Table of Contents
Issues in the Market
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- Definitions
- Abbreviations
Insights and Opportunities
Market in Brief
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- Plenty of store design activity
- Shopfit expenditure – growth has slowed
- Shopfit costs vary considerably
- Adding value
- Upwardly mobile designs
- Doing things better and doing better things
- Avoiding ‘clone Britain’
- Consumer confidence, win-win for designers
- Consumer spending and retail sales
- How consumers shop
- Age and gender divide
- Older consumers favour supermarkets that sell mainly food
- Grocery shopping can be a chore
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- Figure 1: Food shopper types, March 2007
- Clothes shoppers want a quick experience
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- Figure 2: Clothing shopper types, March 2007
- Key themes emerging in store design
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- Figure 3: key design themes within retail stores
- Future for store design
Fast Forward Trends
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- Trend 1: UGC For Yourself
- What’s next?
- Trend 2: The Premium Ghetto
- What’s next?
- Trend 3: Many Mes – the Multiplex Consumer
- What’s next?
Industry Insight
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- Key Points
- Intense competition among designers
- Fragmentation among designers
- Retailer attitudes to design process
- Are retailers dumbing down?
- More shopfitting sourced abroad
- Are retailers still using design agencies?
- Demands on design
- The pace of change is increasing
- Shopfitting is just part of the equation
- Emerging design themes
- ...flexibility
- …white box is still thriving
- …large space stores tend to stick to the white box
- …hot spots enhance mood
- … where colour is more prominent
- Designing the ambience
- …mixing finishes
- Use of technology at the point-of-sale
- How the Internet is affecting attitudes to store design
- Internet has become quite personal
- Changing expectations of time
- Retailers encourage lingering
- Pampering in retailing
- Retailers need to build desire
- Being seen to be green
- The ‘prove it’ trend
- Meaningful missions
- Value retailers putting on the style
- Design essential to add value
- Designing for the local catchment
- Risk-averse retailers looking similar
- Is solution retailing growing?
- The key lies in empathy
- Store design businesses will do more work abroad
- More competition will arrive from abroad
- Flagship outlets often have a different agenda
- Designing the changing room
- Men are from Mars…
- Creating distractions
- Shopping centre design
- Outlook for store design
Internal Market Environment
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- Key Points:
- Elements of store design
- Hard design
- Flooring – a costly element in the shopfit
- Flooring must stand up to wear and tear
- Mixed floor surfaces a common theme
- Innovations in flooring materials
- Key themes:
- Screens at the point-of-sale lower costs
- Other hard design features
- Permanent and semi-permanent displays and features
- Props and displays – inspiration and hot spots
- Non permanent point of purchase – more joined up thinking
- Point of purchase materials – encouraging impulse
- Estimates of the scale of the point of purchase market
- Atmospherics – can be zoned
- The wrong music is a lot worse than silence
- … music should be appropriate
- … digital improves delivery
- ... central control ensures standards
- Suppliers of music
- Lighting – trend to raise lighting levels
- Aroma – emerging use of scents
- Multimedia explosion
- In-store advertising
Broader Market Environment
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- Key Points:
- The economy
- PDI and consumer expenditure
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- Figure 4: PDI and consumer expenditure, at current and constant 2002 prices, 2002-12
- Employment
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- Figure 5: UK workforce and employment, 2002-2012
- Inflation and interest rates
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- Figure 6: UK inflation rates, all goods UK, 2002-12
- Fast growth in number of UK households
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- Figure 7: Number of UK households, by size of household, 2002, 2007 and 2012
- Age of population
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- Figure 8: Population by age group, 2002, 2007 and 2012
- Property and planning issues
- The planning regime
- … concentrating on redevelopment of town centres
- … more refusals for out-of-town applications
- ... but food stores adding to non-food space
- … new rules will favour refurbishment
- Mezzanine floor boom
- Outlook for major new schemes
- In the pipeline
- Several new completions in 2006 and 2007
- Flurry of future large developments
Market in Context
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- Key points:
- Retail sales
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- Figure 9: All retail sales, at current and constant 2002 prices, 2002-12
- Food retailing gaining market share
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- Figure 10: sales through food retailers and non-food retailers, at current prices 2002-07
- Retail concentration continues
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- Figure 11: Concentration of retailing, 2002 and 2006, plus estimates for 2007
- The online shopping channel
- So why bother going out to shop?
- Internet competition provides boost
Strengths and Weaknesses
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- Strengths
- Weaknesses
Market Size
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- Key Points
- Estimating market size
- Investing in refits
- The role of design agencies
- Market size for shop fitting
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- Figure 12: The UK market for shopfitting, 2002-12
- Market trends
- Lifespans are decreasing
- Wide range of costs
- Full or partial refits
The Consumer – Where They Prefer Spending Time
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- Key consumer findings:
- Where consumers prefer to spend time
- Clothing stores are tops
- Food shops – not just a chore
- Superstores not as popular…
- Rejecting ‘clone Britain’
- Large surface stores appear popular
- Furniture shops low in the ranking
- Specialised shops also low in the ratings
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- Figure 13: Stores where consumers prefer spending time, March 2007
- Gender differences
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- Figure 14: Top five stores where men like to spend time, March 2007
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- Figure 15: Top five stores where women like to spend time, March 2007
- Enjoyment varies by age group
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- Figure 16: Top five stores where people like to spend time, by age band, March 2007
- Personal adornment stores where consumers prefer spending time
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- Figure 17: Personal adornment stores where consumers prefer spending time, by gender, age and socio-economic group, March 2007
- It’s a girl thing
- How the men respond
- Flexibility and fast change
- How supermarkets with and without non-foods compare
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- Figure 18: Supermarkets and independent stores where consumers prefer spending time, by gender, age and socio-economic group, March 2007
- Women responsible for food shopping
- Families like larger non-food ranges in supermarkets
- Local indies favoured by older consumers
Leisure Goods Shoppers
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- Figure 19: Leisure goods stores where consumers prefer spending time, by gender, age and socio-economic group, March 2007
- Where men like to visit
- Older music afficionados
- Mobiles
- Household goods and electronics
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- Figure 20: DIY, garden, electonics and furniture stores where consumers prefer spending time, by gender, age and socio-economic group, March 2007
- Garden centres capture 45+ shoppers
- Men like their tools!
- Strong male bias to electronics stores
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Where They Prefer Spending Time – Detailed Consumer Demographics
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- Figure 21: Personal adornment stores where consumers prefer spending time, by special groups, working status, region, ACORN categories, commercial TV viewing, media usage and supermarket used, March 2007
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- Figure 22: Supermarkets and independent stores where consumers prefer spending time, by special groups, working status, region, ACORN categories, commercial TV viewing, media usage and supermarket used, March 2007
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- Figure 23: Leisure goods stores where consumers prefer spending time, by special groups, working status, region, ACORN categories, commercial TV viewing, media usage and supermarket used, March 2007
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- Figure 24: Stores where consumers prefer spending time, diy, garden, electronics and furniture, by special groups, working status, region, ACORN categories, commercial TV viewing, media usage and supermarket used, March 2007
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The Consumer – Attitudes to Food Shopping
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- Key points:
- A need for status quo
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- Figure 25: Attitudes to food shopping, March 2007
- How attitudes to food shopping vary
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- Figure 26: How consumers describe food shopping, by gender, age and socio-economic group, March 2007
- Shopping – a necessity?
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- Figure 27: How consumers describe food shopping, by gender, age and socio-economic group, March 2007
- Wanted: less frequent changes!
- Sample this!
- Food store requirements
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- Figure 28: Desired improvements to food stores, by gender, age and socio-economic group, March 2007
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- Figure 29: Desired improvements to food stores, by gender, age and socio-economic group, March 2007
- Customer typologies within food
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- Figure 30: Food shopper types, March 2007
- Group 1: Aisle Browsers
- Who are the Aisle Browsers?
- Marketing message:
- Group 2: A Necessity
- Who are the A Necessity shoppers?
- Marketing message:
- Group 3: Get in, get out
- Who are the Get in, get out?
- Marketing message:
- Group 4: Enjoyable pastime
- Who are the Enjoyable pastime food shoppers?
- Marketing message:
Attitudes to Food Shopping – Detailed Consumer Demographics
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- Figure 31: How consumers describe food shopping, by special groups, working status, region, ACORN categories, media usage, commercial TV viewing and supermarket used, March 2007
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- Figure 32: How consumers describe food shopping, by special groups, working status, region, ACORN categories, media usage, commercial TV viewing and supermarket used, March 2007
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- Figure 33: Desired improvements to food stores, by special groups, working status, region, ACORN categories, media usage, commercial TV viewing and supermarket used, March 2007
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- Figure 34: Desired improvements to food stores, by special groups, working status, region, media usage, commercial TV viewing and supermarket used, March 2007
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- Figure 35: Food shopper typologies, by gender, age, socio-economic group, marital status, lifestage, working status, tenure, ACORN categories, region, commercial TV viewing, newspaper readership and supermarket used, March 2007
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- Figure 36: Where food shopper typologies enjoy spending time, March 2007
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- Figure 37: Improvements wanted by customer typologies for food shops, March 2007
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The Consumer – Descriptions of and Improvements to Clothes Shopping
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- Key Points
- Descriptions of clothes shopping
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- Figure 38: Describe and improve clothes shopping, March 2007
- Impulsive shopping
- The gender differences
- Many stick to favourites
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- Figure 39: How consumers feel about clothes shopping, by gender, age and socio-economic group, March 2007
- Women are fussed about fitting rooms
- Refits are interesting
- Men need stimulation
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- Figure 40: How consumers feel about clothes shopping, by gender, age and socio-economic group, March 2007
- Fitting rooms, simpler displays and temperature
- Temperature is key
- Signage is important
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- Figure 41: Desired improvements to clothes stores, by gender, age and socio-economic group, March 2007
- Ambience and energy
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- Figure 42: Desired improvements to clothes stores, by gender, age and socio-economic group, March 2007
Customer Typologies Within Clothes Shopping
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- Group 1: Get in, get out
- Who are the Get in, get out?
- Marketing message:
- Group 2: Browsers
- Who are the browsers?
- Marketing message:
- Group 3: Tried and trusted
- Who are the tried and tested?
- Marketing message:
- Group 4: Comfort shoppers
- Who are the comfort shoppers?
- Marketing message:
- How the clothes and food shopper typologies compare
Describe and Improve Clothes Shopping – Detailed Consumer Data
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- Figure 43: How consumers feel about clothes shopping, by special groups, region, ACORN categories, media usage, commercial TV viewing and supermarket used, March 2007
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- Figure 44: How consumers feel about clothes shopping, by special groups, region, ACORN categories, media usage, commercial TV viewing and supermarket used March 2007
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- Figure 45: Desired improvements to clothes stores, by special groups, region, ACORN categories, media usage, commercial TV viewing and supermarket used, March 2007
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- Figure 46: Desired improvements to clothes stores, by special groups, region, ACORN categories, media usage, commercial TV viewing and supermarket used, March 2007
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- Figure 47: Cross tabulation of food and clothes typologies, march 2007
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- Figure 48: Shopper typologies, clothing, by marital status, lifestage, tenure, ACORN categories, commercial TV viewing, region and supermarket used, March 2007
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- Figure 49: Clothes typologies, by shops where they enjoy spending tme, March 2007
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- Figure 50: Desired improvements to clothes shopping, by shopper typologies, March 2007
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Retail Competitor Analysis
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- Major suppliers to the sector – Industry associations
- The Design Business Association (DBA)
- POPAI
- The National Association of Shop Fitters (NAS)
- Retail design companies
- Sector overview
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- Figure 51: Design Week consultancy survey, UK top 20 interior design specialists, 2006
- Figure 52: Design Week consultancy survey, UK top 5 interior design specialists, 2006
- The market has been tough
- A fragmented industry
- Very varied results
- Some agencies struggling
- Outlook
- Astound
- Checkland Kindleysides
- Conran and Partners
- Corporate Edge
- Dalziel and Pow
- Dinn Associates (closed in 2007)
- HMKM (Hosker, Moore, Kent and Melia)
- The Imagination Group
- Loewy Group
- Lumsden Design Partnership
- Michael Sheridan (Sheridan & Co)
- The Nest
- 20/20 Design
- Shopfitters
- Sector overview
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- Figure 53: Leading UK shopfitting companies, turnover, 2005-06
- Long-term contracts – the key to the future
- Creative competition
- Outlook
- David McLean Contractors
- ISG Dean and Bowes
- S. Dudley & Sons
- Withey Contracts
- Havelock Europa
- Hutton Construction
- ISG Interior Exterior
- Morris & Spottiswood
- Styles & Wood
- Point-of-purchase specialists
- Coutts Retail Communications
- Artform International
- PPE
- Point-of-purchase consultancies
New Store Designs and Refurbishments
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- Key findings
- Clothing and jewellery
- Adams, Bluewater (Designer: Inovus Path)
- George at Asda, Southend (Designer: Checkland Kindleysides)
- Beaverbrooks, Doncaster (Designer: Colin Williams Design Limited)
- COS, Regent Street (H&M) (Designer: Pentagram)
- Gap (Designer: Dalziel & Pow)
- Jaeger, Regent Street flagship (Designer: in-house)
- Kurt Geiger, Liverpool’s Met Quarter (Designer: Found Associates)
- Primark, Oxford Street (Designer: Dalziel & Pow)
- Slaters, Manchester (Designer: Dalziel & Pow)
- Thomas Pink, Sloane Street (Designer: Four IV)
- Woolworths Kids Store, Bedford (Designer: 20/20)
- Electricals/technology retailers
- The Carphone Warehouse, Oxford Street (Designer: in-house)
- Virgin Mobile, Essex (Designer: Judge Gill and Start Creative)
- Sony Ericsson, Kensington High Street (Designer: Checkland Kindleysides)
- House and home
- Habitat (Designer: in-house)
- MFI (branding by Circus)
- Heals, Tottenham Court Road (Designer: in-house)
- B&Q, Birmingham (Designer: in-house)
- Magnet (Designer: in-house)
- Zara Home, Regent Street (Designer: in-house)
- Pets At Home, Romford (Designer: 20/20)
- Food stores
- Aldi, Manchester (Designer: in-house)
- Tesco’s ‘greenest store’, Wick (Designer: in-house and Astound)
Department Stores
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- Debenhams (Designer: in-house)
- John Lewis, Oxford Street (Designer: in-house)
- Fortnum & Mason, Piccadilly (Designer: Kinnersley Kent)
- Health and beauty
- Superdrug, Uxbridge (Designer: in-house)
- Books and recorded music
- Waterstone’s, Manchester (Designer: Lewis & Hickey, London)
- Virgin, Manchester (Designer: Checkland Kindleysides)
Appendix
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- Research Methodology
- Consumer research
- ACORN
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