Table of Contents
Introduction
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- Department store definition
- Sector benchmarks
- Department stores
- Mixed goods retailers
- Accounting policy
- Market shares
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Best- and worst-case forecast for department store sales, 2007-17
- Market factors
- Consumer spending
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- Figure 2: Consumer spending on core department store categories, 2007-12
- Foreign visitors
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- Figure 3: Overseas residents’ visits to the UK, by area of residence, 2011 and 2012
- Overseas visitor influence
- Changing population structure
- Companies, brands and innovation
- Market shares
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- Figure 4: Leading department stores: market shares, 2007 and 2012
- Winners and losers 2012/13
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- Figure 5: Leading department stores: compound growth in GTV, 2007/08-2012/13
- Major innovations
- Space allocation
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- Figure 6: Department stores, summary space allocations, 2013
- Online growth
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- Figure 7: Online sales, by the leading department stores (excl. VAT), 2011/12 and 2012/13
- The Consumer
- How often they shop
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- Figure 8: Frequency of purchasing at department stores, in-store and online, March 2013
- Where they purchase
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- Figure 9: Department stores purchased from in the past six months, in-store and online, March 2013
- How people shop at department stores
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- Figure 10: How people shop at department stores, March 2013
- Attitudes towards shopping at department stores
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- Figure 11: Attitudes towards shopping at department stores, March 2013
- What would encourage them to shop more
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- Figure 12: What would encourage them to shop more at a department store, March 2013
- What we think
Issues in the Market
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- How are consumers using department stores for shopping in today’s multichannel retail environment?
- What can department stores do to attract younger shoppers?
- How can retailers encourage people to shop more at department stores?
- Is showrooming becoming an increasing issue for department stores?
- What are the main department stores doing to excel in clothing, which is one of the core categories?
- To what extent have the main players been investing in their beauty offering?
Trend Application
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- Trend: Experience is All
- Trend: FSTR HYPR
- Mintel Futures: Human
Economic and Demographic Context
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- Key points
- Foreign visits
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- Figure 13: Overseas residents’ visits to the UK, by area of residence, 2011 and 2012
- Changing population structure
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- Figure 14: Trends in the age structure of the UK population, 2007-17
- The economy
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- Figure 15: UK: Real-Terms, year-on-year GDP growth, Q1 2009-Q2 2012
- Inflation
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- Figure 16: Consumer prices index selected categories, annual % change, December 2011-December 2012
- Figure 17: Average monthly cotton prices per lb, January 2011-January 2013
Consumer Spending on Department Store Categories
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- Key points
- Core department store categories
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- Figure 18: Consumer spending on core department store categories, 2007-12
- Full spending breakdown
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- Figure 19: Consumer spending on department store categories (incl vat), 2007-12
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Online
- In-store experience
- Diversification
- Multichannel
- Sustainability
- New apps
Sector Size and Forecast
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- Key points
- Department store sales grow 3% in 2012
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- Figure 20: Department store sales, 2007-12
- Market size
- The future
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- Figure 21: Best- and worst-case forecast for department store sales (incl vat), 2007-17
- Fan chart
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- Figure 22: Best- and worst-case forecast for department store sales, 2007-17
- Forecast
Space Allocation Summary
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- Key Points
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- Figure 23: department stores, summary space allocations, 2013
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- Figure 24: Department stores: Detailed space allocations, April 2013
Retail Product Mix
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- Key points
- Debenhams
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- Figure 25: Debenhams sales mix of own bought merchandise and total space allocation estimate, 2011/12
- Product mix estimates
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- Figure 26: Leading department stores: Estimated sales, by product, 2012/13
- Figure 27: Leading department stores: Estimated sales density, by product, 2012/13
Leading Retailers
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- Key points
- When is a department store a department store?
- Sales and profits
- GTV vs consolidated
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- Figure 28: Leading department stores sales 2007/08-2012/13
- Growth rates
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- Figure 29: Leading department stores: Compound growth in GTV, 2007/08-2012/13
- Profitability
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- Figure 30: Leading department stores: operating profits, 2007/08-2012/13
- Figure 31: Leading department stores: operating margins, 2007/08-2012/13
- Outlet data
- Outlets
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- Figure 32: Major department stores: outlet numbers, 2007/08-2012/13
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- Figure 33: Major department stores: Sales per outlet, 2007/08-2012/13
- Sales area
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- Figure 34: Major department stores: Sales area, 2007/08-2012/13
- Figure 35: Major department stores: Sales per square metre, 2007/08-2012/13
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- Figure 36: Major department stores: Compound growth rate in sales per sq m, 2007/08-2012/13
Market Shares
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- Key points
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- Figure 37: Leading department stores: market shares, 2007 and 2012
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- Figure 38: Leading department stores: Market shares, 2007-12
Online
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- Key points
- Online sales grow 29%
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- Figure 39: Estimated online department store sales (excl. VAT), 2009/10-2012/13
- The online sector leaders
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- Figure 40: Leading department stores: Online sales (excl. vat), 2009/10-2012/13
- Figure 41: Online sales, by the leading department stores (excl. VAT), 2011/12 and 2012/13
Advertising and Promotion
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- Key points
- Adspend by sector leaders
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- Figure 42: Main media advertising spend, by leading department store retailers, 2008-12
- Spending relative to turnover
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- Figure 43: Leading department store retailers’ advertising spending as % of turnover, 2008-12
- Spending by media
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- Figure 44: Leading department store retailers’ main media advertising distribution, by media, 2012
- Major campaigns
Brand Research
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- Brand map
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- Figure 45: Attitudes towards and usage of brands in the department store sector, November/December 2012
- Correspondence analysis
- Brand attitudes
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- Figure 46: Attitudes, by department store brand, November/December 2012
- Brand personality
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- Figure 47: Department store brand personality – macro image, November/December 2012
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- Figure 48: Department store brand personality – micro image, November/December 2012
- Brand experience
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- Figure 49: Department store brand usage, November/December 2012
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- Figure 50: Satisfaction with various department store brands, November/December 2012
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- Figure 51: Consideration of department store brands, November/December 2012
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- Figure 52: Consumer perceptions of current department store brand performance, November/December 2012
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- Figure 53: Department store brand recommendation – Net Promoter Score, November/December 2012
- Brand index
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- Figure 54: Department store brand index, November/December 2012
- Figure 55: Department store brand index vs recommendation, November/December 2012
- Target group analysis
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- Figure 56: Target groups, November/December 2012
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- Figure 57: Department store brand usage, by target groups, November/December 2012
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
The Consumer – How Often They Shop
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- Key points
- What we asked
- How often consumers browse
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- Figure 58: Frequency of browsing at department stores, in-store and online, March 2013
- How often consumers buy
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- Figure 59: Frequency of purchasing at department stores, in-store and online, March 2013
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- Figure 60: Frequency of purchasing as a percentage of those who purchase at department stores, in-store and online, March 2013
- 25-34s are the most frequent department store shoppers
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- Figure 61: Frequent purchasing at department stores in-store and online, at least once every three months, by gender and age group, March 2013
The Consumer – Where They Shop
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- Key points
- What we asked
- Where consumers purchase
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- Figure 62: Department stores purchased from in the past six months, whether in-store or online, March 2013
- Average consumer by age and affluence
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- Figure 63: Department stores purchased from in the past six months, whether in-store or online, by age and affluence of shopper, March 2013
- Where consumers purchase – online/offline break
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- Figure 64: Department Stores Purchased From In The Past Six Months, In-Store And Online, March 2013
- Purchasing online by demographic group
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- Figure 65: Department stores purchased from in the past six months, online, by gender, age and socio-economic group, March 2013
- Where consumers browse – online/offline break
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- Figure 66: Department stores browsed in the past six months, in-store and online, March 2013
The Consumer – What They Buy
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- Key points
- What we asked
- Online and offline purchases by category
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- Figure 67: Products purchased at department stores in the past six months, in-store and online, March 2013
- Clothing and personal care dominate
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- Figure 68: Fashion, beauty and sports products purchased at department stores in the past six months, in-store and online, March 2013
- Clothing and beauty purchases by demographics
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- Figure 69: Fashion, beauty and sports products purchased at department stores in the past six months, in-store and online, by gender, age and socio-economic group, March 2013
- Home and electricals
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- Figure 70: Home and leisure products purchased at department stores in the past six months, in-store and online, March 2013
- Home and electricals by demographics
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- Figure 71: Home and leisure products purchased at department stores in the past six months, in-store and online, by gender, age and socio-economic group, March 2013
The Consumer – How People Shop at Department Stores
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- Key points
- What we asked
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- Figure 72: How people shop at department stores, March 2013
- Women shop around, while men go straight to department stores
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- Figure 73: How people shop at department stores, by gender and age, March 2013
- Low usage of in-store terminals
- Showrooming
- Click and collect peaks among women and over-45s
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- Figure 74: Agreement with the statement ‘I have ordered/reserved online and collected in-store’, by gender and age, March 2013
The Consumer – Attitudes Towards Shopping at Department Stores
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- Key points
- What we asked
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- Figure 75: Attitudes towards shopping at department stores, March 2013
- Enjoying department stores
- Older women favour own label while the young like collaborations
- Gender divide
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- Figure 76: Attitudes towards shopping at department stores, by gender, March 2013
- Young value specialist advice
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- Figure 77: Attitudes towards shopping at department stores, 16-24s vs all, March 2013
- Older department store shoppers
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- Figure 78: Attitudes towards shopping at department stores, over-55s and over-65s vs all, March 2013
- Price divides shoppers
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- Figure 79: Attitudes towards shopping at department stores, by gender and age, March 2013
- Online advice
- Attitudes towards department stores by where they shop
The Consumer – What Would Encourage Them to Shop More at a Department Store
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- Key points
- What we asked
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- Figure 80: What would encourage them to shop more at a department store, March 2013
- Loyalty schemes
- Gender differences
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- Figure 81: What would encourage them to shop more at a department store, by gender, March 2013
- Delivery and returns
- M-commerce
- Young interested in virtual fashion mirrors
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- Figure 82: What would encourage them to shop more at a department store, 16-24s vs all, March 2013
- Social media purchasing
- What older consumers look for
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- Figure 83: What would encourage them to shop more at a department store, over-55s and over-65s vs all, March 2013
- What would encourage them to shop by products purchased
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- Figure 84: What would encourage them to shop more at a department store, by products purchased, March 2013
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- Figure 85: What would encourage them to shop more at a department store, by products purchased, March 2013 (continued)
- What would encourage them to shop by department stores purchased from
The Consumer – Target Groups
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- Figure 86: Department store target groups, March 2013
- Dissatisfied shoppers (16%)
- Keen department store shoppers (29%)
- Disengaged (33%)
- Cost conscious (22%)
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Beales
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- What we think
- Background
- Company performance
- Christmas 2012
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- Figure 87: Beale Plc: Group financial performance, 2008-12
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- Figure 88: Beale Plc: Outlet data, 2008-12
- Retail offering
Debenhams
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- What we think
- Exceptional Christmas trading
- Hitting the mark in clothing
- Investing in range improvements
- Stepping up marketing activity too
- Store development
- Company background
- Company performance
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- Figure 89: Debenhams: Group financial performance, 2008-12
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- Figure 90: Debenhams: Outlet data, 2008-12
- Retail offering
Fenwick Ltd
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- What we think
- Company background
- Company performance
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- Figure 91: Fenwick Ltd: Group financial performance, 2008-13
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- Figure 92: Fenwick Ltd: Outlet data, 2008-13
- Retail offering
Harrods Ltd
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- What we think
- A strong iconic business
- Ongoing investment
- Expanding the reach of the brand
- Company background
- Company Performance
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- Figure 93: Harrods Ltd: Group financial performance, 2009-13
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- Figure 94: Harrods Ltd: Outlet data, 2008-13
- Retail offering
Harvey Nichols UK
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- What we think
- Extending its reach
- Drive into the beauty category
- Potential in international stores…
- …and online
- Company background
- Company performance
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- Figure 95: Harvey Nichols UK: Group financial performance, 2008-13
- Regional stores
- Birmingham and Bristol small format stores
- Online
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- Figure 96: Harvey Nichols UK: Subsidiary sales, 2011 and 2012
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- Figure 97: Harvey Nichols UK Total: Outlet data, 2007/08-2011/12
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- Figure 98: Harvey Nichols International stores, 2013
- Retail offering
House of Fraser
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- What we think
- Strong sales
- Less profitable
- Multichannel strategy
- Online sales grow
- International opportunities
- Up for sale?
- Company background
- Company performance
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- Figure 99: House of Fraser: Group financial performance, 2008-13
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- Figure 100: House of Fraser: Outlet data, 2008-12
- Retail offering
John Lewis
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- What we think
- Stellar performance
- Customer trust
- Integrated long-term strategy
- Continuing to invest in stores
- Company background
- Company performance
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- Figure 101: John Lewis: Group financial performance, 2008-13
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- Figure 102: John Lewis: Outlet data, 2008-13
- Retail offering
Marks & Spencer (M&S)
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- What we think
- Losing ground in non-foods
- Misfiring on fashion
- Getting serious about beauty
- Developing an international, multichannel strategy
- Company background
- Company performance
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- Figure 103: Marks & Spencer: Group financial performance, 2008-13
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- Figure 104: Marks & Spencer: Outlet data, 2008-12
- Retail offering
Selfridges
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- What we think
- A thriving business despite the recession
- A fun image with a strong heritage
- Online will open up opportunities and drive growth
- Company background
- Company performance
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- Figure 105: Selfridges: Group financial performance, 2008-13
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- Figure 106: Selfridges: Outlet data, 2009-13
- Retail offering
Appendix – Sector Size and Forecast
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- Figure 107: Best-and-worst-case forecast for department store sales, 2012-17
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Appendix – Brand Research
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- Figure 108: Brand usage, November/December 2012
- Figure 109: Brand commitment, November/December 2012
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- Figure 110: Brand momentum, November/December 2012
- Figure 111: Brand diversity, November/December 2012
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- Figure 112: Brand satisfaction, November/December 2012
- Figure 113: Brand recommendation, November/December 2012
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- Figure 114: Brand attitude, November/December 2012
- Figure 115: Brand image – macro image, November/December 2012
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- Figure 116: Brand image – micro image, November/December 2012
- Figure 117: Profile of target groups, by demographics, November/December 2012
- Figure 118: Psychographic segmentation, by target groups, November/December 2012
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- Figure 119: Brand usage, by target groups, December 2012
- Figure 120: Brand usage, by target groups, November 2012
- Figure 121: Brand usage, by target groups, November 2012
- Brand index
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- Figure 122: Brand index, November/December 2012
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Appendix – Consumer – How Often They Shop
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- Figure 123: How often they buy instore + buy online, by demographics, March 2013
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- Figure 124: How often they buy in-store, by demographics, March 2013
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- Figure 125: How often they buy online, by demographics, March 2013
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Appendix – Consumer – Where They Shop
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- Figure 126: Where they bought in-store + online in last six months, by demographics, March 2013
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- Figure 127: Where they bought next in-store + online in last six months, by demographics, March 2013
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- Figure 128: Where they bought other instore + online brands in last six months, by demographics, March 2013
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- Figure 129: Where they bought in-store in last six months, by demographics, March 2013
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- Figure 130: Where they bought in-store in last six months, by demographics, March 2013 (continued)
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- Figure 131: Where they bought online in last six months, by demographics, March 2013
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- Figure 132: Where they bought online in last six months, by demographics, March 2013 (continued)
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Appendix – Consumer – What They Buy
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- Figure 133: most popular products purchased in-store and online in last six months, by demographics, March 2013
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- Figure 134: most popular products purchased in-store and online in last six months, by demographics, March 2013
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- Figure 135: most popular products purchased in-store and online in last six months, by demographics, March 2013
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Appendix – Consumer – How People Shop at Department Stores
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- Figure 136: how people shop at department stores, by demographics, March 2013
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- Figure 137: How people shop at department stores, by demographics, March 2013 (continued)
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Appendix – Consumer – Attitudes Towards Shopping at Department Stores
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- Figure 138: Agreement with the statements ‘Department stores offer a good choice of both luxury and mainstream brands’ and ‘I am happy with the range of products available at department stores’, by demographics, March 2013
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- Figure 139: Agreement with the statements ‘Department stores offer a wide range of own label products (eg John Lewis Collection, Per Una)’ and ‘I trust the quality of products sold at department stores‘, by demographics, March 2013
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- Figure 140: Agreement with the statements ‘Department stores provide a pleasant in-store shopping environment’ and ‘I enjoy looking around department stores even if I am not planning to make a purchase‘, by demographics, March 2013
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- Figure 141: Agreement with the statements ‘Department store cafés/restaurants are the ideal place to take a break from shopping’ and ‘I value the after sales service offered by department stores‘, by demographics, March 2013
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- Figure 142: Agreement with the statements ‘I like the designer collaborations offered by department stores’ and ‘I like the specialist advice available when shopping at department stores‘, by demographics, March 2013
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- Figure 143: Agreement with the statements ‘I trust department stores to offer me a competitive price’ and ‘Department stores are too expensive’, by demographics, March 2013
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Appendix – Consumer – What Would Encourage Them to Shop More at a Department Store
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- Figure 144: What would encourage consumers to shop more at a department store, by demographics, March 2013
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- Figure 145: What would encourage consumers to shop more at a department store, by demographics, March 2013 (continued)
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Appendix – Consumer – Target Groups
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- Figure 146: Target groups, by demographics, March 2013
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