about ethics
Figure 100: Footwear shopper behaviour towards more ethical shopping, February 2019
Non-leather shoes: the next big thing?
Figure 101: Stella McCartney x Stan Smith, 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 102: UK footwear sales, best- and worst-case forecast, 2018-23