Footwear Retailing - Italy - April 2017

OVERVIEW
What you need to know
Areas covered in this report
EXECUTIVE SUMMARY
The market
Spending and inflation
Figure 1: Italy: Consumer spending on clothing and footwear (incl. VAT), 2012-16
Channels of distribution
Figure 2: Italy: Estimated channels of distribution for footwear spending, 2015/16
Sector size and forecast
Leading players
Figure 3: Italy: Leading footwear specialists: Compound annual growth rates in net revenues, 2013-15
Market shares
Figure 4: Italy: Leading specialist footwear retailers: Shares of specialist footwear retailers’ sales, 2015
Online
The consumer
Who shops for footwear
Figure 5: Italy: Who has bought footwear for themselves over the last 12 months, in-store or online, by gender, February 2017
Where they shop for footwear
Figure 6: Italy: Where they shop for footwear, in-store or online, February 2017
Attitudes to shopping for footwear
Figure 7: Italy: Attitudes to shopping for footwear, February 2017
What we think
ISSUES AND INSIGHTS 
Footwear retailing in Italy is changing
The facts
The implications
Opportunities for retailers in Italy’s developing retail economy
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
The economy is growing, moderately
Footwear more resilient than clothing
Footwear specialists account for 70% of distribution
Footwear specialists proving resilient
MARKET SIZE 
Slow economic growth
Market size and trend
Figure 8: Italy: Consumer spending on footwear and clothing (incl. VAT), 2012-16
Figure 9: Italy: Index of volume spending on footwear and clothing, (Previous year=100), 2011-15
Inflation
Figure 10: Italy: Consumer prices, annual % change, 2012-16
Figure 11: Italy: Consumer price inflation on footwear, clothing and all items annual % change, July 2015-December 2016
MARKET SEGMENTATION
Figure 12: Italy: Consumer spending on footwear (incl. VAT), 2012-20
Figure 13: Italy: Consumer spending on footwear by segment, 2012-15
CHANNELS OF DISTRIBUTION
Figure 14: Italy: Where they shop for footwear, in-store or online, February 2017
Footwear specialists account for 70% of distribution
Sports retailers
Clothing/fashion retailers
Hypermarkets and supermarkets
Department stores
Online retailers
Figure 15: Italy: Estimated channels of distribution for footwear spending, 2015/16
SECTOR SIZE AND FORECAST
Specialists proving resilient
Other channels may increase share
Figure 16: Italy: Estimated footwear specialists’ sales, excl VAT, 2011-16
Figure 17: Italy: Clothing and footwear specialists’ sales, Forecasts, excl VAT, 2017-21
LEADING PLAYERS – WHAT YOU NEED TO KNOW
Globo leads in sales, but Bata has most stores
Busy mass market
Foot Locker growing
A fragmented market, but consolidation in progress
Online undeveloped but growing via the mobile channel
Specialists missing out online
LEADING PLAYERS
Globo leads
Bata still strong
PittaRosso and Pittarello – Similar but different chains
Geox
Tods
Deichmann
Specialist sports footwear shops expanding
Vergelio – Small but part of the Percassi group
Figure 18: Italy: Leading specialist footwear retailers, Sales, 2013-15
Figure 19: Italy: Leading specialist footwear retailers, Outlet numbers, 2016/17
MARKET SHARES
Figure 20: Italy: Leading specialist footwear retailers: Shares of specialist footwear retailers’ sales, 2013-15
ONLINE
Online activity and device usage
Shopping online
Figure 21: Italy: Percentage buying online in last 12 months, 2011-16
Online sales
Online market leaders
THE CONSUMER – WHAT YOU NEED TO KNOW
Footwear shopping near ubiquitous; online well established
Specialists and independents are the most popular channels
Online only retailers well established, Amazon leads
Footwear specialists lagging online
Comfort and quality are top priorities
To appeal to the young…..
To appeal to the affluent…..
WHO SHOPS FOR FOOTWEAR 
Over 90% had bought over the last year, women buy more
Figure 22: Italy: Who has bought footwear for themselves over the last 12 months, by gender, February 2017
WHERE THEY SHOP FOR FOOTWEAR 
Specialists and independents the most popular channels
Online-only retailers well established, Amazon leads
Figure 23: Italy: Where they shop for footwear, in-store or online, February 2017
Shopping in-store
Specialists and independents dominate
Sports shops in third place, more popular with men
Figure 24: Italy: Where they shop for footwear in-store, by gender, February 2017
Figure 25: Italy: Where they shop for footwear in-store, by age, February 2017
Figure 26: Italy: Where they shop for footwear in-store, by gender and age, February 2017
Figure 27: Italy: Profile of those who had bought footwear in-store, by type of retailer used, February 2017
Shopping online
Online-only retailers just ahead of the store-based retailers
But footwear specialists lag behind other retailers online
Amazon the largest single retailer
Figure 28: Italy: Where they shop for footwear online, by gender, February 2017
Figure 29: Italy: Where they shop for footwear online, by age and gender, February 2017
Figure 30: Italy: Profile of those who had bought footwear online, by type of retailer used, February 2017
ATTITUDES TO SHOPPING FOR FOOTWEAR
Comfort and quality are top priorities
Figure 31: Italy: Attitudes to shopping for footwear, February 2017
Opportunity for stores to promote help with shoe fitting
“Made in Italy” a big draw
Wide variation in perception that leather means quality
Interest in sustainably-made footwear and services to make shoes last high amongst young women
Figure 32: Italy: Attitudes to shopping for footwear, by age and gender, February 2017
Figure 33: Italy: Attitudes to shopping for footwear, by age and gender, February 2017
Figure 34: Italy: Profile of those who agree with attitudes statements, February 2017
Reasons for shopping crossed by individual retailer
Figure 35: Italy: Attitudes to shopping for footwear, by retailer used, February 2017
APPENDIX - DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
C&J CLARK 
What we think
Clarks brand still strong but needs to shift perceptions
Slow to latch on to Athleisure growth
A need to build a multichannel business
Reorganising to improve efficiency
Moving towards more structured promotional periods
Company background
Company performance
Figure 36: C&J Clark (UK): group financial performance, 2012/13-2016/17
Figure 37: C&J Clark (UK): outlet data, 2012/13-2016/17
Figure 38: C&J Clark: European stores outside UK & RoI, April 2017
Retail offering
DEICHMANN SCHUH
What we think
Rack concept helps Deichmann stand out
Diversifying the brand portfolio
Expanding geographically
Omnichannel outlets merge shops and online
Ship2Home responds to customer disappointment
Ellie Goulding collection taps into celebrity interest
Where now?
Company background
Company performance
Figure 39: Deichmann Schuh: group financial performance, 2012-16
Figure 40: Deichmann Schuh: outlet data, 2012-16
Retail offering