Shopping Locations - UK - June 2016

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