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Daniel of Tesco of America & Al of Challenger Lifts stopped by the shop today install new shop equipment at Unique South. For more info: www.challengerlifts.com and www.tescoofamerica.com Video Rating: 4 / 5
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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Out shopping, with our friends David and Carol , Brian — David driving Maartje and Miep through town to Tescos on a lovely Saturday afternoon. A new meaning to you shop we drop Video Rating: 5 / 5
