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Retailing in The United Kingdom - Analysis: Country Report - Jan 2019
Retailing in The United Kingdom - Analysis: Country Report - Jan 2019
As automation blurs the line between online and bricks-and-mortar shopping, retailers 1%
are going automatic to attract shoppers to stores. The future of bricks-and-mortar
stores is a debated topic, and retailers are racing to ensure physical stores keep
0.5%
customers coming back for more. Digitalisation has transformed retail, and businesses
must embrace new technology to stay relevant. As brands across the spectrum, from
fast fashion to luxury, open new stores with greater technological integration, in-store 0%
2004 2018 2023
automation is becoming an increasingly important tool. “Magic” mirrors and touch
screens have been appearing in stores for some time. However, in recent months, in-
store automation shifted from a quirky novelty addition to a functional consumer tool,
as the importance of omnichannel retailing is growing. Mango’s new Westfield London Sales of Retailing by Category
store in White City introduced mobile payment and digital fitting rooms. After a pop-up Retail Value RSP excl Sales Tax - GBP million - Current - 2018 Growth Performance
store designed for ordering and collecting online purchases, in 2018 Zara launched its
new Westfield Stratford City store, which features self-checkouts and automated Store-based Retailing
collection points. Payment is a clear area of focus in automation. Although fast fashion 307,264.7
looks at automation to speed up processes, luxury retailers are using it to further Non-Store Retailing
personalise and enhance the in-store experience for demanding customers. It frees-up 68,188.0
staff to engage with customers and allows for a personalised service, such as styling -15% 0% 45%
advice. The use of technology to provide an improved experience in-store has
expanded to other types of retailers, with the traditional toys and games store The RETAILING 375,452.7 CURRENT % CAGR % CAGR
YEAR % 2013-2018 2018-2023
Entertainer opening its experiential flagship store in Westfield London, White City. The GROWTH
new outlet features the projection of interactive games on the floor and Augmented
Reality mirrors.
With internet retailing reaching a more mature stage in the UK, and the future Co-operative Group Ltd, ... 1.9%
development of the channel expected to be slower than the growth experienced over Boots UK Ltd 1.8%
the last five years, retailers across all channels are expected to increasingly invest in
Lidl Ltd 1.8%
technological innovation, as the line between online and bricks-and-mortar shopping
becomes blurred. Amazon is expected to become a stakeholder with ever-growing Waitrose Ltd 1.7%
bargaining power amongst fmcg companies. This is due not only to its sales, but also:
Amazon.com Inc 1.7%
constant innovation, such as the Dash Button and Alexa capabilities; the continued
focus on convenient innovative delivery solutions and increasing click and collect Next Plc 1.2%
options; strong usage of valuable consumer data; as well as its focus on private label Argos Plc 1.1%
and cost reduction of goods.
John Lewis Partnership P... 1.1%
There are some differences in opening hours between urban and rural areas, Tesco Superstore 3.9%
although these are mainly due to differences in retail channels. Independent small Morrisons 3.8%
grocers and specialist retailers in rural areas tend to be small, and often family-run,
with these typically offering shorter opening hours. The larger stores found in rural Tesco Extra 3.8%
areas are, meanwhile, mainly supermarkets and hypermarkets, with these governed 3rd Party Merchants 3.6%
by legislation limiting opening hours on Sundays. There is furthermore often little
Aldi 2.9%
demand for 24-hour retailing in rural areas, with 24-hour convenience stores,
supermarkets and hypermarkets mainly limited to major cities. The Co-operative 1.9%
3rd Party Merchants 1.9%
There are specific dates when retailing is restricted in the UK. The Christmas Day
Trading Act has been in force since 2004 and prohibits large stores from opening on Boots 1.8%
Christmas Day. This law has seen some debate, with many citing strong internet
Lidl 1.8%
sales on Christmas Day as an example of its illogicality. In rural areas, meanwhile,
most shops close on Sundays and on bank holidays such as Good Friday. Large stores Marks & Spencer 1.7%
with a sales area of over 3,000 sq ft (280 sq m) can, meanwhile, open for only six Amazon 1.7%
hours on Sundays.
Waitrose & Partners 1.6%
The main restrictions to 24-hour opening are linked to Sunday trading legislation. Tesco Express 1.2%
There are, however, few other restrictions, with 24-hour opening seen in
convenience stores, supermarkets and hypermarkets. However, some retailers are Argos 1.1%
finding 24-hour opening is increasingly unprofitable, with few consumers shopping Currys PC World 1.1%
at night. January 2016 notably saw Tesco announce that it would cease 24-hour
operations at 76 of its 376 24-hour stores. Tesco 1.0%
Primark 1.0%
Summary Standard Opening Hours by Channel Type
Others 52.6%
Channel 24-hour Monday- Friday Saturday Sunday
opening? Thursday
Increasing share Decreasing share No change
Supermarkets Yes 08.00-23.00hrs 08.00- 08.00- 11.00-
23.00hrs 22.00hrs 17.00hrs
Hypermarkets Yes 08.00-23.00hrs 08.00- 08.00- 11.00-
23.00hrs 22.00hrs 17.00hrs
Convenience Yes 08.00-23.00hrs 08.00- 08.00- 08.00-
stores 23.00hrs 23.00hrs 23.00hrs
Seasonality
Valentine's Day
Date: 14 February
Shopping season: Early February
Primary products bought: Flowers, chocolate confectionery, alcoholic drinks,
© Euromonitor Interna onal 2019 Page 6 of 15
packaged food, fragrances and jewellery.
Retailer strategy: Many leading grocery retailers seek to capitalise on the difficulty
of reconciling increasingly busy lifestyles with the pressure to offer well-chosen
gifts for this occasion. Players such as Marks & Spencer and Tesco thus seek to offer
indulgent ready meals. Advertising increases in the run-up to this occasion, although
this is primarily from grocery retailers. Leading jewellery and watch specialist
retailers, florists and confectionery specialists generally focus on offering new
collections in the build-up to this occasion, with these generally offered from mid-
January.
Mothering Sunday
Easter
Back to school
Date: September-October
Shopping season: August-September
Christmas
Date: 25 December
Shopping season: November-December
Primary products bought: A wide range of goods are bought in the run-up to
Christmas, although the strongest focus is on gifts, indulgent food and beverages
and seasonal items. Fresh food and packaged food thus see strong demand for
family meals and socialising, whilst there is also a surge in sales of alcoholic drinks.
Christmas-themed apparel, homewares and Christmas decorations are also popular.
Gift purchases, meanwhile, result in strong sales of consumer electronics, with
DEFINITIONS
GBO refers to global brand owner, which is the ultimate owner of a brand.
NBO refers to national brand owner, which is the company licensed to distribute a
brand on behalf of a GBO. The NBO may be a subsidiary of a GBO or it may be a
completely separate company. Share tables at both GBO and at NBO level are
provided in the report. Reference to shares in the report analysis is at NBO level.