Verdict Research: Neighbourhood retailing is outperforming all other locations. The location offers substantial opportunities, but the dynamics of the market are changing. As the market consolidates, growth is becoming more elusive and while substantial opportunities remain, trading conditions are more challenging and the strategies for success very different.
Scope
* Key metrics of neighbourhood retail: sales growth, space, store numbers, store sizes and sales densities.
* Detailed market analysis (convenience, off-licences, CTNs, food specialists, pharmacies) and profiles of all the leading neighbourhood retailers
* Focus on composition of convenience market (The Co-operatives, Multiples, Symbol Groups, Independents, forecourt retailing)
* Market shares for leading players 2003-2008
Highlights
Neighbourhood retailing is benefitting from a shift in shopping habits, an increased demand for convenience, improved standards and the arrival of the grocers. The expansion of the grocers has enticed people to shop locally and the symbol groups to enhance their propositions, encouraging independents to join and consumers to shop with them.
Competition is intensifying and pressures on food specialists, independents, off-licences and CTNs mounting. With the market consolidating, the easy wins of the past are harder to come by, while the boost received from the arrival of the grocers can not be repeated. Growth is set to become more elusive and the strategies for success different.
With propositions becoming more comprehensive, the need for CTNs, off-licenses and undifferentiated specialists is diminishing. As the market consolidates, store environments, fresh food and food-to-go will be key battlegrounds and the multiples, with the expertise and investment available to them, are well placed be the big winners.
Reasons to Purchase
* Benchmark retailer performance against the market. Understand the dynamics of the location, its composition and prospects for each channel
* Identify the growth prospects of key players in neighbourhood retailing
* Analyse the key issues impacting the location and identify thestrategies for success
Partial Table of Contents:
-- Full ToC is available at http://www.fastmr.com/
TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 20
Key findings 20
Main conclusions 21
Out-of-town summary 26
CHAPTER 2 RETAIL ISSUES 27
Key messages 27
Polarisation of space 27
New OOT players demand prime locations as secondary ones stagnate 27
Risks for discretionary retailers 32
Discretionary retailers will always struggle out-of-town 32
Recovery of home-related sectors 35
Eventual revival in housing should boost secondary locations 35
Up and coming players 38
To drive market growth and reinvigorate competition 38
Capitalising on success of grocers 42
Robust footfall on offer in retail parks anchored by grocers 42
Factory outlet centres continue to excel 44
OOT discounting strikes chord with consumers and retailers alike 44
CHAPTER 3 STRATEGIES FOR SUCCESS 47
Retailers need to react to recession-hit market 47
Landlords must be proactive as vacancies reach high levels 48
CHAPTER 4 OUT OF TOWN VS OTHER LOCATIONS 49
Robust footfall driven by a resilient tenant mix makes OOT a relatively safe place 49
Retail sales by location 52
Neighbourhood performs best but out-of-town holds its own 52
Retail spend by location 54
Grocers and niche specialists keep out-of-town growing 54
Sales and sources of growth 55
Food price upward spiral drives inflation 55
Out-of-town retail sales 58
Online growth via OOT retailers outweighs plummeting trade sales 58
Space by location 60
Collapse of big players partly offset 60
Store numbers by location 62
Declining for first time but more resilient than other channels 62
Forecast 64
OOT a good bet due to grocers, online and inevitable recovery in home 64
CHAPTER 5 MAJOR PLAYERS OOT: WINNERS & LOSERS 69
Few major non-food retailers are on the up 69
OOT sales - majors breakdown 72
Home-related retailers struggle 72
Total sales 74
Grocers extend dominance 74
Operating profits 79
Matalan only non-food retailer to grow profits 79
Operating margins 80
Widespread deterioration 80
Space 82
The trend of the past five years has been towards larger stores 82
Store numbers 88
Expansion of major players slows 88
Advertising 94
Expenditure increases as retailers attempt to stimulate consumer spend 94
CHAPTER 6 SPACE PERFORMANCE 95
Changing mix of retailer and space consolidation to boost density 95
Sales densities by location 96
Struggling home-related sectors subdue out-of-town density growth 96
Sales densities by retailer 99
Grocers continue to benefit from their ability to convert high footfalls 99
Sales densities by sector 102
Electricals to benefit from space consolidation as DIY underperforms 102
Space performance for food vs non-food 104
Non-food set to be boosted by new entrants to the out-of-town market 104
CHAPT
For more information or to purchase this report, go to http://www.fastmr.com/
About Verdict Group
With over 20 years' experience, Verdict Research is the UK’s leading authority on retailing, and publishes unrivalled independent analysis. Verdict reports, forecasts, briefings, consumer research and bespoke consulting services provide clients with a complete picture of the UK and international retail arena, helping retailers, manufacturers, service suppliers, city analysts and consultants to fully exploit opportunities within the sector. View more research from Verdict Research at http://www.fastmr.com/
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
