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How Britain Shops: Homewares 2010

Verdict Research: How Britain Shops Homewares provides a detailed overview of the shopping habits of consumers. It examines, who shops for homewares, where they shop, whether they are satisfied with their current store and what stores should do to satisfy customers more.

Scope

Analysis of how customers shop for homewares. Profiles of: Argos, Asda, Debenhams, Dunelm-Mill, IKEA, John Lewis, Marks & Spencer, Tesco, Wilkinson.
How Britain Shops reports include visitor and main user share data, conversion rates, customer loyalty rates and reasons for loyalty/disloyalty.
Data is segmented regionally and by demographic and socio-economic group. Historic data is provided so trends can be analysed over a five year period.

Highlights

The homewares market has succumbed to recession. The downturn reflects a deeply unfavourable set of background drivers, with the low number of house moves directly reducing the need for new homewares. Although homewares are mostly low ticket and easily affordable, they are rarely necessary, and as such, purchases are easily deferrable.

In 2010 the balance of homewares shoppers has tipped more in favour of women, as male participation in the homewares market has reduced. With most homewares purchases being discretionary in nature, it follows that DEs’ share of the declining shopper base has fallen, while that of the ABs has increased.

More consumers shop at Asda/George for homewares than any other retailer, and it is the preferred choice for one in nine of all homewares shoppers. Due to a big improvement in its conversion rate, Asda/George has extended its main user share lead over second placed Tesco.

Reasons to Purchase

How Britain Shops is one of the most comprehensive studies of its kind drawing on a nationwide survey of 6,000 shoppers.
Use this report to understand what drives the loyalty of your customers and find out where else they are shopping – and why.
Channel investment for maximum return by knowing which aspects of your retail proposition most need improving in the opinion of your customers.

Table of Contents

Overview 1
Introduction 1
Summary 1

Executive Summary 3
Key findings 3
There has been a reduction in the number of younger homewares shoppers 3
The bias toward AB and female shoppers persists 3
Asda/George and Tesco have extended their lead over Argos 3
Conversion rates have declined for a second year 3
Customer loyalty has jumped again 4
Quality and range, rather than price, have increased in importance 4
Retailer highlights 4
Asda/George has strengthened its market leadership 4
Shopper numbers are rising at Tesco, but customer loyalty is still weak 4
Argos has lost shoppers, but customer loyalty has improved 4
IKEA has seen an increase in both shopper numbers and customer loyalty 5
Wilkinson has broadened its appeal 5
Dunelm Mill’s main user share has slipped, despite an increase in shopper numbers 5
Debenhams has attracted new shoppers, but still faces challenges in certain areas 5
Marks & Spencer has been experiencing steady progress 5
Table of Contents 7
Table of figures 7
TABLE OF TABLES 7

Profile of Sector Shoppers 8
There has been a reduction in the number of younger homewares shoppers 8

Penetration of homewares shoppers 13
The bias toward AB and female shoppers persist 13

Retailer Usage 15
Asda/George and Tesco have extended their lead over Argos 15

Main user share by region 20
Asda/George is the leading homewares retailer 20

Conversion Rates 21
Conversion rates have declined for a second year 21

Shopping Around 24
IKEA users shop around most 24

Loyalty 27
There has been a steep rise in loyalty for a second year 27

Drivers of loyalty/disloyalty 31
Range and price increase in importance 31

Argos 39
Argos has lost shoppers, but customer loyalty has improved 39
Argos has suffered a sharp drop in visitor numbers 39
Argos’ main user lead over IKEA has shrunk dramatically 39
The loss of non-core shoppers has lifted Argos’ customer loyalty 39
Range has replaced price as the leading driver of loyalty 39
Visitors 40
Argos has suffered the biggest drop in visitor numbers out of all profiled retailers 40
Main users 42
Argos’ lead over fourth placed IKEA has shrunk dramatically 42
Conversion rates 44
Argos has seen a worrying decline in conversion 44
Loyalty 46
The loss of non-core shoppers has lifted Argos’ customer loyalty 46
Competitors 50
Asda, Tesco, Wilkinson and IKEA present key threats to Argos 50

Asda/George 52
Asda/George has strengthened its market leadership 52
Asda/George has improved its market leading visitor share 52
Asda/George has stretched its main user lead over Tesco 52
A leap in loyalty lifts Asda/George from seventh place to second 52
Asda/George benefits from substantial cross shopping 52
Visitors 53
Asda/George has strengthened its position 53
Main users 55
Asda/George has stretched its lead over second placed Tesco 55
Conversion rates 57
Asda’s conversion rate is the second highest in the sector 57
Loyalty 59
A leap in loyalty lifts Asda/George from seventh place to second 59
Competitors 63
Asda/George shares fewer customers with Tesco and IKEA than in 2009, bur the challenge from Wilkinson has increased 63

Debenhams 65
Debenhams is attracting new shoppers, but challenges remain 65
New shoppers boost Debenhams’ visitor share 65
Debenhams’ conversion rate has been diluted by new shoppers 65
Customer loyalty is still low, but continues to improve 65
Shopping around has soared, with Tesco posing an increasing threat 65
Visitors 66
A focus on new brands and promotional events has helped Debenhams revive its footfall 66
Main users 68
Debenhams’ weaker conversion rate has eroded its main user share 68
Conversion rates 70
Debenhams’ appeal to women has weakened, leading to a steep decline in conversion 70
Loyalty 72
Loyalty has edged upwards, reflecting Debenhams’ loss of main users 72
Competitors 76
There has been a sharp rise in Debenhams customers using other retailers 76

Dunelm Mill 78
Despite a rising shopper base, Dunelm Mill has failed to keep pace with its rivals 78
Despite a further rise in visitor numbers, Dunelm Mill has been overtaken by IKEA and Wilkinson 78
Dunelm’s conversion rate has fallen for a second year 78
Customer loyalty has reached a record high 78
Competitors have benefited most from the increase in Dunelm customers shopping around 78
Visitors 79
A steady rise in shoppers has taken Dunelm to sixth position 79
Main users 81
Dunelm has seen a slight increase in main user numbers over 2009 81
Conversion rates 83
Dunelm’s conversion rate has fallen for a second consecutive year 83
Loyalty 85
Customer loyalty has reached a record high 85
Competitors 89
Tesco and Wilkinson have benefited most from the increase in Dunelm customers shopping around 89

IKEA 91
IKEA has seen an increase in both shopper numbers and loyalty 91
IKEA has seen a recovery in its visitor numbers after a dip in 2009 91
IKEA has recorded its strongest main user statistics for four years 91
IKEA customer loyalty has reached a five-year high 91
Shopping around has increased for the third successive year 91
Visitors 92
IKEA’s visitor numbers have recovered after a dip in 2009 92
Main users 94
IKEA has recorded its strongest main user performance for four years 94
Conversion rates 96
2010 marks a third successive year of improvement for IKEA, in terms of conversion rates 96
Loyalty 98
Customer loyalty has reached a five-year high 98
Competitors 102
Shopping around has increased for the third year in a row 102

John Lewis 104
Shopper numbers at John Lewis have dropped again, but loyalty remains unshakeable 104
John Lewis’ visitor share has fallen for the third consecutive year 104
John Lewis’ main user share has dropped from fourth to ninth place 104
Customer loyalty remains unshakeable 104
John Lewis has seen a rise in its customers shopping around 104
Visitors 105
John Lewis’ visitor share has fallen for the third consecutive year 105
Main users 107
John Lewis’ main user share has dropped from fourth to ninth place 107
Conversion rates 109
John Lewis’ conversion rate has slipped, but the retailer still leads the field 109
Loyalty 111
John Lewis’ already impressive customer loyalty record has improved further 111
Competitors 115
John Lewis has seen a rise in its customers shopping around 115

Marks & Spencer 117
Marks & Spencer’s steady progress has continued in 2010 117
A further rise in visitor share takes Marks & Spencer to ninth position 117
Marks & Spencer has seen a slight gain in its main user numbers 117
Customer loyalty has continued to rise 117
Debenhams has displaced John Lewis as the leading alternative to Marks & Spencer 117
Visitors 118
Marks & Spencer has seen a further rise in its visitor share 118
Main users 120
Marks & Spencer has seen a slight gain in main user numbers 120
Conversion rates 122
A lower conversion dilutes Marks’ main user share 122
Loyalty 124
Customer loyalty has risen for the fourth year running 124
Competitors 128
Debenhams has replaced John Lewis as the leading alternative to Marks & Spencer 128

Tesco 130
Customer loyalty remains weak, but shopper numbers are rising 130
A pick-up in visitor share closes the gap on Asda/George 130
Tesco has seen a steep rise in loyalty for the second year running, but is still below the pack 130
Despite a sharp rise in ratings in terms of range, Tesco has seen little improvement in its quality rating 130
Shopping around has dropped to the lowest level in the sector 130
Visitors 131
A pick-up in Tesco’s visitor share closes the gap on Asda/George 131
Main users 133
Tesco has bounced back in terms of main user share and recovered lost ground 133
Conversion rates 135
Tesco has improved its conversion rate, but lags behind Asda/George 135
Loyalty 137
There has been a steep rise in loyalty for the second year running, but Tesco is still behind the pack 137
Competitors 141
Shopping around has dropped to the lowest level in the sector 141

Wilkinson 143
Wilkinson has experienced an increase in shopper numbers as its appeal broadens 143
Wilkinson’s visitor share has jumped from seventh place to fifth 143
A weaker conversion rate has caused Wilkinson’s main user ranking to slip 143
A product range overhaul has boosted Wilkinson’s quality rating 143
Wilkinson has benefited from the collapse of Woolworths 143
Visitors 144
Wilkinson’s has jumped from seventh place to fifth in terms of visitor numbers 144
Main users 146
A weaker conversion rate has caused Wilkinson’s main user ranking to slip 146
Conversion rates 148
A drop in Wilkinson’s conversion rate has pushed the retailer below the sector average 148
Loyalty 150
A product range overhaul has boosted Wilkinson’s quality rating 150
Competitors 154
Wilkinson has benefited from the collapse of Woolworths 154

Methodology 156
Basic methodology 156
The selection of parliamentary constituencies 157
Metropolitan County 157
Other 100% urban 157
Mixed urban/rural 158
Rural 158
The selection of enumeration districts 158
The selection of respondents 158
Post-survey weighting 159

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