Table of Contents
Executive Summary – Europe – The Market
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- Department store sector sales and leading players
- GTV as a sales measure for leading players
- Department store market size
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- Figure 2: Europe: Estimated department store sector sales and leading players’ sales, 2015-19
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- Figure 3: Europe: Leading department stores, outlets, 2015-19
- Figure 4: Europe: Leading department stores, sales per outlet, 2015-19
- Mixed goods retailers’ sales
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- Figure 5: Europe: Mixed goods retailers, sales (excluding VAT), 2015-19
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- Figure 6: Europe big 5: Mixed goods retailers, forecast sales (excluding VAT), 2020-24
- Department stores in context
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- Figure 7: Big five European countries: estimated department store sector sales (excluding VAT), 2015-19
- Market shares
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- Figure 8: Europe: Leading department stores, market shares, 2015-19
- Figure 9: Europe: Leading department stores’ shares of estimated department store sales, 2019
- Online
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- Figure 10: Europe: Leading countries, estimated online department store sales as share of all department store sales, 2019
- What we think
- France
- Germany
- Italy
- Spain
- UK
Executive Summary – Europe – The Consumer
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- The consumer research
- Who shops at department stores
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- Figure 11: Europe: Proportion of internet users who have shopped from a department store, in-store or online, by country, March 2018 and January 2020
- Men are the main shoppers, except in the UK
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- Figure 12: Europe: Proportion of internet users who have shopped from a department store, in-store or online, by gender, January 2020
- Younger versus older consumers
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- Figure 13: Europe: Proportion of internet users who have shopped from a department store, in-store or online, by age group, January 2020
- Where they shop
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- Figure 14: Europe: Proportion of internet users who have shopped from a department store, in-store or online, by country, January 2020
- Online versus in-store
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- Figure 15: Europe: Proportion of internet users who have shopped from a department store, who have shopped online, January 2020
- Most popular department store
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- Figure 16: Europe: Most used department store by country and proportion of shoppers, January 2020
- Attitudes to shopping at department stores
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- Figure 17: Europe: Attitudes to department stores, by country, January 2020
Executive Summary – Europe – Launch Activity and Innovation
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- Pop-ups an opportunity to enhance the department store shopping experience
- El Corte Inglès meeting consumer expectation for more personalised online experience
- Galeries Lafayette’s new digitally-rich Champs-Elysées store
- LVMH planning to open the world's most luxurious department store
- Airport department store
- Second-hand department stores
The Impact of COVID-19 on Department Stores
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- Short, medium and long-term impact on the sector
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- Figure 18: Short, Medium and long term impact of COVID-19 on Department Stores, May 2020
- Opportunities and threats
- Repercussions of COVID-19 could be permanent in some countries
- Social distancing measures will change the experience and retailers must react
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- Figure 19: OpenTable retail slot booking system, San Francisco, May 2020
- Disruption to tourism will hit department stores
- Strong online business is key to survival
- Adapting services to the ‘new-norm’
- Community, co-operation and ethical considerations come to the fore
- Impact on the department store sector
- Loss of tourism and local shoppers will hit department stores hard
- Forecast
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- Figure 20: Europe: Department stores market size and forecast, 2015-24
- Figure 21: Europe: Detailed Department stores market size and forecast, by country, 2014-24
- The impact of COVID-19 on consumer behaviour across Europe
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- Figure 22: Europe: Those extremely worried about the risk of being exposed to COVID-19, March and April 2020*
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- Figure 23: Europe: Those extremely worried about how the outbreak will affect their lifestyle, March and April 2020*
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- Figure 24: Europe: Changes made to lives as a result of the COVID-19, April 2020*
- People expect to spend less on key categories sold by department stores
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- Figure 25: Europe: Net balance of expected spending* on categories sold by department stores, April 2020**
- How the crisis will affect key consumer segments
- Concern about infection and changes to lifestyle both increase with age
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- Figure 26: Europe: Those extremely worried about the risk of being exposed to COVID-19, by age, April 2020*
- Across Europe spending patterns will be subdued in the short term
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- Figure 27: Europe: Net balance of expected spending* on beauty and toiletries, by age, April 2020**
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- Figure 28: Europe: Net balance of expected spending* on clothing and accessories, by age, April 2020**
- Men are more likely to spend more on clothing, women on beauty & personal care
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- Figure 29: Europe: Net balance of expected spending* on beauty and toiletries, by gender, April 2020**
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- Figure 30: Europe: Net balance of expected spending* on clothing and accessories, by gender, April 2020**
- Increase in online shopping varies across countries
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- Figure 31: Europe: Proportion of shoppers who increased their online shopping, April 2020*
- The shift to online entails more than just having an online shop
- COVID-19: Market context
- United Kingdom
- France
- Germany
- Italy
- Spain
France
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- Overview
- What you need to know
- Key issues covered in this Report
- Areas covered in this Report
- Executive summary
- The market
- Consumer spending
- Sector size and forecast
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- Figure 32: France: department stores, estimated sector sales (excl VAT), 2015-19
- Companies and brands
- Key metrics
- Market shares
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- Figure 33: France: leading department store retailers’ shares of mixed goods retailers’ sales, 2019
- Online
- The consumer
- Where they shop
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- Figure 34: France: department stores shopped at in the last 12 months, January 2020
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- Figure 35: France: usage of department stores in the last 12 months, by age and gender, January 2020
- Online shopping
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- Figure 36: France: online shopping at department stores in the last 12 months, by age and gender, January 2020
- What they buy
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- Figure 37: France: products bought in department stores in the last 12 months, January 2020
- Attitudes to shopping at department stores
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- Figure 38: France: attitudes to shopping at department stores, January 2020
- What we think
- Issues and insights
- COVID-19 set to have major impact on French department store sales
- Department stores must reduce reliance on Paris and foreign tourists
- The facts
- The implications
- Rental and secondhand a potential new revenue stream
- The facts
- The implications
- The market – What you need to know
- 2020 set to be a moderately good year for the French economy
- Key department store spending areas are low growth
- Department store sector has returned to growth after stalling in 2016
- Threats to the sector
- Consumer spending
- Social unrest at the end of the year dampens 2019 economic growth
- Huge uncertainty for 2020
- Weak spending growth in key department store categories
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- Figure 39: France: consumer spending on key department store product categories (incl. VAT), 2015-19
- Sector size and forecast
- Department store sector size
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- Figure 40: France: department stores, estimated sector sales (excluding VAT), 2015-19
- Mixed goods retailers sector
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- Figure 41: France: mixed goods retailers, sales (excluding VAT), 2015-19
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- Figure 42: France: mixed goods retailers, forecast sales (excluding VAT), 2020-24
- Threats to the French department store sector
- The impact of the Coronavirus
- Structural change in the luxury market
- Growing competition from pureplay luxury retail platforms
- Companies and brands – What you need to know
- A duopoly focused on Paris
- COVID-19 a real threat to the sector
- Looking for growth internationally
- Combined market share is down
- Catching up online
- Leading players
- Dependence on Paris and tourists
- Flagships are more than just department stores
- International expansion
- Galeries Lafayette pulling ahead online
- Partnerships develop omnichannel offer
- A new rival, La Samaritaine due to open in spring 2020
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- Figure 43: France: leading department store retailers, sales, 2015-19
- Figure 44: France: leading department store retailers, outlets, 2015-19
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- Figure 45: France: leading department store retailers, sales per outlet, 2015-19
- Market shares
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- Figure 46: France: Leading department store chain’s shares of mixed goods retailers’ sales, 2015-19
- Online
- Online activity
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- Figure 47: Europe: online buyers in last 12 months, by country, 2015-19
- Luxury shopping online
- Leading online players
- The consumer – What you need to know
- A minority interest
- Galeries Lafayette leads
- Core shoppers are younger, male and more affluent
- Online shopping
- Core categories under pressure
- Leisure and experiences rank highly
- Where they shop
- Only a quarter shop at department stores
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- Figure 48: France: department stores shopped at in the last 12 months, January 2020
- But over 40% of residents in the Paris region shop there
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- Figure 49: France: usage of department stores in the last 12 months by region, January 2020
- The younger and wealthier are the core customers
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- Figure 50: France: usage of department stores in the last 12 months, by age, gender and affluence, January 2020
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- Figure 51: France: usage of department stores in the last 12 months, by age and gender, January 2020
- Online shoppers at department stores
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- Figure 52: France: online shopping at department stores in the last 12 months, by age and gender, January 2020
- What they buy
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- Figure 53: France: products bought in department stores in the last 12 months, January 2020
- What people buy is influenced by gender
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- Figure 54: France: products bought in department stores in the last 12 months, January 2020
- Attitudes to shopping at department stores
- Exclusivity is a key driver
- A leisure destination
- But perceptions of high pricing
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- Figure 55: France: attitudes to department stores, January 2020
- Attitudes by department store used
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- Figure 56: France: attitudes to department stores, Galeries Lafayette and Printemps, January 2020
- Appendix – Data sources, abbreviations and supporting information
- Abbreviations
- Data sources
Germany
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- Overview
- What you need to know
- Key issues covered in this Report
- Areas covered in this Report
- Executive summary
- The market
- Consumer spending
- Sector value and forecast
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- Figure 57: Germany: Estimated department stores sales (excluding VAT), 2013-19
- Figure 58: Germany: Mixed goods retailers’ sales as % of all retail sales, 2012-24
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- Figure 59: Germany: Estimated department stores’ product mix, 2019
- Companies and brands
- Key metrics
- Market shares
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- Figure 60: Germany: Leading department stores’ shares of all mixed goods retailers’ sales, 2019
- Online
- The consumer
- What they buy
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- Figure 61: Germany: Products purchased in-store and online from a department store, January 2020
- Where they shop
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- Figure 62: Germany: Online and in-store shoppers at leading department stores, January 2020
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- Figure 63: Germany: Online and in-store shoppers at all department stores, January 2020
- Attitudes to shopping at department stores
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- Figure 64: Germany: Attitudes to shopping at department stores, January 2020
- What we think
- Issues and insights
- COVID-19 set to have major impact on German department store sales
- The in-store experience is vital for department stores
- The facts
- The implications
- Foodservice has universal appeal and is an important draw
- The facts
- The implications
- The market – What you need to know
- Fashion drives sales but grows slowly
- Homewares continue to gain relevance
- Sales dropped to €6.33 billion in 2019
- COVID-19 brings drop in sales in 2020
- Consumer spending
- Fashion drives sales but grows slowly
- Homewares continues to make gains
- Beauty and personal care attract traffic
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- Figure 65: Germany: Consumer spending on key department store product categories (including VAT), 2013-18
- Department stores’ share of clothing and beauty markets
- Clothing
- Beauty
- Sector size and forecast
- Department store sector size
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- Figure 66: Germany: Department stores, estimated sector sales (excluding VAT), 2015-19
- Mixed goods retailers sector
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- Figure 67: Germany: Mixed goods retailers, sales (excluding VAT), 2015-19
- Figure 68: Germany: Mixed goods retailers, sales (excluding VAT), 2020-24
- Companies and brands – What you need to know
- Leaders continue to drag market down
- Plans to rescue Galeria Karstadt Kaufhof
- KaDeWe launches new features and extends opening hours
- Breuninger grows online
- Market concentration remains high
- Department stores continue to underperform online
- Leading players
- Plans to rescue Galeria Karstadt Kaufhof
- KaDeWe launches new features and extends its opening hours
- Breuninger grows online business
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- Figure 69: Germany: Leading department store retailers, sales, 2015-19
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- Figure 70: Germany: Leading department store retailers, outlets, 2015-19
- Figure 71: Germany: Leading department store retailers, sales per outlet, 2015-19
- Market shares
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- Figure 72: Germany: Leading department store retailers’ shares of all mixed goods retailers’ sales, 2015-19
- Figure 73: Germany: Leading department store retailers’ shares of all mixed goods retailers’ sales, 2019
- Online
- Online activity
- Internet access widespread
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- Figure 74: Germany: Proportion of households with broadband access, 2008-19
- Shopping online
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- Figure 75: Germany: Online purchases in the last 12 months compared to other countries, 2008-19
- Figure 76: Germany: Online purchases in the last 12 months in key categories, 2008-19
- Department store online sales
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- Figure 77: Germany: Online and in-store shoppers at leading department stores, January 2020
- Leading online players
- The consumer – What you need to know
- Fashion remains the predominant category
- Electrical goods more likely to be bought online
- Galeria Karstadt Kaufhof is the most popular
- Majority of department store shoppers are men
- In-store experience is key
- Food halls can encourage consumers to visit
- Where they shop
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- Figure 78: Germany: consumers who shopped at department stores in the last 12 months, March 2018 vs January 2020
- Market leader attracts 37% of consumers in-store and 16% online
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- Figure 79: Germany: department stores shopped at in the last 12 months, January 2020
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- Figure 80: Germany: consumers that have shopped at leading department stores, by gender, January 2020
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- Figure 81: Germany: consumers that have shopped at leading department stores, by age, January 2020
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- Figure 82: Germany: consumers who shopped at leading department stores in-store and online, by age, January 2020
- What they buy
- Fashion remains the predominant category
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- Figure 83: Germany: items bought from department store in the past 12 months, January 2020
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- Figure 84: Germany: Products purchased in-store and online from a department store, by channel, January 2020
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- Figure 85: Germany: Products purchased from a department store, by retailer, January 2020
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- Figure 86: Germany: Products purchased from a department store, by gender, January 2020
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- Figure 87: Germany: Products purchased from a department store, by age, January 2020
- Attitudes to shopping at department stores
- In-store experience is key
- Food halls encourage shoppers to visit and stay longer
- Prices are high but exclusivity matters
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- Figure 88: Germany: Attitudes to shopping at department stores, January 2020
- Attitudes by department store used
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- Figure 89: Germany: Those agreeing with attitudes to shopping in department stores, by retailer, January 2020
- Appendix – Data sources, abbreviations and supporting information
- Abbreviations
- Data sources
Italy
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- Overview
- What you need to know
- Key issues covered in this Report
- Areas covered in this Report
- Executive summary
- The market
- Consumer spending
- Sector size and forecast
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- Figure 90: Italy: department stores, estimated sector sales (excluding VAT), 2015-19
- Companies and brands
- Key metrics
- Market shares
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- Figure 91: Italy: leading department store retailers’ estimated shares of department store sales, 2019
- Online
- The consumer
- Where they shop
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- Figure 92: Italy: department stores shopped at in the last 12 months, January 2020
- What they buy
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- Figure 93: Italy: items bought from a department store in the last 12 months, January 2020
- Attitudes to department stores
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- Figure 94: Italy: attitudes to shopping in department stores, January 2020
- What we think
- Issues and insights
- COVID-19 set to have major impact on Italian department store sales
- How can department stores differentiate themselves more effectively?
- The facts
- The implications
- Online offers customers a choice and helps to broaden coverage
- The facts
- The implications
- The market – What you need to know
- Consumer spending grows faster than the overall economy
- Department stores have a small share of the markets they compete in
- Department store sales continue to grow
- Consumer spending
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- Figure 95: Italy: consumer spending on key department store product categories, (including VAT), at current prices, 2015-19
- Department stores’ share of clothing and beauty markets
- Clothing
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- Figure 96: Italy: estimated distribution of consumer spending on clothing and footwear by channel, 2018
- Beauty
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- Figure 97: Italy: estimated distribution of consumer spending on beauty and personal care products by channel, 2018
- Sector size and forecast
- Department store sector size
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- Figure 98: Italy: department stores, estimated sector sales (excluding VAT), 2015-19
- Mixed goods retailers sector
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- Figure 99: Italy: mixed goods retailers, sales (excluding VAT), 2015-19
- Figure 100: Italy: Mixed goods retailers, forecast sales (excluding VAT), 2020-24
- Companies and brands – What you need to know
- Rinascente focuses on tourists and unique stores tailored to location
- Coin returns to Italian ownership
- COVID-19 will hit hard
- Rinascente leads the market
- Main players slow to adopt e-commerce
- Leading players
- Rinascente
- Small store network attracts tourists
- Looking to move increasingly upmarket…
- …and closing loss-making stores
- Using pop-ups to try out new brands…
- …and digital technologies to improve service
- Transactional site coming this year
- Coin
- Returns to Italian ownership
- Evaluation of estate followed by revamps
- Other department store operators
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- Figure 101: Italy: leading department store retailers, estimated net revenues*, 2015-19
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- Figure 102: Italy: leading department store retailers, outlets, 2015-19
- Figure 103: Italy: leading department store retailers, annual sales per outlet, 2015-19
- Market shares
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- Figure 104: Italy: leading department store retailers’ estimated shares of department store sales, 2015-19
- Figure 105: Italy: leading department store retailers’ estimated shares of mixed goods retailers’ sales, 2015-19
- Online
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- Figure 106: Italy: online buyers in last 12 months, by country, 2015-19
- Shopping online
- Leading online players
- The consumer – What you need to know
- Fewer than one in three have bought from a department store in the past year
- Fashion items are the most popular purchases
- Younger shoppers keener on experiential aspects
- Where they shop
- Fewer than one in three visited a department store in the past year
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- Figure 107: Italy: department stores shopped at in the last 12 months, January 2020
- Rinascente attracts a slightly younger shopper
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- Figure 108: Italy: consumers that have shopped at a Rinascente or Coin department store in the last 12 months, by age and gender, January 2020
- Department store shoppers most likely to be from higher earning households
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- Figure 109: Italy: consumers that have shopped at a Rinascente or Coin department store in the last 12 months, by net monthly household income, January 2020
- What they buy
- Fashion items are the most popular purchases
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- Figure 110: Italy: items bought from department store in the past 12 months, January 2020
- Buyers most likely to be older with some exceptions
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- Figure 111: Italy: items bought from department store in the past 12 months, by age, January 2020
- Clear gender demarcation
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- Figure 112: Italy: items bought from department store in the past 12 months, by gender, January 2020
- Attitudes to shopping in department stores
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- Figure 113: Italy: attitudes to shopping in department stores, January 2020
- Younger shoppers keener on experiential aspects
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- Figure 114: Italy: Agreement with attitudes to shopping in department stores, by age, January 2020
- Women prefer to shop in-store
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- Figure 115: Italy: Agreement with attitudes to shopping in department stores, by gender, January 2020
- Appendix – Data sources, abbreviations and supporting information
- Abbreviations
- Data sources
Spain
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- Overview
- What you need to know
- Key issues covered in this Report
- Areas covered in this Report
- Executive Summary
- The market
- Consumer spending
- Department stores’ share of clothing & beauty markets
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- Figure 116: Spain: estimated distribution of consumer spending on clothing and footwear by channel, 2018
- Figure 117: Spain: Estimated distribution of consumer spending on beauty and personal care products by channel, 2018
- Sector value and forecast
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- Figure 118: Spain: Estimated department stores sales* (excluding VAT), 2013-19
- Figure 119: Spain: Mixed goods retailers, sales as % of all retail sales, 2012-24
- Companies and brands
- Leading players
- Market shares
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- Figure 120: Spain: El Corte Inglés, share of mixed goods retailers’ sales, 2015-19
- Online
- The consumer
- What they buy
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- Figure 121: Spain: Products purchased in-store and online from a department store, January 2020
- Where they shop
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- Figure 122: Spain: Online and in-store shoppers at leading department stores, March 2018 and January 2020
- Attitudes to shopping at department stores
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- Figure 123: Spain: Attitudes to shopping at department stores, January 2020
- What we think
- Issues and insights
- COVID-19 set to have major impact on Spanish department store sales
- Gourmet gastronomy and foodservice are the way forward
- The facts
- The implications
- Appealing to younger consumers through experiential retail
- The facts
- The implications
- The market – What you need to know
- Consumer spending
- Department stores’ share of the clothing and beauty markets
- ECI is the only department store in Spain
- Consumer spending
- Recovering economy but slowing growth
- Fashion is the key category but is growing the slowest
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- Figure 124: Spain: Consumer spending on key department store product categories (including VAT), at current prices, 2015-19
- Department stores’ share of clothing and beauty markets
- Clothing
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- Figure 125: Spain: estimated distribution of consumer spending on clothing and footwear by channel, 2018
- Beauty and personal care
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- Figure 126: Spain: Estimated distribution of spending on beauty and personal care products by channel, 2018
- Sector size and forecast
- Department store sector size
- Mixed goods retailers sector
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- Figure 127: Spain: Mixed goods retailers, sales (excluding VAT), 2015-19
- Figure 128: Spain: Mixed goods retailers, forecast sales (excluding VAT), 2020-24
- Companies and brands – What you need to know
- El Corte Inglés, the only Spanish department store
- ECI takes 80% of mixed goods sales
- Online shopping continues rise
- Leading players
- El Corte Inglés, the only Spanish department store
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- Figure 129: Spain: Leading department store retailers, net revenues, 2015-19
- Figure 130: Spain: Leading department store retailers, outlets, 2015-19
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- Figure 131: Germany: Leading department store retailers, sales per outlet, 2015-19
- Market shares
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- Figure 132: Spain: El Corte Inglés share of mixed goods retailers’ sales, 2015-19
- Online
- Online activity
- Internet access widespread
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- Figure 133: Spain: Proportion of households with broadband access, 2008-19
- Shopping online
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- Figure 134: Spain: Online purchases in the last 12 months compared to other countries, 2008-19
- Figure 135: Spain: Online purchases in the last 12 months in key categories, 2008-19
- Department stores online sales
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- Figure 136: Spain: Online and in-store shoppers at leading department stores, January 2020
- Leading online players
- The consumer – What you need to know
- Clothing most common department store purchase
- Certain categories are bought predominantly online
- El Corte Inglés continues to grow its online presence
- In-store experience is key to success
- Extra services, exclusivity and events can attract online shoppers
- Where they shop
- El Corte Inglés attracts 56% of consumers in-store and 39% online
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- Figure 137: Spain: In-store and online shoppers at leading department stores, March 2018 and January 2020
- Younger Spaniards predominant among in-store buyers
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- Figure 138: Spain: Demographic profile of El Corte Inglés, in-store shoppers, January 2020
- ECI still appeals more to affluent shoppers
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- Figure 139: Spain: Demographic profile of El Corte Inglés, online shoppers, January 2020
- What they buy
- Fashion remains the predominant category
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- Figure 140: Spain: Products purchased in-store and online from a department store, January 2020
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- Figure 141: Spain: Products purchased in-store and online from a department store, by channel, January 2020
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- Figure 142: Spain: Products purchased in-store and online from a department store, by age, January 2020
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- Figure 143: Spain: Products purchased in-store and online from a department store, by gender, January 2020
- Attitudes to shopping at department stores
- Enjoyable experience in-store is key
- ECI is considered expensive but extra services are strategic
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- Figure 144: Spain: Attitudes to shopping at department stores, January 2020
- Exclusivity and visiting as a day out appeals to younger consumers
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- Figure 145: Spain: Those agreeing with selected attitudinal statements, by age, January 2020
- Online shoppers still view department store shopping in better light
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- Figure 146: Spain: Those agreeing with selected attitudinal statements, by channel used, January 2020
- Appendix – Data sources, abbreviations and supporting information
- Abbreviations
- Data sources
UK
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- Overview
- What you need to know
- Key issues covered in this report
- Products covered in this Report
- Executive Summary
- The market
- The department store sector continues to decline
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- Figure 147: UK department store sector size and forecast (Post-COVID-19 lockdown forecast), 2014-24
- Footfall across the high street has seen steep declines
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- Figure 148: Year-on-year footfall change, by location, January 2015-February 2020
- Impact of COVID-19 on department stores
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- Figure 149: Short, Medium and long term impact of COVID-19 on Department Stores, April 2020
- Companies and brands
- Major leading players struggle
- House of Fraser loses market share
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- Figure 150: Leading department stores, estimated market shares, 2017-19
- Brand research shows that John Lewis is highly regarded
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- Figure 151: Attitudes towards and usage of selected brands, March 2020
- The consumer
- Department stores attract two thirds of shoppers
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- Figure 152: Department stores used in the last 12 months, 2018-20
- Fashion is the most commonly bought category at department stores
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- Figure 153: What consumers bought from department stores in the last 12 months, May 2019 and February 2020
- Gifting brings shoppers into department stores
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- Figure 154: Reasons given for visiting a department store, February 2020
- Consumers prefer the ease of online shopping
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- Figure 155: Department store shopper behaviours, February 2020
- Shoppers are suffering from discount fatigue
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- Figure 156: Consumer attitudes towards department stores, February 2020
- Department stores are perceived by some as pricey and inconvenient
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- Figure 157: Top reasons given for not purchasing items at department stores, February 2020
- What we think
- The Impact of COVID-19 on Department Stores
- Short, medium and long-term impact on the industry
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- Figure 158: Short, Medium and long term impact of COVID-19 on Department Stores, April 2020
- Opportunities and Threats
- COVID-19 hastens department store closures
- Focus on community and personalisation
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- Figure 159: John Lewis has been providing care packages to key workers in the UK to show support, April 2020
- Digital innovations will grow in importance
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- Figure 160: John Lewis – virtual home design service, April 2020
- Impact on the department store sector
- COVID-19 set to cause steep declines for department stores
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- Figure 161: UK department store sector size and forecast (Post-COVID-19 lockdown forecast), 2014-24
- Shifting consumer behaviours
- During lockdown there has been an almost total reliance on online shopping for non-foods…
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- Figure 162: People who said they have increased the amount of shopping done online as a result of COVID-19, 28th February 2020-16th April 2020
- …but a lack of spending on discretionary items
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- Figure 163: Changes in shopping habits since the outbreak of COVID-19 between 23rd April – 30th April 2020
- Almost half of shoppers expect to spend less on fashion items
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- Figure 164: Expected spending patterns due to COVID-19, 23rd-30th April 2020
- Key consumer segments
- Lack of tourism due to COVID-19 will impact high-end department stores
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- Figure 165: Country or region of origin of non-UK-resident purchasers of high-end products, 2019
- ABs are slightly less concerned about changes to their lifestyle
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- Figure 166: Worries about how COVID-19 will impact lifestyles, by socioeconomic group, 23rd-30th April 2020
- Women are more likely to have cut back on non-essential spending
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- Figure 167: Expected changes in shopping for fashion items since the outbreak of COVID-19, by gender, 23rd – 20th April 2020
- How a COVID-19 recession will reshape the department store sector
- Unemployment will impact discretionary spend
- Marketing and sales activities will need to be pitched appropriately
- A recession could see a dip in conspicuous consumption
- Increased discounting
- Dealing with excess stock
- COVID-19: Market context
- Issues and Insights
- COVID-19 predicted to hugely disrupt the department store sector
- The facts
- The implications
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- Figure 168: Expected spending patterns due to COVID-19, 23rd-30th April 2020
- Is online shopping the new ‘department store’?
- The facts
- The implications
- The Market – What You Need to Know
- Department stores continue to experience declines
- COVID-19 set to have a big impact on the market
- Key department store categories expected to grow
- Lack of tourism in 2020 to impact high-end department stores
- Consumer uncertainty over Brexit eases up
- Footfall has been steadily declining
- Market Size and Forecast
- The decline is predicted to continue for department stores
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- Figure 169: UK department store sector size and forecast (Pre-COVID-19 lockdown forecast), 2014-24
- Figure 170: UK department store sector size and forecast, at constant and current prices (Pre-COVID-19 lockdown forecast), 2014-24
- Impact of COVID-19
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- Figure 171: UK department store sector size and forecast (Post-COVID-19 lockdown forecast), 2014-24
- Figure 172: UK department store sector size and forecast, at constant and current prices (Post-COVID-19 lockdown forecast), 2014-24
- Forecast methodology
- Consumer Spending
- Spending has grown in the key categories
- Fashion sales slow
- Opportunities in prestige beauty
-
- Figure 173: Consumer spending on the core department store categories, 2015-19
- Market Drivers
- Inbound tourism rose in 2019…
-
- Figure 174: Number of inbound tourists and tourist expenditure in the UK, 2009-19
- …but COVID-19 will hamper department store sales
-
- Figure 175: Country or region of origin of non-UK-resident purchasers of high-end products, 2019
- Consumer uncertainty over Brexit lessens
-
- Figure 176: Consumer sentiment towards Brexit, February 2020
- Footfall continues to decline…
-
- Figure 177: Year-on-year footfall change, by location, January 2015-February 2020
- …as extreme weather conditions affect the high street
- Online continues to grow
-
- Figure 178: Internet sales as a proportion of total retail sales, 2009-19
- Companies and Brands – What You Need to Know
- Major leading players struggle
- House of Fraser loses market share
- John Lewis has the most established online presence
- Department stores get more experiential
- Advertising spend was down nearly 30% in 2019
- Leading Players
- Note on department store sales
- Major players struggle with slowing sales
- All change at John Lewis
- Debenhams and House of Fraser continue to struggle post-administration
-
- Figure 179: Leading department stores, net sales, 2015-19
- Store closures continue…
-
- Figure 180: Leading department stores, outlet numbers, 2015-19
- …leading some to see an increase in sales per outlet
-
- Figure 181: Leading department stores, estimated sales per outlet, 2015-19
- Profits at the major department stores are shrinking
-
- Figure 182: Leading department stores, operating profits, 2015-19
- Figure 183: Leading department stores, operating margins, 2015-19
- Market Share
- House of Fraser rapidly losing market share
-
- Figure 184: Leading department stores, estimated market shares, 2017-19
- Figure 185: Leading department stores, market shares, 2015-19
- Online
- Struggling department stores suffer with slowing online sales
-
- Figure 186: Select leading department stores, estimated online revenues, 2015-19
- Online share for top department stores grows
-
- Figure 187: Estimated online share of select leading department stores’ total revenues, 2015-19
- Figure 188: Estimated online department store market size, 2015-19
- Online becomes more important for department stores
- Note on methodology
- Launch Activity and Innovation
- Department stores enter rental territory
- Selfridges hosts Hurr Collective pop-up
-
- Figure 189: Hurr’s pop-up in Selfridges, 2020
- Liberty teams up with My Wardrobe HQ
-
- Figure 190: My Wardrobe HQ space in Liberty, 2020
- Luxury department stores offer second-hand options
- Selfridges opens Vestiaire concession
-
- Figure 191: Vestiaire’s permanent Selfridges concession, 2019
- Harrods and NSPCC team up for the second time
-
- Figure 192: Inside Harrods latest Re-Told charity shop, April 2019
- Selfridges launches pre-loved childrenswear pop-up
- Selfridges launches a range of pop-ups
- Depop pop-up opens in August 2019
-
- Figure 193: Depop pop-up shop, 2019
- L’Agence and Fenty pop-ups in October 2019
- Selfridges teams up with Instagram
-
- Figure 194: Selfridges Instagram pop-up, 2019
- Highsnobiety launches The Co. Lab in partnership with Selfridges
- Department stores bet on beauty
- Harrods to open line of beauty stores
- Dazed opens beauty pop-up in Selfridges
-
- Figure 195: Dazed Beauty Space pop-up, 2020
- John Lewis unveils beauty counter for men
- UK department stores venture abroad
- Fortnum & Mason opens in Hong Kong
-
- Figure 196: Fortnum & Mason’s Hong Kong store, 2019
- Harrods to open in Shanghai
- Department stores revamp floors
- John Lewis invests in menswear
-
- Figure 197: Inside John Lewis’ Speak Easy area, 2019
- Selfridges opens new accessories hall in Trafford Centre
-
- Figure 198: Selfridges new accessory hall in Manchester’s Trafford Centre, 2019
- Harrods continues its major revamp
-
- Figure 199: Harrods’ new dining hall, 2019
- Figure 200: Harrods’ new beauty hall, 2019
- Department stores get more experiential
- John Lewis launches most experiential store yet
- Selfridges opens permanent cinema
-
- Figure 201: The cinema at Selfridges, Oxford Street, London
- House of Fraser opens gaming arena
-
- Figure 202: Belong’s Oxford Street arena in House of Fraser, 2019
- Alternative reality experiences
- John Lewis uses virtual app for furniture
-
- Figure 203: John Lewis’ AR furniture app in use, 2020
- Harvey Nichols launches VR circus
- M&S to combine food hall and clothing store
- Advertising and Marketing Activity
- Advertising spend down nearly 30% in the last year
-
- Figure 204: Recorded above-the-line, online display and direct mail total advertising expenditure by selected leading UK department stores, 2015-19
- Marks & Spencer remains the sector’s biggest spender
-
- Figure 205: Recorded above-the-line, online display and direct mail total advertising expenditure, by selected leading UK department stores, 2015-19
- TV is the primary source of department store advertising
-
- Figure 206: Recorded above-the-line, online display and direct mail total advertising expenditure by selected leading UK department stores, by media type, 2019
- Figure 207: Recorded above-the-line, online display and direct mail total advertising expenditure of selected leading UK department stores, by media type, 2019
- Key campaigns
- Christmas advertising is the highlight of the year
- John Lewis shelves first spring campaign due to COVID-19
- M&S revamps ‘This is Not Just’ food marketing campaign after 12-year absence
- Debenhams’ £3 million male-focused campaign
- Harvey Nichols parts ways with creative agency
- Nielsen Ad Intel coverage
- Space Allocation Summary
- Space allocation summary
-
- Figure 208: Department stores: Summary of estimated in-store space allocation, March 2020
- Detailed space allocation estimates
- M&S revamping childrenswear department and introducing urban farming in stores
- New toy emporium and permanent cinema at Selfridges’ flagship London store
-
- Figure 209: The cinema at Selfridges, Oxford Street, London
- John Lewis’ new experiential concept shop to attract footfall and increase dwell time
- Struggling Fenwick turns floor space into offices
- New-style House of Fraser being rolled out
-
- Figure 210: Department stores: Detailed space allocation estimates, March 2020
- Brand Research
- Brand map
-
- Figure 211: Attitudes towards and usage of selected brands, March 2020
- Key brand metrics
-
- Figure 212: Key metrics for selected brands, March 2020
- Brand attitudes: John Lewis highly rated for customer service
-
- Figure 213: Attitudes, by brand, March 2020
- Brand personality: Debenhams seen as accessible
-
- Figure 214: Brand personality – macro image, March 2020
- House of Fraser perceived as impersonal
-
- Figure 215: Brand personality – micro image, March 2020
- Brand analysis
- John Lewis is the favourite brand
-
- Figure 216: User profile of John Lewis, March 2020
- Debenhams has high levels of usage, but is not rated for its experience
-
- Figure 217: User profile of Debenhams, March 2020
- Fenwick lacks differentiation
-
- Figure 218: User profile of Fenwick, March 2020
- Harvey Nichols worth paying more for
-
- Figure 219: User profile of Harvey Nichols, March 2020
- House of Fraser perceived as boring
-
- Figure 220: User profile of House of Fraser, March 2020
- The Consumer – What You Need to Know
- Department stores attract two thirds of shoppers
- Fashion is the most commonly bought category at department stores
- Gifting brings shoppers into department stores
- Consumers are turning to online shopping
- Shoppers are suffering from discount fatigue
- Where They Shop
- Department stores continue to attract two thirds of shoppers
-
- Figure 221: Department stores used in the last 12 months, 2018-20
- In-store shopping more popular than online
-
- Figure 222: Department stores used in-store and online in the last 12 months, February 2020
- Department stores appeal to those with higher socio-economic status
-
- Figure 223: How consumers shopped with department stores in the last 12 months, by socio-economic status, February 2020
- Most shop across just one or two different stores
-
- Figure 224: Repertoire of department stores used in the last 12 months, February 2020
- What They Buy
- Eight in 10 made a fashion purchase
-
- Figure 225: What consumers bought from department stores in the last 12 months, May 2019 and February 2020
- Older shoppers are more likely to buy clothing at department stores
-
- Figure 226: What consumers bought from department stores in the last 12 months, by age, February 2020
- Two thirds bought more than one type of item
-
- Figure 227: Repertoire of how many items consumers bought from department stores in the last 12 months, February 2020
- Reasons for Visiting Department Stores
- Three quarters visited a department store…
-
- Figure 228: Visits to department stores, February 2020
- …with young people most likely to visit
-
- Figure 229: Visits to department stores, by age, February 2020
- Over two in five visited for gift ideas
-
- Figure 230: Reasons given for visiting a department store, February 2020
- Men aged 25-44 visit to use leisure facilities
-
- Figure 231: Consumers who visited a department store to use the leisure facilities, by gender and age, February 2020
- Behaviours of Department Store Shoppers
- Online shopping is hampering the progress of department stores
-
- Figure 232: Department store shopper behaviours, February 2020
- Men find it easier to shop online but could be swayed by exclusive items
-
- Figure 233: Department store shopping behaviours, by gender, February 2020
- Younger generations want experiences
-
- Figure 234: Behaviours towards shopping in a department store that has a selection of extra services, by generation, February 2020
- Attitudes towards Department Stores
- Consumers are suffering from discount fatigue
-
- Figure 235: Consumer attitudes towards department stores, February 2020
- Shoppers across the board go to department stores to find unique items
-
- Figure 236: People who agree that the main reason to visit a department store is to buy items that can’t be bought elsewhere, by gender and age, February 2020
- Store closures put off consumers
- Reasons for Not Using Department Stores
- Department stores viewed as pricey and inconvenient
-
- Figure 237: Top reasons given for not purchasing items at department stores, February 2020
- People in small towns opt for more convenient options
-
- Figure 238: People who have not shopped at a department store as there are more convenient places for them to shop, by location, February 2020
- Appendix – Data Sources, Abbreviations and Supporting Information
- Value figures throughout this Report are at RSP and include VAT unless stated otherwise.
- Crown copyright material is reproduced with the permission of the Controller of Her Majesty’s Stationery Office and the Queen’s Printer for Scotland.
- Abbreviations
- Consumer research methodology
- Appendix – Market Size and Forecast
- Forecast methodology
- Best- and worst-case forecast prior to the COVID-19 lockdown
-
- Figure 239: UK department store sector size and forecast, best- and worst-case forecast (pre-COVID-19 lockdown), 2019-24
Debenhams
-
- What we think
- COVID-19 threatens the future of the business
- Online lifeline?
- A need to focus on the UK
- Where now?
- Company background
- Company performance
-
- Figure 240: Debenhams: Group financial performance, 2013/14-2017/18
-
- Figure 241: Debenhams: Outlet data, 2013/14-2017/18
- Retail offering
El Corte Inglés
-
- What we think
- New digital shopping solution and extended fulfilment options driving e-commerce
- Chasing Chinese customers
- Sfera Joven store refurbishment
- Focusing on younger, more modern brands
- Tapping into the cult of celebrity to push menswear
- COVID-19
- Company background
- Company performance
-
- Figure 242: El Corte Inglés: Retail division financial performance, 2017/18-2019/20
-
- Figure 243: El Corte Inglés: Retail revenue by product, 2017/18-2019/20
-
- Figure 244: El Corte Inglés: Retail division outlet data, 2017/18-2019/20
- Retail offering
Galeria Karstadt Kaufhof
-
- What we think
- The creation of Galeria Karstadt Kaufhof
- Plans to rescue the Galeria
- New management appointed for the group
- Quest for funding in wake of COVID-19
- Boosting Inno in Belgium
- Acquisition of Sportscheck from Otto Group
- Collaboration with Amazon
- Partnership with Aldi Süd
- What next?
- Company background
- Company performance
- Declining sales continue to drag the market down
-
- Figure 245: Galeria Karstadt Kaufhof: Group financial performance, 2015-2019/20
- Figure 246: Galeria Karstadt Kaufhof: Group outlet data, 2015-2019/20
- Retail offering
-
- Figure 247: Galeria Karstadt Kaufhof: Estimated product mix, 2018/19
Galeries Lafayette
-
- What we think
- Diversification to build the business
- Looking forward – expansion continues
- But reliance on tourism makes the group vulnerable
- Smaller stores
- Company background
- Company performance
-
- Figure 248: Galeries Lafayette department stores (France): Sales performance, 2015-19
- France
- International
-
- Figure 249: Galeries Lafayette Department stores (France): Outlet data, 2015-19
- Bazarchic
- La Redoute
- Louis Pion
- Retail offering
House of Fraser
-
- What we think
- COVID-19 threats
- COVID-19 opportunities
- A strategy of elevation
- Matching costs to revenues
- Further store closures inevitable
- Company background
- Company performance
-
- Figure 250: House of Fraser Plc: Group financial performance, 2014/15-2018/19
-
- Figure 251: House of Fraser Plc: Outlet data, 2014/15-2018/19
- Retail offering
John Lewis & Partners
-
- What we think
- Merger of John Lewis & Partners and Waitrose & Partners head office functions brings challenges and opportunities
- Experiential concept shop showcases services and experiences across fashion, beauty, cookery, gadgets, gardening and home interiors
- Own-brand fashion investment
- Capitalising on male interest in beauty products
- Expanding click-and-collect and home delivery options
- Try before you buy augmented reality experience making online purchasing easier
- Rewarding customers’ ethical behaviour
- Extending into the home improvements market
- Temporarily closes its stores during Covid-19 crisis
- Company background
- Company performance
-
- Figure 252: John Lewis & Partners Plc (department store): Group financial performance, 2015/16-2019/20
- Figure 253: John Lewis & Partners Plc (department store): Outlet data, 2015/16-2019/20
- Retail offering
Marks & Spencer
-
- What we think
- COVID-19 threats
- COVID-19 opportunities
- Online ramping up
- Store portfolio is being cut back
- A conscious shift towards food
- Company background
- Company performance
-
- Figure 254: Marks & Spencer: Group financial performance, 2014/15-2018/19
-
- Figure 255: Marks & Spencer: Outlet data, 2014/15-2018/19
- Retail offering
Printemps
-
- What we think
- A new era?
- Targeting expansion and growth
- Lagging online
- Company background
- Company performance
-
- Figure 256: Printemps department stores: Estimated group sales performance, 2015/16-2019/20
-
- Figure 257: Printemps department stores: outlet data, 2015/16-2019/20
- Retail offering
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