Webloyalty Summer 2014 Retail Research

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This latest summer retail research looks at consumer spend from 2013, to make predictions for spend in 2014. Webloyalty and Conlumino look at what people are buying for their holidays, what they are planning to do, and what they are likely to forget to pack!

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Webloyalty Summer 2014 Retail Research

  1. 1. Summer holidays A focus on Summer 2014
  2. 2. Summer 2014 Page 14 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Key trading tips for summer Summer holidays back on the agenda With more people planning to take a proper summer holiday this year, retailers should be making a big play around preparing and getting ready for the summer break. This includes more emphasis on foreign travel products, including things like guide books and sun accessories. Premium is in… With finances improving many consumers will be looking to invest in key summer items. These will mostly be statement products such as designer sunglasses or special items of clothing. Retailers should be looking to stretch out their price architectures for these products, giving consumers an option to trade up. …but value remains critical Although consumers are willing, and able, to trade up on some items, retailers need to recognise that the consumer mindset remains fairly frugal. This means that on certain items, such as basic summer clothing, toiletries and basic accessories, many consumers looking to save money will seek value items or ranges. Duty-free needs to try harder Although many consumers do buy duty-free products, a significant number are sceptical about whether the savings offered are compelling enough. With a more promotional high street and retail sector in general, duty-free retailers need to work harder at conveying value. E-holiday boost With the rise of tablets and e-readers, more holiday-makers are now preparing by buying e-books, apps, digital music or films. There is an opportunity for retailers, especially online retailers, to capitalise on this via marketing and promotion during the period just before the holiday season.
  3. 3. Summer 2014 Page 15 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Summer holiday spending 2013 Breakdown of summer spending for 2013 All figures are £bn Total summer holiday spend in 2013 was £8.95bn Total Summer Holiday retail spend: 2013 £8.95bn Buying for holiday spend: 2013 £2.54bn Summer food and drinks spend: 2013 £3.73bn General summer-specific spend: 2013 £2.68bn Last year, total spending on summer holidays was £8.95bn. This splits down into three main areas: •  Buying for actual holidays and vacations, including things like health and beauty, accessories, clothing and other sundries such as guide books. •  Buying summer food and drink, such as BBQ products and salads, which are mainly consumed at home. •  Other general summer spend, which includes spending on things such as summer clothing not specifically for holidays or things like paddling pools, etc. Please note all spending is retail spending and so does not include the cost of things like travel, transport and accommodation.
  4. 4. Summer 2014 Page 16 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Summer holiday spending 2014 Breakdown of summer spending for 2014 All figures are £bn Total summer holiday spend in 2014 is forecast to be £9.18bn Total Summer Holiday retail spend: 2014 £9.18bn Holiday products spend: 2014 £2.62bn Summer food and drinks spend: 2014 £3.83bn General Summer-specific spend: 2014 £2.78bn
  5. 5. Summer 2014 Page 17 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Summer holiday spending growth Spending growth rates (2013 versus 2014) All figures are percentages Overall spending on summer will grow by 2.5% 2.5 3.1 2.7 1.8 Overall Buying for holidays Summer food and drink General summer spend Overall, spending growth for summer will grow by 2.5% this year. The fastest growth segment will be spending on holidays which will be fuelled by greater numbers of people taking vacations. Summer food and drink spend will grow by 2.7%, however much of this will be driven by higher price inflation rather than by genuine volume increases. General summer spend will see the lowest growth. This is dampened mostly because many consumers invested in things like outdoor furniture last year during the extended hot spell.
  6. 6. Summer 2014 Page 18 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Holiday intentions Where are you planning to go on your summer holiday this year? All figures are percentages Almost a third will take no holiday at all this year 30.3 28.6 18.4 13.9 12.7 12.5 5.4 4.1 Not taking any holiday Going abroad – short haul Longer holiday in the UK Day trips in the UK Going abroad – long haul Short city break in the UK Short city break abroad Taking time off work but not travelling Just over two thirds of people will be taking some form of summer holiday this year, leaving a third with no plans or intentions for a summer getaway. Holidays in the UK are still a popular option, both in terms of day trips and those of a longer length.
  7. 7. Summer 2014 Page 19 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Holiday buying What sort of things do you intend to buy for your holiday? All figures are percentages Over half of consumers will buy new clothing for their holiday 55.4 53.3 34.8 33.9 21.4 19.9 18.1 11.9 10.1 7.9 5.8 3.6 2.3 2.3 Clothing Health products Footwear Washing products Books or e- book downloads Beauty products Sunglasses Guidebooks Gifts for friends or family Beach towels, umbrellas and other sundries Camera Beach toys or equipment Sports equipment Portable electronics or gadgets
  8. 8. Summer 2014 Page 20 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Summer spending Average amounts people spend on certain summer holiday products In total people spend up to £536 on products for their holidays Health products £20.60 Beauty products £26.70 Washing products £13.50 Clothing £89.30 Footwear £39.60 Sunglasses £33.80 Sports equipment £53.30 Beach toys £16.50 Beach towels £24.90 Electronics £66.62 Guide books £11.90 E-books £12.20 Camera £94.20 Gifts £32.45 TOTAL SPEND £535.57 Each consumer may spend up to £536 on products for their summer holidays. The most expensive purchases include cameras (average spend of £94), clothing (average spend of £89) and electronics (average spend of £66). In total, almost £61 per person is spent on health, beauty and personal hygiene products.
  9. 9. Summer 2014 Page 21 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Holiday clothing shops Customer share of leading retailers Figures in left hand column are the percentage using each retailer; figures in the right column are change the since last year Asda leads the pack for holiday clothing retailers Asda/George 31.4 +2.1 % pts M&S 29.3 -1.7 % pts Primark 25.4 +3.8 % pts Matalan 21.7 +0.2 % pts Next 20.2 +0.5 % pts Debenhams 18.9 -0.3 % pts Tesco 17.4 -1.1 % pts New Look 12.4 +0.2 % pts John Lewis 10.1 +4.9 % pts H&M 8.2 +0.6 % pts Bhs 7.4 -0.4 % pts River Island 4.0 +0.1 % pts Topshop / Topman 3.9 +0.9 % pts Zara 2.9 +0.7 % pts ASOS 2.7 +0.6 % pts Monsoon Accessorize 2.3 -0.3 % pts When it comes to where we will shop for our holiday clothing this year, Asda leads the pack with almost a third of those intending to buy summer clothing saying they will shop there. M&S comes closely behind, followed by Primark. As the summary below shows, the value and fashion focused retailers have picked up share since last year, whereas the middle-market players are losing out. Value retailers 61.9% share (+5.7 % pts since last year) Mid-market retailers 68.4% share (-2.2 % pts since last year) Fashion market retailers 18.9% share (+7.1 % pts since last year)
  10. 10. Summer 2014 Page 22 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 On and offline buying How will you be doing the majority of your pre-holiday shopping? Over half will make extensive use of online for summer shopping Online only Mainly online Both online and in-store Mainly in-store Only in-store 6.1% 10.7% 34.5% 26.6% 22.1% Numbers may not sum to 100%; residuals are accounted for by those saying ‘don’t know’.
  11. 11. Summer 2014 Page 23 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Essential kit What could you not go on holiday without? All figures are percentages Over a third could not go on holiday without their smartphone 36.1 15.1 14.4 13.5 11.5 10.5 9.5 34.7 14.0 11.7 3.0 13.1 11.3 1.0 37.3 16.1 16.6 22.3 10.1 9.8 16.6 Smartphone Tablet E-reader Hairdryer Laptop Portable music player Hair straighteners All Male Female Over a third of people say that they could not go on holiday without their smartphone. However, for many women hairdryers and hair straighteners are also a priority.
  12. 12. Summer 2014 Page 24 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Duty-free shopping What best describes your attitude to duty free shopping? Over a quarter never buy duty-free goods I always buy duty- free goods I sometimes buy duty-free goods I never buy duty- free goods 17.1% 57.2% 25.7%
  13. 13. Summer 2014 Page 25 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Duty-free shopping Which of the following statements on duty free shopping do you agree with? All figures are percentages Over a quarter feel that duty-free is a bit of a rip-off 31.8 27.9 22.4 20.1 8.6 8.5 8.0 6.7 6.6 4.3 I buy things for myself from duty- free Duty free is a bit of a rip-off It’s great value I buy gifts for others from duty- free I find it hard to find the things I need or want I end up buying things from duty- free just because they are there I always find the products I need or want Duty-free goods are generic and inauthentic Duty-free shops have some good “authentic” local products Instead of buying souvenirs on holiday I end up buying things duty-free on the way home
  14. 14. Summer 2014 Page 26 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Forgetting to pack Which of the following items do you most commonly forget to pack? All figures are percentages A phone charger and toothbrush are the most often forgotten items 1 Phone charger 9.4 2 Toothbrush 8.5 3 Enough socks/underwear 5.1 4 Sunglasses 4.6 5 Sun cream 4.1 6 Shower gel/soap/shampoo 3.1 7 Camera 3.0 8 Book 1.9 9 Music 1.6 10 Flip-flips/appropriate footwear 1.6 69.9% 30.1%30.1% of people usually forget to pack something, and this is what they most commonly forget to take 69.9% of people claim that they rarely forget anything when packing for holiday
  15. 15. Methodology About the research
  16. 16. Methodology Page 28 © 2014 Webloyalty & Conlumino enquiries@webloyalty.co.uk | 020 7291 8720 Looking ahead ... Summer June 2014 Methodologies and sources •  A combination of consumer research, secondary research and market forecasting were used to compile this report. •  Consumer research in this report is based on a survey conducted with a UK nationally representative poll of consumers. Over 2,000 consumers were interviewed during early May 2014 and questioned about their views on summer holidays and their likely shopping behaviour for this event. They were also asked about the World Cup and their intentions for this. •  All numbers relating to expenditure and forecast expenditure of gadgets are taken from Conlumino’s own retail model. This is updated on an ongoing basis with inputs from official sources (such as the BRC and ONS), retailers’ results and trading updates, other secondary sources and industry surveys, Conlumino’s ongoing programme of research into consumer spending and habits, and underlying economic drivers and trends. Conlumino analysts both model and interpret this information to provide guidance on the likely future direction of retail expenditure at an overall, sector and category level. •  Unless otherwise stated, all sources of information are derived from Conlumino’s own research and should be referenced to Webloyalty/ Conlumino.
  17. 17. Conlumino 020 7936 6654 hello@conlumino.com 7 Carmelite Street, London EC4Y 0BS Webloyalty 020 7291 8720 enquiries@webloyalty.co.uk 19-21 Great Portland Street, London

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