Table of Contents
Executive Summary
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- Brand Leaders
- Household names lead the way on usage
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- Figure 1: Top ranking of brands in the retail sector, by overall usage, November 2015-June 2018
- Amazon goes from strength to strength
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- Figure 2: Top ranking of brands in the retail sector, by usage in the last 12 months, November 2015-June 2018
- Boots’ heritage creates trustworthy image
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- Figure 3: Top ranking of brands in the retail sector, by agreement with “A retailer that I trust”, November 2015-June 2018
- Brands with unique features stand out
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- Figure 4: Top ranking of brands in the retail sector, by differentiation (Net of “It’s a unique brand” and “It’s somewhat different from others”), November 2015-June 2018
- Amazon stands out on experience offered
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- Figure 5: Top ranking of brands in the retail sector, by satisfaction (Net of “Good” and “Excellent” reviews), November 2015-June 2018
- Brand Reputation
- Boots offers something special
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- Figure 6: Top ranking of brands in the retail sector, by agreement with “A retailer that has great customer service”, November 2015-June 2018
- Exclusivity defines many brands in the retail sector
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- Figure 7: Top ranking of brands in the retail sector, by agreement with “Exclusive”, November 2015-June 2018
- Lush and The Body Shop lead on ethics
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- Figure 8: Top ranking of brands in the retail sector, by agreement with “Ethical”, November 2015-June 2018
- Amazon offers value despite not being the cheapest place
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- Figure 9: Top ranking of brands in the retail sector, by agreement with “A retailer that offers good value”, November 2015-June 2018
- eBay and IKEA changed shopping possibilities
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- Figure 10: Top ranking of brands in the retail sector, by agreement with “A retailer that is innovative”, November 2015-June 2018
- The Retail Brandscape
- Amazon and eBay ahead on perception of online quality
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- Figure 11: Top ranking of brands in the retail sector, by agreement with “A retailer that provides a great online service”, November 2015-June 2018
- Fashion retailers impress their users
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- Figure 12: Agreement with “A retailer that provides a great online service” amongst users of the brand, November 2015-June 2018
- Consistency over long term influences commitment
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- Figure 13: Top ranking of brands in the retail sector, by commitment (Net of “This is a favourite brand” and “I prefer this brand over others”), November 2015-June 2018
- Discounters and food retailers largely seen as similar
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- Figure 14: Average scores for trust and differentiation, by retail category, November 2015-June 2018
- Similar level of adspend, similar spread
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- Figure 15: Total above-the-line, online display and direct mail advertising expenditure in the retail sector, by month, January 2015-June 2018
- What we think
Brand Leaders – What You Need to Know
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- Household names lead the way on usage
- Boots’ heritage creates trustworthy image
- Brands with unique features stand out
- Amazon stands out on experience offered
Brand Usage
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- Household names lead the way on usage
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- Figure 16: Top ranking of brands in the retail sector, by overall usage, November 2015-June 2018
- Amazon goes from strength to strength
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- Figure 17: Top ranking of brands in the retail sector, by usage in the last 12 months, November 2015-June 2018
- Aldi and Lidl competing with the big four
- The burgeoning convenience category boosts Tesco
Trust in Retail Brands
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- Boots’ heritage creates trustworthy image
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- Figure 18: Top ranking of brands in the retail sector, by agreement with “A retailer that I trust”, November 2015-June 2018
- Trustworthiness built through consistency
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- Figure 19: Agreement with “A retailer that I trust”, by agreement with “Reliable”, in the retail sector, November 2015-June 2018
- Brands with a big reputation can subvert lack of regular usage
Brand Differentiation
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- Brands with unique features stand out
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- Figure 20: Top ranking of brands in the retail sector, by differentiation (Net of “It’s a unique retailer” and “It’s somewhat different from others”), November 2015-June 2018
Brand Satisfaction and Recommendation
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- Amazon stands out on experience offered
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- Figure 21: Top ranking of brands in the retail sector, by satisfaction (Net of “Good” and “Excellent” reviews), November 2015-June 2018
- Victoria’s Secret, Sweaty Betty and ao.com set to increase customer base
- Recommendation dependent on satisfaction
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- Figure 22: Top ranking of brands in the retail sector, by likely recommendation, November 2015-June 2018
Brand Reputation – What You Need to Know
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- Boots offers something special
- Exclusivity defines many brands in the retail sector
- Lush and The Body Shop lead on ethics
- Retailers striving to raise ethical standards
- Amazon offers value despite not being the cheapest place
- eBay and IKEA changed shopping possibilities
- Technology drives retail innovation
Retail Brands and Customer Service
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- Boots offers something special
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- Figure 23: Top ranking of brands in the retail sector, by agreement with “A retailer that has great customer service”, November 2015-June 2018
- Marks & Spencer indicative of trust and customer service correlation
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- Figure 24: Agreement with “A retailer that I trust”, by agreement with “A retaler that has great customer service”, November 2015-June 2018
- Premium retailers skewed towards customer service
- Growth of online changing definition of customer service
- Brands with strong customer service thought of as welcoming
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- Figure 25: Top ranking of brands in the retail sector, by agreement with “Welcoming”, November 2015-June 2018
- Premium brands struggle with creating welcoming image
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- Figure 26: Agreement with “A retailer that has great customer service”, by agreement with “Welcoming”, November 2015-June 2018
Premium and Prestige Brands
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- Exclusivity defines many brands in the retail sector
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- Figure 27: Top ranking of brands in the retail sector, by agreement with “Exclusive”, November 2015-June 2018
- Expense is all relative
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- Figure 28: Top ranking of brands in the retail sector, by agreement with “Expensive”, November 2015-June 2018
- Expense and exclusivity closely related
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- Figure 29: Agreement with “Exclusive”, by agreement with “Expensive”, November 2015-June 2018
Retail Brands and Ethics
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- Lush and The Body Shop lead on ethics
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- Figure 30: Top ranking of brands in the retail sector, by agreement with “Ethical”, November 2015-June 2018
- Unethical perceptions influenced by treatment of workers
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- Figure 31: Top ranking of brands in the retail sector, by agreement with “Unethical”, November 2015-June 2018
- Ethics are not a concern for everyone…
- …but ethical expectations are increasing
Ethical Activity
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- Accessibility to all
- A friendlier shopping environment
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- Figure 32: The Entertainer extends Quiet Hour, July 2018
- Iceland attempts to become the number one dementia retailer
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- Figure 33: Iceland’s support of dementia, August 2018
- A model of diversity
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- Figure 34: ASOS creates with wheelchair-friendly jumpsuit with Chloe Ball-Hopkins, July 2018
- Figure 35: Missguided’s diverse mannequins, February 2018
- The gender pay gap takes prominence in 2018
- The environment
- Aiding recycling
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- Figure 36: The Co-operative’s plastic bottle deposit return reverse vending machine, May 2018
- Removing plastics from sale
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- Figure 37: Morrisons reintroduces paper bags, August 2018
- Reducing waste and protecting the environment
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- Figure 38: IKEA teams up with Big Clean Switch, March 2018
- Sustainable fashion
- Closing the loop
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- Figure 39: Centre for Sustainable Fashion partners with ASOS for circular fashion training programme, June 2018
- Animal welfare
- Charity
- Harrods launches a charity pop-up shop
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- Figure 40: Harrods’ Fashion Re-told charity fashion store, April 2018
- Amazon launches Amazon Smile
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- Figure 41: Amazon Smile, July 2018
Retail Brands and Value
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- Amazon offers value despite not being the cheapest place
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- Figure 42: Top ranking of brands in the retail sector, by agreement with “A retailer that offers good value”, November 2015-June 2018
- Brands committing to lower prices
- The value of rare and unusual items
- Expectations limit how much people are willing to pay for Amazon
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- Figure 43: Top ranking of brands in the retail sector, by agreement with “A retailer that is worth paying more for”, November 2015-June 2018
- M&S’ food operations distinct from other parts of its business
- Exclusivity helps promote an idea of added value
Retail Brands and Innovation
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- eBay’s auction platform changed shopping possibilities
- IKEA at the forefront of flat-pack
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- Figure 44: Top ranking of brands in the retail sector, by agreement with “A retailer that is innovative”, November 2015-June 2018
- Innovation and cutting edge signify different things
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- Figure 45: Top ranking of brands in the retail sector, by agreement with “cutting edge”, November 2015-June 2018
Innovation Activity
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- Retailers experiment with checkout-free stores
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- Figure 46: Sainsbury’s trial of checkout-free shopping, August 2018
- Alternative realities hit the mainstream
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- Figure 47: Zara augmented reality app, April 2018
- Department stores as a destination
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- Figure 48: Selfridges Boxing Gym opens, January 2018
- Sports Direct taps into eSports
- Waitrose focuses on the health of its customers
- Sainsbury’s increases the number of concessions in-store
- Shopping via social media just got easier
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- Figure 49: Marks & Spencer Instagram Shopping post, August 2018
- eBay used images as a search query
The Retail Brandscape – What You Need to Know
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- Amazon ahead on perception of online quality
- Retailers seeking to improve the online experience
- Consistency over long term influences commitment
- Amazon Prime seeking to up consumer spend
- Discounters and food retailers largely seen as similar
- Similar level of adspend, similar spread
Online Shopping
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- Amazon ahead on perception of online quality
- eBay is the other standout
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- Figure 50: Top ranking of brands in the retail sector, by agreement with “A retailer that provides a great online service”, November 2015-June 2018
- Argos’ Fast Track delivery influences perceptions
- Grocery retailers have yet to make their mark
- Fashion retailers impress their users
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- Figure 51: Top ranking of brands in the retail sector, by agreement with “A retailer that provides a great online service” amongst users of the retailer, November 2015-June 2018
Online Retail Developments
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- Better delivery services are becoming normal
- Brands seek to innovate on delivery methods
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- Figure 52: Sainsbury’s use of electric cargo bikes for deliveries, April 2018
- The rise in ‘try before buy’
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- Figure 53: Klarna launches in the UK with Topshop, September 2016
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- Figure 54: The Fragrance Shop’s scentaddict service, August 2018
- Online specialists moving into the physical world
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- Figure 55: Zalando Beauty Station launches in Berlin, July 2018
Loyalty towards Retailers
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- Loyalty has different meanings to different people
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- Figure 56: Top ranking of brands in the retail sector, by commitment (Net of “This is a favourite retailer” and “I prefer this retailer over others”), November 2015-June 2018
- Consistency over long term influences commitment
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- Figure 57: Brand commitment, by agreement with “Reliable”, November 2015-June 2018
- Amazon preference means ongoing usage
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- Figure 58: Brands in the retail sector with the lowest proportion of lapsed users, November 2015-June 2018
- Furniture retailers suffer from irregular usage
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- Figure 59: Top ranking of brands in the retail sector, by lapsed users, November 2015-June 2018
- Retailers focusing on select targets also have high loss in users
- Littlewoods has yet to fully bounce back
Loyalty Initiatives
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- Online making loyalty harder to grasp
- Loyalty schemes continue to drive custom
- Nectar scheme revamped to focus on frequency and longevity of custom
- Amazon Prime continues to grow
- Superdrug launches mobile network for loyalty scheme members
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- Figure 60: Superdrug Mobile launches, June 2018
Retail Category Comparison
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- Discounters match usage of food retailers
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- Figure 61: Average score for key metrics across different retail categories, November 2015-June 2018
- Fashion brands impacted by targeted offering
- Discounters and food stores seen as similar
- Department stores stand out…
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- Figure 62: Average scores for trust and differentiation, by retail category, November 2015-June 2018
- …helped by their reputation for service
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- Figure 63: Average score for brand attitudes, by retail category, November 2015-June 2018
- Discounters appeal to bargain hunters
- Discounter supermarkets also putting the pressure on
- Department stores seen as expensive
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- Figure 64: Average score for brand attributes, by retail category, November 2015-June 2018
- Health and beauty likely to lead on ethics
- Discounters’ basic image highlights lack of product range
Advertising and Marketing Activity
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- Similar level of adspend, similar spread
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- Figure 65: Total above-the-line, online display and direct mail advertising expenditure in the retail sector, by month, January 2015-June 2018
- Argos highlights Fast Track delivery
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- Figure 66: Total above-the-line, online display and direct mail advertising expenditure in the retail sector, by top advertisers, 2017
- Figure 67: Argos advert highlighting short delivery times, November 2017
- Currys PC World highlights staff expertise
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- Figure 68: Currys PC World demonstrates staff expertise in advertising, November 2018
- Specsavers continues “Should’ve” theme
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- Figure 69: Specsavers continues “Should’ve” TV ad campaign, March 2017
- Oak Furniture Land emphasises authenticity of products
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- Figure 70: Oak Furniture Land “No Veneer in ‘ere” advertising, July 2017
- M&S encourages people to focus on quality
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- Figure 71: Marks & Spencer’s Spend It Well campaign, May 2017
- TV remains most popular channel for advertising…
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- Figure 72: Share of total recorded adspend in the retail sector, by media type, January 2015-June 2018
- …but attention likely to be waning
- Food retailers most picked out by consumers
- Superdrug points to Love Island sponsorship as a success
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- Figure 73: Missguided’s sponsorship of Love Island, June 2018
- Nielsen Ad Intel coverage
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
Appendix – Brands Covered
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