App Annie, in partnership with Kantar Retail, is excited to announce the release of its newest report exploring the state of retail mobile apps in the United Kingdom. This free report looks at how retail mobile apps and technology are reshaping the UK’s retail industry, along with emerging trends and opportunities. Mobile users in Europe are increasingly turning to apps to do their shopping. In fact, mobile devices now account for around a quarter of total online retail sales in the UK and raked in £8 billion [USD$12 billion] in sales during this Christmas alone. Mobile is a crucial area of focus for both retail giants and new entrants. Learn about the challenges and opportunities ahead in the UK in our latest report. Below are just some of the headlines in our free report: The Top 25 Retailers & Apps From Retailers in the UK The Need for Omni-Channel Strategies The Future of Apps and In-Store Shopping

1. App Annie &
Kantar Retail
Top Retailers & the App Economy in the UK

2.
App Annie & Kantar Retail: Top Retailers & the App Economy in the UK
Summary
Retail spend on mobile devices in the UK during the 2014 Christmas period reached ​£8 billion
and is likely to climb further in 2015 as mobile usage continues to grow. To meet the rising
consumer demand for a seamless experience across online, mobile and in­store channels,
large retailers are developing omni­channel strategies that service consumers at any time and
in any place. Mobile apps are the crucial component in tying together the online and offline
aspects of these retail strategies.
Many of the leading retailers in the UK have responded to the evolving retail environment by
creating complete mobile shopping platforms, allowing users to browse and shop full product
ranges regardless of time or location. In Q4 2014, Amazon and Argos were the leading large
retailers in app downloads in the UK, placing a heavy emphasis on creating a simple and
efficient shopping process. Overall, the iOS App Store provided approximately 35% more
downloads than Google Play for the top 25 apps from leading retailers in the UK. While the
leading retailers published consistently across both iOS and Google Play, 10 of the top 25
apps were not iPad­optimized, indicating there is significant potential to expand their presence
on the iOS App Store.
Click and collect shopping is the most common way in which UK retailers are blurring the lines
between online and offline retail, and it appears to be particularly important for supermarkets.
However, with features like unlockable content and barcode scanners for reviews and
recommendations, retail apps such as ​John Lewis​ and ​Topshop​ are going further to create
enriched and interactive in­store shopping experiences. Multi­channel retailers that can
manifest their brand equity across both physical and virtual points of shopper interaction are
poised to capture higher share of mind and loyalty — a necessity when faced with
fast­growing competitors such as ​Ocado​ and ​Wish​. As technologies such as beacons and
mobile payments develop further, we expect large retailers to enhance in­store experiences to
provide an omni­channel experience that can’t be matched by online­ or mobile­only
competitors.
​http://www.appannie.com/intelligence/ 2

3.
App Annie & Kantar Retail: Top Retailers & the App Economy in the UK
Table of Contents
1. Mobile and the UK Retail Environment
● The Expanding Mobile Retail Market
● The Kantar Retail UK 25, 2014
● The Need for Omni­Channel Strategies
2. Apps Driving the Mobile Revolution for Large Retailers
● Top Apps From the Kantar Retail UK 25
● Downloads by App Store and Device
3. Key Trends in Apps for Large Retailers
● Expanding Online Expertise to Apps
● Click and Collect Prominent in Grocery Apps
● The Convergence of Online and In­Store Shopping
● Personalizing the Retail Experience
● The Future of Apps and In­Store Shopping
​http://www.appannie.com/intelligence/ 3

4.
App Annie & Kantar Retail: Top Retailers & the App Economy in the UK
1. Mobile and the UK Retail Environment
The Expanding Mobile Retail Market
The United Kingdom is one of the world’s largest retail markets and home to many of the
world’s largest retailers. According to Kantar Retail, retail sales (excluding petrol and auto
sales) in the UK exceeded £340 billion in 2014. However, like many other retail markets
around the world, the UK is experiencing rapid change as an increasing proportion of sales
and consumer interaction are being conducted through online channels and mobile devices.
In 2014, online consumer spending in the UK retail market ​exceeded £100 billion​ for the first
time, experiencing a 14% increase on 2013.
As consumers shift more of their online time to mobile devices, an increasing proportion of
this online retailing is conducted on mobile phones and tablets. Mobile devices now account
for ​around a quarter​ ​of total online retail sales in the UK. During the 2014 Christmas period
(November 2 to December 27), these mobile devices accounted for ​£8 billion​ in UK retail
sales, growing an impressive 55% from the same period in 2013. The rapid changes in the
retail environment present a series of opportunities and challenges for established retail
giants in the UK looking to protect and enhance their existing positions.
Following our recent reports focused on apps from retailers in ​France​ and ​Germany​, App
Annie and Kantar Retail are excited to present our look into the way that large retailers in the
UK are adapting to this changing retail environment, the rising opportunities available to them,
and the challenges to overcome in making the most of these opportunities.
​http://www.appannie.com/intelligence/ 4

5.
App Annie & Kantar Retail: Top Retailers & the App Economy in the UK
The Kantar Retail UK 25, 2014
The Top 25 B2C Retailers by 2014 UK Sales Revenue Across All Channels
Rank Retailer Primary Channel
1 Tesco Supermarket
2 Sainsbury’s Supermarket
3 ASDA Supermarket
4 Morrisons Supermarket
5 Marks & Spencer Department
6 Cooperative Group Supermarket
7 Alliance Boots Drug Store
8 Waitrose Supermarket
9 Amazon Pure Play Online
10 Dixons Carphone Consumer Electronics
11 Aldi Süd Discounter
12 Kingfisher (B&Q) Do­It­Yourself
13 Next Apparel
14 Argos Consumer Electronics
15 Lidl Discounter
16 John Lewis Department Store
17 Spar UK Convenience
18 Primark Apparel
19 Magnet Homegoods
20 Iceland Supermarket
21 Arcadia Group​1
Apparel
22 Musgrave Supermarket
23 Costcutter Supermarket
24 Debenhams Department
25 TJX Apparel
Source: Kantar Retail
1​
Arcadia Group includes retail chains BHS, Burton, Dorothy Perkins, Evans, Miss Selfridge, Outfit, Topshop, Topman and
Wallis
​http://www.appannie.com/intelligence/ 5

6.
App Annie & Kantar Retail: Top Retailers & the App Economy in the UK
The Need for Omni­Channel Strategies
One of the key issues in the current retail market is the multiple touchpoints at which
consumers can interact with retailers before and during purchase. Consumers now expect a
seamless experience across mobile apps, mobile web, desktop web and in­store contact with
retailers. Accordingly, retailers are developing omni­channel strategies in which each of these
touchpoints is a pillar in a unified and integrated customer experience. Neglecting any one of
these pillars may have a substantial impact on sales in other channels.
The role of mobile devices in omni­channel retail is evolving rapidly. Mobile devices have
been a key part of the ​research phase​ of consumers’ path to purchase for some time.
However, mobile’s influence in the buying phase is now increasing at a phenomenal rate.
Worldwide, mobile devices contributed ​approximately 30%​ of e­commerce transactions in Q4
2014. The UK is one of the leading markets for mobile shopping, seeing ​41% of online
transactions​ occurring through mobile devices. According to Kantar Retail, ​73% of UK
retailers​ experienced greater than 50% year­on­year growth in sales through mobile channels
last year.
Against this background of changing roles for mobile devices, the ways in which consumers
are utilizing mobile apps are also growing. Apps offer an effective and unique channel through
which retailers can create a personalized and contextualized two­way dialog with consumers,
but recent trends have seen their role expand to include sales. On Black Friday in 2014 in the
UK, consumer spend through apps increased by ​414% on iOS and 306% on Android
compared to Black Friday in 2013. Furthermore, retailers report ​increased loyalty, conversion
rates and spend per transaction​ from their app users. It is clear that apps are no longer a
‘nice­to­have’ for retailers in the UK, they are instead a vital part of effective sales, customer
engagement and brand loyalty strategies. Furthermore, the contextual customer engagement
that is possible through apps makes them the key component for bridging the online­offline
divide in an omni­channel retail strategy.
​http://www.appannie.com/intelligence/ 6

7.
App Annie & Kantar Retail: Top Retailers & the App Economy in the UK
Argos ​was among the retail apps that jumped up the rankings on Black Friday in November 2014 in the UK.
2. Apps Driving the Mobile Revolution
for Large Retailers
To understand how top retailers are currently responding to opportunities in the app economy,
App Annie identified the top 25 apps by downloads in Q4 2014 that were published by Kantar
Retail’s top 25 retailers by sales revenue in the UK for 2014 (henceforth the “Kantar Retail UK
25”).
​http://www.appannie.com/intelligence/ 7

8.
App Annie & Kantar Retail: Top Retailers & the App Economy in the UK
Top Apps From the Kantar Retail UK 25
Combined iOS and Google Play UK Downloads, Q4 2014
Availability
Rank App Retailer iPhone iPad Google Play
1 Amazon Amazon ✓ ✓ ✓
2 Argos Argos ✓ ✓ ✓
3 Boots Alliance Boots ✓ ✓
4 Morrisons Match & More Morrisons ✓ ✓
5 ASDA ASDA ✓ ✓ ✓
6 Tesco Groceries Tesco ✓ ✓ ✓
7 Next Next ✓ ✓ ✓
8 John Lewis John Lewis ✓ ✓ ✓
9 Lidl Lidl ✓ ✓
10 Topshop Arcadia Group ✓ ✓ ✓
11 Amazon Local Amazon ✓ ✓ ✓
12 Tesco Clubcard Tesco ✓ ✓
13 ALDI UK Aldi Süd ✓ ✓
14 M&S Marks & Spencer ✓ ✓
15 Morrisons Groceries Morrisons ✓ ✓ ✓
16 Debenhams Debenhams ✓ ✓ ✓
17 Topman Arcadia Group ✓ ✓ ✓
18 Cook With M&S Marks & Spencer ✓ ✓ ✓
19 Dorothy Perkins Arcadia Group ✓ ✓ ✓
20 Miss Selfridge Arcadia Group ✓ ✓ ✓
21 Sainsbury’s Sainsbury’s ✓ ✓
22 B&Q Kingfisher ✓ ✓
23 Screwfix Shopping​1 Kingfisher ✓ ✓
24 Waitrose Waitrose ✓ ✓
25 Burton Arcadia Group ✓ ✓ ✓
Source: App Annie Intelligence
​http://www.appannie.com/intelligence/ 8

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