Footwear Retailing - UK

Published by: Mintel International Group Ltd.

Published: May. 1, 2008 - 121 Pages

Table of Contents

Issues in the Market

Key themes

Definition

Abbreviations

Market in Brief

What price market growth?

Footwear failures

Not all doom and gloom

Even Amazon now sells shoes

Fashion drivers

Let’s hear it for the boys

But it’s not all about fashion

How cheap is cheap?

Clarks stands out

New channels

Future

Industry Insight

Key findings

Running to keep up

Some like it cheap

Tight on ideas

Online on target

She’s got to have it

Competitors all around

Non-specialists are serious contenders

Specialists fight back

Got to go

There's always hope

Challenges won’t go away

There's always next year

Internal Market Environment

Key findings

Spending on footwear

Figure 1: Spending on footwear, 2003-08

Mid-market price squeeze

Growth in the aspirational sector

Price deflation

Figure 2: UK: Inflation on clothing and footwear, 2002-07

EU duties

Rising costs

Consolidation in the sector

Fast fashion

Expansion of retailers

Role of brands

Figure 3: Top ten women's mainstream and contemporary footwear brands, week ending 12 January 2008

Figure 4: Top ten men's mainstream and contemporary footwear brands, for the week ending 12 January 2008

Broader Market Environment

Key findings:

PDI spending

Figure 5: PDI and consumer expenditure, at constant 2002 prices, 2002-12

Cost of living rises

Figure 6: GfK NOP consumer confidence index, December 2006-December 2007

More affluent consumers

Figure 7: Adult population trends, by socio-economic groups, 2002-12

Challenges from changing demographics

Figure 8: adult population trends, by socio-economic groups, 2002-12

Market in Context

Key findings

Footwear, clothing and accessories

Figure 9: Spending on garments and footwear, incl VAT, 2002-07

Footwear in context of spending overall

Figure 10: Overall expenditure rankings, 2002-06, Mintel’s British Lifestyles Report 2007

Spending priorities

Figure 11: Spending priorities for 2007, by lifestage, Mintel’s British Lifestyles Report, 2007

Impulse buying

Figure 12: Impulse purchasing footwear, clothing and value clothing 2007

Strengths and Weaknesses in the Market

Market Size and Forecast

Key findings

Spending struggling to grow

Figure 13: UK: Spending on footwear, 2002-07

Bigger share for non-specialists

Changes need to be made

The transition from manufacturing to retailing

Figure 14: Footwear specialists sales, UK, 2002-07

Figure 15: Footwear retail, enterprises, UK, 2001-06

Figure 16: Footwear specialist sales and spending on footwear, 2008-13, at current and constant 2008 prices, excl VAT, 2003-2013

Looking to the future

Factors used in the forecast

Where They Buy Footwear

Key findings

Who buys where

Figure 38: Where they buy footwear, 2004, 2006 and 2008

Figure 39: Where they buy footwear, February 2008

Stores with focus have a clearer target

Mixed purchasing pattern

Figure 40: Where they buy footwear, by gender, age and socio-economic groups, February 2008

Male fashion stores

Enticing existing customers

Figure 41: Where they buy footwear, by gender, age and socio-economic groups, February 2008

Young are open to new ideas

Value footwear exposed

Figure 42: Where they buy footwear, by gender, age and socio-economic groups, February 2008

How Much They Spend

Key findings

Cheap shoe myth?

Figure 43: How much they spend on a pair of shoes, February 2008

Income not the only factor

Figure 44: How much they spend per pair of shoes, by gender, age and socio-economic groups, February 2008

Spending by leading retailers

Figure 45: Spend per shoe pair, by Next, M&S and department stores, February 2008

Figure 46: Spend per shoe pair, by Next, M&S and department stores, February 2008

Retail Competitor Analysis

Key findings

Specialist retailers

Figure 57: UK: Leading specialist footwear retailers, 2006-07

Changing market share

Figure 58: Footwear retailers, market share, 2006/07 (est)

Non-specialist sector

Figure 59: Estimated market share of leading non-specialists, 2008

Retailer Profiles

Key findings

Prospects for leading specialist players

Figure 60: Market leaders’ potential, 2008

Main specialists

C&J Clark (UK)

Figure 61: C&J Clark Group: Group financial performance, 2002-07

Brantano

Figure 62: Brantano UK: Financial performance, 2002-07

Faith

Figure 63: Faith group, financial performance, 2002-07

Kurt Geiger

Figure 64: Kurt Geiger, group financial performance, 2003-07

Russell & Bromley

Figure 65: Russell & Bromley, group financial performance, 2002-06

Schuh

Figure 66: Schuh, group financial performance, 2003-07

Shoezone

Figure 67: Shoezone, group financial performance, 2003-07

Shoe Studio Group

Figure 68: Shoe Studio, group financial performance, 2002-06

Stylo

Figure 69: Stylo, group financial performance, 2003-07

Smaller specialists

Jones the Bootmaker

Dune

Bally Shoe Factories Ltd

Ecco

Scholl Footwear Ltd

Office Holdings Ltd

Footlocker Ltd

LK Bennett

Non-specialist retailers

Marks & Spencers

New Look

Next

Debenhams

Bhs

Matalan

Peacocks

Primark

Asda

Tesco Plc

JJB Sports

Sports Direct International

Retail Advertising and Promotion

Key findings

Advertising spend versus sales

Figure 70: Footwear advertising expenditure and sales, 2003-07

Adspend by advertiser

Figure 71: Advertising spend, by retailer/brand, 2003-07

Appendix

Advertising data

Appendix - Where They Buy Footwear

Figure 72: Where they buy footwear, by Mintel’s Special Groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarket used, February 2008

Figure 73: Where they buy footwear, by Mintel’s Special Groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarket used, February 2008

Figure 74: Where they buy footwear, by Mintel’s Special Groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarket used, February 2008

Figure 75: Where they buy footwear, by Mintel’s Special Groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarket used, February 2008

Figure 76: Where they buy footwear, by Mintel’s Special Groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarket used, February 2008

Appendix - How Much They Spend

Figure 77: What they spend on a pair of shoes, by Mintel’s Special Groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarket used, February 2008

Figure 78: What they spend on a pair of shoes, by Mintel’s Special Groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarket used, February 2008

Figure 79: Spend per pair, by footwear retailer, February 2008

Figure 80: Spend per pair, by footwear retailer, February 2008

Figure 81: Spend per pair, by footwear retailer, February 2008

Abstract

As far as specialist shoe retailers are concerned, here is a market being attacked on all fronts. Low barriers to entry have seen a rapid rise in competitors that outshine in terms of both price and styling. So, where to next for the specialist shoe retailer? Are they doomed to disappear from the high street, or is their renaissance long over due?

It is questionable where any change will come from, given that consumers’ expectations are now firmly rooted in readily-available, low-cost and fashionable footwear. Nevertheless, looking at consumers’ attitudes to shoes, it is possible that comfort has been sacrificed at the altar of cheap footwear, and this may now provide a route back into the market.

Furthermore, with the consolidation of specialist retailers happening apace, the market may now be getting into shape to become more clearly focused on sectors other than the value fashion footwear segment that has dominated the current growth in the market.

Key themes:

• Price has been the pivotable point in the market. Lower manufacturing costs and value-priced retailers have driven down both the cost and selling price of a pair of shoes. Whether this can continue as costs rise, is debatable.
• Potentially however, rising prices could occur, as consumers will begin to crave quality over quantity.
• Everyone, from Amazon to Tesco, sells shoes. Low barriers to entry have brought many non-specialists into the market as they have looked to grow sales and brand loyalty. Whether they will all be able to make a success of shoes is debatable - there will undoubtedly be some losers along the way.
• More casualties amongst the specialists are likely, but which ones and why remains to be seen. It is not all doom and gloom for the specialists, however, with some bucking the trend. The reasons for their success of some outlets when others are failing are examined here.
• To succeed, retailers clearly need to differentiate themselves, whether through using the Internet or exploiting trends such as ethical and environmental friendly footwear. Some avenues may only provide niche opportunities, whereas others may enable struggling retailers to regain their share.

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