Table of Contents
Executive Summary
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- The market
- Spending and inflation
- Department stores’ share of clothing and beauty markets
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- Figure 1: Germany: Estimated distribution of consumer spending on clothing and footwear by value in % terms, 2014
- Sector size and forecast
- Leading players
- Key metrics
- Market shares
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- Figure 2: Germany: Estimated shares of mixed goods retailers’ sales by value, 2015
- Online
- The consumer
- Where they shop
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- Figure 3: Germany: The consumer: Department stores visited in the past six months, whether in-store or online, March 2016
- Satisfaction levels
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- Figure 4: Germany: The consumer: Attitudes to department stores, March 2016
- What we think
Issues and Insights
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- Innovation needs to accelerate on core product areas
- The facts
- The implications
- Falling behind on online versus in-store service
- The facts
- The implications
The Market – What You Need to Know
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- Consumer spending provides more buoyant background
- Department stores under competitive pressure
- Sector contracts again in 2015
Spending
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- Figure 5: Germany: Spending on key department store product markets, (incl. VAT), at current prices, 2010-15
- Department stores’ share of clothing & beauty markets
- Mixed goods retailers the fourth largest channel for clothing
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- Figure 6: Germany: Estimated distribution of consumer spending on clothing and footwear by value in % terms, 2014
- Pressure from low price and online retailers
- Mixed goods retailers’ share of the beauty market
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- Figure 7: Germany: Estimated channels of distribution for personal care products (excluding services), 2013-15
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Sector Size and Forecast
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- Department store sector size
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- Figure 8: Germany: Department store sector, estimated sales (excl. VAT), 2012-15
- Mixed goods sector continues relative decline
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- Figure 9: Germany: Mixed goods retailers’ sales (excl. VAT), 2010-15
- Figure 10: Germany: Mixed goods retailers’ sales forecasts (excl. VAT), 2015-20
Leading Players – What You Need to Know
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- Market leader Galeria Kaufhof has a new owner
- KaDeWe also sees international investment
- Midmarket underperforms but upmarket operators fare better
- Online sales small
Leading Players
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- Galeria Kaufhof bought by Canada’s Hudson’s Bay Company
- Midmarket operators miss out on growth in retail sales
- KaDeWe majority stake goes to Thailand’s Central Group
- Niche upmarket operators perform better
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- Figure 11: Germany: Leading department stores retailers’ sales, 2012-15
- Figure 12: Germany: Leading department store retailers, store numbers, 2012-15
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- Figure 13: Germany: Leading department store retailers’ annual sales per outlet, 2012-15
Market Shares
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- Karstadt continues to fall behind Galeria Kaufhof
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- Figure 14: Germany: Leading department store retailers’ shares of mixed goods retailers’ sales, 2012-15
Online
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- Online activity
- Big department stores lag in online development
The Consumer – What You Need to Know
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- Galeria Kaufhof a long way ahead
- Two main players closely positioned
- Customers happier with in-store experience than with online
Where They Shop
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- Galeria Kaufhof remains market leader
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- Figure 15: Germany: The consumer: Department stores visited in the past six months, whether in-store or online, March 2016
Customer Profiles
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- Main players attract affluent visitor base
- Dangers of cannibalisation
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- Figure 16: Germany: The consumer: Department stores visited in the past six months, whether in-store or online, average age and affluence, March 2016
Satisfaction Levels
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- Changing rooms and staff attitude see highest satisfaction
- Room for improvement in advice, returns and catering
- Lack of strong views on many aspects
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- Figure 17: Germany: Department store used most often, satisfaction with various criteria, March 2016
- Attitudes to department stores and where people shop
- Galeria Kaufhof more often ahead on satisfaction
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- Figure 18: Germany: Attitudes to department stores and where people shop, March 2016
Galeria Kaufhof (Hudson’s Bay Company)
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- What we think
- New hope under HBC
- Keeping existing management in place
- HBC ownership will give it more negotiating power and investment
- Focus on beauty, shoes and handbags
- Major investment to include revamps of ten key store locations
- Online expansion and development needs to accelerate further
- Introducing the Saks OFF 5th outlet format
- Competition from fellow department store Karstadt remains weak
- Company background
- Company performance
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- Figure 19: Galeria Kaufhof: Group financial performance, 2010/11-2014/15
- Figure 20: Galeria Kaufhof: Outlet data, 2009/10-2014/15
- Retail offering
Karstadt (Signa Retail)
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- What we think
- “Kaufstadt” tie up finally off the agenda
- Fashion focus on core customer of 45-plus woman
- Shakes up other merchandise areas with new partnerships
- Online strategy appears to be languishing
- KaDeWe Group has major investment planned
- Company background
- Company performance
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- Figure 21: Karstadt (Signa retail): Group financial performance, 2010/11-2014/15
- Figure 22: Karstadt (Signa Retail): Outlet data, 2010/11-2014/15
- Retail offering
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Data sources
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