Table of Contents
Issues in the Market
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- Main themes
- Sector definitions
- Accounting policy
- Market shares
- Explanations
- Abbreviations
- Department store definition
- Consumer research
Insights and Opportunities
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- Tough times ahead
- Trust
- Taking the strain
Fast Forward Trends
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- Trend 1: Slow It All Down
- Definition
- What’s next?
- Trend 2: Diversity is All
- Definition:
- What’s next?
Market in Brief
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- The future
- Market size and performance
- The competitive landscape
Internal Market Environment
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- Key points
- Responding to the downturn
- Battening down the hatches
- Getting closer to shoppers
- Longer term growth opportunities
- E-commerce
- Ramping up foreign expansion
- Consolidation
- Other corporate activity
Broader Market Environment
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- Key points
- Ageing population a major long term problem
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- Figure 1: Population forecasts, by age group, 2003-13
- The economy
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- Figure 2: UK GDP growth, 1989-2008
- Consumers feeling the pinch
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- Figure 3: Consumer expenditure, 1997-2008
- Retail sales
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- Figure 4: UK: Year on year retail sales value growth, Jan 2008-Nov 2008
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- Figure 5: UK: Year on year retail sales volume growth, Jan 2008-Nov 2008
- Consumer confidence
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- Figure 6: Nationwide Consumer Confidence Index, Jan 2006-Oct 2008
- Consumer prices and interest rates
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- Figure 7: UK: Consumer prices, 2000-08
The Market in Context
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- Key points
- Key product markets have performed well
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- Figure 8: Consumer spending on key department store markets, 2003-07
- Competition intensifies
- Spending patterns change in 2008
- VAT cut
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- Figure 9: Consumer spending on key department store markets, first half 2007 vs 2008
- Consumer prices
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- Figure 10: Consumer prices on select non-food categories, 1996-2007
Strengths and Weaknesses in the Market
Who’s Innovating?
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- Events
- Product development
- e-commerce
- Ethical and green issues
Market Size and Forecast
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- Key points
- Economic outlook
- Retail prospects
- Mixed goods sector will continue to suffer
- Young people starting to feel the pinch too
- The challenges ahead
- Convincing customers to pay a premium
- Looking further out
- Forecasts
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- Figure 11: Mixed goods retailers’ sales, 2003-13
- Recent trends in mixed goods retailing
- Sales performance
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- Figure 12: Mixed goods retailers, 2003-07
- Outlet data
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- Figure 13: Non-specialised retail outlet numbers, 2000-06
- Drilling down to department stores
- Sales performance
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- Figure 14: Identified department stores, sales performance, 2003-07
- Outlet data
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- Figure 15: Identified department stores, outlet numbers, 2001-07
Retail Competitor Analysis
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- Key points
- Middle ground challenged
- Not the time to be repositioning
- Top end has defensive qualities
- Trading down – who and where
- Smaller players will struggle too
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- Figure 16: Major department store retailers, 2007/08
- Market shares and evaluation
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- Figure 17: Department store retailers, market shares and evaluation, 2007
Retail Advertising and Promotion
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- Key points
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- Figure 18: Main media advertising spend, by department stores, 2003-07
- Spending as percentage of turnover
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- Figure 19: Main media advertising spend, as % of selective* department store sector sales, 2003-07
- Figure 20: Main media advertising spend, as % of select department store sales, 2007
- Spending by media
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- Figure 21: Main media advertising by department stores, by media used, 2007
The Consumer – Which Department Stores They Shop
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- Key points
- Which department stores they shop
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- Figure 22: Department stores bought from most frequently, in the last six months, October 2008
- Who buys where
- Debenhams
- John Lewis
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- Figure 23: Department stores bought from most frequently, in the last six months, by gender, age and socio-economic group, October 2008
- House of Fraser and Selfridges
- Other department stores
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- Figure 24: Department stores visited, in the last six months, by gender, age and socio-economic group, October 2008
- Sliding consumer usage
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- Figure 25: Which department stores consumers have bought from in the previous six months, 2000, 2001, 2003, 2004, 2006 and 2008
- Repertoire – House of Fraser and Selfridges shoppers are more promiscuous
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- Figure 26: Number of department stores shopped at, the past six months, October 2008
The Consumer – What They Would Like to See From Department Stores
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- Key points
- What people would like
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- Figure 27: What they would like to see from department stores, October 2008
- Who wants what
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- Figure 28: What they would like to see from department stores, by gender, age and socio-economic group, October 2008
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- Figure 29: What they would like to see from department stores, by gender, age and socio-economic group, October 2008
The Consumer – Attitudes Towards Department Store Shopping
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- Key points
- Attitudes to department stores
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- Figure 30: How they feel about department store shopping, October 2008
- Who thinks what
- Trading down
- Shopping around for deals
- Quality matters
- ABs are canny shoppers
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- Figure 31: What they think of shopping in department stores, by gender, age and socio-economic group, October 2008
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- Figure 32: What they think of shopping in department stores, by gender, age and socio-economic group, October 2008
Consumer Typologies
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- Key points
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- Figure 33: Department store shopping typologies, October 2008
- Group 1: Lovers (21%)
- Group 2: Neutral (27%)
- Group 4: Small Cutbacks (35%)
- Group 3: Strongest Cutbacks (17%)
- Typologies by frequency of shopping
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- Figure 34: Percentage of groups who have shopped at a department store in the past six months, October 2008
- Typologies by where people shop
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- Figure 35: Penetration of groups within department stores, October 2008
Brand Elements
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- Brand map
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- Figure 36: Attitudes and usage of department store brands, December 2008
- Marks & Spencer
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 37: Attitudes towards the Marks & Spencer brand, December 2008
- Harvey Nichols
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 38: Attitudes towards the Harvey Nichols brand, December 2008
- John Lewis
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 39: Attitudes towards the John Lewis brand, December 2008
- Harrods
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 40: Attitudes towards the Harrods brand, December 2008
- Brand qualities of department store brands
- M&S dominates, John Lewis claims second place, Selfridges strongest of the premium brands
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- Figure 41: Personalities of various department store brands, December 2008
- Experience of department store brands
- M&S is most popular
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- Figure 42: Consumer usage of various department store brands, December 2008
- Brand intentions for department store brands
- M&S and Debenhams have best customer retention
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- Figure 43: Consideration of various department store brands, December 2008
- Brand momentum for department store brands
- M&S and John Lewis seen to be gaining most ground
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- Figure 44: Momentum of various department store brands, December 2008
- Brand satisfaction for department store brands
- Harrods and John Lewis show best excellent rating
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- Figure 45: Satisfaction with various department store brands, December 2008
- Brand commitment to department store brands
- M&S has the strongest core of loyal customers
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- Figure 46: Commitment to various department store brands, December 2008
- Round up
Beale
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- Figure 47: Beale Plc: Sales as share of department store sector in the UK, 2003-07
- Financial performance
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- Figure 48: Beale Plc: Group financial performance, 2002/03-2006/07
- Store portfolio
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- Figure 49: Beale Plc: Outlet data, 2003-07
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- e-commerce and home shopping
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Debenhams
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- Figure 50: Debenhams: Sales as share of UK department store sector sales, 2003-07
- Strategic evaluation
- Financial performance
- Highly geared balance sheet
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- Figure 51: Debenhams: Group financial performance, 2003/04-2007/08
- Store portfolio
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- Figure 52: Debenhams: UK and Republic of Ireland outlet data, 2004-08
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- Figure 53: Debenhams: International sales as % of consolidated sales, 2004/05-2007/08
- Figure 54: Debenhams: International franchise outlet numbers, 2001/02-2007/08
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- Figure 55: Debenhams: International franchises by country, October 2008
- Retail offering
- Market positioning
- Brands
- Product offer
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- Figure 56: Debenhams: Own bought product mix, 2006/07 and 2007/08
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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Fenwick Ltd
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- Figure 57: Fenwick Ltd: Sales as share of department store sales in UK, 2003-07
- Financial performance
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- Figure 58: Fenwick Ltd: Group financial performance, 2003-07
- Store portfolio
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- Figure 59: Fenwick Ltd: Outlet data, 2003-07
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- Figure 60: Fenwicks: Store portfolio, 2007/08
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- e-commerce and home shopping
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Harvey Nichols Group
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- Figure 61: Harvey Nichols Group Ltd: Sales as share of all department store retailers’ sales in UK, 2003-07
- Financial performance
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- Figure 62: Harvey Nichols Group Ltd: UK and Ireland retail financial performance, 2003/04-2007/08
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- Figure 63: Harvey Nichols Group Ltd: UK financial performance, 2006/07-2007/08
- Store portfolio
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- Figure 64: Harvey Nichols Group Ltd: UK and Ireland outlet data, 2004-08
- Figure 65: Harvey Nichols Group Ltd: Group outlet data, November 2008
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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Harrods Ltd
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- Figure 66: Harrods Ltd: Sales as share of department store retailers’ sales in UK, 2003-07
- Financial performance
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- Figure 67: Harrods Ltd: Group financial performance, 2003/04-2007/08
- Store portfolio
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- Figure 68: Harrods Ltd: Outlet data, 2004-08
- Retail offering
- Market positioning
- Brands
- Product offer
- Advertising and marketing
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- Figure 69: Harrods: Main media advertising spend, by type of media, 2007
- Figure 70: Harrods: Main media advertising spend, 2003-07
- e-commerce and home shopping
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House of Fraser
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- Figure 71: House of Fraser Plc: Sales as share of department store retailers’ sales in UK, 2003-07
- Strategic evaluation
- Financial performance
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- Figure 72: House of Fraser Plc: Group financial performance, 2003-07
- Store portfolio
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- Figure 73: House of Fraser Plc: Outlet data, 2003-07
- Retail offering
- Market positioning
- Brands
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- Figure 74: House of Fraser: Apparel own-brands, 2008
- Product offer
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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John Lewis
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- Figure 75: John Lewis Plc: Sales as share of department store sales in UK, 2003-07
- Strategic evaluation
- Financial performance
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- Figure 76: John Lewis Plc: Group financial performance, 2003-07
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- Figure 77: John Lewis Plc: Interim results, 2006/07-2008/09
- Store portfolio
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- Figure 78: John Lewis Plc: Outlet data, 2003-07
- Retail offering
- Market positioning
- Brands
- Advertising and marketing
- Pricing
- e-commerce and home shopping
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Marks & Spencer
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- Figure 79: Marks & Spencer (UK): Sales as share of all department store retailers’ sales in UK, 2003-07
- Strategic evaluation
- Recent history
- Financial performance
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- Figure 80: M&S: Group financial performance – continuing operations, 2003/04-2007/08
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- Figure 81: M&S: UK sales and like-for-like growth, 2003/04-2007/08
- Figure 82: M&S: UK retail sales by product category, 2004/05-2007/08
- Store portfolio
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- Figure 83: Marks & Spencer: UK stores by type, September 2007 and September 2008
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- Figure 84: Marks & Spencer: UK stores by type, 2004/05-2007/08
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- Figure 85: M&S: Breakdown of European franchise outlets, 2004-09
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- Figure 86: M&S: Other global locations, January 2009
- Retail offering
- Market positioning
- Brands
- Product offer
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- Figure 87: M&S: UK retail sales by product category, 2004/05-2007/08
- Pricing
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- Figure 88: Marks & Spencer: Clothing price architecture, 2004-08
- Advertising ad marketing
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- Figure 89: Marks & Spencer: Advertising spending in the UK, 2003-07
- Figure 90: Marks & Spencer: Advertising spending in the UK by type of media, 2007
- e-commerce and home shopping
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Selfridges Retail Ltd
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- Figure 91: Selfridges Retail Ltd: Sales as share of mixed goods in UK, 2003-07
- Strategic evaluation
- Financial performance
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- Figure 92: Selfridges Retail Ltd: Group financial performance, 2003-07
- Store portfolio
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- Figure 93: Selfridges Retail Ltd: Outlet data, 2003-07
- Retail offering
- Market positioning
- Brands
- Product offer
- Advertising and marketing
- e-commerce and home shopping
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TJ Hughes
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- Figure 94: TJ Hughes Plc: Sales as share of department store retailers’ sales in UK, 2003-07
- Financial performance
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- Figure 95: TJ Hughes Plc: Group financial performance, 2003/04-2007/08
- Store portfolio
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- Figure 96: TJ Hughes Plc: Outlet data, 2004-08
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Advertising and marketing
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- Figure 97: TJ Hughes Plc: Main media advertising spend, 2003-07
- e-commerce and home shopping
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Appendix: Which Department Stores They Shop
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- Figure 98: Dept stores visited in the last six months, by lifestage, Mintel’s Special Groups, region, ACORN group, technology users/TV received, web use, daily newspapers and supermarket used, October 2008
- Figure 99: Dept stores visited in the last six months, by lifestage, Mintel’s Special Groups, region, ACORN group, technology users/TV received, web use, daily newspapers and supermarket used, October 2008
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Appendix: What They Would Like to See From Department Stores
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- Figure 100: What they would like to see from department stores, by lifestage, Mintel’s Special Groups, region, ACORN group, technology users/TV received, web use, daily newspapers and supermarket used, October 2008
- Figure 101: What they would like to see from department stores, by lifestage, Mintel’s Special Groups, region, ACORN group, technology users/TV received, web use, daily newspapers and supermarket used, October 2008
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Appendix: Attitudes Towards Department Store Shopping
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- Figure 102: How they feel about department store shopping, by lifestage, Mintel’s Special Groups, region, ACORN group, technology users/TV received, web use, daily newspapers and supermarket used, October 2008
- Figure 103: How they feel about department store shopping, by lifestage, Mintel’s Special Groups, region, ACORN group, technology users/TV received, web use, daily newspapers and supermarket used, October 2008
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- Figure 104: How they feel about dept stores, crossed by various department stores, October 2008
- Figure 105: How they feel about dept stores, crossed by various department stores, October 2008
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- Figure 106: Would like to see, by dept store bought from, October 2008
- Figure 107: Would like to see, by dept store bought from, October 2008
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Appendix: Consumer Typologies
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- Figure 108: Typology groups’ response to attitudinal statements, October 2008
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- Figure 109: Typologies, by department store, October 2008
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- Figure 110: Typologies, by gender, age, socio-economic group, lifestage, region, ACORN group, technology users/TV received, web use and newspaper readership, October 2008
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