Table of Contents
Issues in the Market
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- Department stores look more vulnerable
- Courting the older consumer
- Flexing prices
- Vision and creativity
- Main themes
- Sector definitions
- Starting point
- Drilling down
- Department store definition
- Abbreviations
Insights and Opportunities
Market in Brief
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- Department stores will lose retail market share
- More discerning consumer
- M&S’ resurgence
- Market positioning
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- Figure 1: UK department stores: Market positioning 2006
- John Lewis looks imposing
- Physical expansion
- House of Fraser about to change
- Price
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- Figure 2: M&S womenswear price architecture, 1998 and 2003-05
- Home shopping
- Market size
- Sector size
- Underperformance
Fast Forward Trends
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- Trend 1: Fit or Fat
- Definition:
- Market touchpoints/implications
- Trend 2: Wisdom Markets
- Definition:
- Market touchpoints/implications
- Trend 3: Sense of the Intense
- Definition:
- Market touchpoints/implications
Internal Market Environment
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- Consolidation
- Privatisations
- M&S’ resurgence
- Home shopping
- Foreign interests limited but growing
Broader Market Environment
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- Ageing population
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- Figure 3: UK population, by age band, 2001, 2006 and 2011
- More affluent population
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- Figure 4: UK population, by socio-economic group, 2001-11
- Strong consumer confidence
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- Figure 5: UK: PDI and consumer expenditure, at current and constant 2001 prices, 2001-11
- But can this be sustained?
- Consumer prices
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- Figure 6: UK: Consumer prices, 1998-2005
- Figure 7: UK: Clothing inflation, 1995-2005
The Market in Context
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- The end of the boom
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- Figure 8: UK: Retail sales volume growth, 1987-2006
- Attitudes changed during the boom
- Greater design input
- Key product markets of department stores have performed well
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- Figure 9: UK: Consumer spending on key department store markets, 2001-05
- Relative performances
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- Figure 10: UK: Relative performance of department stores and key product markets, 2001-05
- Fragility of markets
- High barriers to entry
Strengths and Weaknesses in the Market
Who’s Innovating
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- Ethical and green issues
- e-commerce
- New services
Market Size and Forecast
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- Past
- Economic outlook
- Uncertainty in the market
- Department store prospects
- E-commerce
- Forecast
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- Figure 11: UK: Mixed goods retailers’ sales, 2001-11
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- Figure 12: UK: Mixed goods retailers’ sales as % of all retail sales, 2001-11
- Mixed goods retailers lose market share
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- Figure 13: UK: Mixed goods retailers, 2001-05
- Drilling down to department stores
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- Figure 14: UK: Identified department stores, sales performance, 2001-05
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- Figure 15: UK: Relative sales performance of department stores and mixed goods retailers, 2001-05
- Department store sector drivers
- Outlet data
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- Figure 16: UK: Retail outlets by sector, 2000-04
- Figure 17: UK: Identified department stores, outlet numbers, 2001-05
The Consumer – Where
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- Who shops at department stores
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- Figure 18: Consumers who have bought something from a department store in the last six months, by age October 2006
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- Figure 19: Consumers who have bought something from a department store in the last six months, by socio-economic group, October 2006
- Where people buy
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- Figure 20: Which department stores consumers have bought from in the last six months, October 2006
- Who buys where
- Upmarket but broad appeal by age
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- Figure 21: Which department stores consumers have bought from in the last six months, by gender, age and socio-economic group, October 2006
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- Figure 22: Which department stores consumers have bought from in the last six months, by ACORN group, October 2006
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- Figure 23: Which department stores consumers have bought from in the last six months, by regular grocery shop, October 2006
- Market positioning
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- Figure 24: Department stores – market positioning, 2006
- Where people buy – trend data
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- Figure 25: Which department stores consumers have bought from in previous six months, 2000, 2001, 2003, 2004 and 2006
- Change in retail audience
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- Figure 26: Consumers who have bought something from Debenhams, John Lewis and the Co-op in the previous six months by age, September 2000 and October 2006
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- Figure 27: Consumers who have bought something from House of Fraser and Selfridges in the previous six months, by age, September 2000 and October 2006
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- Figure 28: Consumers who have bought something from Debenhams, John Lewis and the Co-op in the previous six months, by socio-economic group, September 2000 and October 2006
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- Figure 29: Consumers who have bought something from House of Fraser and Selfridges in the previous six months, by socio-economic group, September 2000 and October 2006
The Consumer – Where: Detailed Consumer Demographics
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- Figure 30: Which department stores consumers have bought from in previous six months, October 2006
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The Consumer – What
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- What people buy
- Womenswear and beauty halls a major draw
- Buy a complete outfit under one roof
- Slow moving big ticket items
- Greeting cards and household textiles out of sync with market size
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- Figure 31: What people have bought from department stores in the last six months, October 2006
- Who buys what
- Fashion
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- Figure 32: What fashion items people have bought from department stores in the last six months, by gender, age and socio-economic group, October 2006
- Home goods
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- Figure 33: What home items people have bought from department stores in the last six months, by gender, age and socio-economic group, October 2006
- Leisure and personal care
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- Figure 34: What leisure and personal care items people have bought from department stores in the last six months, by gender, age and socio-economic group, October 2006
The Consumer – What: Detailed Consumer Demographics
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- Figure 35: What items people have bought from department stores in the last six months, October 2006
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- Figure 36: What items people have bought from department stores in the last six months, October 2006
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- Figure 37: What items people have bought from department stores in the last six months, October 2006
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- Figure 38: What items people have bought from department stores in the last six months, October 2006
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The Consumer – How and Why
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- How people buy
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- Figure 39: Statements agreed with when shopping in department stores, October 2006
- What consumers like about department stores
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- Figure 40: What people like about department stores, October 2006
- Key topics
- Shopping patterns
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- Figure 41: Department stores – shopping patterns, October, 2006
- Shopping patterns – by retailer
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- Figure 42: Department stores – visiting patterns, by where people shopped, October 2006
- Range and brands
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- Figure 43: Department stores – attitudes to range and brands, October 2006
- Range and brands – by retailer
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- Figure 44: Department stores – attitudes to range by retailer used, October 2006
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- Figure 45: Department stores – attitudes to brands, by retailer used, October 2006
- Range and brands – trend data
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- Figure 46: Department stores – attitudes to range and brands, 2001, 2003, 2004 and 2006
- Home shopping and home delivery
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- Figure 47: Department stores – home shopping and home delivery, October 2006
- Home shopping and home delivery – by retailer
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- Figure 48: Department stores – home shopping and home delivery, by retailer used, October 2006
- Service
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- Figure 49: Department stores – attitudes to services, October 2006
- Service – by retailer
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- Figure 50: Department stores – service issues by retailer, October 2006
- Repertoire Analysis
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- Figure 51: Department stores where purchases made in past six months (excluding food shopping), by number of stores shopped, October 2006
The Consumer – How and Why: Detailed Consumer Demographics
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- Figure 52: How often people visit department stores
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- Figure 53: How often people visit department stores
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Retail Competitor Analysis
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- Share of the market
- Leading retailers
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- Figure 54: UK: Leading department store retailers, 2005/06
- Market shares
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- Figure 55: UK: Leading department stores: market shares, 2005
- Evaluation
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- Figure 56: UK: Department store retailers, evaluation, 2006/07
Retail Advertising and Promotion
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- UK advertising expenditure
- Total spending
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- Figure 57: Main media advertising spend by department stores, 2002-06
- Figure 58: Main media advertising spend as % of department store sector sales, 2002-06
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- Figure 59: Main media advertising spend by department store, grand total, 2002-06
- Figure 60: Main media advertising spend by department stores, grand total, 2002-06
- Split of spending by media
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- Figure 61: Main media advertising by department stores, by media used, 2005/06
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- Figure 62: Breakdown of total main media advertising expenditure by department stores, 2005/06
Brand Elements
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- Brand analysis and recommendations
- Debenhams – isn’t it unique anymore?
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- Figure 63: Words associated with Debenhams
- Recommendations
- House of Fraser – what does it stand for?
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- Figure 64: Words associated with House of Fraser
- Recommendations
- John Lewis – a safe pair of hands
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- Figure 65: Words associated with John Lewis
- Recommendations
- Marks & Spencer – trustworthy, ethical but what about the glamour?
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- Figure 66: Words associated with Marks & Spencer
- Recommendations
- Selfridges – young, trendy and fun
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- Figure 67: Words associated with Selfridges
- Recommendations
- Usage of department store brands
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- Figure 68: Consumer usage of…..
- Attitudes towards department store brands
- M&S shines out…
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- Figure 69: Consumer attitudes towards…
- Brand satisfaction and performance
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- Figure 70: Consumer rating of experience of…..
- Brand commitment
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- Figure 71: Degree of customer commitment to
Retailer Profiles
Beales
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- Figure 72: Beales: Sales as share of all mixed goods retailers in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 73: Beales: Group financial performance, 2001-06
- Store portfolio
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- Figure 74: Beales: Outlet data, 2001-06
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- e-commerce & home shopping
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Debenhams
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- Figure 75: Debenhams: Sales as share of mixed goods retailers and department store sales in UK, 2001/02-2005/06
- Strategic evaluation
- Background
- Financial performance
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- Figure 76: Debenhams: Group financial performance, 2001/02-2005/06
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- Figure 77: Debenhams: Breakdown of capital expenditure, 2005/06
- Store portfolio
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- Figure 78: Debenhams: UK and Republic of Ireland outlet data, 2001/02-2005/06
- International franchises
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- Figure 79: Debenhams: International franchise outlet numbers, 2001/02-2005/06
- Figure 80: International franchises as of August 2006
- Retail offering
- Market positioning
- Brands
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- Figure 81: Debenhams’ product brand sales mix, 2005/06
- Product offer
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- Figure 82: Debenhams: Product mix, 2006
- Pricing
- Operational issues
- Advertising & marketing
- e-commerce & home shopping
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Fenwick
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- Figure 83: Fenwick : Sales as share of all non-food retailers in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 84: Fenwick : Group financial performance, 2001-05
- Store portfolio
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- Figure 85: Fenwick Ltd: Outlet data, 2001-05
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- e-commerce & home shopping
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Harrods Ltd
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- Figure 86: Harrods Ltd: Sales as share of mixed goods retailers in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 87: Harrods Ltd: Financial performance, 2001-05
- Store portfolio
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- Figure 88: Harrods Ltd: Outlet data, 2001-05
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- e-commerce & home shopping
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Harvey Nichols Group Ltd
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- Figure 89: Harvey Nichols Group Ltd: Sales as share of all mixed goods retailers in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 90: Harvey Nichols Group Ltd: UK financial performance, 2001/02-2005/06
- Store portfolio
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- Figure 91: Harvey Nichols Group Ltd: UK outlet data, 2001/02-2005/06
- Figure 92: Harvey Nichols Group Ltd: Group outlet data, March 2006
- Retail offering
- Market positioning
- Brands
- Product offer
- e-commerce & home shopping
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House of Fraser Plc
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- Figure 93: House of Fraser Plc: Sales as share of all mixed goods retailers in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 94: House of Fraser Plc: Group financial performance, 2001/02-2005/06
- Store portfolio
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- Figure 95: House of Fraser Plc: Outlet data, 2001/02-2005/06
- Retail offering
- Market positioning
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- Figure 96: House of Fraser Plc: Market positioning, 2006
- Brands
- Private labels
- Product offer
- Pricing
- Operational issues
- Advertising & marketing
- e-commerce & home shopping
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John Lewis Plc
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- Figure 97: John Lewis Plc: Sales as share of all mixed goods retailers’ sales in UK, 2001-05
- Strategic evaluation
- Background
- The partnership principle
- Financial performance
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- Figure 98: John Lewis Partnership: Group financial performance, 2001/02-2005/06
- Store portfolio
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- Figure 99: John Lewis Plc: Outlet data, 2001/02-2005/06
- Recent developments
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- Figure 100: John Lewis: Department stores, locations 2005/06
- Expansion programme
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- Figure 101: John Lewis: Planned new department stores, 2005/06
- Store services
- Retail offering
- Market positioning
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- Figure 102: UK Department stores – market positioning, 2006
- Brands
- Product offer
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- Figure 103: John Lewis: Estimated product mix, 2005/06
- Pricing
- Operational issues
- Advertising & marketing
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- Figure 104: Advertising spending in the UK, 2005/06
- e-commerce & home shopping
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Marks & Spencer
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- Figure 105: Marks & Spencer (UK): Sales as share of all non-food non-specialist retailers in UK, 2001-05
- Strategic evaluation
- Background
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- Figure 106: Marks & Spencer: Business targets 2004-08 and beyond
- Financial performance
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- Figure 107: Marks & Spencer: Group financial performance, 2002-06
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- Figure 108: Marks & Spencer: Interim financial performance, September 2005-October 2006
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- Figure 109: M&S: UK sales and like-for-like growth, 2001/02-2005/06
- Figure 110: M&S: UK retail sales by product category, 2003-06
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- Figure 111: M&S: UK retail sales by product category, 2003-06
- Store portfolio
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- Figure 112: M&S: UK outlet data, 2002-06
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- Figure 113: Marks & Spencer: UK stores by type, 2004/05 and 2005/06
- Retail offering
- Market positioning
- Brands
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- Figure 114: Marks & Spencer: Own brand portfolio, 2006
- Product offer
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- Figure 115: Marks & Spencer: Product offer, 2006
- Pricing
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- Figure 116: Marks & Spencer: Price architecture, 2005/06
- Figure 117: M&S womenswear price architecture, 1998-2005
- Operational issues
- Advertising & marketing
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- Figure 118: Advertising spending in the UK, 2005/06
- e-commerce & home shopping
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Selfridges Ltd
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- Figure 119: Selfridges Ltd: Sales as share of mixed goods in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 120: Selfridges Ltd: Group financial performance, 2001/02-2005/06
- Store portfolio
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- Figure 121: UK: Selfridges, store data, 2006
- Figure 122: Selfridges Ltd: Outlet data, 2001/02-2005/06
- Retail offering
- Market positioning
- Brands
- Product offer
- e-commerce & home shopping
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TJ Hughes
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- Figure 123: TJ Hughes: Sales as share of mixed goods retailers’ sales in UK, 2001-05
- Strategic evaluation
- Background
- Financial performance
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- Figure 124: TJ Hughes Plc: Group financial performance, 2001-05
- Store portfolio
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- Figure 125: TJ Hughes Plc: Outlet data, 2001-05
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Advertising & marketing
- e-commerce & home shopping
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