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Department Stores - Europe - April 2015

INTRODUCTION AND REPORT SCOPE
Department store definition
Mixed goods retailers
Statutory revenues versus GTV
Financial definitions
Currencies
Figure 1: Euro to Pound exchange rates, 2008-14
Sales per store, sales per sq m
VAT rates
Figure 2: Europe: VAT rates, 2011-14
Abbreviations
EXECUTIVE SUMMARY – EUROPE – THE MARKET
Key points
The department store sector size
Figure 3: Big five European countries: Estimated department store sector sales by country, 2012-14
Figure 4: Big five European countries:  Department store sector prospects by country for 2015
Broader mixed goods sector: historic and forecast performance
Figure 5: Big five European countries: Department store retailers as % of all mixed goods retailers’ sales, 2012-14
Figure 6: Big five European countries:  Mixed goods retailers’ sales by country (excl. VAT), 2009-14
Figure 7: Big five European countries: Mixed goods retailers’ sales forecasts (excl. VAT), 2014-20
Figure 8: Big five European countries: Historic and forecast growth of mixed goods retailers’ sales (CAGR), 2009-20
Consumer confidence
Figure 9: Big five European countries: Consumer confidence indicator, 2014-15
Online
Figure 10: Big five European countries: Proportion of the population having bought online in the last 12 months, 2010-14
Figure 11: Big five European countries: Proportion of the population having bought clothing or sports goods online in the last 12 months, 2010-14
Figure 12: Big five European countries: Internet retail sales, 2014
Figure 13: Big five European countries: Internet retail sales as % of all retail sales, by country, 2010-14
Department stores online
Europe’s leading department stores
Figure 14: Big five European countries: Leading department store retailers’ share of European department store sales, 2012-14
Figure 15: Big five European countries: Leading department store retailers’ reported net revenues, 2010-14
Figure 16: Europe: Leading department store retailers’ outlet numbers, 2010-14
What we think
France
Germany
Italy
Spain
UK
EXECUTIVE SUMMARY – EUROPE – THE CONSUMER
Key points
Where they shop
Figure 17: Europe: Where they bought in-store and online in country of domicile in the last six months, February 2015
Results in detail by country
France
Figure 18: France: The consumer: Where they visited and bought in the last six months, February 2015
Germany
Figure 19: Germany: The consumer – Where they visited and bought in the last six months, February 2015
Italy
Figure 20: Italy: The consumer – Where they visited and bought in the last six months, February 2015
Spain
Figure 21: Spain: The consumer: Named department stores bought from in the past six months, February 2015
UK
Figure 22: UK: Department stores purchased from in the last six months, whether in-store or online, February 2015*
Where consumers purchase – online/in-store split
Figure 23: UK: Department stores purchased from in the last six months, in-store and online, February 2015
Shopping at foreign department stores
Figure 24: Europe: The consumer – Those shopping at foreign department stores in the last six months, by country, February 2015
Attitudes towards department stores
Figure 25: Europe: The consumer – Attitudes towards department stores, February 2015
UK
Figure 26: UK: What would encourage consumers to shop more at a department store, February 2015
EUROPEAN SUMMARY – LAUNCH ACTIVITY AND INNOVATION
Key points
Touchscreen mirror technology
Digital fitting room
Targeting Chinese tourists
New shoe department
Click&car
Macy’s implements technology
FRANCE
 EXECUTIVE SUMMARY
Spending and inflation – Department store categories
Figure 27: France: Harmonised indices of consumer prices: Annual % change, 2010-Jan 2015
Department stores’ share of clothing and beauty markets
Department store sector size and forecast
The leading department stores
Department stores online
The consumer – Where they shop
Figure 28: France: The consumer: Department stores purchased from in the past six months, whether in-store or online, February 2015
The consumer – Attitudes to department stores
Figure 29: France: The consumer: Attitudes to department stores, February 2015
What we think
 ISSUES AND INSIGHTS
Paris vs the provinces
The facts
The implications
Online is a seriously missed opportunity
The facts
The implications
 SPENDING AND INFLATION – DEPARTMENT STORE CATEGORIES
Key points
Figure 30: France: Spending on key department store product markets, (incl. VAT), at current prices, 2009-14
Retailer and consumer confidence
Figure 31: France: Consumer confidence and retail confidence levels, January 2014-February 2015
Inflation (and deflation)
Figure 32: France: Harmonised indices of consumer prices: Annual % change, 2010-Jan 2015
Figure 33: France: Harmonised indices of consumer prices: Annual % change, 2010-14
 DEPARTMENT STORES’ SHARE OF CLOTHING & BEAUTY MARKETS
Key points
Department stores are a major channel in clothing
Figure 34: France: Where people shopped for clothing in the last 12 months, Aug 2014
Figure 35: France: Estimated channels of distribution for clothing and footwear, 2013
Department stores’ share of the beauty market
Figure 36: France: Retailers used to purchase beauty products, November 2014
Figure 37: France: Estimated channels of distribution of spending on beauty and personal care goods, 2013
 DEPARTMENT STORE SECTOR SIZE AND FORECAST
Key points
Department store sector size
Figure 38: France: Department store sector estimated sales (excl. VAT), 2012-14
Mixed goods retailers sector
Figure 39: France: Mixed goods retailers’ sales (excl. VAT), 2009-14
Figure 40: France: Mixed goods retailers’ sales forecasts (excl. VAT), 2015-20
 LEADING DEPARTMENT STORES – FINANCIALS AND OUTLETS
Key points
Huge disparity between Parisian flagships and the rest of the country
Investing in new and existing stores
But facing up to realities outside the capital
Figure 41: France: Leading department stores retailers’ sales, 2012-14
Figure 42: France: Leading department store retailers, store numbers, 2012-14
Figure 43: France: Leading department store retailers’ annual sales per outlet, 2012-14
 LEADING DEPARTMENT STORES – MARKET SHARES
Figure 44: France: Leading department store retailers’ shares of Mixed goods retailers’ sales, 2012-14
 ONLINE
Key points
The online shopper
Figure 45: France: Percentage of all individuals having purchased online in the past 12 months, selected categories, 2010-14
Department stores online
Figure 46: France: Online visitor data, September 2014
 THE CONSUMER – WHERE THEY SHOP
Key points
What we asked
Where they shop – Galeries Lafayette most popular
Figure 47: France: The consumer: Department stores purchased from in the past six months, whether in-store or online, February 2015
Figure 48: France: The consumer: Department stores visited and purchased from in the past six months, February 2015
The online/offline split
Figure 49: France: The consumer: Department stores purchased from in the past six months, in-store and online, February 2015
Figure 50: France: The consumer: Department stores visited and purchased from online in the past six months, February 2015
Customer profiles
Figure 51: France: The consumer: Department stores visited in the past six months, whether in-store or online, average age and affluence, February 2015
 THE CONSUMER – ATTITUDES TO SHOPPING AT DEPARTMENT STORES
Key points
What we asked
Figure 52: France: The consumer: Attitudes to department stores, February 2015
Figure 53: France: The consumer: Attitudes to department stores, February 2015
GERMANY
 EXECUTIVE SUMMARY
Spending and inflation – Department store categories
Figure 54: Germany: Spending on key department store categories as % of all consumer spending, 2009-14
Figure 55: Germany: Harmonised indices of consumer prices: Annual % change, 2010-Dec 2014
Department stores’ share of clothing and beauty markets
Department store sector size and forecast
The leading department stores
Department stores online
The consumer – Where they shop
Figure 56: Germany: The consumer: Department stores purchased from in the past six months, whether in-store or online, February 2015
The consumer – Attitudes to department stores
Figure 57: Germany: The consumer: Attitudes to department stores, February 2015
What we think
 ISSUES AND INSIGHTS
Internet pureplayers are way ahead of department stores in clothing
The facts
The implications
Department stores can attract younger consumers online
The facts
The implications
 SPENDING AND INFLATION – DEPARTMENT STORE CATEGORIES
Key points
Consumer spending
Figure 58: Germany: Spending on key department store product markets, (incl. VAT), at current prices, 2009-14
Retail and consumer confidence
Figure 59: Germany: Consumer confidence and retail confidence levels, January 2014-February 2015
Inflation
Figure 60: Germany: Harmonised indices of consumer prices: Annual % change, 2010-Dec 2014
Figure 61: Germany: Harmonised indices of consumer prices: Annual % change, 2010-14
 DEPARTMENT STORES’ SHARE OF CLOTHING AND BEAUTY MARKETS
Key points
Department stores now only the fourth largest channel for clothing
Figure 62: Germany: Estimated channels of distribution for clothing, 2013
Figure 63: Germany: Estimated distribution of consumer spending on clothing, by value, in € (incl VAT), 2012-14
Figure 64: Germany: Retailers used to buy clothes in-store or online in the last 12 month, Germany, August 2014
Department stores’ share of the beauty market
Figure 65: Germany: Channels of distribution for personal care products, 2013
Figure 66: Germany: Retailers used to purchase make-up, skincare products, fragrances and/or aftershave products, November 2014
 DEPARTMENT STORE SECTOR SIZE AND FORECAST
Key points
Department store sector sales fall slightly to €6.5bn
Figure 67: Germany: Mixed goods retail sales (excl. VAT), 2009-14
Figure 68: Germany: Mixed goods retail sales forecasts (excl. VAT), 2015-2020
 LEADING DEPARTMENT STORES – FINANCIALS AND OUTLETS
Key points
Midmarket operators beset by stagnant or declining sales
Galeria Kaufhof seems more secure while Karstadt struggles on
Premium segment
Figure 69: Germany: Leading department stores retailers’ net revenues, 2012-14
Figure 70: Germany: Leading department store retailers’ store numbers, 2012-14
Figure 71: Germany: Leading department store retailers’ annual sales per outlet, 2012-14
 LEADING DEPARTMENT STORES - MARKET SHARES
Figure 72: Germany: Leading department store retailers’ shares of Mixed goods retailers’ sales, 2012-14
 ONLINE
Key points
The online shopper
Figure 73: Germany: Percentage of all individuals having purchased online in the past 12 months, selected categories, 2010-14
Department stores online
Figure 74: Germany: Online visitor data, September 2014
 THE CONSUMER – WHERE THEY SHOP
Key points
What we asked
Where they shop: Galeria Kaufhof most popular
Figure 75: Germany: The consumer: Department stores purchased from in the past six months, whether in-store or online, February 2015
Figure 76: Germany: The consumer: Department stores visited and purchased from in the past six months, February 2015
The online/offline split
Figure 77: Germany: The consumer: Department stores purchased from in the past six months, in-store and online, February 2015
Figure 78: Germany: The consumer: Department stores visited and purchased from online in the past six months, February 2015
Customer profiles
Figure 79: Germany: The consumer: Department stores visited in the past six months, whether in-store or online, average age and affluence, February 2015
 THE CONSUMER – ATTITUDES TO SHOPPING AT DEPARTMENT STORES
Key points
What we asked
Figure 80: Germany: The consumer: Attitudes to department stores, February 2015
Figure 81: Germany: The consumer: Attitudes to department stores, February 2015
ITALY
 EXECUTIVE SUMMARY
Spending and inflation – Department store categories
Figure 82: Italy: Harmonised indices of consumer prices: Annual % change, 2010-January 2015
Department stores’ share of clothing and beauty markets
Department store sector size and forecast
The leading department stores
Department stores online
The consumer – Where they shop
Figure 83: Italy: The consumer: Where they visited and bought, February 2015
The consumer – Attitudes towards department stores
Figure 84: Italy: The consumer: Attitudes towards department stores, February 2015
What we think
 ISSUES AND INSIGHTS
Can Coin and La Rinascente tap in to the appetite for online shopping?
The facts
The implications
Are department stores meeting customer needs in fashion?
The facts
The implications
 SPENDING AND INFLATION – DEPARTMENT STORE CATEGORIES
Key points
Figure 85: Italy: Spending on key department store product markets, (incl. VAT), at current prices, 2010-14
Retailer and consumer confidence
Figure 86: Italy: Consumer confidence and retail confidence levels, January 2014-February 2015
Inflation (and deflation)
Figure 87: Italy: Harmonised indices of consumer prices: Annual % change, 2010-14
Figure 88: Italy: Harmonised indices of consumer prices: Annual % change, 2010-January 2015
 DEPARTMENT STORES’ SHARE OF CLOTHING AND BEAUTY MARKETS
Key points
Department stores are a major channel in clothing
Figure 89: Italy: The consumer: Where they bought clothing in the past 12 months, August 2014
Figure 90: Italy: Estimated distribution of spending on clothing, by retail sector, 2013
Department stores share of the beauty market
Figure 91: Italy: The consumer: Where they bought beauty products in the past 12 months, November 2014
Figure 92: Italy: Estimated distribution of spending on personal care products, by retail sector, 2013
 DEPARTMENT STORE SECTOR SIZE AND FORECAST
Key points
Department store sector size
Figure 93: Italy: department store sector estimated sales (excl. VAT), 2010-2014
Mixed goods retailers sector
Figure 94: Italy: Mixed goods retail sales (excl. VAT), 2009-14
Figure 95: Italy: Mixed goods retail sales forecasts (excl. VAT), 2015-20
 LEADING DEPARTMENT STORES – FINANCIALS AND OUTLETS
Key points
Other department store operators
Figure 96: Italy: Leading Department stores retailers’ estimated net revenues, 2010-14
Figure 97: Italy: Leading Department store retailers’ store numbers, 2010-14
Figure 98: Italy: Leading Department store retailers’ annual sales per outlet, 2010-14
 LEADING DEPARTMENT STORES – MARKET SHARES
Figure 99: Italy: Leading department store retailers’ shares of department store sector, 2010-14
Figure 100: Italy: Leading department store retailers’ shares of mixed goods retailers sector, 2010-14
 ONLINE
Key points
The online shopper
Figure 101: Italy: Percentage of all individuals having purchased online in the past 12 months, selected categories, 2010-14
Department stores online
 THE CONSUMER – WHERE THEY SHOP
Key points
What we asked
Department stores not heavily used
Coin and La Rinascente attract more buyers than visitors
Figure 102: Italy: The consumer: Where they visited and bought in the previous six months, February 2015
Italians more likely to shop in foreign department stores
Figure 103: Europe: The consumer: Those shopping at foreign department stores in the previous six months, by country, February 2015
20-34 year olds the key department store customer
Figure 104: Italy: The consumer: Where they bought in the previous six months, by age, February 2015
Coin has broader appeal
Figure 105: Italy: The consumer: Where they bought in the previous six months, by household income, February 2015
 THE CONSUMER – ATTITUDES TO SHOPPING AT DEPARTMENT STORES
Key points
What we asked
Italians want to shop online
Scope to improve in-store services
Figure 106: Italy: The consumer: Attitudes towards department stores, February 2015
Fashion opportunities
Figure 107: Italy: The consumer: Attitudes towards the clothing offer in department stores, February 2015
The affluent least satisfied with choice of sizes
Figure 108: Italy: The consumer: Attitudes towards the clothing offer in department stores, February 2015
Men and smartphones
Figure 109: Italy: The consumer: Attitudes towards using smartphones for department store shopping, February 2015
SPAIN
 EXECUTIVE SUMMARY
Spending and inflation – Department store categories
Department stores’ share of clothing and beauty markets
Department store sector size and forecast
The leading department stores
Department stores online
The consumer – Where they shop
Figure 110: Spain: The consumer: Type of store bought from in the last six months, February 2015
The consumer – Attitudes to shopping at department stores
Figure 111: Spain: The consumer: Attitudes towards shopping at department stores, February 2015
What we think
 ISSUES AND INSIGHTS
ECI needs to focus on converting younger browsers to buyers
The facts
The implications
More work to be done online
The facts
The implications
 SPENDING AND INFLATION – DEPARTMENT STORE CATEGORIES
Key points
Figure 112: Spain: Spending on key department store product markets, (incl. VAT), at current prices, 2009-14
Retailer and consumer confidence
Figure 113: Spain: Consumer confidence and retail confidence levels, January 2014-February 2015
Inflation (and deflation)
Figure 114: Spain: Harmonised indices of consumer prices: Annual % change, 2010-14
Figure 115: Spain: Harmonised indices of consumer prices: Annual % change, 2010-January 2015
 DEPARTMENT STORES’ SHARE OF CLOTHING & BEAUTY MARKETS
Key points
Figure 116: Spain: Estimated distribution of spending on clothing, by retail sector, 2013
Figure 117: Spain: The consumer: Where they have bought clothing in the past 12 months, selected options, August 2014
Figure 118: Spain: Estimated distribution of spending on personal care products, by retail sector, 2013
Figure 119: Spain: The consumer: Where they have bought beauty products in the past 12 months, selected options, November 2014
 DEPARTMENT STORE SECTOR SIZE AND FORECAST
Key points
ECI improving while mixed goods sector struggles
Figure 120: Spain: Mixed goods retail sales (excl. VAT), 2009-14
Figure 121: Spain: Mixed goods retail sales forecasts (excl. VAT), 2015-20
 LEADING DEPARTMENT STORES – FINANCIALS AND OUTLETS
Figure 122: Spain: Leading department stores retailers’ net revenues, 2011-14
Figure 123: Spain: Leading department store retailers’ store numbers, 2011-14
Figure 124: Spain: Leading department store retailers’ annual sales per outlet, 2011-14
 LEADING DEPARTMENT STORES – MARKET SHARES
Figure 125: Spain: Leading Department store retailers’ share of Mixed goods retailers’ sales, 2011-14
 ONLINE
Key points
The online shopper
Figure 126: Spain: Percentage of all individuals having purchased online in the past 12 months, selected categories, 2010-14
Department stores online
Figure 127: Spain: Online visitor data, September 2014
 THE CONSUMER – WHERE THEY SHOP
Key points
What we asked
Where they shop: El Corte Inglés is the sole domestic player
Figure 128: Spain: The consumer: Type of store bought from in the last six months, February 2015
Purchasing behaviour on- and offline
Figure 129: The Consumer: El Corte Inglés – Purchasing behaviour in-store and online, February 2015
Figure 130: The Consumer: El Corte Inglés – Purchasing behaviour in-store and online, by age, February 2015
 THE CONSUMER – ATTITUDES TO SHOPPING AT DEPARTMENT STORES
Key points
What we asked
Figure 131: Spain: The consumer: Attitudes towards shopping at El Corte Inglés, February 2015
Figure 132: Spain: The consumer: Attitudes towards shopping at El Corte Inglés, by age, selected statements, February 2015
UK
 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 133: Best- and worst-case forecast for department store sales, 2009-19
Market factors
Consumer spending
Figure 134: Consumer spending on core department store categories, 2009-14
Foreign visitors
Figure 135: Overseas residents’ visits to the UK, by area of residence, 2013 and 2014
Companies, brands and innovation
Market shares
Figure 136: Top department stores’ market shares, 2013 and 2014
Winners and losers
Figure 137: Major retailers’ annual sales growth (some estimated) versus average segment growth, 2014
Brand research
Figure 138: Attitudes towards and usage of selected brands, November 2014 and February 2015
Major innovations
Space allocation
Figure 139: Department stores: Summary space allocation, February 2015
Online growth
The consumer
Where they shop
Figure 140: Department stores purchased from in the last six months, in-store and online, February 2015
What would encourage them to shop more?
Figure 141: What would encourage consumers to shop more at a department store, February 2015
Interest in additional services
Figure 142: Interest in additional services when shopping at department stores, February 2015
Reasons for shopping at a particular department store
Figure 143: Reasons for shopping in-store at a particular department store, February 2015
Shopping in the lead-up to Christmas
Figure 144: Shopping behaviour at department stores in the lead-up to Christmas, February 2015
What we think
 ISSUES AND INSIGHTS
How have department stores performed over the last year?
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: Experience is All
Trend: Access All Areas
Trend: Return to the Experts
 MARKET ENVIRONMENT
Key points
Foreign visits
Figure 145: Overseas residents’ visits to the UK, by area of residence, 2013 and 2014
Changing population structure
Figure 146: Trends in the age structure of the UK population, 2009-19
Consumer confidence falls during 2014
Figure 147: Financial confidence index, January 2009- January 2015
Closing gap between prices and wages
Figure 148: Retail prices index and average weekly earnings: Annual % change, January 2011-January 2015
 CONSUMER SPENDING ON DEPARTMENT STORE CATEGORIES
Key points
Core department store categories
Figure 149: Consumer spending on core department store categories, 2009-14
Full spending breakdown
Figure 150: Consumer spending on department store categories (incl. VAT), 2009-14
 STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
 WHO’S INNOVATING?
Key points
Setting the standard for fragrance retailing
Figure 151: Harrods Salon De Parfums
Selfridges #beautyproject
Figure 152: ‘He She Me’: A display  from Selfridges’ Agender department
Social selling strategy
John Lewis invests in technology
Figure 153: Beacon technology: Store staff being alerted of a click-and-collect customer entering the store
Memory mirror
Harrods goes healthy
Figure 154: Harrods’ Happy New You window display, January 2015
In-store cinema
 SECTOR SIZE AND FORECAST
Key points
Department store sales grow 2.2% in 2014
Figure 155: Department store sales. 2010-14
Market size
The future
Figure 156: Best- and worst-case forecast for department store sales, 2009-19
Forecast
Figure 157: Best- and worst-case forecast for department store sales (inc VAT), 2009-19
 SPACE ALLOCATION SUMMARY
Key points
Space allocation overview
Figure 158: Department stores: Summary space allocation, February 2015
Detailed space allocation
Figure 159: Department stores: Detailed space allocation, February 2015
 RETAIL PRODUCT MIX
Key points
Figure 160: Estimated space allocation of broad department stores product categories, 2013/14
Figure 161: Leading department stores: Estimated sales, by broad product category, 2013/14
Figure 162: Leading department stores: Estimated share of sales, by broad product category, 2013/14
Figure 163: Leading department stores: Estimated sales density. by product, 2013/14
 LEADING RETAILERS
Key points
High-end department stores outperform
Figure 164: Annual segment growth: Mid-market versus high-end, 2011-14
Figure 165: Major retailers’ annual sales growth (some estimated) versus average segment growth, 2014
Consolidated sales versus gross transactional values
Leading retailers by sales
Figure 166: Leading department stores: Net revenues, 2010-14
Store numbers
Figure 167: Leading department stores: Outlet numbers, 2010-14
Sales per store
Figure 168: Leading department stores: Annual sales per outlet, 2010-14
Total sales area
Figure 169: Leading department stores: Total sales area, 2010-14
Sales densities
Figure 170: Leading department stores: Annual sales per sq m, 2010-14
Operating profits and margins
Figure 171: Leading department stores: Operating profits, 2010-14
Figure 172: Leading department stores: Operating margins, 2010-14
 MARKET SHARES
Key points
M&S loses share, while John Lewis gains
Figure 173: Top department stores’ market shares, 2013 and 2014
Figure 174: Leading department stores’ market shares, 2010-14
 ONLINE
Key points
Online sector sales grow 6%
Figure 175: Estimated online sales by department stores (incl. VAT), 2012-14
Key category sales online
Figure 176: Online as a proportion of spending on selected categories, 2014 and 2015
John Lewis reaches £1.2 billion online sales
Figure 177: Leading department stores’ online sales (excl. VAT), 2012-14
Figure 178: Leading department stores’ online sales as % of their total sales, 2012-14
Online market shares
Figure 179: Leading department stores’ shares of all online sales, 2012-14
Most popular sites by visitor numbers
Figure 180: Leading department stores’ online visitor data, March 2015
Visits to websites by age
Figure 181: Proportion of visits to department store websites, by age, 1 February- 28 February 2015
 BRAND COMMUNICATION AND PROMOTION
Key points
Leading department stores’ advertising spend
Figure 182: Leading department store retailers’ main media advertising spend, 2011-14
Press advertising is favoured
Figure 183: Leading department store retailers’ main media advertising spend, by media type, 2014
Figure 184: Leading department store retailers’ main media advertising spend, by media type, 2014
Campaign highlights in 2014
 BRAND RESEARCH – DEPARTMENT STORES
What you need to know
Brand map
Figure 185: Attitudes towards and usage of selected brands, November 2014 and February 2015
Key brand metrics
Figure 186: Key metrics for selected brands, November 2014 and February 2015
Brand attitudes: House of Fraser most likely to attract customers on price
Figure 187: Attitudes, by brand, November 2014 and February 2015
Brand personality: Harrods’ unique proposition is considered an exclusive one
Figure 188: Brand personality – Macro image, November 2014 and February 2015
Selfridges and John Lewis most likely to be seen as fashionable
Figure 189: Brand personality – Micro image, November 2014 and February 2015
Brand analysis
John Lewis combines style with customer service and trust
Figure 190: User profile of John Lewis, November 2014
Marks & Spencer has greater accessibility than other department stores
Figure 191: User profile of Marks & Spencer, November 2014
Selfridges has a vibrant sense of innovation
Figure 192: User profile of Selfridges, February 2015
House of Fraser most likely to be associated with value
Figure 193: User profile of House of Fraser, February 2015
Harrods benefits from very unique brand image
Figure 194: User profile of Harrods, February 2015
Debenhams may be a choice of convenience
Figure 195: User profile of Debenhams, November 2014
 THE CONSUMER – WHERE THEY SHOP
Key points
What we asked
M&S leads but with an ageing customer
Figure 196: Department stores purchased from in the last six months, whether in-store or online, February 2015*
John Lewis grows in popularity among men
Debenhams is biased towards women
Where consumers purchase – Online/In-store split
Figure 197: Department stores purchased from in the last six months, in-store and online, February 2015
Purchasing online by demographic group
Figure 198: Department stores purchased from in the last six months, online, by gender, age and socio-economic group, February 2015
House of Fraser
High-end and luxury department stores
Where consumers browse
Figure 199: Department stores where consumers have browsed in the last six months, either in-store or online, February 2015
Most shop at one department store only
Figure 200: Repertoire of department stores purchased from in-store in the last six months, February 2015
 THE CONSUMER – WHAT WOULD ENCOURAGE THEM TO SHOP MORE AT DEPARTMENT STORES?
Key points
What we asked
Demand for more retailers to offer price matching
Figure 201: What would encourage consumers to shop more at a department store, February 2015
Women continue to want generous loyalty schemes
Figure 202: What would encourage consumers to shop more at a department store, by age, February 2015
Women want clothes that flatter
Young want updated clothes ranges
More payment options
Figure 203: What would encourage consumers to shop more at a department store, by age, February 2015
Young keen on virtual fittings rooms
Mobile apps
Delivery versus click-and-collect
 THE CONSUMER – INTEREST IN ADDITIONAL SERVICES
Key points
What we asked
Figure 204: Interest in additional services when shopping at department stores, February 2015
Figure 205: Interest in additional services when shopping at department stores, by gender, February 2015
Focusing on new beauty treatments
Interest in opticians and other services
 THE CONSUMER – REASONS FOR SHOPPING IN-STORE AND ONLINE AT A PARTICULAR DEPARTMENT STORE
Key points
What we asked
Figure 206: Reasons for shopping in-store at a particular department store, February 2015
Reasons for shopping at particular department stores
Figure 207: John Lewis: Reasons for shopping in-store at a particular department store relative to department store average, February 2015
Figure 208: M&S: Reasons for shopping in-store at a particular department store relative to department store average, February 2015
Figure 209: House of Fraser: Reasons for shopping in-store at a particular department store relative to department store average, February 2015
Figure 210: Debenhams:  Reasons for shopping in-store at a particular department store relative to department store average, February 2015
Reasons for shopping online at a particular department store
What we asked
Figure 211: Reasons for shopping online at a particular department store, February 2015
 THE CONSUMER – SHOPPING AT A DEPARTMENT STORE IN THE LEAD-UP TO CHRISTMAS
Key points
What we asked
A promotional Christmas 2014
Figure 212: Shopping behaviour at department stores in the lead-up to Christmas, February 2015
Black Friday hype
An online Christmas
COIN DEPARTMENT STORES
What we think
OVS spun off from Gruppo Coin
Better prospects for the department stores
Stepping into luxury territory with Excelsior
Coin Excelsior – A better way forward?
Company background
Company performance
Figure 213: Coin department stores: Financial performance, 2010/11-2014/15
Figure 214: Coin department stores: Outlet data, 2010/11-2014/15
Retail offering
DEBENHAMS
What we think
Becoming less promotionally driven
Catching up on multichannel
Looking internationally for growth…
…as UK reaches saturation
Company background
Company performance
Figure 215: Debenhams: Group financial performance, 2009/10-2013/14
Latest financial results – 19 weeks to 10 January 2015
Figure 216: Debenhams: Outlet data, 2009/10-2013/14
Retail offering
EL CORTE INGLÉS (DEPARTMENT STORES)
What we think
Upward turn in operating profits
Change at the top hails a new era
Possibilities abroad, priorities at home
Positive improvements made
Online offering
Company background
Company performance
Figure 217: El Corte Inglés (Department Stores): Group financial performance, 2009/10-2014/15
Figure 218: El Corte Inglés (Department Stores): Outlet data, 2009/10-2014/15
Retail offering
FENWICK
What we think
Company background
Company performance
Figure 219: Fenwick Ltd: Group financial performance, 2009/10-2014/15
Figure 220: Fenwick Ltd: Outlet data, 2009/10-2014/15
Retail offering
GALERIA KAUFHOF
What we think
Management shakeup poses a risk
Still a long way from modest online target
Perennial question of Karstadt merger off the table for now
Company background
Company performance
Figure 221: Galeria Kaufhof: Group financial performance, 2009/10-2013/14
Figure 222: Galeria Kaufhof: Outlet data, 2009/10-2013/14
Retail offering
GALERIES LAFAYETTE
What we think
French regional store base has major problems
Still opportunities in the domestic market
Targeting of international customer base becomes double-edged sword
Overseas store growth is likely to bring limited additional growth
Continues to lag behind in developing its online business
Company background
Company performance
Figure 223: Galeries Lafayette (Group): Group sales performance, 2010-14
Figure 224: Galeries Lafayette: Outlet data, 2010-14
Retail offering
HARRODS
What we think
Company background
Company performance
Figure 225: Harrods Ltd: Group financial performance, 2009/10-2014/15
Figure 226: Harrods Ltd: Outlet data, 2009/10-2014/15
Retail offering
HARVEY NICHOLS UK
What we think
All change in the management team
Focusing on overseas development
Strengthening the e-commerce offer
Company background
Company performance
Figure 227: Harvey Nichols UK: Group financial performance, 2009/10-2014/15
Figure 228: Harvey Nichols UK: Outlet data, 2009/10-2014/15
Retail offering
HOUSE OF FRASER
What we think
A new phase
Strong performance as multichannel, own-brands and innovation fuels growth…
…but still making a loss
Company background
Company performance
Figure 229: House of Fraser: Financial performance, 2009/10-2014/15
Stores
Figure 230: House of Fraser: Outlet data, 2010/11-2014/15
Retail offering
JOHN LEWIS
What we think
One of retail’s winners
Innovative, especially in omni-channel
Strong store presence with pipeline of stores
Well placed for future growth
Company background
Company performance
Figure 231: John Lewis: Department store financial performance, 2009/10-2014/15
First half and Christmas 2014/15
Figure 232: John Lewis: department stores outlet data, 2009/10-2014/15
Retail offering
KARSTADT (SIGNA RETAIL)
What we think
Management instability unhelpful for prospects
Goes ahead with further restructuring
All back under one roof for now
Long-term outlook for core department store business in the balance
Needs to kick start online sales to provide growth
Company background
Company performance
Figure 233: Karstadt Group (Signa retail): Group financial performance, 2009/10-2013/14
Figure 234: Karstadt Group (Signa Retail): Outlet data, 2009/10-2013/14
Retail offering
LE BON MARCHÉ
What we think
Small but unique
Modernising and transforming
Company background
Company performance
Figure 235: LVMH Selective Retail, financial performance, 2010-14
Figure 236: Le Bon Marché Group: Sales performance, excl. VAT, 2010-14
Stores
Figure 237: Le Bon Marché: Outlet data, 2010-14
Retail offering
MARKS & SPENCER
What we think
Divergent performance from two distinct halves
Womenswear is the key
Online also a problem
Keeping things in perspective
Company background
Company performance
Figure 238: Marks & Spencer: Group financial performance, 2009/10-2014/15
Figure 239: Marks & Spencer: Group sales breakdown, 2013/14
Q3 2014/15
Figure 240: Marks & Spencer: Outlet data, 2009/10-2013/14
Figure 241: Marks & Spencer store portfolio, March 2014
Retail offering
PRINTEMPS
What we think
Successful move upmarket
Haussmann store outperforms the rest of the estate
New stores and refurbishment programme to improve performance beyond the flagship
Expanding Citadium standalone young fashion chain
Company background
Company performance
Figure 242: Printemps: Group sales performance, 2009/10-2014/15
Stores
Figure 243: Printemps: Outlet data, 2009/10-2014/15
Retail offering
LA RINASCENTE
What we think
Shared resources
Expanding in Europe?
Targeting teenagers
New domestic stores in the pipeline
Embracing the internet?
Company background
Company performance
Figure 244: La Rinascente (Department Stores): Estimated group sales performance, 2010-14
Figure 245: La Rinascente (Department Stores): Outlet data, 2010-14
Retail offering
SELFRIDGES RETAIL
What we think
Rapid online growth
Company background
Company performance
Figure 246: Selfridges Retail Ltd: Group financial performance, 2009/10-2014/15
Figure 247: Selfridges Retail Ltd: Outlet data, 2009/10-2014/15
Retail offering

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