Table of Contents
Introduction and Abbreviations
-
- Definitions
- Research methodology
- Consumer research
- ACORN
- Other research
- Abbreviations
Premier Insight
Executive Summary
-
- Increased competition on all sides
- Mixed goods sales lag behind all retail sales
- Sales by top ten variety retailers approach £22 billion
- Sector characterised by large multiples with famous names
- Mature brands reaching geographic saturation
- Poundland achieves the fastest rate of outlet growth
- Out-of-town locations beckon
- Intense competition in many product categories
- Supermarkets increasingly encroach on variety market
- Main online competition from Amazon
- Economic drivers largely positive
- Employment factors more equivocal
- Demographics dominated by ageing population
- So we’re all middle class now?
- Rising number of households to benefit those selling homewares
- Boots the most highly-used store
- Predominantly female audience
- Value retailers increase their ABC1 appeal
- Age does matter
- Correlation with media usage
- Supermarkets a major threat
- ABs like bigger specialist ranges
- Specialists stealing WH Smith sales, but Boots faces widespread competition
- Woolworths and Wilko valued for convenience
- M&S damaged by perceptions of poor value and uninspiring clothing
- Attitudes towards value for money, home shopping
- Encouraging loyalty and impulse buying
- M&S makes one third of sector sales
- Supermarkets the scourge of Boots
- Argos strengthens but Woolworths can only maintain share
- WH Smith facing up to specialist competition
- Poundstretcher falls behind other value retailers
- Main developments at individual retailers
- Argos focused on growth markets
- Bhs has improved since takeover by Philip Green
- Boots the Chemists developing three distinct store formats
- Littlewoods/Index struggles to maintain sales
- M&S strives to return to basic values
- Poundland growing rapidly and expanding own-brands
- Poundstretcher benefits from new management
- WH Smith updating dowdy image
- Wilkinson proves that high street variety retailing can be successful
- Woolworths partially withdraws from out-of-town retailing
- Prospects for variety retailers
Retail Sales
-
- All retail sales
-
- Figure 1: All retail sales, at current and constant 2000 prices, 1998-2004
- Sales through non-specialist non-food retailers
-
- Figure 2: Sales through non-specialist non-food retailers, at current and constant 2000 prices, 1998-2004
- Sales through leading UK variety retailers
-
- Figure 3: Sales through leading UK variety retailers, 2000-04
-
- Figure 4: Retail sales by leading UK variety stores, 2000-04
Sector Structure
-
- Leading multiples
-
- Figure 5: Leading variety store retailers, UK outlet data, 2000-04
- Competition intensifies in many categories
- Other variety retailers
Market Factors
-
- Economic trends
- PDI and consumer expenditure
-
- Figure 6: PDI, savings and consumer expenditure, at current prices, 1999-2009
- Housing market
-
- Figure 7: House prices, number of house sales and interest rates, 1999-2009
- Employment trends
-
- Figure 8: Structure of the working population, by gender, 1998-2009
- Social and demographic trends
-
- Figure 9: Total UK population, by age group, 1999-2009
- Socio-economic factors
-
- Figure 10: UK adult population (aged 15+), by socio-economic group, 1999-2009
- Number of households rising but average size in decline
-
- Figure 11: Number and size of UK households, 1999-2009
- Impact of marriage and divorce rates
-
- Figure 12: Number of births, marriages and divorces, 1999-2009
- Car use and out-of-town shopping
The Consumer
-
- Critical consumer findings
- Browsing versus purchasing
-
- Figure 13: Browsing versus purchasing at leading UK variety stores, May 2004
-
- Figure 14: Browsing and purchasing from variety stores in the past six months, May 2004
- Analysis of characteristics of purchasers
-
- Figure 15: Variety stores where anything bought in the past six months, by gender, age and socio-economic group, May 2004
-
- Figure 16: Variety stores where anything bought in the past six months, by gender, age and socio-economic group, May 2004
-
- Figure 17: Variety stores where anything bought in the past six months, by presence of children, lifestage and Mintel’s Special Groups, May 2004
-
- Figure 18: Variety stores where anything bought in the past six months, by presence of children, lifestage and Mintel’s Special Groups, May 2004
-
- Figure 19: Variety stores where anything bought in the past six months, by region and ACORN categories, May 2004
-
- Figure 20: Variety stores where anything bought in the past six months, by region and ACORN categories, May 2004
-
- Figure 21: Variety stores where anything bought in the past six months, by media, source of regular grocery shopping and commercial TV viewing, May 2004
-
- Figure 22: Variety stores where anything bought in the past six months, by media, source of regular grocery shopping and commercial TV viewing, May 2004
Consumer Attitudes and Typologies
-
- Critical consumer findings
- Value for money and interest in home shopping services
-
- Figure 23: Summary of variety stores findings, May 2004
- Key demographic differences
- Value for money
- Home shopping service
- Number of variety stores used for purchasing
-
- Figure 24: Number of variety stores used for purchase in the past six months, May 2004
- How successfully do the main stores attract their target market?
-
- Figure 25: CHAID analysis of leading variety stores, May 2004
- Which variety stores attract similar groups of customers
-
- Figure 26: Correlation analysis of variety stores shoppers, May 2004
-
- Figure 27: Variety stores shoppers that also shop at Argos, Bhs, Boots, Index and M&S, May 2004
-
- Figure 28: Variety stores shoppers that also shop at Poundland, Poundstretcher, WH Smith, Wilkinson Hardware and Woolworths, May 2004
- Best value-for-money variety stores
-
- Figure 29: Variety stores offering the best value for money, by variety stores browsed in the past six months, May 2004
-
- Figure 30: Variety stores offering the best value for money, by variety stores browsed in the past six months, May 2004
- Interest in home shopping services
-
- Figure 31: Variety stores where shoppers would use a home shopping service, by variety stores browsed in the past six months, May 2004
-
- Figure 32: Variety stores where shoppers would use a home shopping service, by variety stores browsed in the past six months, May 2004
- Consumer attitudes towards variety stores
-
- Figure 33: Attitudes towards variety stores, May 2004
- Shopping patterns at variety stores
-
- Figure 34: Attitudes towards variety stores, by gender, age and socio-economic group, May 2004
-
- Figure 35: Go to variety stores less frequently because I pick up many of the items they sell at supermarkets, by Mintel’s Special Groups, May 2004
- Range issues
-
- Figure 36: Attitudes towards variety stores, by gender, age and socio-economic group, May 2004
-
- Figure 37: Prefer ranges of a specialist and don’t mind limited range if can get low prices, by lifestage, May 2004
- Marks & Spencer and Bhs
-
- Figure 38: Attitudes towards variety stores, by gender, age and socio-economic group, May 2004
- Woolworths, Wilkinson, Boots and WH Smith
-
- Figure 39: Attitudes towards variety stores, by gender, age and socio-economic group, May 2004
-
- Figure 40: Attitudes towards shopping and shopping behaviour at Boots and WH Smith, by Mintel’s Special Groups, May 2004
- Attitudes towards variety stores among browsers of stores
-
- Figure 41: Attitudes towards variety stores, by stores browsed, May 2004
-
- Figure 42: Attitudes towards variety stores, by stores browsed, May 2004
Retail Market Shares
-
- M&S makes a third of sector sales
-
- Figure 43: Market shares of leading UK variety retailers, 2000 and 2003
- Figure 44: Market shares of leading UK variety store retailers, 2003
- Boots loses out to supermarkets
- Argos gains momentum but Woolworths wobbles
- WH Smith sorts its shelves
- Discounters in the ascendant
- Shares slide in the middle market
Retailer Profiles
-
- Argos
-
- Figure 45: Argos, outlet data, 2000-04
-
- Figure 46: Argos, financial performance, 2000-04
-
- Figure 47: Argos, online sales, 2002-04
- Bhs
-
- Figure 48: Bhs Limited, outlet data, 2000-03
- Fast fashion stirs the hangers
- New focus on homewares
-
- Figure 49: Bhs Limited, financial performance, 2000-03
- Bhs Group results
- Boots the Chemists
-
- Figure 50: Boots the Chemists, outlet data, 2000-04
-
- Figure 51: Boots Group plc, financial performance, 2000-04
- Littlewoods/Index
-
- Figure 52: Littlewoods, outlet data, 1999-2003
-
- Figure 53: Littlewoods Ltd, financial performance, 1999-2003
- Marks & Spencer
-
- Figure 54: Marks & Spencer, outlet data, 2000-04
- New format development
- Store refurbishment
-
- Figure 55: Marks & Spencer UK retail product mix, by allocation of selling space and proportion of turnover, 1998-2004
-
- Figure 56: Marks & Spencer, financial performance, 2000-04
- Figure 57: Marks & Spencer, like-for-like sales performance, 2003-04
- Clothing sales
- Poundland
-
- Figure 58: Poundland Limited, store numbers, 2000-04
-
- Figure 59: Poundland Ltd, financial performance, 2000-04
- Poundstretcher
-
- Figure 60: Brown & Jackson plc, outlet data, 2000-04
- Instore heralds a move to the mass market
-
- Figure 61: Development of the Instore format, 2003-04
-
- Figure 62: Brown & Jackson plc, financial performance, 2000-04
- WH Smith
-
- Figure 63: WH Smith plc, UK retail outlet data, 1999-2003
-
- Figure 64: WH Smith plc, UK retailing, financial performance, 1999-2003
- Wilkinson Hardware Stores
-
- Figure 65: Wilkinson Hardware Stores Ltd, outlet data, 2000-04
-
- Figure 66: Wilkinson Hardware Stores Ltd, financial performance, 2000-04
- Woolworths
-
- Figure 67: Woolworths Mainchain and Big W, outlet data, 2000-04
-
- Figure 68: Woolworths plc, financial performance, 2001-04
-
- Figure 69: Woolworths and Big W retail chains, financial performance, 2000-03
Retail Practices and Operational Issues
-
- Current trading and outlook
-
- Figure 70: Leading variety stores, recent trading performance, 2002/03 or 2003/2004
- Christmas 2003 trading
- Performance of key product sectors
- Tough conditions in clothing
- Highly competitive housewares
- Contesting confectionery
- Supermarkets improving health and beauty
- Other product categories
- Deflation rules in many sectors
- Targeting of key customer groups
- Internet shopping limited
- Brand strategies in the variety sector
- Can service make a difference?
- Will variety retailers remain on the high street?
- New formats aplenty
- Advertising and promotional strategies
- Loyalty schemes limited
- New entrants to the mixed goods arena
The Future
-
- Factors likely to influence future performance
- Supermarkets and specialists will continue to squeeze variety store sales
- Responses to competitive pressure
- Demographic drivers
- Socio-economic factors
- Who are likely to be the winners and losers?
- M&S solid but no longer an icon
- Resuscitation required at WH Smith
- Boots future based on tailored formats and own-brand development
- Mixed prospects for value retailers
- Future unclear for Littlewoods and Index
- Few potential new entrants except supermarkets
Forecast
-
- Solid growth predicted
-
- Figure 71: Forecast total retail sales of UK variety stores, 2004-09
- Figure 72: Forecast retail sales of top ten variety store chains, 2004-09
- Factors incorporated
Appendix 1
-
-
- Figure 73: Variety stores browsed while out shopping in the past six months, by gender, age and socio-economic group, May 2004
- Figure 74: Variety stores browsed while out shopping in the past six months, by gender, age and socio-economic group, May 2004
-
- Figure 75: Variety stores browsed while out shopping in the past six months, by presence of children, lifestage and Mintel’s Special Groups, May 2004
- Figure 76: Variety stores browsed while out shopping in the past six months, by presence of children, lifestage and Mintel’s Special Groups, May 2004
-
- Figure 77: Variety stores browsed while out shopping in the past six months, by region and ACORN category, May 2004
- Figure 78: Variety stores browsed while out shopping in the past six months, by region and ACORN category, May 2004
-
- Figure 79: Variety stores browsed while out shopping in the past six months, by media, source of regular grocery shopping and commercial TV viewing, May 2004
- Figure 80: Variety stores browsed while out shopping in the past six months, by media, source of regular grocery shopping and commercial TV viewing, May 2004
-
Appendix 2
-
-
- Figure 81: Variety stores offering the best value for money, by gender, age and socio-economic group, May 2004
- Figure 82: Variety stores offering the best value for money, by gender, age and socio-economic group, May 2004
-
- Figure 83: Variety stores offering the best value for money, by presence of children, lifestage and Mintel’s Special Groups, May 2004
- Figure 84: Variety stores offering the best value for money, by presence of children, lifestage and Mintel’s Special Groups, May 2004
-
- Figure 85: Variety stores offering the best value for money, by region and ACORN category, May 2004
- Figure 86: Variety stores offering the best value for money, by region and ACORN category, May 2004
-
- Figure 87: Variety stores offering the best value for money, by media, source of regular grocery shopping and commercial TV viewing, May 2004
- Figure 88: Variety stores offering the best value for money, by media, source of regular grocery shopping and commercial TV viewing, May 2004
- Figure 89: Variety stores where shoppers would use a home shopping service, by gender, age and socio-economic group, May 2004
-
- Figure 90: Variety stores where shoppers would use a home shopping service, by presence of children, lifestage and Mintel’s Special Groups, May 2004
- Figure 91: Variety stores where shoppers would use a home shopping service, by region and ACORN category, May 2004
-
- Figure 92: Variety stores where shoppers would use a home shopping service, by media, source of regular grocery shopping and commercial TV viewing, May 2004
- Figure 93: Attitudes towards variety stores, by presence of children, lifestage and Mintel’s Special Groups, May 2004
-
- Figure 94: Attitudes towards variety stores, by presence of children, lifestage and Mintel’s Special Groups, May 2004
- Figure 95: Attitudes towards variety stores, by presence of children, lifestage and Mintel’s Special Groups, May 2004
-
- Figure 96: Attitudes towards variety stores, by presence of children, lifestage and Mintel’s Special Groups, May 2004
- Figure 97: Attitudes towards variety stores, by region and ACORN category, May 2004
-
- Figure 98: Attitudes towards variety stores, by region and ACORN category, May 2004
- Figure 99: Attitudes towards variety stores, by region and ACORN category, May 2004
-
- Figure 100: Attitudes towards variety stores, by region and ACORN category, May 2004
- Figure 101: Attitudes towards variety stores, by media, source of regular grocery shopping and commercial TV viewing, May 2004
-
- Figure 102: Attitudes towards variety stores, by media, source of regular grocery shopping and commercial TV viewing, May 2004
- Figure 103: Attitudes towards variety stores, by media, source of regular grocery shopping and commercial TV viewing, May 2004
-
- Figure 104: Attitudes towards variety stores, by media, source of regular grocery shopping and commercial TV viewing, May 2004
-
Back to top