Department Stores - Europe - April 2014

INTRODUCTION AND REPORT SCOPE
Department store definition
Mixed goods retailers
Statutory revenues versus GTV
Financial definitions
Currencies
Figure 1: Euro to Pound exchange rates, 2008-13
Sales per store, sales per sq m
VAT rates
Figure 2: Europe: VAT rates, 2010-14
Abbreviations
EXECUTIVE SUMMARY
Figure 3: Europe: Estimated department store sector sales (excl. VAT), ranked by country, 2012 and 2013
Figure 4: Europe: Department store sector sales as % of all retail sales, ranked by country, 2013
Figure 5: Europe: Department store sector prospects by country for 2014
Figure 6: Leading department store retailers’ share of European department store sales, 2013
EUROPEAN SUMMARY – THE MARKET
Key points
Department store sales around Europe
Figure 7: Europe: Estimated department store sector sales (excl. VAT), ranked by country, 2012 and 2013
Figure 8: Europe: Department store sector prospects by country for 2014
The mixed goods retail sector
Figure 9: Europe: Estimated department store sector sales (excl. VAT) by country, 2013
Mixed goods sector: historic and forecast performance
Figure 10: Europe: Mixed goods retailers sales by country (excl. VAT), 2008-13
Figure 11: Europe: Mixed goods retailers sales forecasts (excl. VAT), 2013-18
Europe’s leading department stores
Figure 12: Leading department store retailers’ share of European department store sales, 2012 and 2013
Figure 13: Europe: Leading department store retailers’ reported net revenues, 2009-13
Figure 14: Europe: Leading department store retailers’ outlet numbers, 2009-13
What we think
France
Germany
Ireland
Italy
Netherlands
Spain
UK
EUROPEAN SUMMARY – THE CONSUMER
Key points
What they buy
Figure 15: Europe: The consumer: Items bought from a department store in the past six months, February 2014
In detail, by country
Figure 16: France: The consumer: Items bought from a department store in the past six months, February 2014
Figure 17: Germany: The consumer: Items bought from a department store in the past six months, February 2014
Figure 18: Italy: The consumer: Items bought from a department store or other large-space retailer* in the past six months, February 2014
Figure 19: Spain: The consumer: Items bought from a department store or other large-space retailer* in the past six months, February 2014
Figure 20: UK: The consumer: Items bought from a department store in the past six months, March 2014
Satisfaction levels
Figure 21: Europe: The consumer: Satisfaction with department stores – “any satisfied”, February 2014 / March 2014 (UK)
Most popular retailers, by country
Figure 22: France: The consumer: Named department stores bought from in the past six months, February 2014
Figure 23: Germany: The consumer: Named department stores bought from in the past six months, February 2014
Figure 24: Italy: The consumer: Named department stores bought from in the past six months, February 2014
Figure 25: Spain: The consumer: Named department stores bought from in the past six months, February 2014
Figure 26: UK: The consumer: Named department stores bought from in the past six months, March 2014
FRANCE
 EXECUTIVE SUMMARY
Consumer spending
Distribution of spending on clothing and beauty
The department store sector
Leading retailers
Online
The consumer: Where they shop
The consumer: What they bought
The consumer: Customer satisfaction
What we think
 SPENDING AND INFLATION
Key points
Consumer spending: Clothing and beauty are key
Figure 27: France: Spending on key department store product markets, (incl. VAT), at current prices, 2008-13
Economy and consumer confidence
Figure 28: France: Consumer and retail confidence indicator, January 2013-February 2014
Inflation (and deflation)
Figure 29: France: Harmonised indices of consumer prices: Annual % change, Jan 2013-Feb 2014
Figure 30: France: Harmonised indices of consumer prices: Annual % change, 2009-13
 DISTRIBUTION OF SPENDING ON CLOTHING AND BEAUTY
Key points
Department stores are a major channel in clothing
Figure 31: France: Estimated distribution of spending on clothing, by retail sector, 2013
Figure 32: France: Estimated channels of distribution for personal care products, 2012
The consumer: Where they buy clothing and beauty
Figure 33: France: The consumer: Where they have bought clothing in the past 12 months, August 2013
Figure 34: France: The consumer: Where they have bought beauty products in the past 12 months, November 2013
 SECTOR SIZE AND FORECAST
Key points
Mixed goods down, department stores up
Figure 35: France: Mixed goods retail sales (excl. VAT), 2008-13
Figure 36: France: Mixed goods retail sales forecasts (excl. VAT), 2014-18
 THE LEADING RETAILERS: FINANCIALS AND OUTLETS
Key points
Figure 37: France: Leading department stores retailers’ sales, 2011-13
Figure 38: France: Leading department store retailers, store numbers, 2011-13
Figure 39: France: Leading department store retailers’ annual sales per outlet, 2011-13
 LEADING SPECIALISTS: MARKET SHARES
Figure 40: France: Leading department store retailers’ shares of mixed goods retailers’ sales, 2011-13
 ONLINE
Key points
Department stores online
Figure 41: France: Online visitor data, February 2014
The online consumer
Figure 42: France: Percentage of all individuals having purchased online in the past 12 months, selected categories, 2009-13
 THE CONSUMER: WHERE THEY SHOP
Key points
What we asked
Where they shop: Galeries Lafayette most popular
Figure 43: France: The consumer: Department stores purchased from in the past six months, whether in-store or online, February 2014
The online/offline split
Figure 44: France: The consumer: Department stores purchased from in the past six months, in-store and online, February 2014
Demographics
Figure 45: France: The consumer: Department stores shopped from in the past six months, whether in-store or online, average age and affluence, February 2014
 THE CONSUMER: WHAT THEY BOUGHT
Key points
What we asked
What they bought: Clothing and footwear the strongest categories
Figure 46: France: The consumer: Items bought from a department store in the past six months, February 2014
Demographics: Clothing shoppers tend to be younger, beauty shoppers more affluent
Figure 47: France: The consumer: Items bought from a department store in the past six months, average age/affluence, February 2014
Figure 48: France: The consumer: Items bought from a department store in the past six months, by age group, February 2014
What they buy, by where they shop
Figure 49: France: The consumer: Items bought from In-store or online (broad categories), by department stores bought from, February 2014
Figure 50: France: The consumer: Items bought from In-store or online, by department stores bought from, February 2014
 THE CONSUMER: CUSTOMER SATISFACTION
Key points
What we asked
Satisfaction levels prove to be high
Figure 51: France: The consumer: Satisfaction with department stores, ranked by total satisfaction levels, February 2014
Figure 52: France: The consumer: Satisfaction with department stores, ranked by ‘very satisfied’, February 2014
GERMANY
 EXECUTIVE SUMMARY
Consumer spending
Distribution of spending on clothing and beauty
The department store sector
Leading retailers
Online
The consumer: Where they shop
The consumer: What they purchased
The consumer: Customer satisfaction
What we think
 SPENDING AND INFLATION
Key points
Consumer spending: Clothing and beauty are key
Figure 53: Germany: Spending on key department store product markets, (incl. VAT), at current prices, 2009-13
Retailer and Consumer Confidence
Figure 54: Germany: Consumer confidence and retail confidence levels, January 2013-February 2014
Inflation (and deflation)
Figure 55: Germany: Harmonised indices of consumer prices: Annual % change, January 2013-February 2014
Figure 56: Germany: Harmonised indices of consumer prices: Annual % change, 2009-13
 DISTRIBUTION OF SPENDING ON CLOTHING AND BEAUTY
Key points
Department stores are a major channel in clothing
Figure 57: Germany: Estimated distribution of spending on clothing, by retail sector, 2013
Figure 58: Germany: Estimated distribution of spending on personal care products, by retail sector, 2013
The consumer: Where they buy clothing and beauty
Figure 59: Germany: The consumer: Where they have bought clothing in the past 12 months, selected options, August 2013
Figure 60: Germany: The consumer: Where they have bought beauty products in the past 12 months, selected options, November 2013
 SECTOR SIZE AND FORECAST
Key points
Department store sector sales remain flat at €7.6 billion
Figure 61: Germany: Mixed goods retail sales (excl. VAT), 2008-13
Figure 62: Germany: Mixed goods retail sales forecasts (excl. VAT), 2014-18
 THE LEADING RETAILERS: FINANCIALS AND OUTLETS
Key points
Midmarket investment but sales stagnating
Strategies – Some common elements
Divestments
Premium segment
Figure 63: Germany: Leading department stores retailers’ net revenues, 2011-13
Figure 64: Germany: Leading department store retailers’ store numbers, 2011-13
Figure 65: Germany: Leading department store retailers’ annual sales per outlet, 2011-13
 THE LEADING RETAILERS: MARKET SHARES
Figure 66: Germany: Leading department store retailers’ shares of mixed goods retailers’ sales, 2011-13
 ONLINE
Key points
The retailers
Figure 67: Online visitor data, February 2014
Figure 68: Galeria Kaufhof: Online sales revenues, 2011-13
Figure 69: Karstadt – Click-and-collect, April 2014
The online consumer
Figure 70: Germany: Percentage of all individuals having purchased online in the past 12 months, selected categories, 2009-13
 THE CONSUMER: WHERE THEY SHOP
Key points
What we asked
Where they shop: Galeria Kaufhof leads over Karstadt
Figure 71: Germany: The consumer: Department stores shopped from in the past six months, whether in-store or online, February 2014
Figure 72: Germany: The consumer: Department stores shopped from in the past six months, by in-store and online, February 2014
Demographics: Major chains attract young shoppers
Figure 73: Germany: The consumer: Department stores shopped from in the past six months, whether in-store and online, average age and affluence, February 2014
 THE CONSUMER: WHAT THEY BOUGHT
Key points
What we asked
What they bought: Apparel leads but home goods strong
Figure 74: Germany: The consumer: Items bought from a department store in the past six months, February 2014
Demographics: Beauty shoppers are younger
Figure 75: Germany: The consumer: Items bought from a department store in the past six months, average age/affluence, February 2014
Figure 76: Germany: The consumer: Items bought from a department store in the past six months, by age group, February 2014
What they buy, by where they shop
Figure 77: Germany: The consumer: Items bought from in-store or online (broad categories), by department stores bought from, February 2014
Figure 78: Germany: The consumer: Items bought from in-store or online, by department stores bought from, February 2014
 THE CONSUMER – CUSTOMER SATISFACTION
Key points
What we asked
Levels of dissatisfaction are low
Figure 79: Germany: The consumer: Satisfaction with department stores, ranked by total satisfaction levels, February 2014
Figure 80: Germany: The consumer: Satisfaction with department stores, ranked by ‘very satisfied’, February 2014
IRELAND
 EXECUTIVE SUMMARY
Consumer spending
The department store sector
Leading retailers
Online
What we think
 SPENDING AND INFLATION
Key points
Consumer spending: Clothing and footwear are key
Figure 81: Ireland: Spending on key department store product markets, (incl. VAT), at current prices, 2009-13
Economy and consumer confidence
Figure 82: Ireland: Consumer confidence indicator, January 2013-February 2014
Inflation (and deflation)
Figure 83: Ireland: Harmonised indices of consumer prices: Annual % change, January 2013-February 2014
Figure 84: Ireland: Harmonised indices of consumer prices: Annual % change, 2009-13
 SECTOR SIZE AND FORECAST
Key points
Department store sector sales reach €815m
Figure 85: Ireland: Mixed goods retailers’ sales, 2009-14
Figure 86: Ireland: Mixed goods retail sales (excl. VAT), 2008-13
Figure 87: Ireland: Mixed goods retail sales forecasts (excl. VAT), 2014-18
 THE LEADING RETAILERS: FINANCIALS AND OUTLETS
Key points
Contrasting fortunes for Shaws
Receivership and flash flood hit Clerys
Debenhams and M&S both struggle
Heatons benefits from its value positioning
Figure 88: Ireland: Leading department stores retailers’ net revenues, 2011-13
Figure 89: Ireland: Leading department store retailers’ store number, 2011-13
Figure 90: Ireland: Selected leading department store retailers’ annual sales per outlet, 2011-13
 THE LEADING RETAILERS: MARKET SHARES
Figure 91: Ireland: Selected leading department store retailers’ shares of mixed good retailers’ sales, 2011-13
 ONLINE
Key points
Department stores online
The online consumer
Figure 92: Ireland: Percentage of all individuals having purchased online in the past 12 months, selected categories, 2009-13
ITALY
 EXECUTIVE SUMMARY
Consumer spending
Distribution of spending on clothing and beauty
The department store sector
Leading retailers
Online
The consumer: Where they shop
The consumer: What they bought
The consumer: Customer satisfaction
What we think
 SPENDING AND INFLATION
Key points
Consumer spending: clothing and footwear are key
Figure 93: Italy: Spending on key department store product markets, (incl. VAT), at current prices, 2009-13
Economy and consumer confidence
Figure 94: Italy: consumer and retailer confidence levels, January 2013-February 2014
Inflation (and deflation)
Figure 95: Italy: Harmonised indices of consumer prices: Annual % change, January 2013-Feb 2014
Figure 96: Italy: Harmonised indices of consumer prices: Annual % change, 2009-13
 DISTRIBUTION OF SPENDING ON CLOTHING AND BEAUTY
Key points
Department stores are a major channel in clothing
Figure 97: Italy: Estimated distribution of spending on clothing, by retail sector, 2013
Figure 98: Italy: Beauty and personal care products, estimated channels of distribution, 2012
The consumer: Where they buy clothing and beauty
Figure 99: Italy: The consumer: Where they have bought clothing in the past 12 months, whether in-store or online, August 2013
Figure 100: Italy: The consumer: Where they have bought beauty products in the past 12 months, November 2013
 SECTOR SIZE AND FORECAST
Key points
Mixed sector sales continue to fall
Figure 101: Italy: Mixed goods retail sales (excl. VAT), 2008-13
Figure 102: Italy: Mixed goods retail sales forecasts (excl. VAT), 2014-18
 THE LEADING RETAILERS: FINANCIALS AND OUTLETS
Key points
Flagship refurbishment pays off for Rinascente
Coin dipping a toe in premium market
Other department store operators small
Figure 103: Italy: Leading department stores retailers’ net revenues, 2011-13
Figure 104: Italy: Leading department store retailers’ store numbers, 2011-13
Figure 105: Italy: Leading department store retailers’ annual sales per outlet, 2011-13
 THE LEADING RETAILERS: MARKET SHARES
Figure 106: Italy: Leading department store retailers’ shares of mixed goods retailers’ sales, 2011-13
 ONLINE
Key points
The retailers
The online consumer
Figure 107: Italy: Percentage of all individuals who purchased online in the past 12 months, selected categories, 2009-13
 THE CONSUMER: WHERE THEY SHOP
Key points
What we asked
Where they shop: Coin just ahead
Figure 108: The consumer: Type of store bought from in the last six months, by demographics, Italy, February 2014
Demographics: Department stores attract the young and the affluent
Figure 109: Italy: The consumer: Large space retailers shopped from in the past six months, whether in-store and online, average age and affluence, February 2014
 THE CONSUMER: WHAT THEY BOUGHT
Key points
What we asked
What they bought: Clothing by far the strongest category
Figure 110: Italy: The consumer: Broad product groups bought from in-store or online by where they bought, February 2014
Figure 111: Italy: The consumer: Items bought in-store or online by where they bought, February 2014
 THE CONSUMER – CUSTOMER SATISFACTION
Key points
What we asked
Products and store standards deliver satisfaction
Figure 112: Italy: The consumer: Satisfaction with department stores and other large space retailers, ranked by total satisfaction levels, February 2014
Figure 113: Italy: The consumer: Satisfaction with department stores and other large space retailers, ranked by ‘very satisfied’, February 2014
NETHERLANDS
 EXECUTIVE SUMMARY
Consumer spending
The department store sector
Leading retailers
Online
What we think
 SPENDING AND INFLATION
Key points
Consumer spending: clothing and footwear are key
Figure 114: The Netherlands: Spending on key department store product markets, (incl. VAT), at current prices, 2009-13
Economy and consumer confidence
Figure 115: The Netherlands: Consumer and retail confidence indicator, January 2013-February, 2014
Inflation (and deflation)
Figure 116: The Netherlands: Harmonised indices of consumer prices: Annual % change, January 2013-February 2014
Figure 117: The Netherlands: Harmonised indices of consumer prices: Annual % change, 2009-13
 SECTOR SIZE AND FORECAST
Key points
Mixed goods down, department stores up
Figure 118: The Netherlands: Mixed goods retailers’ sales, 2009-14
Figure 119: The Netherlands: Mixed good retail sales (excl. VAT), 2008-13
Figure 120: The Netherlands: Mixed goods retail sales forecasts (excl. VAT), 2014-18
 THE LEADING SPECIALISTS: FINANCIALS AND OUTLETS
Key points
Figure 121: Netherlands: Leading department stores retailers’ estimated sales, 2011-13
Figure 122: Netherlands: Leading department store retailers, Store numbers, 2011-13
Figure 123: Netherlands: Leading department store retailers’ annual sales per outlet (estimated), 2011-13
 LEADING SPECIALISTS: MARKET SHARES
Figure 124: Netherlands: Leading Department store retailers’ shares of Mixed goods retailers’ sales (estimated), 2011-13
 ONLINE
Key points
Department stores online
The online consumer
Figure 125: The Netherlands: Percentage of all individuals having purchased online in the past 12 months, selected categories, 2009-13
SPAIN
 EXECUTIVE SUMMARY
Consumer spending
Distribution of spending on clothing and beauty
The department store sector and leading retailers
Online
The consumer: Where they shop
The consumer: What they purchased
The consumer: Customer satisfaction
What we think
 SPENDING AND INFLATION
Key points
Consumer spending: non-food markets contract across the board
Figure 126: Spain: Spending on key department store product markets, (incl. VAT), at current prices, 2008-13
Economy and Consumer Confidence
Figure 127: Spain: consumer and retailer confidence levels, January 2013-February 2014
Inflation (and deflation)
Figure 128: Spain: Harmonised indices of consumer prices: Annual % change, January 2013-February 2014
Figure 129: Spain: Harmonised indices of consumer prices: Annual % change, 2009-13
 DISTRIBUTION OF SPENDING ON CLOTHING AND BEAUTY
Key points
Department stores are a major channel in clothing and beauty/personal care
Figure 130: Spain: Estimated distribution of spending on clothing, by retail sector, 2013
Figure 131: Spain: Channels of distribution for personal care products, 2013
The consumer: Where they buy clothing and beauty
Figure 132: Spain: The consumer – Where they bought clothing in-store or online in the past 12 months, August 2013
Figure 133: Spain: The consumer – Where they bought beauty products in the past 12 months, November 2013
 SECTOR SIZE AND FORECAST
Key points
Mixed goods operators lose retail market share
Figure 134: Spain: Mixed goods retail sales (excl. VAT), 2008-13
Figure 135: Spain: Mixed goods retail sales forecasts (excl. VAT), 2014-18
Figure 136: Spain: El Corte Inglés as % of all mixed goods retailers sales, 2008-13
 THE LEADING RETAILERS: FINANCIALS AND OUTLETS
Figure 137: Spain: Leading department stores retailers’ net revenues, 2011-13
Figure 138: Spain: Leading department store retailers’ store numbers, 2011-13
Figure 139: Spain: Leading department store retailers’ annual sales per outlet, 2011-13
 THE LEADING RETAILERS: MARKET SHARES
Figure 140: Spain: Leading department store retailers’ share of mixed goods retailers’ sales, 2011-13
 ONLINE
Key points
The retailers
Figure 141: Online visitor data, February 2014
Figure 142: Spain: El Corte Inglés estimated online sales, 2011/12-2013/14
The online consumer
Figure 143: Spain: Percentage of all individuals who purchased online in the past 12 months, selected categories, 2009-13
 THE CONSUMER: WHERE THEY SHOP
Key points
What we asked
El Corte Inglés only multiple department store operator
Figure 144: The consumer: Type of store bought from in the last 6 months, whether in-store or online, February 2014
The online/offline split
Figure 145: The consumer: Type of store bought from in the last six months, in-store versus online, February 2014
Demographics: El Corte Inglés bias to more affluent shoppers
Figure 146: The consumer: El Corte Inglés – Key demographics, February 2014
 THE CONSUMER: WHAT THEY BOUGHT
Key points
What we asked
What they bought: fashion the strongest product group
Figure 147: Spain: The consumer: Broad product groups bought from in-store or online by where they bought, February 2014
Footwear leads all other categories
Figure 148: Spain: The consumer: Items bought in-store or online by where they bought, February 2014
 THE CONSUMER: CUSTOMER SATISFACTION
Key points
What we asked
El Corte Inglés customers satisfied with website but not delivery options
Figure 149: Spain: The consumer: ‘Any satisfied’ with El Corte Inglés and other large space retailers, February 2014
Improving the fashion offer
Food services
UNITED KINGDOM
 INTRODUCTION
Department store definition
Sector benchmarks
Department stores
Mixed goods retailers
Statutory revenues versus GTV
Financial definitions
Sales per store, sales per sq m
Market shares
Abbreviations
 EXECUTIVE SUMMARY
The market
Figure 150: Best-and worst-case forecast for department store sales, 2008-18
Market factors
Consumer spending
Figure 151: Consumer spending on core department store categories, 2008-13
Foreign visitors
Figure 152: Overseas residents’ visits to the UK, by area of residence, 2012 and 2013
Changing population structure
Companies, brands and innovation
Market shares
Figure 153: Top department stores’ market shares, 2012 and 2013
Winners and losers
Figure 154: Major retailers’ annual sales growth (some estimated) versus average segment growth, 2013
Brand research
Figure 155: Attitudes towards and usage of brands in the department stores sector, November 2013 and January 2014
Major innovations
Space allocation
Figure 156: Department stores: Summary space allocation, March 2014
Online growth
The consumer
How often they shop
Figure 157: Frequency of purchasing at department stores, in-store and online, March 2014
Where they purchase
Figure 158: Department stores purchased from in the past six months, in-store and online, March 2014
What they buy
Figure 159: Fashion, beauty and sports products purchased at department stores in the past six month, in-store and online, March 2014
Level of satisfaction with department stores
Figure 160: Levels of satisfaction with last department store purchased from, March 2014
What would encourage them to shop more
Figure 161: What would encourage people to shop more at a department store, March 2014
What we think
 ISSUES AND INSIGHTS
How have department stores performed over the last year and what is the outlook?
The facts
The implications
What are department stores doing to stand out in fashion and to compete with clothing retailers?
The facts
The implications
To what extent have the main players been investing in their beauty offering?
The facts
The implications
How are department stores competing in a multichannel world?
The facts
The implications
What are the main growth opportunities for department stores?
The facts
The implications
 TREND APPLICATION
Trend: Make a deal
Trend: Objectify
Mintel futures: Human
 ECONOMIC AND DEMOGRAPHIC CONTEXT
Key points
Foreign visits
Figure 162: Overseas residents’ visits to the UK, by area of residence, 2012 and 2013
Changing population structure
Figure 163: Trends in the age structure of the UK population, 2008-18
The economy
Figure 164: UK GDP quarterly percentage change, Q3 2009-Q3 2013
Figure 165: Consumer confidence index, January 2007-July 2013
 CONSUMER SPENDING ON DEPARTMENT STORE CATEGORIES
Key points
Core department store categories
Figure 166: Consumer spending on core department store categories, 2008-13
Full spending breakdown
Figure 167: Consumer spending on department store categories (incl. VAT), 2008-13
 STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
 WHO’S INNOVATING?
Key points
Futuristic pop-up concession
‘Open House by John Lewis’
House of Fraser pop-up market
Seibu opens world’s first ever KitKat boutique
Mobile point-of-sale
Harrods enhances beauty product experience remotely
24/7 exclusive shopping assistance for ultra-rich apartment owners
‘Virtual queuing’ system for click-and-collect customers
 SECTOR SIZE AND FORECAST
Key points
Department store sales grow 2.8% in 2013
Figure 168: Department store sales, 2009-13
Market size
The future
Figure 169: Best-and worst-case forecast for department store sales, 2008-18
Forecast
Figure 170: Best-and worst-case forecast for department store sales (inc VAT), 2008-18
 SPACE ALLOCATION SUMMARY
Key points
Figure 171: Department stores: Summary space allocation, March 2014
Figure 172: Department stores: Detailed space allocation, March 2014
 RETAIL PRODUCT MIX
Key points
Debenhams
Figure 173: Debenhams sales mix of own bought merchandise and total space allocation estimate, 2012/13
Product mix estimates
Figure 174: Leading department stores: Estimated sales by product, 2012/13
Figure 175: Leading department stores: Estimated sales density by product, 2012/13
 LEADING RETAILERS
Key points
High-end segment continues its outperformance
Figure 176: Annual segment growth: Midmarket versus high-end, 2010-13
Figure 177: Major retailers’ annual sales growth (some estimated) versus average segment growth, 2013
Consolidated sales versus gross transactional values
Leading retailers by sales
Figure 178: Leading department stores: Net revenues, 2009-13
Store numbers
Figure 179: Leading department stores: Outlet numbers, 2009-13
Sales per store
Figure 180: Leading department stores: Annual sales per outlet, 2009-13
Total sales area
Figure 181: Leading department stores: Total sales area, 2009-13
Sales densities
Figure 182: Leading department stores: Annual sales per sq m, 2009-13
Operating profits and margins
Figure 183: Leading department stores: Operating profits, 2009-13
Figure 184: Leading department stores: Operating margins, 2009-13
 MARKET SHARES
Key points
M&S’s share falls again
Figure 185: Top department stores’ market shares, 2012 and 2013
M&S’s share down four percentage points in four years
Figure 186: Leading department stores’ market shares, 2009-13
 ONLINE
Key points
Online sector sales grow 28%
Figure 187: Estimated online sales by department stores (incl. VAT), 2011-13
Key category sales online
Figure 188: Online as a proportion of spending on selected categories, 2013 and 2014
John Lewis approaching £1 billion online sales
Figure 189: Leading department stores’ online sales (excl. VAT), 2011-13
Figure 190: Leading department stores’ online sales as % of their total sales, 2011-13
Online market shares
Figure 191: Leading department stores’ shares of all online sales by department stores, 2011-13
Online sales mix: John Lewis and Debenhams
Figure 192: John Lewis: Estimated online sales mix, 2013/14
Figure 193: Debenhams: Estimated online sales mix, 2013
The consumer: Frequent online browsing is very popular
Figure 194: The consumer: How often they shop at department stores, online, March 2014
Figure 195: Which department stores people have shopped at in the last six months, March 2014
Most popular sites by visitor numbers
Figure 196: Leading department stores’ online visitor data, February 2014
Average sales per visitor
Figure 197: Estimated ratio of annual online sales values to visitor numbers, 2013
 ADVERTISING AND PROMOTION
Key points
Adspend leaders
Figure 198: Main media advertising spend by leading department store retailers, 2009-13
Spending by media
Figure 199: Leading department store retailers’ main media advertising spend, by media type, 2013
What we saw in 2013
 BRAND RESEARCH
Brand map
Figure 200: Attitudes towards and usage of brands in the department stores sector, November 2013 and January 2014
Correspondence analysis
Brand attitudes
Figure 201: Attitudes, by department stores brand, November 2013 and January 2014
Brand personality
Figure 202: Department stores brand personality – Macro image, November 2013 and January 2014
Figure 203: Department stores brand personality – Micro image, November 2013 and January 2014
Brand experience
Figure 204: Department stores brand usage, November 2013 and January 2014
Figure 205: Satisfaction with various department stores brands, November 2013 and January 2014
Figure 206: Consideration of department stores brands, November 2013 and January 2014
Figure 207: Consumer perceptions of current department stores brand performance, November 2013 and January 2014
Brand recommendation
Figure 208: Recommendation of selected department stores brands, November 2013 and January 2014
 THE CONSUMER – HOW OFTEN THEY SHOP
Key points
What we asked
How often consumers browse
Figure 209: Frequency of browsing at department stores, in-store and online, March 2014
How often consumers buy
Figure 210: Frequency of purchasing at department stores, in-store and online, March 2014
Figure 211: Frequency of purchasing as a percentage of those who purchase at department stores, in-store and online, March 2014
Most frequent department store shoppers
Figure 212: Frequent purchasing at department stores in-store and online, at least once every three months, by gender and age, March 2014
 THE CONSUMER – WHERE THEY SHOP
Key points
What we asked
Figure 213: Department stores purchased from in the past six months, whether in-store or online, March 2014
Average consumer by age and affluence
Figure 214: Department stores purchased from in the past six months, whether in-store or online, by age and affluence of shoppers, March 2014
Where consumers purchase – Online/Offline split
Figure 215: Department stores purchased from in the past six months, in-store and online, March 2014
Purchasing online by demographic group
Figure 216: Department stores purchased from in the past six months, online, by gender, age and socio-economic group, March 2014
Luxury players
Figure 217: Luxury department stores purchased from in the past six months, in-store and online, by gender, age and socio-economic group, March 2014
Where consumer browse – Online/Offline break
Figure 218: Department stores browsed in the past six months, in-store and online, March 2014
 THE CONSUMER – WHAT THEY BUY
Key points
What we asked
Online and offline purchases by category
Figure 219: Products purchased at department stores in the past six months, in-store and online, March 2014
Clothing and beauty
Figure 220: Fashion, beauty and sports products purchased at department stores in the past six month, in-store and online, March 2014
Figure 221: Fashion, beauty and sports products purchased at department stores in the past six month, in-store and online, by gender, age and socio-economic group, March 2014
Home and electricals
Figure 222: Home and leisure products purchased at department stores in the past six month, in-store and online, March 2014
 THE CONSUMER – LEVELS OF SATISFACTION WITH DEPARTMENT STORES
Key points
What we asked
Figure 223: Levels of satisfaction with last department store purchased from, March 2014
Satisfaction with specific department stores
Figure 224: John Lewis: satisfaction ratings relative to department stores average, March 2014
John Lewis
Figure 225: M&S: satisfaction ratings relative to department stores average, March 2014
M&S
Figure 226: Debenhams: satisfaction ratings relative to department stores average, March 2014
Debenhams
Figure 227: House of Fraser: satisfaction ratings relative to department stores average, March 2014
House of Fraser
 THE CONSUMER – WHAT WOULD ENCOURAGE CONSUMERS TO SHOP MORE AT DEPARTMENT STORES
Key points
What we asked
Figure 228: What would encourage people to shop more at a department store, March 2014
Women want better loyalty schemes
Refurbished stores
Improved online services
Figure 229: What would encourage people to shop more at a department store, by age group, March 2014
25-34s want personalised services
Figure 230: What would encourage people to shop more at a department store, by age group, March 2014 (continued)
16-24s drawn to designer collaborations
Beauty and additional services
 APPENDIX – SECTOR SIZE AND FORECAST
Figure 231: Best-and worst-case forecast for department store sales, 2008-18
 APPENDIX – THE CONSUMER – HOW OFTEN THEY SHOP
Figure 232: Most popular how often they shop at department stores – Bought in-store and online, by demographics, March 2014
Figure 233: Next most popular how often they shop at department stores – Bought in-store and online, by demographics, March 2014
 APPENDIX – THE CONSUMER – WHERE THEY SHOP
Figure 234: Most popular what department stores people shop at – Bought in-store and online, by demographics, March 2014
Figure 235: Next most popular what department stores people shop at – Bought in-store and online, by demographics, March 2014
Figure 236: Other what department stores people shop at – Bought in-store and online, by demographics, March 2014
Figure 237: Most popular what department stores people shop at – Bought in-store, by demographics, March 2014
Figure 238: Next most popular what department stores people shop at – Bought in-store, by demographics, March 2014
Figure 239: Other what department stores people shop at – Bought in-store, by demographics, March 2014
Figure 240: Most popular what department stores people shop at – Bought online, by demographics, March 2014
Figure 241: Next most popular what department stores people shop at – Bought online, by demographics, March 2014
Figure 242: Other what department stores people shop at – Bought online, by demographics, March 2014
 APPENDIX – THE CONSUMER – WHAT THEY BUY
Figure 243: Most popular products purchased at department stores – Bought in-store and online, by demographics, March 2014
Figure 244: Next most popular products purchased at department stores – Bought in-store and online, by demographics, March 2014
Figure 245: Other products purchased at department stores – Bought in-store and online, by demographics, March 2014
 APPENDIX – THE CONSUMER – LEVELS OF SATISFACTION WITH DEPARTMENT STORES
Figure 246: Most popular level of satisfaction with last department store purchased from – Product quality, by demographics, March 2014
Figure 247: Next most popular level of satisfaction with last department store purchased from – Product quality, by demographics, March 2014
Figure 248: Most popular level of satisfaction with last department store purchased from – Product availability, by demographics, March 2014
Figure 249: Next most popular level of satisfaction with last department store purchased from – Product availability, by demographics, March 2014
Figure 250: Most popular level of satisfaction with last department store purchased from – Store standards, by demographics, March 2014
Figure 251: Next most popular level of satisfaction with last department store purchased from – Store standards, by demographics, March 2014
Figure 252: Most popular level of satisfaction with last department store purchased from – Customer service, by demographics, March 2014
Figure 253: Next most popular level of satisfaction with last department store purchased from – Customer service, by demographics, March 2014
Figure 254: Most popular level of satisfaction with last department store purchased from – Ease of navigation within the store, by demographics, March 2014
Figure 255: Next most popular level of satisfaction with last department store purchased from – Ease of navigation within the store, by demographics, March 2014
Figure 256: Most popular level of satisfaction with last department store purchased from – Waiting time at check-out, by demographics, March 2014
Figure 257: Next most popular level of satisfaction with last department store purchased from – Waiting time at check-out, by demographics, March 2014
Figure 258: Most popular level of satisfaction with last department store purchased from – Value for money, by demographics, March 2014
Figure 259: Next most popular level of satisfaction with last department store purchased from – Value for money, by demographics, March 2014
Figure 260: Most popular level of satisfaction with last department store purchased from – Ease of use of the website, by demographics, March 2014
Figure 261: Next most popular level of satisfaction with last department store purchased from – Ease of use of the website, by demographics, March 2014
Figure 262: Most popular level of satisfaction with last department store purchased from – Fashionable clothing range, by demographics, March 2014
Figure 263: Next most popular level of satisfaction with last department store purchased from – Fashionable clothing range, by demographics, March 2014
Figure 264: Most popular level of satisfaction with last department store purchased from – In-store/online delivery options, by demographics, March 2014
Figure 265: Next most popular level of satisfaction with last department store purchased from – In-store/online delivery options, by demographics, March 2014
Figure 266: Most popular level of satisfaction with last department store purchased from – In-store services, by demographics, March 2014
Figure 267: Next most popular level of satisfaction with last department store purchased from – In-store services, by demographics, March 2014
Figure 268: Most popular level of satisfaction with last department store purchased from – Buy/reserve online and collect in-store service, by demographics, March 2014
Figure 269: Next most popular level of satisfaction with last department store purchased from – Buy/reserve online and collect in-store service, by demographics, March 2014
 APPENDIX – THE CONSUMER – WHAT WOULD ENCOURAGE CONSUMERS TO SHOP MORE AT DEPARTMENT STORES
Figure 270: Most popular what would encourage them to shop more at a department store, by demographics, March 2014
Figure 271: Next most popular what would encourage them to shop more at a department store, by demographics, March 2014
Figure 272: Other what would encourage them to shop more at a department store, by demographics, March 2014
ARNOTTS
What we think
Company background
Company performance
Figure 273: Arnotts: Estimated group sales performance, 2008/09-2013/14
Stores
Figure 274: Arnotts: Outlet data, 2008/09-2013/14
Retail offering
BEALES
What we think
Figure 275: Beale Plc: Group financial performance, 2008/09-2012/13
Figure 276: Beale Plc: Outlet data, 2008/09-2012/13
BROWN THOMAS
What we think
Company background
Company performance
Figure 277: Brown Thomas: Group financial performance, 2008/09-2013/14
Figure 278: Brown Thomas: Outlet data, 2008/09-2012/13
Retail offering
COIN
What we think
Company background
Company performance
Figure 279: Coin department stores: Financial performance, 2009/10-2013/14
Figure 280: Coin department stores: Outlet data, 2008/09-2013/14
Retail offering
DE BIJENKORF
What we think
Company background
Company performance
Figure 281: de Bijenkorf: Estimated sales performance, excl. sales tax, 2009/10-2013/14
Figure 282: de Bijenkorf: Outlet data, 2008/09-2013/14
Retail offering
DEBENHAMS
 WHAT WE THINK
Company background
Company performance
Figure 283: Debenhams: Group financial performance, 2008/09-2012/13
Figure 284: Debenhams: Outlet data, 2008/09-2012/13
Retail offering
EL CORTE INGLÉS
What we think
Company background
Company performance
Figure 285: El Corte Inglés: Department store financial performance, 2008/09-2013/14
Figure 286: El Corte Inglés: department stores outlet data, 2008/09-2013/14
Retail offering
FENWICK
What we think
Company background
Company performance
Figure 287: Fenwick Ltd: Group Financial Performance, 2008/09-2013/14
Figure 288: Fenwick Ltd: Outlet Data, 2009-14
Retail offering
GALERIES LAFAYETTE (GROUP)
What we think
Company background
Company performance
Figure 289: Groupe Galeries Lafayette (Department stores only), sales performance, excl. sales tax, 2009-13
Figure 290: Groupe Galeries Lafayette (Department stores only), outlet data, 2009-13
Retail offering
HARRODS
What we think
Company background
Company performance
Figure 291: Harrods Ltd: Group Financial Performance, 2009/10-2013/14
Figure 292: Harrods Ltd: Outlet Data, 2010-14
Retail offering
HARVEY NICHOLS
What we think
Company background
Company performance
Figure 293: Harvey Nichols: Group financial performance, 2009-14
Figure 294: Harvey Nichols: Outlet data, 2009-2013
Figure 295: Harvey Nichols International Stores, 2013
Retail offering
HOUSE OF FRASER
What we think
Company background
Company performance
Figure 296: House of Fraser: Financial performance, 2008/09-2013/14
Figure 297: House of Fraser: Outlet data, 2008/09-2012/13
Retail offering
JOHN LEWIS
 WHAT WE THINK
Company background
Company performance
Figure 298: John Lewis: Department store financial performance, 2008/09-2013/14
Figure 299: John Lewis: department stores outlet data, 2008/09-2013/14
Retail offering
KARSTADT DEPARTMENT STORES
What we think
Company background
Company performance
Figure 300: Karstadt Department Stores: Group sales performance, 2008/09-2012/13
Figure 301: Karstadt Department Stores: Outlet data, 2008/09-2012/13
Retail offering
GALERIA KAUFHOF
What we think
Company background
Company performance
Figure 302: Kaufhof: Group financial performance, 2008/09-2012/13
Figure 303: Kaufhof: Outlet data, 2008/09-2012/13
Retail offering
LE BON MARCHÉ
What we think
Company background
Company performance
Figure 304: LVMH Selective Retail, financial performance, 2009-13
Figure 305: Le Bon Marché: Sales performance, excl. VAT, 2009-13
Stores
Figure 306: Le Bon Marché: Outlet data, 2008/09-2012/13
Retail offering
MARKS & SPENCER
What we think
Company background
Company performance
Figure 307: Marks & Spencer, UK like-for-like growth, 2012/13, 2013/14
Figure 308: Marks & Spencer: Group financial performance, 2008/09-2013/14
Figure 309: Marks & Spencer store portfolio, September 2013
Figure 310: Marks & Spencer: Estimated sales area breakdown, September 2013
Figure 311: Marks & Spencer: Outlet data, 2008/09-2013/14
Retail offering
PRINTEMPS
What we think
Company background
Company performance
Figure 312: Printemps: Sales performance, excl. sales tax, 2009/10-2013/14
Figure 313: Printemps: Outlet data, 2009/10-2013/14
Retail offering
LA RINASCENTE (DEPARTMENT STORES)
What we think
Company background
Company performance
Figure 314: Rinascente (Department Stores): Estimated group sales performance, 2010-13
Figure 315: Rinascente (Department Stores): Outlet data, 2010-13
Retail offering
SELFRIDGES
Figure 316: Selfridges: Group financial performance, 2009/10-2013/14
Figure 317: Selfridges: Outlet Data, 2010-14
Figure 318: Selfridges store portfolio, 2013
V&D
What we think
Company background
Company performance
Figure 319: V&D: financial performance, 2008/09-2013/14
Figure 320: V&D: Outlet data, 2008/09-2013/14
Retail offering
APPENDIX – BROADER MARKET ENVIRONMENT
Online
Figure 321: Europe: Percentage of households with a broadband internet connection, by country, 2009-13
Figure 322: Europe: Percentage of all individuals accessing the internet daily, 2009-13
Consumer confidence
Figure 323: Europe: Consumer confidence levels, April 2013 – March 2014
Population
Figure 324: Europe: Population, total and by age group, 2010
Figure 325: Europe: Forecast population, total and by age group, 2015
Figure 326: Europe: Forecast population, total and by age group, 2015
Gross domestic product
Figure 327: Europe: Gross domestic product, at current prices, 2012
Figure 328: Europe: Real-terms year-on-year GDP growth, 2009-14
Consumer spending
Figure 329: Europe: Consumer spending, at current prices, 2012
Figure 330: Europe: Real-terms year-on-year growth in consumer spending, 2009-12
Inflation
Figure 331: Europe: Harmonised indices of consumer prices – annual % change, all items, 2009-13
Interest rates
Figure 332: Europe: Central bank interest rates, 2009-14
APPENDIX – THE CONSUMER: EUROPEAN COMPARISONS
Figure 333: Department stores bought from in the past six months, France, February 2014
Figure 334: Department stores bought from in the past six months, Germany, February 2014
Figure 335: Department stores* bought from in the past six months, Italy, February 2014
Figure 336: Department stores* bought from in the past six months, Spain, February 2014
Figure 337: Items bought from a department store, France, February 2014
Figure 338: Items bought from a department store, Germany, February 2014
Figure 339: Items bought from a department store*, Italy, February 2014
Figure 340: Items bought from a department store*, Spain, February 2014
Figure 341: Satisfaction with department stores, by country, February 2014
France
Figure 342: Department stores bought from in the past six months – In-store or online, by demographics, France, February 2014
Figure 343: Department stores bought from in the past six months – In-store, by demographics, France, February 2014
Figure 344: Department stores bought from in the past six months – Online, by demographics, France, February 2014
Figure 345: Most popular items bought from a department store – In-store or online, by demographics, France, February 2014
Figure 346: Next most popular items bought from a department store – In-store or online, by demographics, France, February 2014
Figure 347: Other items bought from a department store – In-store or online, by demographics, France, February 2014
Figure 348: Least popular items bought from a department store – In-store or online, by demographics, France, February 2014
Figure 349: Satisfaction with department stores – Prices/value for money, by demographics, France, February 2014
Figure 350: Satisfaction with department stores – Customer service, by demographics, France, February 2014
Figure 351: Satisfaction with department stores – Product availability, by demographics, France, February 2014
Figure 352: Satisfaction with department stores – Ease of navigation within the store^, by demographics, France, February 2014
Figure 353: Satisfaction with department stores – Store standards^, by demographics, France, February 2014
Figure 354: Satisfaction with department stores – Waiting time at check-out ^, by demographics, France, February 2014
Figure 355: Satisfaction with department stores – Option to buy/reserve online and collect in-store ^^, by demographics, France, February 2014
Figure 356: Satisfaction with department stores – Fashionable clothing offer, by demographics, France, February 2014
Figure 357: Satisfaction with department stores – Product quality, by demographics, France, February 2014
Figure 358: Satisfaction with department stores – Delivery options, by demographics, France, February 2014
Figure 359: Satisfaction with department stores – Ease of use of the website ^^, by demographics, France, February 2014
Figure 360: Satisfaction with department stores – In-store services^, by demographics, France, February 2014
Germany
Figure 361: Department stores bought from in the past six months – In-store or online, by demographics, Germany, February 2014
Figure 362: Department stores bought from in the past six months – In-store, by demographics, Germany, February 2014
Figure 363: Department stores bought from in the past six months – Online, by demographics, Germany, February 2014
Figure 364: Most popular items bought from a department store – In-store or online, by demographics, Germany, February 2014
Figure 365: Next most popular items bought from a department store – In-store or online, by demographics, Germany, February 2014
Figure 366: Other items bought from a department store – In-store or online, by demographics, Germany, February 2014
Figure 367: Least popular items bought from a department store – In-store or online, by demographics, Germany, February 2014
Figure 368: Satisfaction with department stores – Prices/value for money, by demographics, Germany, February 2014
Figure 369: Satisfaction with department stores – Customer service, by demographics, Germany, February 2014
Figure 370: Satisfaction with department stores – Product availability, by demographics, Germany, February 2014
Figure 371: Satisfaction with department stores – Ease of navigation within the store^, by demographics, Germany, February 2014
Figure 372: Satisfaction with department stores – Store standards^, by demographics, Germany, February 2014
Figure 373: Satisfaction with department stores – Waiting time at check-out ^, by demographics, Germany, February 2014
Figure 374: Satisfaction with department stores – Option to buy/reserve online and collect in-store ^^, by demographics, Germany, February 2014
Figure 375: Satisfaction with department stores – Fashionable clothing offer, by demographics, Germany, February 2014
Figure 376: Satisfaction with department stores – Product quality, by demographics, Germany, February 2014
Figure 377: Satisfaction with department stores – Delivery options, by demographics, Germany, February 2014
Figure 378: Satisfaction with department stores – Ease of use of the website ^^, by demographics, Germany, February 2014
Figure 379: Satisfaction with department stores – In-store services^, by demographics, Germany, February 2014
Italy
Figure 380: Department stores* bought from in the past six months – In-store or online, by demographics, Italy, February 2014
Figure 381: Most popular items bought from a department store* – In-store or online, by demographics, Italy, February 2014
Figure 382: Next most popular items bought from a department store* – In-store or online, by demographics, Italy, February 2014
Figure 383: Other items bought from a department store* – In-store or online, by demographics, Italy, February 2014
Figure 384: Least popular items bought from a department store* – In-store or online, by demographics, Italy, February 2014
Figure 385: Satisfaction with department stores – Prices/value for money, by demographics, Italy, February 2014
Figure 386: Satisfaction with department stores – Customer service, by demographics, Italy, February 2014
Figure 387: Satisfaction with department stores – Product availability, by demographics, Italy, February 2014
Figure 388: Satisfaction with department stores – Ease of navigation within the store^, by demographics, Italy, February 2014
Figure 389: Satisfaction with department stores – Store standards^, by demographics, Italy, February 2014
Figure 390: Satisfaction with department stores – Waiting time at check-out ^, by demographics, Italy, February 2014
Figure 391: Satisfaction with department stores – Fashionable clothing offer, by demographics, Italy, February 2014
Figure 392: Satisfaction with department stores – Product quality, by demographics, Italy, February 2014
Figure 393: Satisfaction with department stores – Delivery options, by demographics, Italy, February 2014
Figure 394: Satisfaction with department stores – In-store services^, by demographics, Italy, February 2014
Spain
Figure 395: Department stores** bought from in the past six months – In-store or online, by demographics, Spain, February 2014
Figure 396: Most popular items bought from a department store** – In-store or online, by demographics, Spain, February 2014
Figure 397: Next most popular items bought from a department store** – In-store or online, by demographics, Spain, February 2014
Figure 398: Other items bought from a department store** – In-store or online, by demographics, Spain, February 2014
Figure 399: Least popular items bought from a department store** – In-store or online, by demographics, Spain, February 2014
Figure 400: Satisfaction with department stores – Prices/value for money, by demographics, Spain, February 2014
Figure 401: Satisfaction with department stores – Customer service, by demographics, Spain, February 2014
Figure 402: Satisfaction with department stores – Product availability, by demographics, Spain, February 2014
Figure 403: Satisfaction with department stores – Ease of navigation within the store^, by demographics, Spain, February 2014
Figure 404: Satisfaction with department stores – Store standards^, by demographics, Spain, February 2014
Figure 405: Satisfaction with department stores – Waiting time at check-out ^, by demographics, Spain, February 2014
Figure 406: Satisfaction with department stores – Option to buy/reserve online and collect in-store ^^, by demographics, Spain, February 2014
Figure 407: Satisfaction with department stores – Fashionable clothing offer, by demographics, Spain, February 2014
Figure 408: Satisfaction with department stores – Product quality, by demographics, Spain, February 2014
Figure 409: Satisfaction with department stores – Delivery options, by demographics, Spain, February 2014
Figure 410: Satisfaction with department stores – Ease of use of the website ^^, by demographics, Spain, February 2014
Figure 411: Satisfaction with department stores – In-store services^, by demographics, Spain, February 2014
APPENDIX – UK BRAND RESEARCH
Figure 412: Brand usage, January 2014
Figure 413: Brand usage, November 2013
Figure 414: Brand commitment, November 2013 and January 2014
Figure 415: Brand momentum, November 2013 and January 2014
Figure 416: Brand diversity, November 2013 and January 2014
Figure 417: Brand satisfaction, November 2013 and January 2014
Figure 418: Brand recommendation, November 2013 and January 2014
Figure 419: Brand attitude, November 2013 and January 2014
Figure 420: Brand image – Macro image, November 2013 and January 2014
Figure 421: Brand image – Micro image, November 2013 and January 2014