Table of Contents
Executive Summary
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- The market
- Consumer sentiment trends upwards
- Aging population could benefit high streets
- Falling vacancies at retail parks
- Rebirth of Cities
- Access All Areas
- Shopping locations in context
- Retail innovation
- The consumer
- Grocery superstores the most visited location
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- Figure 1: Shopping locations used in the last six months, April 2016
- Four in 10 shopping online more often
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- Figure 2: Changes in shopping habits, April 2016
- High streets need better family-focused leisure facilities
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- Figure 3: Satisfaction with local town centre/high street, April 2016
- Digitising the shopping experience
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- Figure 4: Interest in digital innovations while shopping, April 2016
- Experiences can drive consumers to shopping locations
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- Figure 5: Attitudes towards shopping locations, April 2016
- What we think
Issues and Insights
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- Retail locations – How have they fared?
- The facts
- The implications
- The opportunities for the high street
- The facts
- The implications
- Offline vs online retailing: the digital opportunity
- The facts
- The implications
The Market – What You Need to Know
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- Consumer sentiment trends upwards
- Aging population could benefit high streets
- Falling vacancy rates at retail parks
- Growth in rented households
- Rebirth of Cities
- The retail market
Market Drivers
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- Consumer sentiment trends upwards
- Consumers splash out on leisure over retail
- Aging population could benefit high streets
- High demand for space at retail parks
- Shop prices deflate in 2015
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- Figure 6: Shop prices year on year, February 2015- February 2016
- Growth in rented households
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- Figure 7: Proportions of households renting, 2006-15
- Cost of fuel drops
- Government postpones business rates review
Shopping Locations in Context
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- Trends in the marketplace
- Rebirth of Cities
- Access All Areas
- Alternative Realities
- The retail market by type of retailer
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- Figure 8: Structure of UK retailing (excluding fuel), 2015
- The retail market by location
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- Figure 9: Retail market structure (inc vat), 2010/11-2014/15
- Top 10 shopping centres
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- Figure 10: Top 10 shopping centres in the UK, 2016
- Top 10 factory outlet centres
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- Figure 11: Top 10 factory outlet centres in the UK, 2016
- Top 10 retail parks
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- Figure 12: Top 10 retail parks in the UK, 2016
Online – Segmentation by Product Category
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- Year-on-year online growth slows
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- Figure 13: Online sales as a proportion of total retail sales, January 2014-April 2016
- Electricals take the greatest share of online sales
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- Figure 14: Breakdown of online retail sales by major category (incl. VAT), 2014-2016 (est)
- Online market evenly split between pure players and store-based retailers
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- Figure 15: Online sales by type of retailer, 2015
- Figure 16: Store based and pure player share of all online sales, 2008-2016
- Review of major product categories
- Electrical goods
- Clothing and footwear
- Grocery
Retail Innovation
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- Merging online and offline retail
- Sephora’s digitally driven store
- Heal’s connects online shoppers with store staff using smart glasses
- House of Fraser’s shoppable Black Friday store windows
- Interesting experiences in the retail environment
- intu Lakeside to launch Nickelodeon-themed entertainment centre
- Apple offers free art classes for all in store
- Samsung’s flagship store is an “immersive cultural centre”
- Story acts more like a magazine and gallery than a shop
- Supermarkets prolong dwell time in superstores
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- Figure 17: The wine bar at Waitrose’s ‘Food & Home’ shop concept in Salisbury, 2015
- Retailers experiment with foodservice offering
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- Figure 18: Thomas’s café at Burberry’s Regent Street flagship, 2015
- Pure plays move into physical space
- Birmingham benefits from Grand Central opening
The Consumer – What You Need to Know
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- Grocery superstores the most visited location
- Four in 10 shopping online more often
- Young consumers are shopping more in cities and at the major malls
- Dissatisfaction towards local high streets
- Under-45s engaged with mobile innovations
- Demand for more varied food options while shopping
- Shoppers trust customer reviews more than staff
Shopping Location Usage
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- Majority of consumers still visit a grocery superstore
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- Figure 19: Shopping locations used in the last six months, April 2016
- Who shops where?
- Local centres can tailor themselves to needs of older shoppers
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- Figure 20: Shopping locations visited/used in the last six months, by age, April 2016
- Families over-represented at retail parks
- Londoners have lowest superstore usage
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- Figure 21: Shopping locations visited/used in the last six months, by region, April 2016
- Outlet villages appeal to high earners
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- Figure 22: Usage of outlet villages in the last 6 months, by gross annual household income and region, April 2016
Changes in Shopping Habits
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- Four in 10 shopping online more often
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- Figure 23: Changes in shopping habits, April 2016
- Young women shopping more at the major malls
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- Figure 24: Consumers that are using the shopping locations more than a year ago, by age, April 2016
- 35-44s frequent outlet villages more often
- Convenience stores retain their popularity
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- Figure 25: Changes in usage of shopping locations/services, April 2016
- Opportunity to increase click-and-collect usage
- Shoppers opt for coffee shops and cafés over restaurants
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- Figure 26: Changes in usage of dining outlets while on a shopping trip, April 2016
Satisfaction with Shopping Locations
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- Where do people shop most often for non-food?
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- Figure 27: Location used most often for non-food purchases, versus locations used in the last 6 months, April 2016
- How satisfied are shoppers with their regularly used location?
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- Figure 28: Dissatisfaction with shopping location used most often for non-food purchases, April 2016
- High streets need better family-focused leisure facilities
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- Figure 29: Satisfaction with local town centre/high street, April 2016
- Retail parks benefit from parking availability
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- Figure 30: Satisfaction with retail parks, April 2016
- Superstores could benefit from gym tie-ups
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- Figure 31: Satisfaction with grocery superstores, April 2016
- Overall satisfaction levels high
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- Figure 32: Overall satisfaction with location used most often for non-food purchases, April 2016
Key Driver Analysis – Shopping Locations
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- Methodology
- Shopping locations need to monitor their leisure facilities
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- Figure 33: Key drivers of overall satisfaction with most often visited shopping location for non-food purchases, April 2016
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- Figure 34: Overall satisfaction with most often visited shopping location for non-food purchases - key driver output, April 2016
Interest in Digital Innovations
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- 43% want free Wi-Fi while shopping
- Under-45s most engaged with mobile innovations
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- Figure 35: Interest in digital innovations while shopping, April 2016
- A fifth of under-35s willing to give email address for digital receipt
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- Figure 36: Interest in digital innovations while shopping, by age, April 2016
Attitudes towards Shopping Locations
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- Demand for more varied food options while shopping
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- Figure 37: Attitudes towards dining out at shopping locations, April 2016
- Four in 10 Londoners show interest in in-store classes
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- Figure 38: Attitudes towards loyalty and experiences at shopping locations, April 2016
- Opportunity to bring online reviews into the store environment
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- Figure 39: Attitudes online vs offline shopping, April 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Definition
- Financial data
- Abbreviations
- Consumer research methodology
- Key driver analysis
- Interpretation of results
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- Figure 40: Overall satisfaction with most often visited shopping location for non-food purchases - key driver output, April 2016
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- Figure 41: Satisfaction with most often visited shopping location for non-food purchases, April 2016
- Structure of UK retailing (excluding fuel) classifications
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