Brand Overview: Retail - UK - September 2018

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
Brand Leaders
Household names lead the way on usage
Figure 1: Top ranking of brands in the retail sector, by overall usage, November 2015-June 2018
Amazon goes from strength to strength
Figure 2: Top ranking of brands in the retail sector, by usage in the last 12 months, November 2015-June 2018
Boots’ heritage creates trustworthy image
Figure 3: Top ranking of brands in the retail sector, by agreement with “A retailer that I trust”, November 2015-June 2018
Brands with unique features stand out
Figure 4: Top ranking of brands in the retail sector, by differentiation (Net of “It’s a unique brand” and “It’s somewhat different from others”), November 2015-June 2018
Amazon stands out on experience offered
Figure 5: Top ranking of brands in the retail sector, by satisfaction (Net of “Good” and “Excellent” reviews), November 2015-June 2018
Brand Reputation
Boots offers something special
Figure 6: Top ranking of brands in the retail sector, by agreement with “A retailer that has great customer service”, November 2015-June 2018
Exclusivity defines many brands in the retail sector
Figure 7: Top ranking of brands in the retail sector, by agreement with “Exclusive”, November 2015-June 2018
Lush and The Body Shop lead on ethics
Figure 8: Top ranking of brands in the retail sector, by agreement with “Ethical”, November 2015-June 2018
Amazon offers value despite not being the cheapest place
Figure 9: Top ranking of brands in the retail sector, by agreement with “A retailer that offers good value”, November 2015-June 2018
eBay and IKEA changed shopping possibilities
Figure 10: Top ranking of brands in the retail sector, by agreement with “A retailer that is innovative”, November 2015-June 2018
The Retail Brandscape
Amazon and eBay ahead on perception of online quality
Figure 11: Top ranking of brands in the retail sector, by agreement with “A retailer that provides a great online service”, November 2015-June 2018
Fashion retailers impress their users
Figure 12: Agreement with “A retailer that provides a great online service” amongst users of the brand, November 2015-June 2018
Consistency over long term influences commitment
Figure 13: Top ranking of brands in the retail sector, by commitment (Net of “This is a favourite brand” and “I prefer this brand over others”), November 2015-June 2018
Discounters and food retailers largely seen as similar
Figure 14: Average scores for trust and differentiation, by retail category, November 2015-June 2018
Similar level of adspend, similar spread
Figure 15: Total above-the-line, online display and direct mail advertising expenditure in the retail sector, by month, January 2015-June 2018
What we think
BRAND LEADERS – WHAT YOU NEED TO KNOW
Household names lead the way on usage
Boots’ heritage creates trustworthy image
Brands with unique features stand out
Amazon stands out on experience offered
BRAND USAGE
Household names lead the way on usage
Figure 16: Top ranking of brands in the retail sector, by overall usage, November 2015-June 2018
Amazon goes from strength to strength
Figure 17: Top ranking of brands in the retail sector, by usage in the last 12 months, November 2015-June 2018
Aldi and Lidl competing with the big four
The burgeoning convenience category boosts Tesco
TRUST IN RETAIL BRANDS
Boots’ heritage creates trustworthy image
Figure 18: Top ranking of brands in the retail sector, by agreement with “A retailer that I trust”, November 2015-June 2018
Trustworthiness built through consistency
Figure 19: Agreement with “A retailer that I trust”, by agreement with “Reliable”, in the retail sector, November 2015-June 2018
Brands with a big reputation can subvert lack of regular usage
BRAND DIFFERENTIATION
Brands with unique features stand out
Figure 20: Top ranking of brands in the retail sector, by differentiation (Net of “It’s a unique retailer” and “It’s somewhat different from others”), November 2015-June 2018
BRAND SATISFACTION AND RECOMMENDATION
Amazon stands out on experience offered
Figure 21: Top ranking of brands in the retail sector, by satisfaction (Net of “Good” and “Excellent” reviews), November 2015-June 2018
Victoria’s Secret, Sweaty Betty and ao.com set to increase customer base
Recommendation dependent on satisfaction
Figure 22: Top ranking of brands in the retail sector, by likely recommendation, November 2015-June 2018
BRAND REPUTATION – WHAT YOU NEED TO KNOW
Boots offers something special
Exclusivity defines many brands in the retail sector
Lush and The Body Shop lead on ethics
Retailers striving to raise ethical standards
Amazon offers value despite not being the cheapest place
eBay and IKEA changed shopping possibilities
Technology drives retail innovation
RETAIL BRANDS AND CUSTOMER SERVICE
Boots offers something special
Figure 23: Top ranking of brands in the retail sector, by agreement with “A retailer that has great customer service”, November 2015-June 2018
Marks & Spencer indicative of trust and customer service correlation
Figure 24: Agreement with “A retailer that I trust”, by agreement with “A retaler that has great customer service”, November 2015-June 2018
Premium retailers skewed towards customer service
Growth of online changing definition of customer service
Brands with strong customer service thought of as welcoming
Figure 25: Top ranking of brands in the retail sector, by agreement with “Welcoming”, November 2015-June 2018
Premium brands struggle with creating welcoming image
Figure 26: Agreement with “A retailer that has great customer service”, by agreement with “Welcoming”, November 2015-June 2018
PREMIUM AND PRESTIGE BRANDS
Exclusivity defines many brands in the retail sector
Figure 27: Top ranking of brands in the retail sector, by agreement with “Exclusive”, November 2015-June 2018
Expense is all relative
Figure 28: Top ranking of brands in the retail sector, by agreement with “Expensive”, November 2015-June 2018
Expense and exclusivity closely related
Figure 29: Agreement with “Exclusive”, by agreement with “Expensive”, November 2015-June 2018
RETAIL BRANDS AND ETHICS
Lush and The Body Shop lead on ethics
Figure 30: Top ranking of brands in the retail sector, by agreement with “Ethical”, November 2015-June 2018
Unethical perceptions influenced by treatment of workers
Figure 31: Top ranking of brands in the retail sector, by agreement with “Unethical”, November 2015-June 2018
Ethics are not a concern for everyone…
…but ethical expectations are increasing
ETHICAL ACTIVITY
Accessibility to all
A friendlier shopping environment
Figure 32: The Entertainer extends Quiet Hour, July 2018
Iceland attempts to become the number one dementia retailer
Figure 33: Iceland’s support of dementia, August 2018
A model of diversity
Figure 34: ASOS creates with wheelchair-friendly jumpsuit with Chloe Ball-Hopkins, July 2018
Figure 35: Missguided’s diverse mannequins, February 2018
The gender pay gap takes prominence in 2018
The environment
Aiding recycling
Figure 36: The Co-operative’s plastic bottle deposit return reverse vending machine, May 2018
Removing plastics from sale
Figure 37: Morrisons reintroduces paper bags, August 2018
Reducing waste and protecting the environment
Figure 38: IKEA teams up with Big Clean Switch, March 2018
Sustainable fashion
Closing the loop
Figure 39: Centre for Sustainable Fashion partners with ASOS for circular fashion training programme, June 2018
Animal welfare
Charity
Harrods launches a charity pop-up shop
Figure 40: Harrods’ Fashion Re-told charity fashion store, April 2018
Amazon launches Amazon Smile
Figure 41: Amazon Smile, July 2018
RETAIL BRANDS AND VALUE
Amazon offers value despite not being the cheapest place
Figure 42: Top ranking of brands in the retail sector, by agreement with “A retailer that offers good value”, November 2015-June 2018
Brands committing to lower prices
The value of rare and unusual items
Expectations limit how much people are willing to pay for Amazon
Figure 43: Top ranking of brands in the retail sector, by agreement with “A retailer that is worth paying more for”, November 2015-June 2018
M&S’ food operations distinct from other parts of its business
Exclusivity helps promote an idea of added value
RETAIL BRANDS AND INNOVATION
eBay’s auction platform changed shopping possibilities
IKEA at the forefront of flat-pack
Figure 44: Top ranking of brands in the retail sector, by agreement with “A retailer that is innovative”, November 2015-June 2018
Innovation and cutting edge signify different things
Figure 45: Top ranking of brands in the retail sector, by agreement with “cutting edge”, November 2015-June 2018
INNOVATION ACTIVITY
Retailers experiment with checkout-free stores
Figure 46: Sainsbury’s trial of checkout-free shopping, August 2018
Alternative realities hit the mainstream
Figure 47: Zara augmented reality app, April 2018
Department stores as a destination
Figure 48: Selfridges Boxing Gym opens, January 2018
Sports Direct taps into eSports
Waitrose focuses on the health of its customers
Sainsbury’s increases the number of concessions in-store
Shopping via social media just got easier
Figure 49: Marks & Spencer Instagram Shopping post, August 2018
eBay used images as a search query
THE RETAIL BRANDSCAPE – WHAT YOU NEED TO KNOW
Amazon ahead on perception of online quality
Retailers seeking to improve the online experience
Consistency over long term influences commitment
Amazon Prime seeking to up consumer spend
Discounters and food retailers largely seen as similar
Similar level of adspend, similar spread
ONLINE SHOPPING
Amazon ahead on perception of online quality
eBay is the other standout
Figure 50: Top ranking of brands in the retail sector, by agreement with “A retailer that provides a great online service”, November 2015-June 2018
Argos’ Fast Track delivery influences perceptions
Grocery retailers have yet to make their mark
Fashion retailers impress their users
Figure 51: Top ranking of brands in the retail sector, by agreement with “A retailer that provides a great online service” amongst users of the retailer, November 2015-June 2018
ONLINE RETAIL DEVELOPMENTS
Better delivery services are becoming normal
Brands seek to innovate on delivery methods
Figure 52: Sainsbury’s use of electric cargo bikes for deliveries, April 2018
The rise in ‘try before buy’
Figure 53: Klarna launches in the UK with Topshop, September 2016
Figure 54: The Fragrance Shop’s scentaddict service, August 2018
Online specialists moving into the physical world
Figure 55: Zalando Beauty Station launches in Berlin, July 2018
LOYALTY TOWARDS RETAILERS
Loyalty has different meanings to different people
Figure 56: Top ranking of brands in the retail sector, by commitment (Net of “This is a favourite retailer” and “I prefer this retailer over others”), November 2015-June 2018
Consistency over long term influences commitment
Figure 57: Brand commitment, by agreement with “Reliable”, November 2015-June 2018
Amazon preference means ongoing usage
Figure 58: Brands in the retail sector with the lowest proportion of lapsed users, November 2015-June 2018
Furniture retailers suffer from irregular usage
Figure 59: Top ranking of brands in the retail sector, by lapsed users, November 2015-June 2018
Retailers focusing on select targets also have high loss in users
Littlewoods has yet to fully bounce back
LOYALTY INITIATIVES
Online making loyalty harder to grasp
Loyalty schemes continue to drive custom
Nectar scheme revamped to focus on frequency and longevity of custom
Amazon Prime continues to grow
Superdrug launches mobile network for loyalty scheme members
Figure 60: Superdrug Mobile launches, June 2018
RETAIL CATEGORY COMPARISON
Discounters match usage of food retailers
Figure 61: Average score for key metrics across different retail categories, November 2015-June 2018
Fashion brands impacted by targeted offering
Discounters and food stores seen as similar
Department stores stand out…
Figure 62: Average scores for trust and differentiation, by retail category, November 2015-June 2018
…helped by their reputation for service
Figure 63: Average score for brand attitudes, by retail category, November 2015-June 2018
Discounters appeal to bargain hunters
Discounter supermarkets also putting the pressure on
Department stores seen as expensive
Figure 64: Average score for brand attributes, by retail category, November 2015-June 2018
Health and beauty likely to lead on ethics
Discounters’ basic image highlights lack of product range
ADVERTISING AND MARKETING ACTIVITY
Similar level of adspend, similar spread
Figure 65: Total above-the-line, online display and direct mail advertising expenditure in the retail sector, by month, January 2015-June 2018
Argos highlights Fast Track delivery
Figure 66: Total above-the-line, online display and direct mail advertising expenditure in the retail sector, by top advertisers, 2017
Figure 67: Argos advert highlighting short delivery times, November 2017
Currys PC World highlights staff expertise
Figure 68: Currys PC World demonstrates staff expertise in advertising, November 2018
Specsavers continues “Should’ve” theme
Figure 69: Specsavers continues “Should’ve” TV ad campaign, March 2017
Oak Furniture Land emphasises authenticity of products
Figure 70: Oak Furniture Land “No Veneer in ‘ere” advertising, July 2017
M&S encourages people to focus on quality
Figure 71: Marks & Spencer’s Spend It Well campaign, May 2017
TV remains most popular channel for advertising…
Figure 72: Share of total recorded adspend in the retail sector, by media type, January 2015-June 2018
…but attention likely to be waning
Food retailers most picked out by consumers
Superdrug points to Love Island sponsorship as a success
Figure 73: Missguided’s sponsorship of Love Island, June 2018
Nielsen Ad Intel coverage
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
APPENDIX – BRANDS COVERED