Retail Review - UK - March 2008

SUMMARY

Abstract

Mintel

TABLE OF CONTENTS

Table of Contents

• Issues in the Market
• Technical notes:
• Market in Brief
• Performance review
• Non-food retailers fought back in 2007
• Home shopping the major winner in 2007
• One-way ticket to Tescoland
• Major changes of ownership
• Key casualties in 2007/08
• Prospects for 2008
• Consumer confidence trends show swing to pessimism
• Bulk of people occupy the middle ground
• Mild pessimism is the most widely held view
• Retail category winners and losers
• Holidays retain top spot
• Debt reduction has increased popularity
• Tough year likely for clothing retailers
• Category reviews
• Food and drink retailers
• Non-specialised non-food retailers
• Clothing retailers and footwear retailers
• Clothing retailers
• Footwear retailers
• Household goods retailers
• Furniture and furnishings retailers
• Electrical goods retailers
• DIY retailers
• Specialist non-food retailers
• Health and beauty retailers
• Booksellers and stationers
• Jewellers
• Toys and games retailers
• Sports goods and outdoor leisure retailers
• Miscellaneous non-food specialists
• Home shopping retailers
• Market in Context
• Key findings
• 2007 retail sales growth well ahead of 2006
• Home shopping the clear winner
• Christmas failed to deliver
• Better-than-anticipated sales
• Indicators remain positive
• Careful what you wish for
• 2008 -- no better but likely to be worse
  • Figure 1: All retail sales, at current and constant prices, 2000-07
• Non-food retailers fought back in 2007
• Grocers found gains harder to come by in 2007
• Household goods retailers hit by deflation, weak demand and increased competition
• Home shopping retailers grew fastest
• Non-food specialists fought back well in 2007
• Booksellers and stationers alone among non-food specialists to have performed badly
  • Figure 1: Annual change in sales value, by sector, 2004/05-2006/07
• Christmas failed to sparkle
  • Figure 2: Retail sales, monthly change by value, not seasonally adjusted, 2006 and 2007
• The pre-Christmas interest rate cut failed to reassure consumers
• Home shopping the biggest winner
• Household goods retailers struggled badly
• Food retailers and non-food specialists gained share
  • Figure 3: December, year-on-year change in sales value, by sector, 2005/06 and 2006/07
• Food and Drink Retailers
• Sector structure and key trends
• Key developments
• Update on Competition Commission report
• Company developments
• Issues in the market
• Insights and opportunities
• Key innovation
• Sales trends
  • Figure 4: Food and drink retailers' sales, 2003/04-2006/07
• Profit trends
  • Figure 5: Food and drink retailers' operating profits, 2003/04-2006/07
• Margin trends
  • Figure 6: Food and drink retailers' operating margins, 2003/04-2006/07
• Outlet trends
  • Figure 7: Outlet numbers operated, by leading food and drink retailers, 2005/06-2007/08
• Company analysis
• Tesco
• J Sainsbury
• Asda
• Morrisons (incorporating Safeway)
• Co-operative Group
• Somerfield
• Marks & Spencer
• Waitrose
• Iceland
• Aldi
• Thresher
• Netto
• Greggs
• Farmfoods
• Martin McColl
• Holland & Barrett
• Booths
• Thorntons
• Majestic Wine
• Oddbins
• Heron Frozen Foods
• Companies with no breakdown of UK retail sales
• Lidl
• Profile detail: Companies below the turnover threshold
• One to watch
• Casualties
• Kwik Save
• Co-operative Societies
• Symbol groups
• Other symbol groups
• Wholesaler-supported fascias for independents
• Forecourt retailers
• Mixed Goods Retailers
• Sector structure and key trends
• Key developments
• Issues in the market
• Sector opportunities
• Key innovation
• Sales trends
  • Figure 8: Mixed goods retailers' sales, 2003/04-2006/07
  • Figure 9: Highest three-year sales growth, 2003/04-2006/07
• Profit trends
  • Figure 10: Mixed goods retailers' operating profits, 2003/04-2006/07
  • Figure 11: Highest three-year operating profits growth, 2003/04-2006/07
• Margin trends
  • Figure 12: Mixed goods retailers' operating margins, 2003/04-2006/07
  • Figure 13: Most profitable mixed goods retailers, by percentage and profit margins, 2003/04-2006/07
• Outlet trends
  • Figure 14: Outlet numbers operated, by leading mixed goods retailers, 2005/06-2007/08
• Company analysis
• Argos
• John Lewis Partnership -- department stores
• Woolworths
• Debenhams
• Wilkinson
• Mothercare, incorporating Early Learning Centre
• Early Learning Centre
• Harrods
• Selfridges
• House of Fraser
• TJ Morris, trading as Home Bargains
• Poundland
• Fenwick incorporating Bentalls
• Instore
• TJ Hughes
• Harvey Nichols
• CDS (Superstores International) trading as The Range
• Robert Dyas
• Companies with an incomplete dataset
• B&M Retail trading as Bargain Madness
• 99p Stores Ltd
• Companies below the turnover threshold
• Ones to watch
• Casualty
• Clothing Retailers
• Sector structure and key trends
• Key developments
• Issues in the market
• Insights and opportunities
• Key innovations
• Sales trends
  • Figure 15: Clothing retailers' sales, 2003/04-2006/07
• Profit trends
  • Figure 16: Clothing retailers' operating profits, 2003/04-2006/07
• Margin trends
  • Figure 17: Clothing retailers' operating margins, 2003/04-2006/07
• Outlet trends
  • Figure 18: Outlet numbers operated, by leading clothing retailers, 2005/06-2007/08
• Company analysis
• Marks & Spencer
• Next
• Arcadia
• Matalan
• Primark
• Bhs
• New Look
• TK Maxx
• Peacocks
• Bonmarch
• River Island
• Alexon Group
• H&M Hennes
• Monsoon
• Adams Kids
• Ethel Austin
• Edinburgh Woollen Mill
• Mackays
• mkone
• Zara
• Moss Bros
• Jacques Vert
• Internaçionale
• French Connection
• Austin Reed/Country Casuals
• USC
• Robinson Webster trading as Jigsaw and Kew
• La Senza
• Hobbs
• Ann Summers
• Fat Face
• Jane Norman
• Republic
• Companies with an incomplete dataset
• Ted Baker
• Companies with no breakdown of UK retail sales
• Gap
• Slater
• Retail companies below the turnover threshold
• Significant wholesale/retail fashion brands
• Ones to watch
• Casualties
• Footwear Retailers
• Sector structure and key trends
• Key developments
• Issues in the market
• Insights and opportunities
• Key innovation
• Sales trends
  • Figure 19: Footwear retailers' sales, 2003/04-2006/07
  • Figure 20: Indexed growth, footwear retailers' sales, 2003/04-2006/07
• Profit trends
  • Figure 21: Footwear retailers' operating profits, 2003/04-2006/07
  • Figure 22: Indexed growth, footwear retailers' operating profits, 2003/04-2006/07
• Margin trends
  • Figure 23: Footwear retailers' operating margins, 2003/04-2006/07
• Outlet trends
  • Figure 24: Outlet numbers operated, by leading footwear retailers, 2005/06-2007/08
• Company analysis
• Stylo
• Shoe Zone
• Stead & Simpson
• Shoefayre
• Kurt Geiger
• Brantano
• Schuh
• Office
• Faith Footwear
• Companies with no breakdown of UK retail sales
• C&J Clark
• The Shoe Studio
• Companies below the turnover threshold
• Ones to watch
• Casualty
• Furniture, Homewares and Floorcoverings Retailers
• Sector structure and key trends
• Key developments
• Issues in the market
• Insights and opportunities
• Key innovation
• Sales trends
  • Figure 25: Furniture, homewares and furnishing retailers' sales, 2003/04-2006/07
• Profit trends
  • Figure 26: Furniture, homewares and furnishing retailers' operating profits, 2003/04-2006/07
• Margin trends
  • Figure 27: Furniture, homewares and furnishing retailers' operating margins, 2003/04-2006/07
• Outlet trends
  • Figure 28: Outlet numbers operated, by leading furniture, homewares and floorcoverings retailers, 2005/06-2007/08
• Company analysis
• IKEA
• MFI
• DFS
• Steinhoff UK Retail (operating as Harveys Furnishings, Bensons for Beds and others)
• Carpetright
• Dunelm
• HomeForm
• Allied Carpets
• Laura Ashley
• ScS
• Land of Leather
• Furniture Village
• Habitat
• Dreams
• Floors-2-Go
• Company with incomplete dataset
• Rosebys
• Company with no breakdown of UK retail sales
• Companies below the turnover threshold
• Ones to watch
• Casualties
• Electrical Retailers
• Sector structure and key trends
• Key developments
• Issues in the market
• Insights and opportunities
• Key innovations
• Sales trends
  • Figure 29: Electrical retailers' sales, 2003/04-2006/07
• Profit trends
  • Figure 30: Electrical retailers' operating profits, 2003/04-2006/07
  • Figure 31: Electrical retailers' operating margins, 2003/04-2006/07
• Outlet trends
  • Figure 32: Outlet numbers operated, by leading electrical retailers, 2005/06-2007/08
• Company analysis
• DSG International plc (formerly Dixons Stores Group)
• UK & Ireland Electricals
• UK computing
• DSG e-commerce division
• Comet
• Maplin
• Richer Sounds
• Mobile phone retailers
• Hardware/DIY Retailers
• Sector structure and key trends
• Key developments
• Issues in the market
• Insights and opportunities
• Key innovation
• Sales trends
  • Figure 33: Hardware/DIY retailers' sales, 2003/04-2006/07
• Profit trends
  • Figure 34: Hardware/DIY retailers' operating profits, 2003/04-2006/07
• Margin trends
  • Figure 35: Hardware/DIY retailers' operating margins, 2003/04-2006/07
• Outlet trends
  • Figure 36: Outlet numbers operated, by leading hardware/DIY retailers, 2005/06-2007/08
• Company analysis
• Kingfisher UK -- B&Q and UK Trade
• Homebase
• Topps Tiles
• Brewers
• Companies with incomplete dataset
• Wickes
• Focus DIY
• Company below turnover threshold
• Health and Beauty Retailers
• Sector structure and key trends
• Key developments
• Issues in the market
• Insights and opportunities
• Key innovation
• Sales trends
  • Figure 37: Health and beauty retailers' sales, 2003/04-2006/07
• Profit trends
  • Figure 38: Health and beauty retailers' operating profits, 2003/04-2006/07
• Margin trends
  • Figure 39: Health and beauty retailers' operating margins, 2003/04-2006/07
• Outlet trends
  • Figure 40: Outlet numbers operated, by leading health and beauty retailers, 2005/06-2007/08
• Company analysis
• Alliance Boots
• Lloyds Pharmacy
• Superdrug, incorporating Savers Health & Beauty
• Superdrug
• Savers Health & Beauty
• Rowlands
• The Co-operative Pharmacy
• The Body Shop
• The Perfume Shop
• Company with incomplete dataset
• Companies below the turnover threshold
• Ones to watch
• Booksellers and Stationers
• Sector structure and key trends
• Key developments
• Issues in the market
• Insights and opportunities
• Key innovations
• Sales trends
  • Figure 41: Booksellers' and stationers' sales, 2003/04-2007/08
• Profit trends
  • Figure 42: Booksellers' and stationers' operating profits, 2003/04-2007/08
• Margin trends
  • Figure 43: Booksellers' and stationers' operating margins, 2003/04-2007/08
• Outlet trends
  • Figure 44: Outlet numbers operated, by leading booksellers and stationers, 2005/06-2007/08
• Company analysis
• WH Smith
• Waterstone's
• Clinton Cards
• Borders
• The Works
• Ryman Group (trading as Ryman, Partners the Stationers and Stationery Box)
• Blackwell
• Company with incomplete dataset
• Celebrations Group (formerly Greeting Card Group)
• Company with no breakdown of UK retail sales
• Staples
• Companies below turnover threshold
• One to watch
• Casualties
• Jewellers
• Sector structure and key trends
• Key developments
• Issues in the market
• Insights and opportunities
• Key innovation
• Sales trends
  • Figure 45: Jewellers' sales, 2003/04-2006/07
• Profit trends
  • Figure 46: Jewellers' operating profits, 2003/04-2006/07
• Margin trends
  • Figure 47: Jewellers' operating margins, 2003/04-2006/07
• Outlet trends
  • Figure 48: Outlet numbers operated, by leading jewellers, 2005/06-2007/08
• Company analysis
• Signet plc
• Aurum Holdings (incorporating Goldsmiths, Mappin & Webb and Watches of Switzerland)
• Claire's
• Companies below the turnover threshold
• Ones to watch
• Toys and Games Retailers
• Sector structure and key trends
• Key developments
• Issues in the market
• Insights and opportunities
• Key innovation
• Sales trends
  • Figure 49: Toys and games retailers' sales, 2003/04-2006/07
• Profit trends
  • Figure 50: Toys and games retailers' operating profits, 2003/04-2006/07
• Margin trends
  • Figure 51: Toys and games retailers' operating margins, 2003/04-2006/07
• Outlet trends
  • Figure 52: Outlet numbers operated, by leading toys and games retailers, 2005/06-2007/08
• Company analysis
• Game
• Gamestation
• Toys 'R' Us
• The Disney Store
• Companies below the turnover threshold
• Ones to watch
• Casualties
• Sports and Outdoor Leisure Retailers
• Sector structure and key trends
• Key developments
• Issues in the market
• Insights and opportunities
• Key innovation
• Sales trends
  • Figure 53: Sports and outdoor leisure retailers' sales, 2003/04-2006/07
• Profit trends
  • Figure 54: Sports and outdoor leisure retailers' operating profits, 2003/04-2006/07
• Margin trends
  • Figure 55: Sports and outdoor leisure retailers' operating margins, 2003/04-2006/07
• Outlet trends
  • Figure 56: Outlet numbers operated, by leading sports and outdoor leisure retailers, 2005/06-2007/08
• Company analysis
• Sports Direct, formerly Sports World International
• JJB Sports
• John David Group
• Blacks Leisure
• Foot Locker
• Companies below the turnover threshold
• Ones to watch
• Miscellaneous Non-Food Specialist Retailers
• Structure and key trends
• Key developments
• Issues in the market
• Insights and opportunities
• Key innovation
• Sales trends
  • Figure 57: Miscellaneous non-food specialist retailers' sales, 2003/04-2006/07
• Profit trends
  • Figure 58: Miscellaneous non-food specialist retailers' operating profits, 2003/04-2006/07
• Margin trends
  • Figure 59: Miscellaneous non-food specialist retailers' operating margins, 2003/04-2006/07
• Outlet trends
  • Figure 60: Outlet numbers operated, by leading miscellaneous non-food specialist retailers, 2005/06-2007/08
• Company analysis
• HMV
• Jessops
• Halfords
• Wyevale and Blooms of Bressingham
• Pets at Home
• Company with incomplete dataset
• Zavvi (formerly Virgin Megastores)
• Companies below the turnover threshold
• Home entertainment rental and sales companies
• Ones to watch
• Casualty
• Home Shopping Retailers
• Sector structure and key trends
• Key developments
• Issues in the market
• Sector opportunities
• Key innovations
• Sales trends
  • Figure 61: Home shopping retailers' sales, 2003/04-2006/07Figure 62: Home shopping retailers' highest three-year sales growth, 2003/04-2006/07
• Profit trends
  • Figure 63: Home shopping retailers' operating profits, 2003/04-2006/07
  • Figure 64: Home shopping retailers' highest three-year profits growth, 2003/04-2006/07
• Margin trends
  • Figure 65: Home shopping retailers' operating margins, 2003/04-2006/07
  • Figure 66: Highest-margin companies, home shopping retailers, 2003/04-2006/07
• Company analysis
• Tesco.com
• Next Directory
• N Brown
• Otto Versand (UK) operating as Grattan and Freemans
• QVC
• Findel
• Empire/Redcats Brands
• Avon Cosmetics
• Direct Wines
• Sit-up
• Ocado
• eBuyer
• JP Boden & Co
• Lakeland
• Empire Direct
• Damartex UK (formerly Thermawear)
• Ideal Shopping Direct
• Hillarys Blinds
• Company with incomplete dataset
• Littlewoods Shop Direct Group
• Companies with no breakdown of UK retail sales
• Amazon
• Play.com
• Park Group
• Companies below the turnover threshold
• Ones to watch
• Casualty
• Consumer Outlook and Spending Priorities for 2008
• Key findings and implications
• Outlook
  • Figure 67: Financial prospects, 2002-08
• How have opinions changed?
  • Figure 68: Financial prospects, 2007 and 2008
• Composition of groups
• Who's who?
• Spending priorities for 2008
  • Figure 69: Expenditure priorities, 2007 and 2008
• Spending priorities by outlook
  • Figure 70: Expenditure priorities for 2008, by financial outlook, January 2008
• Detailed Consumer Demographics
  • Figure 71: Financial prospects, by gender, age and socio-economic group, January 2008
  • Figure 72: Financial prospects, by region, Mintel's Special Groups and supermarket used, January 2008
  • Figure 73: Highest expenditure priorities in 2008, by gender, age and socio-economic group, January 2008
  • Figure 74: Highest expenditure priorities in 2008, by region, presence of children, lifestage, Mintel's Special Groups and supermarket used, January 2008
  • Figure 75: Other important expenditure priorities, by gender, age and socio-economic group, January 2008
  • Figure 76: Other important expenditure priorities, by region, Mintel's Special Groups and supermarket used, January 2008
  • Figure 77: Other important expenditure priorities, by gender, age and socio-economic group, January 2008
  • Figure 78: Other important expenditure priorities, by region, Mintel's Special Groups and supermarket used, January 2008