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Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
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Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
Retailnation Launch Presentation Lite
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Retailnation Launch Presentation Lite

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RETAILNATION was launched by Javelin Group and Acxiom at a seminar held at Westfield London. These are the slides from that day.

RETAILNATION was launched by Javelin Group and Acxiom at a seminar held at Westfield London. These are the slides from that day.

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  • 1. The “where, what, how and who” of UK shopping! Presentation by: Robin Bevan, Javelin Group Fiona Sweeney, Acxiom Alastair Browne, JD Sports Fashion November 25 2009
  • 2. Introduction to RETAILNATION Why Are We Here Today? • Unique insight into how UK consumers shop • Insight can be used in all aspects of retail location analysis: – Catchment level: understanding catchments – Venue level: shopper profiles, market sizes – Consumer level: the right message to the right person in the right places November 25 2009
  • 3. Agenda 1. Introduction to RETAILNATION • Robin Bevan, Director, Javelin Group 2. “From catchment to customer” • Fiona Sweeney, Industry Strategist, Acxiom 3. RETAILNATION in action with JD Sport • Alastair Browne, Site Research & Development Manager, JD November 25 2009
  • 4. Robin Bevan • Director of Javelin Group’s Locations practice • 20+ years experience • Projects with retailers, brands and shopping centre developers/investors • Recent projects with: Morrisons, Office, Screwfix, Nike, Sony, Hammerson, Lend Lease, Pets At Home, BAA November 25 2009
  • 5. Javelin Group Experts in retail & ecommerce • UK’s leading retail consultancy • 75 retail professionals: est. 1997 Retail strategy Retail operations • Advise retailers, brands, property investors/developers, private equity Retail technology Retail locations • Clients: M&S, Tesco, Sainsburys, Morrisons, Debenhams, JLP, Sony, Nike, Goldman Sachs, Terrafirma, BAA, Hammerson, Lend Lease November 25 2009
  • 6. Acxiom Global interactive marketing services company Deep consumer insight • Focus on deep consumer insight Consumer data & • 6,000 employees: est. 1969 analytics Information technology • Enabling multiple verticals to Data integration understand and act on customer information to drive effective Integrated channel business decisions marketing • Recent wins include Ebay, Yahoo, Centrica, BT, TUI, Odeon November 25 2009
  • 7. Acxiom & Javelin Group Bringing data, analytics & insight together for the retail industry Unique consumer insight Unique location insight Location planning for retailers Shopping centre strategies November 25 2009
  • 8. Who is RETAILNATION for? • Retailers • Consumer Brands • Developers • Owners/Investors • Property Agents • Media Planners • Planning Authorities • Private Equity / Venture Capitalists November 25 2009
  • 9. RETAILNATION Objectives • Most comprehensive evaluation of UK shopping patterns ever • Shopping patterns established for 5,000+ retail venues nationwide: > Catchments defined accurately (and profiled) in: – Comparison goods, bulky goods, groceries > Spending & shopping patterns evaluated – Catchment available spend, market sizes, catchment leakage > Venue shopper profiles – Who shops there? > Analogy venue comparisons > D2C Marketing November 25 2009
  • 10. 7 key inputs... 1. Research Opinion Poll 2. Personicx Geo 3. VENUESCORE 4. SHOPSCORE 5. X-SPEND 6. TELEATLAS drivetimes 7. Gravity model of national shopping patterns November 25 2009
  • 11. Unique location insight tools Consumers Shopping Shopping Venues Patterns & Retailers November 25 2009
  • 12. Input 1: Research Opinion Poll • Acxiom undertakes a major annual survey of UK consumers • Survey includes questions about preferred destination for shopping in 3 categories: - Clothing - Groceries - Bulky goods • Over 3.5 million respondents interviewed over the last 3 years • No other UK company researching at this scale, scope, frequency November 25 2009
  • 13. Input 2: Personicx Geo • Sophisticated “pre-packed” segmentation of UK shoppers • Acxiom’s segmentation of UK consumers into 60 clusters: - Segments built from common behaviours and attitudes > Rather than from “traditional” demographics” - Built from individual level data > Not aggregated postcode statistics • Updated annually November 25 2009
  • 14. Input 3: VENUESCORE • Annual ranking of retail venues based on a weighted score of multiple retail presence • VENUESCORE provides: - National ranking of venues - Venue growth/decline - Market positioning (“Glam-Glum” Rating) - Age positioning - Category focus November 25 2009
  • 15. Input 4: SHOPSCORE • Unique Store Performance Consortium • Sales productivity benchmarks by retail venue • Built from trading data from full spectrum of multiple retailers • 30,000 trading records across UK (140+ formats): - e.g. Sample of 228 stores in “Glasgow, Centre” • 160+ participants include: - M&S, John Lewis, Debenhams, Boots, WH Smith, New Look, Asda, Iceland, Morrisons, Argos, Monsoon, French Connection, The Entertainer, Tchibo, Schuh, JD Sport, Maplin, Warehouse, Habitat, Superdrug, Arcadia, Hobbs, Peacocks, Ann Summers, Evans Cycles, JD... • Used to validate and calibrate RETAILNATION November 25 2009
  • 16. Input 5: X-SPEND • Category level spend estimates for each defined catchment • Combines Personicx Geo with annual consumer surveys: - Spending propensities by category by Personicx Geo group • Superior to models based on government’s “EFS” research: - Much larger sample than EFS (1m+ annually vs. 6,500 households) - Discriminates spend by lifestyle rather than “old-style” social grade November 25 2009
  • 17. Input 6: TELEATLAS Drivetimes • Most advanced drivetime software available • Tracks actual driving speeds by road segment • Based on data sourced from SatNav systems • 50 billion UK data points covering 10 million street segments November 25 2009
  • 18. Input 7: Gravity Model • Unique proprietary model of shopping patterns • Based on learnings from Acxiom’s Research Opinion Poll: - e.g. Distance decays by location type, region etc • Allows RETAILNATION to reflect current shopping offer: - e.g. Includes recent openings (such as Westfield!) November 25 2009
  • 19. Example: Birmingham, Centre •18,000+ 180 + 150 to 180 respondents 120 to 150 90 to 120 identify 60 to 90 Birmingham, 30 to 60 1 to 30 Centre as their primary destination for Clothing shopping November 25 2009
  • 20. 2 catchment definitions... 1. Pure Research-Based Catchments: • Catchment boundaries defined only using survey responses: –Core: highest penetrated zones capturing 50% of venue sales –Secondary: 75% of venue sales > Primary (Core + Secondary) –Tertiary: 95% of venue sales • Particular value in Planning context as catchments are based on a high number of actual consumer spending decisions: – i.e. Very difficult to challenge! November 25 2009
  • 21. Research-based catchment: Birmingham, Centre Total Tertiary Catchment 2,280,800 Population 3.61million Core 773,460 Secondary 559,750 Primary (Core + Secondary) Catchment Population 1.33 million November 25 2009
  • 22. 2 catchment definitions... 2. Modelled Catchments • Research under-plays consumer use of alternative venues: – Shopping patterns more complex than research suggests • Sample sizes inevitably smaller in smallest retail venues • Shopping patterns modelled using evidence on “distance decay by venue type” November 25 2009
  • 23. 2 catchment definitions... 2. Modelled Catchments • Converted into spatial interaction model • Calibrated using survey and Javelin Group data on retailer performance levels by venue (e.g. SHOPSCORE survey, VENUESCORE, client project work) • Facilitates “scenario planning” where impact of future changes to the retail offer can be easily tested and evaluated November 25 2009
  • 24. RETAILNATION catchment: Birmingham, Centre Total Catchment Population 2.91 million Secondary 656,120 Core 772,490 Tertiary 1,483,220 Primary (Core + Secondary) Catchment Population 1.43 million November 25 2009
  • 25. RETAILNATION catchment: Solihull Total Catchment Population 2.36 million Core 274,480 Secondary 667,075 Tertiary 1,424,380 Primary (Core + Secondary) Catchment Population 941,555 November 25 2009
  • 26. RETAILNATION catchment: Westfield London Total Catchment Population 3.78 million Tertiary 1,916,615 Core 998,585 Secondary 873,225 Primary (Core + Secondary) Catchment Population 1.87 million November 25 2009
  • 27. RETAILNATION coverage • Catchments defined for: > 1,304 comparison venues > 2,335 bulky goods venues > 5,012 grocery venues November 25 2009
  • 28. RETAILNATION catchment: Lakeside Retail Park Total Catchment Tertiary Population 1,442,450 2.52 million Secondary 730,495 Core 351,570 Primary (Core + Secondary) Catchment Population 1.08m November 25 2009
  • 29. RETAILNATION catchment: Morrisons, Bolton Total Catchment Population 98k Tertiary 30,765 Core 29,360 Primary (Core + Secondary) Secondary Catchment Population 37,860 67k November 25 2009
  • 30. Catchment profiling • Catchments profiled across a range of demographic, lifestyle and behavioural data: - Demographics, e.g.: > Gender > Age > Car ownership > Home ownership > Income > House prices > Etc. November 25 2009
  • 31. Catchment profiling • Catchments profiled across a range of demographic, lifestyle and behavioural data: - Lifestyle & Behaviour, e.g.: > Hobbies > Newspaper readership > Ownership of key consumer products > Online shopping > Personicx Geo segments > Spending > Preferred brands November 25 2009
  • 32. Catchment profiling • Birmingham’s catchment biased towards: – 25-34 year olds – Households with children (60% vs. 57% UK) – High proportion do not own a car (25% vs. 19% UK) – Tabloid readership (84% vs. 76% UK) – Above national average proportion of Students (3% vs. 2%) as well as unemployed and manual / factory workers – Below-average proportion of owner occupiers (63% vs. 69% UK), with above-average proportions of either social housing vs. national average – Average house price (£188k) well below national average (£237k) – Average household income is 15% below national average November 25 2009
  • 33. Personicx highlights below average affluence levels UK Average= 100 Q1: Top 20% Q2: Q3: Primary Catchment Boundary Q4: Q5: Bottom 20% Total catchment boundary November 25 2009
  • 34. Birmingham catchment profile • 10 Personicx Geo groups dominate B‟ham‟s catchment: 1. Family Focus 2. Factories & Council Estates 3. Full City Homes 4. Widowed & Retired Together, these 10 5. Companionship & Coaches groups account for 6. Rent Books & Benefits 49% of catchment 7. Gardeners World residents (vs. 20% of the UK population) 8. Semi-Detached Success 9. Unemployment Blues 10. Betting & Bingo November 25 2009
  • 35. Top 3 groups are the same... Family Focus • Living in the city in their rented or housing association terraced houses, these postcodes generally contain young families, with a significant number of the adults still studying. Although on a low income these households do have a family focus, spending money on domestic and family orientated products. Religious activities tend to play a large part of this family’s life. When it comes to financial products, this group tend not to own any, however, many would consider savings plans and accident insurance for their children. Sikh, Muslim and Hindu people tend to be highly represented in these postcodes. November 25 2009
  • 36. Catchment available spending Birmingham Catchment • Available Spending • Excluding Vat • £ Million • 2008 Prices Core Secondary Primary Tertiary Total Clothing & Accessories 426.9 361.3 788.2 849.2 1,637.5 Health & Beauty 233.9 74.4 308.3 388.6 696.9 Leisure Goods 171.5 63.3 234.9 348.6 583.5 Household Goods 103.6 93.0 196.6 219.7 416.4 Electrical Goods 128.2 154.9 283.2 368.9 652.1 Furniture & Carpets 132.3 119.6 251.9 292.2 544.1 Shopping Centre Type Goods 1,196.5 866.5 2,063.0 2,467.4 4,530.4 Sub-Total Food-To-Take-Home 1,159.4 1,067.4 2,226.8 2.5 4,699.9 Foodservice 221.1 120.6 341.7 0.7 1,003.1 Other Product Categories 182.0 171.7 353.7 0.4 756.3 Grand Total 2,759.0 2,226.3 4,985.2 2,470.9 10,989.7 November 25 2009
  • 37. Catchment shopping patterns • Birmingham retains 61% of spend in its Primary catchment Clothing Spend Distribution: Birmingham Core % Secondary % Primary % Tertiary % Total % Birmingham 74.9% Birmingham 44.1% Birmingham 60.8% Birmingham 15.3% Birmingham 37.2% Solihull 3.0% Solihull 10.5% Solihull 6.5% Merry Hill 13.8% Merry Hill 8.9% Perry Barr 2.4% Walsall 6.0% Merry Hill 3.6% Wolverhampton 9.5% Solihull 7.1% Erdington 2.0% Merry Hill 5.9% Walsall 3.5% Coventry 8.5% Wolverhampton 5.5% Kings Heath 2.0% West Bromwich 4.0% West Bromwich 2.7% Solihull 7.6% Coventry 4.6% Smethwick 1.9% Sutton Coldfield 3.9% Sutton Coldfield 2.5% Walsall 5.3% Walsall 4.4% Harborne 1.8% Wolverhampton 2.1% Perry Barr 1.9% Nuneaton 4.4% Nuneaton 2.3% Merry Hill 1.7% Northfield 1.8% Kings Heath 1.9% Tamworth 2.7% Sutton Coldfield 2.3% West Bromwich 1.6% Shirley 1.7% Erdington 1.8% Cannock 2.4% West Bromwich 2.0% Sub-Total 91.4% Sub-Total 80.1% Sub-Total 85.1% Sub-Total 69.6% Sub-Total 74.3% Other 8.6% Other 19.9% Other 14.9% Other 30.4% Other 25.7% Total 100.0% Total 100.0% Total 100.0% Total 100.0% Total 100.0% November 25 2009
  • 38. Birmingham, Centre: comparison market size • Market size of £1.06 billion Clothing & Accessories Market Size: Birmingham • £ Million (ex VAT) • 2008 Prices Core Secondary Primary Tertiary Total Clothing & Accessories Womenswear 119.16 59.09 178.24 48.31 226.56 Menswear 56.01 27.78 83.79 22.81 106.60 Childrenswear 43.23 21.67 64.90 16.98 81.87 Sports Clothing 17.73 8.85 26.59 7.43 34.02 Footwear (Ex Sports) 30.96 15.09 46.05 12.42 58.46 Sports Footwear 8.19 3.99 12.19 3.29 15.48 Jewellery (Inc Watches) 21.78 10.80 32.58 8.83 41.41 Fashion Accessories 10.59 5.34 15.94 4.37 20.31 Clothing & Accessories Total (Catchment Only) 307.65 152.61 460.26 124.44 584.70 Total Clothing Market Size (inc. "Pull-in") 615.47 Total Comparison Goods (Catchment Only) 549.37 272.53 821.89 222.21 1,008.10 Total Comparison Goods Market Size (inc. "Pull-in") 1,061.16 November 25 2009
  • 39. Top 20 UK Market Sizes Top 20 Venues: Comparison Market Size Market Comparison Market Clothing Market Size Venue Location Grade Size Size VENUESCORE Rank Venuescore Fashionscore (£m) Rank (£m) Oxford St Major City 1 1,033 1,552 15 352 204 Glasgow Major City 2 617 1,081 1 688 296 Birmingham Major City 3 616 1,061 3 573 253 Manchester Major City 4 538 912 2 624 279 Leeds Major City 5 485 867 5 529 226 Liverpool Major City 6 441 783 6 508 219 Bluewater Major Regional 7 491 727 29 267 164 Westfield London Major Regional 8 504 712 35 261 177 The Trafford Centre Major Regional 9 471 674 39 255 169 Belfast Major City 10 407 645 14 358 182 Edinburgh Major City 11 333 601 4 532 225 Meadowhall Regional 12 400 593 49 226 140 Norwich Major City 13 318 565 8 436 189 Southampton Major Regional 14 322 558 17 340 153 Kingston On Thames Major Regional 15 305 557 18 325 139 Derby Major Regional 16 294 535 19 319 137 Nottingham Major City 17 319 524 7 458 214 Guildford Major Regional 18 306 517 24 293 136 Leicester Major City 19 297 506 11 383 174 Lakeside Regional 20 317 500 61 216 117 November 25 2009
  • 40. Market Sizes vs. VENUESCORE 1,600 Oxford St 1,400 1,200 Comparison Market Size (£m) Glasgow Birmingham 1,000 Manchester Leeds 800 Liverpool Bluewater Westfield London The Trafford Centre Belfast 600 Meadowhall Edinburgh Kingston On Thames Southampton Norwich Derby Nottingham Lakeside Leicester Guildford 400 200 250 300 350 400 450 500 550 600 650 700 Venuescore November 25 2009
  • 41. Birmingham shopper profile • 10 Personicx Geo groups dominate B‟ham‟s shoppers: 1. Family Focus 2. Factories & Council Estates 3. Full City Homes 4. Companionship & Coaches Together, these 10 5. Gardeners World groups account for 6. Widowed & Retired 42% of shoppers 7. Rent Books & Benefits residents (vs. 19% of the UK population 8. City Manual Workers and 48% of the 9. Semi-Detached Success catchment) 10. Income Supported November 25 2009
  • 42. Personicx Geo Fan: B’ham Catchment & Shoppers Dominant group in catchment Dominant in shopper profile Families Singles Retired 20%+ of group in adjacent age band City Manual Workers Income Supported Betting & Bingo November 25 2009
  • 43. Catchment & Shopper Profile vs UK Avge. 200 CATCHMENT INDEX Gardeners World 180 City Manual Workers City Singletons Income Supported 160 Exploit & Budget Families Rent Books & Benefits Metropolitan Semi's 140 Dominate Financially Savvy Retirees Shrewd Solos Opportunity 120 Detached in the City Suburbs Local Life Retired Solos on a Tight Budget for Growth? Value Brands & Tabloids Healthy, Wealthy & Wise Betting and Bingo Organic & Urban Adventurous Students Households Jam-packed 100 Urban Terraces - 20 40 60 80 100 120 140 160 180 200 Small Town Office Workers Travel & Timeshare Aged in the City Suburbs SHOPPER INDEX Educated Professionals 80 Hobbies in City Suburbs Spending Sporty Families Social Explorers Affluent Modern Families Gourmet Travellers Low Cash, Low Credit Conventional Givers Mature Convertible Drivers 60 Urban Travellers Single Students Independent Thinkers Organic Supporters Budget Conscious Pensioners Coaches & Conservatories 40 Pastoral Volunteers Healthy Urbanites Flats & Convertibles Charities & Trust Funds 20 Gardening & Grandchildren Children & Camping - November 25 2009
  • 44. Peer venue comparisons • Birmingham “peer” benchmarks: – Glasgow, Centre – Manchester, Centre – Edinburgh, Centre – Leeds, Centre – Liverpool, Centre – Nottingham, Centre November 25 2009
  • 45. Peer venue comparisons • Venue comparisons: – VENUESCORE ranking – Market positioning – Age positioning – Fashion dominance & positioning – Venue comparison goods market size – Prevailing retail performance (SHOPSCORE) – Prevailing rents – Venue dominance – Share of catchment spend November 25 2009
  • 46. Peer venue comparisons • Catchment comparisons: – Catchment population – Catchment available spend – Spend index – Car ownership – Age profile – Social grade – Average house price – Average income November 25 2009
  • 47. Peer venue comparisons RETAILNATION • Analogy Template BIRMINGHAM, MANCHESTER, EDINBURGH, LIVERPOOL, NOTTINGHAM, GLASGOW, CENTRE LEEDS, CENTRE CENTRE CENTRE CENTRE CENTRE CENTRE Venue Profile: VENUESCORE Score 573 688 624 532 529 508 458 Ranking - 3 1 2 4 5 6 7 Venue Dominance in Primary Catchment % 36.2% 30.8% 25.6% 41.3% 35.0% 39.3% 56.4% Market Position Index Av=100 117 115 121 120 116 112 115 Age Position Index Av=100 92 94 94 98 98 93 93 Fashion Orientation Index Av=100 115 112 117 110 112 113 122 Foodservice Orientation Index Av=100 186 141 193 169 165 126 156 SHOPSCORE Productivity Index Av=100 117 118 107 116 105 117 108 Prevailing Headline Zone A £ ITZA 325 322 300 283 310 320 250 Zone A vs. SHOPSCORE Ratio 276.9% 272.2% 279.7% 244.3% 295.9% 272.8% 230.6% Estimated Clothing Market Size £m ex VAT £615.6 £616.6 £538.1 £333.2 £485.1 £441.1 £318.7 Clothing Market Shares: - Core Catchment % 72.1% 60.6% 53.5% 74.7% 64.9% 77.7% 84.5% - Primary Catchment % 58.4% 55.7% 38.6% 63.2% 54.1% 69.8% 74.7% Catchment Profile: Total Catchment Population '000 2,911.8 2,362 3,333.8 1,096.6 2,234.9 1,496.9 1,077.4 Primary Catchment: - Primary Catchment Population '000 1,428.6 1,456 1,854.2 534.1 1,202.8 871.0 558.7 - Aggregate VENUESCORE Score 1,583 2,232 2,435 1,288 1,511 1,294 812 - Available Clothing Spend £m ex VAT £788.2 £824.7 £1,043.0 £333.6 £671.7 £473.8 £317.9 - Available Core Non-Foods Spend £m ex VAT £2,301.9 £2,429.6 £3,052.4 £964.7 £1,957.3 £1,407.4 £927.1 - Clothing Spend Index Av=100 90 92 91 101 91 88 92 - Core Non-Foods Spend Index Av=100 92 96 94 103 93 93 95 - Car Ownership % 75.2% 62.4% 71.4% 61.5% 75.1% 62.9% 73.3% - 25-44 year-olds % 38.4% 37.5% 39.9% 40.9% 39.4% 35.4% 41.4% - ABC1 % 44.8% 46.5% 49.1% 60.8% 49.2% 45.6% 52.3% - % in Top 2 Personicx Geo Affluence Quintiles % 21.1% 23.3% 24.4% 37.0% 26.4% 18.9% 27.5% - Average House Price £000 160.9 147.0 158.1 219.7 167.1 149.8 160.3 - Average Income £000 37.5 38.4 36.4 39.4 39.0 36.2 39.6 - Income as % of House Price % 23.3% 26.1% 23.0% 17.9% 23.3% 24.2% 24.7% November 25 2009
  • 48. Agenda 1. Introduction to RETAILNATION • Robin Bevan, Director, Javelin Group 2. “From catchment to customer” • Fiona Sweeney, Industry Strategist, Acxiom 3. RETAILNATION in action with JD Sport • Alastair Browne, Site Research & Development Manager, JD November 25 2009
  • 49. Fiona Sweeney • Industry Strategist - Retail and Consumer Products • 25 years experience in Retail and CPG sectors • Projects with Asda, The Tussauds Group, Ocado, P&G, L’Oreal, Allied Domecq • Focussed on the use of data to drive effective business decisions November 25 2009
  • 50. The Retail World is Changing • The consumer is changing….a lot!!! November 25 2009
  • 51. Is this Retailing? …or is it Entertainment? November 25 2009
  • 52. New Competitive Landscape • Other outlets • Other centres • Other touchpoints The opportunity cost of doing something different November 25 2009
  • 53. The Retail Audience • Consumers and customers • I make, you use • I sell, you buy November 25 2009
  • 54. The Retail Audience • Multifaceted relationship – Engagement – Interaction – Feedback November 25 2009
  • 55. So what? • If you compete for the increasingly scarce resources of people’s time and money • You need to understand – Who they are – Where they live – What they buy – When they buy it – And WHY they do it November 25 2009
  • 56. RETAILNATION • Personicx Geo classification • VENUESCORE: ranking of retail venues • SHOPSCORE: trading data from 30k records • X-SPEND: category spend estimates • 3.5 million survey respondents •18,000+ respondents identify Birmingham, Centre as their primary destination for Clothing shopping November 25 2009
  • 57. Birmingham, Centre: Habitat evaluation Total Catchment Population 2.91 million Secondary 656,120 Core 772,490 Tertiary 1,483,220 Primary (Core + Secondary) Catchment Population 1.43 million November 25 2009
  • 58. Personicx Geo Fan: Birmingham Catchment & Shoppers Habitat November 25 2009
  • 59. Birmingham catchment profile • 10 Personicx Geo groups dominate B‟ham‟s catchment: 1. Family Focus 2. Factories & Council Estates 3. Full City Homes 4. Widowed & Retired 5. Companionship & Coaches 6. Rent Books & Benefits 7. Gardeners World 8. Semi-Detached Success 9. Unemployment Blues 10. Betting & Bingo November 25 2009
  • 60. Birmingham shopper profile • 10 Personicx Geo groups dominate B‟ham‟s shoppers: 1. Family Focus 2. Factories & Council Estates 3. Full City Homes 4. Companionship & Coaches 5. Gardeners World 6. Widowed & Retired 7. Rent Books & Benefits 8. City Manual Workers 9. Semi-Detached Success 10. Income Supported November 25 2009
  • 61. Habitat campaign • Objective – Raise awareness of Habitat store – Drive traffic to store – Stimulate purchasing – Promote catalogue – Prove ROI on DM November 25 2009
  • 62. Habitat Counts Email November 25 2009
  • 63. Process • DM volumes • E mail volumes • Mail piece • Voucher • Data collection mechanism • Store redemption Response rates to 25% November 25 2009
  • 64. Conclusions • The Retailing Landscape has changed • The Consumer has changed • RETAILNATION takes account of these changes • Multiple benefits across your organisation – Site selection – Customer insight – Direct communication November 25 2009
  • 65. Agenda 1. Introduction to RETAILNATION • Robin Bevan, Director, Javelin Group 2. “From catchment to customer” • Fiona Sweeney, Industry Strategist, Acxiom 3. RETAILNATION in action with JD Sport • Alastair Browne, Site Research & Development Manager, JD Sports Fashion plc November 25 2009
  • 66. Alastair Browne • Site Research & Development Manager with JD Sports Fashion plc: – JD Sports, Scotts, Size?, Bank...and Chausport • Previous experience with: – Iceland – GUS – Management Horizons Europe • 15 years’ experience in retail location planning November 25 2009
  • 67. RETAILNATION & PERSONICX GEO November 25 2009
  • 68. November 25 2009
  • 69. November 25 2009
  • 70. November 25 2009
  • 71. Alastair Browne Site Research & Development Manager RETAILNATION & PERSONICX GEO November 25 2009
  • 72. JD Overview • Positioned as the UK‟s number one sports fashion / lifestyle retailer. • Differentiation through: - Brand proposition - Exclusive product offer - In-store shop in shop concepts - Focus on retail display • Style driven not price driven. • Firmly rooted in youth culture – JD brand sits comfortably with music and fashion. • Different fascia to capitalise on wide brand portfolio. November 25 2009
  • 73. JD Overview • 438 stores nationwide in the UK & Ireland • 1.32 million sq ft of retail space • £671m of sales (excl. VAT) • £54m contribution before tax & exceptional items • Opened 15 new stores YTD • Acquired Chausport SA, small French sports retailer (76 stores) May „09 November 25 2009
  • 74. JD Site Research - Overview • Independent site research team reporting through the Group Property Director to the Board. • Primary objective to provide accurate quantitative and qualitative geographical market analysis to target investment at opportunities that will realise optimum returns. • Primary focus on store development – mistakes are costly. • Support decision making processes across all areas of the business. November 25 2009
  • 75. JD Site Research – Key Resources • Annual customer checkout survey – sample size 350,000+ collecting: - Postcode - Gender - Age - Spend - Basket data • Government statistics (ie. mid census, population updates) • Footfall (ie. shopping centre/retail park, in-store counters) • Competition • Location data (ie. market positioning, pitch, frontage). • Extensive fieldwork!!! November 25 2009
  • 76. JD Site Research - Output • Recommend investment in the existing store network. • All new store sales analyses include forecasts on: - Catchment areas - Consumer demand - Market share - Impact on existing stores - Sales & profit • Exceeding internal target accuracy rates. November 25 2009
  • 77. RETAILNATION & PERSONICX GEO • However….there is always room for improvement. • RETAILNATION provides JD with a comprehensive, fact-based overview of the UK‟s leading retail venues. • In conjunction with PERSONICX GEO it allows JD to: - Supports the decision making process with robust evidence - Add value to existing data sources - Leverage a greater understanding of our current store network - Understand in more depth shopping patterns and consumer profiles to assist with our growth strategies - Influence key areas of the business to maximise sales November 25 2009
  • 78. RETAILNATION – Catchment Analysis • Overlaid JD customer flow data with RETAILNATION catchments. LONDON, HOLLOWAY ROAD WESTWOOD CROSS BLUEWATER • RETAILNATION provides a strong (but not perfect!) match with JD’s specific trade areas – JD vs. UK shoppers. • Basic set of rules (Band & Location Grade) offers increases the correlation. • Offers a strong starting point for new store assessments to quantify consumer demand. November 25 2009
  • 79. RETAILNATION – Catchment Overlap • JD has extensive coverage across the UK. • The impact of a new store on existing stores is a key issue. • New opportunities have to generate a sufficient level of “NEW” sales and profit to the group. • This can be a major factor in a new store being rejected by the Board • RETAILNATION‟s catchment overlap analysis provides supportive evidence to assist JD in establishing the potential levels of sales cannibalisation November 25 2009
  • 80. PERSONICX GEO – Customer Profiling • PERSONICX GEO allows JD to identify key groups that demonstrate a high propensity to shop at JD. JD - CUSTOMER PERSONICX-GEO PROFILE VS. UK AVERAGE 150 100 JD INDEX (% VARIANCE TO UK) 50 0 -50 -100 PERSONICX-GEO November 25 2009
  • 81. PERSONICX GEO – Gains Analysis • PERSONICX GEO achieves a high level of discrimination. JD CUSTOMER PERSONICX PROFILE - GAINS ANALYSIS 100 90 80 70 60 % OF CUSTOMERS 50 40 30 20 10 Personicx GEO 0 0 10 20 30 40 50 60 70 80 90 100 % POPULATION November 25 2009
  • 82. PERSONICX GEO – JD Clusters • Combined PERSONICX GEO with JD survey data to build customised JD customer clusters: - Demographics - Product (ie. Sport vs. Fashion) - Brands - Lifestyle data - Internet customer activity - Purchasing patterns November 25 2009
  • 83. PERSONICX GEO – JD Clusters “JD Traditionalists” City Manual Workers Income Supported Full City Homes November 25 2009
  • 84. PERSONICX GEO – JD Clusters JD CUSTOMER PERSONICX CLUSTERS VS. UK AVERAGE 100 80 60 % VARIANCE TO UK AVERAGE 40 20 0 1 2 3 4 5 6 7 8 9 10 -20 -40 -60 JD CLUSTERS November 25 2009
  • 85. PERSONICX GEO – Key Business Applications • JD PERSONICX GEO clusters assisting with: • Store development: • Market Quality Index - prioritise new store opportunities • Understand the variances in demands of the consumer by fascia to target the right fascia for the right market • Merchandising: • Influence product mix to meet the demands of the consumer and maximise sales • Revisit locations previously rejected? • Marketing: • Support the marketing strategy more directly & effectively • Target marketing messages specifically to the consumer of each fascia, to help maximise the sales potential November 25 2009
  • 86. PERSONICX GEO – Marketing Opportunities • New stores – target key sales areas. November 25 2009
  • 87. November 25 2009
  • 88. PERSONICX GEO – JD Clusters vs. Market Share • Detailed in-sight into sales performance by Postsector. JD MARKET SHARE VS. POSTSECTOR PERSONICX PROFILE 80 60 JD PERSONICX INDEX (% VARIANCE TO UK AVERAGE) 40 20 0 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% -20 -40 -60 JD % MARKET SHARE November 25 2009
  • 89. PERSONICX GEO – Sales Opportunities • Identify gaps and latent sales opportunities in catchment areas. Market Share Index November 25 2009
  • 90. RETAILNATION – Location Market Size Analysis • JD has examined the relationship between market share and market size. JD MARKET SHARE VS. RETAILNATION LOCATION MARKET SIZE (Sales Area 2,000 - 4,000 sq ft) 10.0% 9.0% 8.0% 7.0% JD MARKET SHARE 6.0% 5.0% 4.0% R2 = 0.75 3.0% R2 (Personicx) = 0.79 2.0% 1.0% 0.0% £- £100 £200 £300 £400 £500 £600 £700 RETAILNATION CLOTHING MARKET SIZE (£M) November 25 2009
  • 91. RETAILNATION – Location Market Size Analysis • Identify under/over performing stores. • Drive the performance of our existing store network via: - Refurbishment - Relocations - Upsizing - Downsizing - Closures • Platform for new store sales forecasting. November 25 2009
  • 92. RETAILNATION – New Store Sales Forecasting • Combine JD and RN sales flows to develop market penetration model. RETAIL NATION MARKET PENETRATION VS. JD MARKET PENETRATION 25% 2 R = 0.64 20% JD - % Market Penetration 15% 10% 5% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Retail Nation - % Market Penetration November 25 2009
  • 93. RETAILNATION & PERSONICX GEO – Summary • RETAILNATION and PERSONICX GEO provides: - An enhanced understanding our existing store network - Influence on future growth strategies, in particular in-sight into “New” markets November 25 2009
  • 94. November 25 2009
  • 95. Who is RETAILNATION for? • Retailers • Consumer Brands • Developers • Owners/Investors • Property Agents • Media Planners • Planning Authorities • Private Equity / Venture Capitalists November 25 2009
  • 96. RETAILNATION Delivers... • Catchments defined accurately (and profiled) in: > Comparison goods, bulky goods, groceries • Spending & shopping patterns evaluated > Catchment available spend, market sizes, catchment leakage • Venue shopper profiles > Who shops there? • Analogy venue comparisons • D2C Marketing Opportunities November 25 2009
  • 97. How to get RETAILNATION? 1. Ad hoc reports 2. Data-sets: – GIS-independent 3. Bespoke consulting assignments • Contact us to arrange a discussion on how we can help RETAILNATION deliver value to your business November 25 2009

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