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Department Stores - Europe - April 2018

EUROPE – OVERVIEW
Department store definition
Market size
Financial definitions
Abbreviations
VAT around Europe
Figure 1: VAT rates around Europe, 2013-18
EXECUTIVE SUMMARY – EUROPE – THE MARKET
Department store retailers’ sales and leading players
GTV or not GTV
Department store market size
Figure 2: Europe: estimated department store sector sales and leading players’ sales, 2013/14-2017/18
Figure 3: Europe: leading department stores, outlets, 2013/14-2017/18
Figure 4: Europe: leading department stores, sales per outlet, 2013/14-2017/18
Mixed goods retailers’ sales
Figure 5: Europe: mixed goods retailers, sales, excl. VAT, 2013-17
Figure 6: Europe: mixed goods retailers, forecast sales, excl. VAT, 2018-22
Department stores in context
Figure 7: Big five European countries: estimated department store sector sales (ex VAT), 2013-17
Market shares
Figure 8: Europe: leading department stores’ market shares, 2013-17
Figure 9: Europe: leading department stores’ shares of all department store sales, 2017
Online
Figure 10: Europe: leading countries’ online department store sales as share of all department store sales, 2017
What we think
EXECUTIVE SUMMARY – EUROPE – THE CONSUMER
The research
Where they shop
Figure 11: Europe: proportion of internet users who have shopped from a department store, in-store or online, by country, February/March 2018
Online vs in-store
Figure 12: Europe: department store shoppers, in-store and online, February/March 2018
Figure 13: Europe: proportion of internet users who have shopped from a department store, who have shopped online, February/March 2018
Most used store
Figure 14: Europe: most used department store by country and proportion of shoppers, February/March 2018
Attitudes to department stores
Figure 15: Europe: attitudes to department stores, February/March 2018
EXECUTIVE SUMMARY – EUROPE – LAUNCH ACTIVITY AND INNOVATION
Neiman Marcus engaging shoppers with interactive in-store experiences
Harvey Nichols gives Hong Kong customers access to UK exclusive products
Sears plans to open more smaller innovative store concepts
El Corte Inglés launches Trueview for Shopping on Youtube
Pop-up marketplaces
Hudson's Bay launches its new retail concept for the first time outside of Canada
Department store specifically for kids
El Corte Inglés strengthens its commitment to sustainability
FRANCE
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
Consumer spending
Sector size and forecast
Figure 16: France: department stores, estimated sector sales (excl VAT), 2013-17
Companies and brands
Key metrics
Market shares
Figure 17: France: leading department store retailers’ shares of mixed goods retailers’ sales, 2017
Online
The consumer
Where they shop
Figure 18: France: department stores shopped at in the last 12 months, March 2018
Attitudes to department stores
Figure 19: France: attitudes to department stores, March 2018
What we think
 ISSUES AND INSIGHTS
Solutions for provincial stores
The facts
The implications
The implications of Galeries Lafayette’s acquisition of La Redoute
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Economy picking up after prolonged period of subdued growth
Department store spending areas show low growth in recent years
Department stores’ share of beauty and clothing less than in Germany and the UK
2016 a bad year for department stores, but growth returned in 2017
 CONSUMER SPENDING
Signs of growth in the French economy
Weak spending growth in key department store categories
Figure 20: France: consumer spending on key department store product categories (incl. VAT), 2013-17
Department stores’ share of clothing and beauty markets
Clothing
Beauty
 SECTOR SIZE AND FORECAST
Total retail sales recovering, further growth forecast in 2017
Department store sector size
Figure 21: France: department stores, estimated sector sales (excl VAT), 2013-17
Mixed goods retailers sector
Figure 22: France: mixed goods retailers, sales (excl. VAT), 2013-17
Figure 23: France: mixed goods retailers, forecast sales (excl. VAT), 2018-22
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
The big two locked in rivalry
Sunday trading compensates for downturn in tourism
Luxury food
Combined market share is down
Online increasingly important
 LEADING PLAYERS
Intense rivalry between Galeries Lafayette and Printemps
Heavy impact of downturn in tourism
Lagging online
Sunday trading a major boost – time is money
Luxury food
Figure 24: France: leading department store retailers, sales, 2013-17
Figure 25: France: leading department store retailers, outlets, 2013-17
Figure 26: France: leading department store retailers, sales per outlet, 2013-17
 MARKET SHARES
Figure 27: France: leading department store retailers’ shares of mixed goods retailers’ sales, 2013-17
 ONLINE
Online activity
France between Germany/UK and Spain/Italy
Broadband penetration lower
Technology ownership is lower
Figure 28: France: ways in which the internet was accessed in the last three months, by age, Q3 2017
Shopping online
Luxury shopping online
Leading online players
 THE CONSUMER – WHAT YOU NEED TO KNOW
Only a quarter shop at department stores
Galeries Lafayette leads
Core customers are younger and wealthier
Online shopping
Stores are inspirational and enjoyable places to visit
But perceptions of price are high
 WHERE THEY SHOP
Only a quarter shop at department stores
Figure 29: France: department stores shopped at in the last 12 months, March 2018
But 40% of residents in the Paris region shop there
Figure 30: France: usage of department stores in the last 12 months by region, March 2018
The younger and wealthier are the core customers
Figure 31: France: usage of department stores in the last 12 months, by age and affluence, March 2018
Figure 32: France: usage of department stores in the last 12 months, by age and gender, March 2018
Figure 33: France: usage of department stores in the last 12 months, by generation group, March 2018
Figure 34: France: department stores shopped at in the last 12 months, by age and income, March 2018
Online shopping at department stores
Figure 35: France: online shopping at department stores in the last 12 months, by age and gender, March 2018
 ATTITUDES TO DEPARTMENT STORES
Stores are inspirational
But perceptions of price are high
In-store services appeal
Figure 36: France: attitudes to department stores, March 2018
Parisian residents focus less on price and more on experience
Figure 37: France: attitudes to department stores, Ile-de-France vs total, March 2018
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
GERMANY
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
Consumer spending
Sector value and forecast
Figure 38: Germany: mixed goods retailers’ sales as % all retail sales, 2012-22
Figure 39: Germany: department stores’ broad product mix, 2017
Companies and brands
Leading players
Market shares
Figure 40: Germany: leading department stores’ shares of all mixed goods retailers’ sales, 2017
Online
The consumer
Where they shop
Figure 41: Germany: online and in-store shoppers at leading department stores, March 2018
Figure 42: Germany: online and in-store shoppers at all department stores, March 2018
Attitudes to department stores
Figure 43: Germany: attitudes to department stores, March 2018
What we think
 ISSUES AND INSIGHTS
So many changes of ownership – can they mark a turning point for the sector?
The facts
The implications
How can the department stores regain market share?
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Spending on fashion has been weak
Clothing and beauty dominate sales
Sales of €6.4 billion in 2017
Long-term performance has been weak
 CONSUMER SPENDING
Fashion store vs full range
Beauty – a core traffic generator
Homewares
Figure 44: Germany: consumer spending on key department store product categories (including VAT), 2013-17
Share of retail sales
Department stores’ share of clothing and beauty markets
Clothing
Beauty
 SECTOR SIZE AND FORECAST
Department store sector size
Figure 45: Germany: department stores, estimated sector sales (excl VAT), 2013-17
Mixed goods retailers sector
Figure 46: Germany: mixed goods retailers, sales (excl. VAT), 2013-17
Figure 47: Germany: mixed goods retailers, forecast sales (excl. VAT), 2018-22
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Changes in ownership
Karstadt and Signa
KaDeWe independent
Kaufhof and Hudsons Bay
Kaufhof and Karstadt dominate the sector
Department stores underperforming online
 LEADING PLAYERS
Active corporate history
Figure 48: Germany: leading department store retailers, sales, 2012/13-2017/18
Figure 49: Germany: leading department store retailers, outlets, 2012/13-2017/18
Figure 50: Germany: leading department store retailers, sales per outlet, 2012/13-2017/18
 MARKET SHARES
Figure 51: Germany: leading department store retailers’ shares of all mixed goods retailers’ sales, 2013-17
Figure 52: Germany: leading department store retailers’ shares of all mixed goods retailers’ sales, 2017
 ONLINE
Online activity
Internet access widespread
Technology ownership
Shopping online
Leading online players
 THE CONSUMER – WHAT YOU NEED TO KNOW
A minority interest
Kaufhof the most popular
Online used in conjunction with stores
Range and service
Trust and prices
 WHERE THEY SHOP
Figure 53: Germany: online and in-store shoppers at leading department stores, March 2018
Figure 54: Germany: online and in-store shoppers at all department stores, March 2018
Who buys where
Figure 55: Germany: department stores shopped at in the last 12 months, by age and income, March 2018
Figure 56: Germany: online and in-store department store shoppers, by age and income, March 2018
 ATTITUDES TO DEPARTMENT STORES
Figure 57: Germany: attitudes to department stores, March 2018
Attitudes by department stores used
Figure 58: Germany: attitudes to department stores by shoppers at Kaufhof and Karstadt, March 2018
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
ITALY
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
Consumer spending
Figure 59: Italy: estimated distribution of consumer spending on clothing and footwear, 2016
Figure 60: Italy: estimated distribution of consumer spending on beauty and personal care products, 2017
Sector size and forecast
Companies and brands
Key metrics
Market shares
Figure 61: Italy: leading department store retailers’ shares of department store sales, 2017
Online
The consumer
Where they shop
Figure 62: Italy: department stores shopped at in the last 12 months, March 2018
Attitudes to department stores
Figure 63: Italy: attitudes to department stores, March 2018
What we think
 ISSUES AND INSIGHTS
Broadening their appeal
The facts
The implications
How important is online for the sector?
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Consumer spending rises 2.7% in 2017
Department stores lose share of category spend
Department stores see weak growth of 0.5%
Mixed goods retailers account for 3.4% of sales
 CONSUMER SPENDING
Figure 64: Italy: consumer spending on key department store product categories, (incl. VAT), at current prices, 2012-17
Department stores’ share of clothing & beauty markets
Clothing
Figure 65: Italy: estimated distribution of consumer spending on clothing and footwear, 2016
Beauty
Figure 66: Italy: estimated distribution of consumer spending on beauty and personal care products, 2017
 SECTOR SIZE AND FORECAST
Department store sector size
Figure 67: Italy: department stores, estimated sector sales (excl VAT), 2013-17
Mixed goods retailers sector
Figure 68: Italy: mixed goods retailers, sales (excl. VAT), 2013-17
Figure 69: Italy: Mixed goods retailers, forecast sales (excl. VAT), 2018-22
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
La Rinascente sees strong sales
Coin struggles
La Rinascente grows market share
Main players have not developed e-commerce
 LEADING PLAYERS
Figure 70: Italy: leading department store retailers, estimated net revenues, 2013-17
Figure 71: Italy: leading department store retailers, outlets, 2013-17
Figure 72: Italy: leading department store retailers, annual sales per outlet, 2013-17
 MARKET SHARES
Figure 73: Italy: leading department store retailers’ estimated shares of department store sales, 2013-17
Figure 74: Italy: leading department store retailers’ estimated shares of mixed goods retailers’ sales, 2013-17
 ONLINE
Online activity
Figure 75: Europe: personal ownership of digital devices, Q3 2017
Shopping online
Leading online players
 THE CONSUMER – WHAT YOU NEED TO KNOW
Coin draws more younger customers
Rinascente appeals most to men
Department stores good for discovering new products
45-54s keen on extra services
Young people less likely to value department store experience
 WHERE THEY SHOP
Figure 76: Italy: department stores shopped at in the last 12 months, March 2018
Coin draws more younger customers
Figure 77: Italy: demographic breakdown of consumers that have shopped at a Rinascente or Coin department store in the last 12 months, by age, March 2018
Rinascente appeals most to men
Figure 78: Italy: those that have shopped at a Rinascente or Coin department store in the last 12 months, by gender and age, March 2018
Both Coin and Rinascente biased to affluent
Figure 79: Italy: those that have shopped at a Rinascente or Coin department store in the last 12 months, by annual income, March 2018
Online shoppers
Figure 80: Italy: online shoppers at Coincasa in the last 12 months, by generation groups, March 2018
 ATTITUDES TO DEPARTMENT STORES
Department stores good for discovering new products
Figure 81: Italy: attitudes to department stores, March 2018
45-54s keen on extra services
Figure 82: Italy: agreement with statement ‘additional in-store services make visiting a department store more worthwhile’, by age, March 2018
Young people less likely to value department store experience
Figure 83: Italy: agreement with statement ‘department stores offer a better shopping experience than other retailers’, by gender and age, March 2018
Attitudes by department stores used
Figure 84: Italy: agreement with attitudes to department stores, by shoppers at Coin and Rinascente, March 2018
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
SPAIN
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
Consumer spending
Department stores’ share of clothing & beauty markets
Figure 85: Spain: estimated distribution of consumer spending on clothing and footwear, 2016
Figure 86: Spain: estimated channels of distribution of spending on beauty and personal care products, 2016
Sector size and forecast
Companies and brands
Key metrics
Market shares
Figure 87: Spain: El Corte Inglés’s share of mixed goods retailers’ sales, 2013-17
Online
The consumer
Where they shop
Figure 88: Spain: department stores shopped at in the last 12 months, in-store and online, March 2018
Attitudes to department stores
Figure 89: Spain: attitudes to department stores, March 2018
What we think
 ISSUES AND INSIGHTS
El Corte Inglés looks to broaden its appeal
The facts
The implications
El Corte Inglés focuses more on online
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Consumer spending
Department stores’ share of clothing & beauty markets
ECI is the only department store in Spain
 CONSUMER SPENDING
Figure 90: Spain: spending on key department store product categories (incl. VAT), at current prices, 2012-17
Department stores’ share of clothing & beauty markets
Clothing
Figure 91: Spain: estimated distribution of consumer spending on clothing and footwear, 2016
Beauty
Figure 92: Spain: estimated distribution of consumer spending on beauty and personal care products, 2016
 SECTOR SIZE AND FORECAST
Department store sector size
Mixed goods retailers sector
Figure 93: Spain: mixed goods retailers, sales (excl. VAT), 2012-17
Figure 94: Spain: mixed goods retailers, forecast sales (excl. VAT), 2017-22
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
A sector with only one retailer
ECI loses share of market
Online growing fast
 LEADING PLAYERS
A sector with only one retailer
Figure 95: Spain: leading department store retailers, net revenues, 2012-17
Figure 96: Spain: leading department store retailers, outlets, 2012-17
Figure 97: Spain: Leading department store retailers, sales per outlet, 2012-17
 MARKET SHARES
Figure 98: Spain: El Corte Inglés’s share of mixed goods retailers’ sales, 2013-17
 ONLINE
Online activity
Figure 99: Spain: personal ownership of digital devices, Q3 2017
Shopping online
Figure 100: Spain: online and in-store shoppers at department stores, March 2018
Leading online players
 THE CONSUMER – WHAT YOU NEED TO KNOW
El Corte Inglés remains popular
Low level of trust from Baby Boomers
82% drawn to new products
 WHERE THEY SHOP
Figure 101: Spain: department stores shopped at in the last 12 months, March 2018
In-store shoppers biased towards 55+
Figure 102: Spain: demographic profile of El Corte Inglés in-store shoppers, March 2018
ECI most popular amongst better-off Spaniards
Figure 103: Spain: demographic profile of El Corte Inglés online shoppers, March 2018
 ATTITUDES TO DEPARTMENT STORES
82% drawn to new products
Figure 104: Spain: attitudes to department stores, March 2018
El Corte Inglés scores low trust among Baby Boomers
Figure 105: Spain: agreement with statement ‘department stores are more trustworthy than other retailers’, crossed by generation groups, March 2018
Online shoppers view department store shopping experience in better light
Figure 106: Spain: attitudes to department stores, crossed by in-store shoppers and online shoppers, March 2018
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
UK
 OVERVIEW
What you need to know
Areas covered in this Report
 EXECUTIVE SUMMARY
The market
The UK department store sector forecast grow 10% by 2022
Figure 107: Best and worst case forecast for department store sector, 2012-22
Continued growth in consumer spending, despite decline in real incomes
Companies and brands
Premium department stores buoying growth in the sector
Mid-market retailers losing market share
Figure 108: Leading department stores’ estimated market shares, 2017
Innovation remains focused on stores
Brand research reveals a lack of trust in premium department stores
Figure 109: Attitudes towards and usage of selected brands, January 2018
The consumer
Geographical reach influences where people shop
Figure 110: Department store usage in-store and online in the last 12 months, by channel, February 2018
Fashion drives volumes within the department store sector
Figure 111: What consumers bought from department stores in the last 12 months, February 2018
Online increasingly part of the shopping journey
Figure 112: Online shopping behaviour, February 2018
Products and in-store displays are more important than leisure
Figure 113: Important factors when shopping in-store, February 2018
Department stores need to rebuild trust in pricing
Figure 114: Attitudes towards department stores, February 2018
What we think
 ISSUES & INSIGHTS
The pricing challenge continues as discounts erode price integrity
The facts
The implications
The importance of creating a compelling multichannel experience
The facts
The implications
Exclusive and own-label ranges increasingly essential to growth
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Growth remains flat in 2017
Core department store categories continue to grow
Pressure mounting on UK consumers
Increased inbound tourism boosts sector
 MARKET SIZE AND FORECAST
Department store sector up 1.5% in 2017
Figure 115: Estimated UK department store sector sales, 2012-17
Market forecast to reach £17.8 billion by 2022
Figure 116: Best and worst case forecast for department store sector, 2012-22
Figure 117: Forecast for department store sector, at current and constant prices, 2012-22
Methodology
 CONSUMER SPENDING
Continued growth in core department store categories
Figure 118: Consumer spending on key department store categories, 2013-17
 MARKET DRIVERS
An ageing UK population
Figure 119: Trends in the age structure of the UK population, 2016-26
Figure 120: Breakdown of trends in the age structure of the UK population, 2016-26
Growth in inflation puts consumers under pressure…
Figure 121: Real wage growth – Average weekly earnings vs inflation, January 2014-December 2017
…but on the whole consumers remain confident about their finances
Figure 122: Consumer confidence: current financial situation vs sentiment for the coming year, January 2013-February 2018
Fashion and the home continue to be popular discretionary categories
Figure 123: Trends in what extra money is spent on, February 2018
Value of Sterling falls following Brexit vote
Figure 124: Selected international currency exchange rates, annual averages, 2003-17
Figure 125: Sterling exchange rate versus selected currencies, annual averages, 2013-17
Inbound tourism boosted by weak Sterling
Figure 126: Total overseas residents’ visits to the UK, 2009-18
Uplift in inbound tourism spend boosts sector
Figure 127: Total spend by overseas residents in the UK, 2008-18
Private renting increases
Figure 128: UK household tenure status, 2012-16
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
High-end department stores outperform
Debenhams and House of Fraser losing market share
Online now accounts for a quarter of the sector
Innovation continues to centre around in-store experience
Greater trust placed with mid-market retailers
 LEADING RETAILERS
Note on department store sales
Mid-market department stores struggle
Figure 129: Leading department stores’ net revenues, 2013-17
New stores emphasise the importance of experience
Figure 130: Leading department stores’ outlet numbers, 2013-17
Like-for-like growth strongest at the higher end of the market
Figure 131: Leading department stores’ estimated sales per outlet, 2013-17
Ongoing investment dents profits for leading players
Figure 132: Leading department stores’ operating profits, 2013-17
Figure 133: Leading department stores’ operating margins, 2013-17
 MARKET SHARES
John Lewis set to become the market leader
Figure 134: Leading department stores’ estimated market shares, 2017
Figure 135: Leading department stores’ estimated market shares, 2012-17
 ONLINE
John Lewis also dominates online
Figure 136: Selected leading department stores’ estimated online revenues, 2013-17
Figure 137: Estimated online share of selected leading department stores’ total revenues, 2013-17
Online increasing its share of the sector
Figure 138: Total estimated online department store revenues, 2013-17
Digital developments
Debenhams experiments with click, try and buy…
…and also upgrades its mobile site
 LAUNCH ACTIVITY AND INNOVATION
John Lewis invites customers for an in-store sleepover
Figure 139: The Residence at John Lewis, 2017
Developments in experiential retailing
Figure 140: Debenhams’ Stevenage Store, 2017
Figure 141: John Lewis Westfield London Store, 2018
Music matters at Selfridges
House of Fraser launches localised pop-up scheme
Debenhams and Selfridges experiment with in-store gyms
Figure 142: The Boxing Gym at Selfridges, 2018
Selfridges invests in bespoke beauty pioneers
Figure 143: Selfridges’ Bespoke Beauty Department, 2017
John Lewis collaborates with PATTERNITY on exclusive collection
Figure 144: PATTERNITY + John Lewis Collaboration, 2018
Debenhams revives its brand mix
Figure 145: Debenhams’ Scandi Brands, 2018
Ongoing focus on menswear
John Lewis’ Home Solutions
House of Fraser opens new sustainable store
Figure 146: House of Fraser Rushden Lakes Store, 2017
 ADVERTISING AND MARKETING ACTIVITY
Advertising spend up 10% in 2017
Figure 147: Recorded above-the-line, online display and direct mail total advertising expenditure by selected leading UK department stores, 2013-17
Figure 148: Recorded above-the-line, online display and direct mail total advertising expenditure by selected leading UK department stores, 2013-17
Digital the most favoured media type
Figure 149: Recorded above-the-line, online display and direct mail total advertising expenditure by selected leading UK department stores, by media type, 2017
Key campaigns
The battle of the Christmas campaign
Figure 150: John Lewis’ Moz The Monster Christmas Campaign, 2017
Figure 151: Debenhams’ You Shall Christmas Campaign, 2017
M&S shifts its advertising strategy
Greater focus on specific product categories
Lingerie campaigns look to promote body positivity
Figure 152: Debenhams’ SS18 DD+ Lingerie Campaign, 2018
Nielsen Ad Intel coverage
 SPACE ALLOCATION SUMMARY
Space allocation overview
Figure 153: Department stores: summary of estimated in-store space allocation, February 2018
Detailed space allocation estimates
House of Fraser multimillion-pound refurbishment programme
Debenhams focused on making its stores more of a destination for social shopping to increase frequency of visits
Selfridges’ flagship Oxford Street store revamp almost complete
Fenwick’s new 80,000 sq ft next-generation department store
John Lewis’ experience-led Oxford store
M&S repurposing its stores
Figure 154: Department stores: detailed space allocation estimates, February 2018
 RETAIL PRODUCT MIX
Methodology
Sales
Figure 155: Leading department stores’ estimated sales mix, 2016/17
Sales density
Figure 156: Leading department stores, Estimated sales density by broad product category, 2016/17
 BRAND RESEARCH
Brand map
Figure 157: Attitudes towards and usage of selected brands, January 2018
Key brand metrics
Figure 158: Key metrics for selected brands, January 2018
Brand attitudes: Debenhams offers value
Figure 159: Attitudes, by brand, January 2018
Brand personality: Harrods seen as exclusive
Figure 160: Brand personality – Macro image, January 2018
M&S viewed as reliable
Figure 161: Brand personality – Micro image, January 2018
Brand analysis
John Lewis has a broad appeal
Figure 162: User profile of John Lewis, January 2018
Marks & Spencer shows bias towards older women
Figure 163: User profile of Marks & Spencer, January 2018
Debenhams’ value proposition helps it to stand out
Figure 164: User profile of Debenhams, January 2018
Harvey Nichols popular with affluent
Figure 165: User profile of Harvey Nichols, January 2018
Fenwick attracts affluent Millennials
Figure 166: User profile of Fenwick, January 2018
Harrods garners more positive perception among young
Figure 167: User profile of Harrods, January 2018
 THE CONSUMER – WHAT YOU NEED TO KNOW
M&S benefits from wide geographical coverage
Most department store shoppers buy clothing
A third now compare prices whilst in-store
In-store product displays are important
Discounting continues to erode price integrity
 WHERE THEY SHOP
Almost half shop with M&S
Figure 168: Department store usage in-store and online in the last 12 months, February 2018
Debenhams and John Lewis also popular online
Figure 169: Department store usage in-store and online in the last 12 months, by channel, February 2018
Men more likely to shop with luxury department stores
Figure 170: Department store usage in-store and online in the last 12 months, by gender, February 2018
House of Fraser attracts younger shoppers
Figure 171: Department store usage in-store and online in the last 12 months, by age and income, February 2018
Almost half are loyal to one or two department stores
Figure 172: Repertoire analysis of department store usage in-store and online in the last 12 months, February 2018
 WHAT THEY BUY
Clothing most purchased category
Figure 173: What consumers bought from department stores in the last 12 months, February 2018
Women more likely to shop most categories
Figure 174: What consumers bought from department stores in the last 12 months, by gender, February 2018
Stationery important to young department store shoppers
Figure 175: What consumers bought from department stores in the last 12 months, by age, February 2018
House of Fraser and Debenhams popular for BPC
Figure 176: What consumers bought from department stores in the last 12 months, by where they shopped, February 2018
Most shop for multiple different types of product
Figure 177: Repertoire analysis of what consumers bought from department stores in the last 12 months, February 2018
 ONLINE SHOPPING BEHAVIOUR
A third research online before shopping with a department store
Figure 178: Online shopping behaviour, February 2018
Omni-channel experience important to 25-34s
Figure 179: Online shopping behaviour, by age, February 2018
 IMPORTANT FACTORS WHEN SHOPPING IN-STORE
Product displays should be a priority
Figure 180: Important factors when shopping in-store, February 2018
Men more likely to want product demonstrations
Figure 181: Important factors when shopping in-store, by gender, February 2018
Testing areas important to young shoppers
Figure 182: Important factors when shopping in-store, by age, February 2018
BPC buyers most attracted by exclusive products
Figure 183: Important factors when shopping in-store, by what they bought, February 2018
 ATTITUDES TOWARDS DEPARTMENT STORES
Consumers see department stores as a discovery tool
Figure 184: Attitudes towards department stores, February 2018
Men have stronger opinions of department stores’ product mix
Figure 185: Attitudes towards department stores, by gender, February 2018
Young shoppers are price-sensitive…
Figure 186: Attitudes towards department stores, by age, February 2018
…but also show more loyalty to department stores
Figure 187: Attitudes towards department stores, by age, February 2018
 TARGET GROUPS
Figure 188: Attitudes towards department stores, target groups, February 2018
Key characteristics
Experience Seekers
Apathetic Shoppers
Price Sensitive
Content Consumers
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
 APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
COIN
What we think
A new shopping experience
Redesign of stores
Focus on younger customers
Need to focus online
Company background
Company performance
Figure 189: Coin: group estimated sales performance, 2013-17
Figure 190: Coin: Italy outlet data, 2013-17
Retail offering
DEBENHAMS
What we think
Digital sales growth momentum fuelled by mobile site enhancements
Making its stores more of a destination for social shopping
Consolidating position as a preferred destination for beauty
A more compelling fashion proposition
Using digital to reach territories that would not support a store
Company background
Company performance
Figure 191: Debenhams: group financial performance, 2012/13-2016/17
Figure 192: Debenhams: outlet data, 2012/13-2016/17
Retail offering
EL CORTE INGLÉS 
What we think
ECI/Hipercor merger
Growing competition from specialists and pureplays
Digital transformation
Focus on younger customers
Drive for sustainability
Capitalising on tourism spend in 2018
Company background
Company performance
Figure 193: El Corte Inglés (Department stores): group financial performance, 2012/13-2017/18
Figure 194: El Corte Inglés (Department stores): outlet data, 2012/13-2017/18
Retail offering
FENWICK
What we think
Expected to launch a full online proposition in 2019
Experiential stores to drive footfall
Company background
Company performance
Figure 195: Fenwick Ltd: group financial performance, 2012/13-2016/17
Figure 196: Fenwick Ltd: outlet data, 2012/13-2016/17
Retail offering
GALERIES LAFAYETTE 
What we think
A new strategy, a new structure
Online/omnichannel
New stores and new store formats
Regional stores becoming franchises
International expansion
Company background
Company performance
Figure 197: Galeries Lafayette department stores: sales performance, 2013-17
France
International
Figure 198: Galeries Lafayette (France): outlet data, 2013-17
Retail offering
HARRODS
What we think
£200 million revamp to increase appeal to shoppers from China and South East Asia
Enhanced in-store experiences
Boosting brand awareness in China
Expanded payment options to accommodate global customers
Company background
Company performance
Figure 199: Harrods Ltd: group financial performance, 2011/12-2016/17
Figure 200: Harrods Ltd: outlet data, 2012/13-2016/17
Retail offering
HARVEY NICHOLS UK
What we think
Menswear becomes more intimate and intuitive in-store
A more inspirational digital shopping experience boosts online conversion rate
New cardless loyalty scheme
Company background
Company performance
Figure 201: Harvey Nichols UK: group financial performance, 2012/13-2016/17
Figure 202: Harvey Nichols UK: outlet data, 2012/13-2016/17
Retail offering
HBC EUROPE
What we think
Uneasy mix
Strategy for Europe
What next?
Company background
Company performance
Figure 203: HBC Europe: group financial performance, 2011/12-2017/18
Figure 204: HBC Europe: outlet data, 2011/12-2017/18
Retail offering
HOUSE OF FRASER
What we think
Refinance package, rent reductions and credit cover pulled
E-commerce sales down, despite website relaunch
Flagging womenswear offering
Pop-up concessions that match the local demographics
Lifestyle-led in-store experiences to drive footfall
Company background
Company performance
Figure 205: House of Fraser: group financial performance, 2012/13-2016/17
Figure 206: House of Fraser: outlet data, 2012/13-2016/17
Retail offering
JOHN LEWIS
What we think
More than just a shopping experience
Personal shoppers for men
Reducing the pain points in-store
Record Black Friday sales
New home maintenance service
Extended fulfilment options
Enhanced m-commerce proposition
Company background
Company performance
Figure 207: John Lewis Plc (department store): group financial performance, 2013/14-2017/18
Figure 208: John Lewis Plc (department store): outlet data, 2013/14-2017/18
Retail offering
KARSTADT GROUP
What we think
Store portfolio slimmed down
Portfolio rationalised
Cutting back on promotions
Low prices
Online
What next?
Company background
KaDeWe
Company performance
Figure 209: Karstadt Group: group financial performance, 2011/12-2015/16
Figure 210: Karstadt Group: outlet data, 2011/12-2016/17
Retail offering
Figure 211: Karstadt: product mix, 2015/16
LA RINASCENTE
What we think
Adapting stores to their location
Focus on the experience
Lacking an online option
Company background
Company performance
Figure 212: Rinascente (Department Stores): group sales performance, 2013-17
Figure 213: Rinascente (Department Stores): outlet data, 2013-17
Retail offering
LE BON MARCHÉ
What we think
The new food hall
Company background
Company performance
Figure 214: LVMH Selective Retail: financial performance, 2013-17
Figure 215: Le Bon Marché: sales performance, 2013-17
Figure 216: Le Bon Marché: outlet data, 2013-17
Retail offering
MARKS & SPENCER
What we think
Closing ‘full-line’ stores and pushing online clothing sales with new personal shopping service
Utilising data from Sparks to gain customer insight and boost customer engagement
Boosting financial services offering to offset struggling clothing sales
Capitalising on the success of its food offering
New 495,000 sq ft Clothing & Home distribution centre
Company background
Company performance
Figure 217: Marks & Spencer: Group financial performance, 2012/13-2016/17
Figure 218: Marks & Spencer: outlet data, 2012/13-2016/17
Retail offering
PRINTEMPS
What we think
Menswear department augurs well for growth
Sunday trading
Lagging behind online
Printemps du Goût – the battle of fine foods
Company background
Company performance
Figure 219: Printemps Department stores: group financial performance, 2013/14-2017/18
Figure 220: Printemps Department stores: outlet data, 2013/14-2017/18
Retail offering
SELFRIDGES RETAIL
What we think
Compelling in-store experiences driving footfall
Becoming a key Christmas shopping destination
Embracing the mantra of ‘buying better’
Company background
Company performance
Figure 221: Selfridges Retail Ltd: group financial performance, 2012/13-2016/17
Figure 222: Selfridges Retail Ltd: outlet data, 2012/13-2016/17
Retail offering

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