Retailnation Launch Presentation Lite

November 25 2009

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

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

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

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

Javelin Group

Retail strategy

Retail operations

Retail technology

Retail locations

Experts in retail & ecommerce

• UK’s leading retail consultancy

• 75 retail professionals: est. 1997

• Advise retailers, brands, property

investors/developers, private equity

• Clients: M&S, Tesco, Sainsburys,

Morrisons, Debenhams, JLP, Sony,

Nike, Goldman Sachs, Terrafirma,

BAA, Hammerson, Lend Lease

November 25 2009

Acxiom

Deep consumer insight

Consumer data &

analytics

Information technology

Data integration

Integrated channel

marketing

Global interactive marketing

services company

• Focus on deep consumer insight

• 6,000 employees: est. 1969

• Enabling multiple verticals to

understand and act on customer

information to drive effective

business decisions

• Recent wins include Ebay, Yahoo,

Centrica, BT, TUI, Odeon

November 25 2009

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

Who is RETAILNATION for?

• Retailers

• Consumer Brands

• Developers

• Owners/Investors

• Property Agents

• Media Planners

• Planning Authorities

• Private Equity / Venture Capitalists

November 25 2009

• 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

RETAILNATION Objectives

November 25 2009

1. Research Opinion Poll

2. Personicx Geo

3. VENUESCORE

4. SHOPSCORE

5. X-SPEND

6. TELEATLAS drivetimes

7. Gravity model of national shopping patterns

7 key inputs...

November 25 2009

Unique location insight tools

Consumers Shopping

Patterns

Shopping Venues

& Retailers

November 25 2009

• 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

Input 1: Research Opinion Poll

November 25 2009

• 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

Input 2: Personicx Geo

November 25 2009

• 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

Input 3: VENUESCORE

November 25 2009

• 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

Input 4: SHOPSCORE

November 25 2009

• 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

Input 5: X-SPEND

November 25 2009

• 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

Input 6: TELEATLAS Drivetimes

November 25 2009

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

•18,000+

respondents

identify

Birmingham,

Centre as their

primary

destination for

Clothing

shopping

Example: Birmingham, Centre

1 to 30

30 to 60

60 to 90

90 to 120

120 to 150

150 to 180

180 +

November 25 2009

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!

2 catchment definitions...

November 25 2009

Secondary

559,750

Total

Catchment

Population

3.61million

Core

773,460

Tertiary

2,280,800

Primary (Core + Secondary)

Catchment Population

1.33 million

Research-based catchment: Birmingham, Centre

November 25 2009

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

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

RETAILNATION catchment: Birmingham, Centre

Secondary

656,120

Total

Catchment

Population

2.91 million

Core

772,490 Tertiary

1,483,220



1.43 million

November 25 2009

RETAILNATION catchment: Solihull

Secondary

667,075

Total

Catchment

Population

2.36 million

Core

274,480

Tertiary

1,424,380Primary (Core + Secondary)


941,555

November 25 2009

RETAILNATION catchment: Westfield London

Secondary

873,225

Total

Catchment

Population

3.78 million

Core

998,585

Tertiary

1,916,615



1.87 million

November 25 2009

• Catchments defined for:

> 1,304 comparison venues

> 2,335 bulky goods venues

> 5,012 grocery venues

RETAILNATION coverage

November 25 2009

RETAILNATION catchment: Lakeside Retail Park

Secondary

730,495

Total

Catchment

Population

2.52 million

Core

351,570

Tertiary

1,442,450



1.08m

November 25 2009

RETAILNATION catchment: Morrisons, Bolton

Secondary

37,860

Total

Catchment

Population

98k

Core

29,360

Tertiary

30,765



67k

November 25 2009

• Catchments profiled across a range of demographic, lifestyle

and behavioural data:

Demographics, e.g.:

> Gender

> Age

> Car ownership

> Home ownership

> Income

> House prices

> Etc.

Catchment profiling

November 25 2009

• 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

Catchment profiling

November 25 2009

• 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

Catchment profiling

November 25 2009

Personicx highlights below average affluence levels

Primary Catchment Boundary

Total catchment boundary

UK Average= 100

Q1: Top 20%

Q2:

Q3:

Q4:

Q5: Bottom 20%

November 25 2009

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

Together, these 10

groups account for

49% of catchment

residents (vs. 20% of

the UK population)

November 25 2009

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

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

Sub-Total1,196.5 866.5 2,063.0 2,467.4 4,530.4

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

Catchment shopping patterns

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%

• Birmingham retains 61% of spend in its Primary catchment

November 25 2009

• Market size of £1.06 billion

Birmingham, Centre: comparison market size

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

Top 20 UK Market Sizes

Top 20 Venues: Comparison Market Size

Venue Location Grade

Market

Size

Rank

Clothing Market Size

(£m)

Comparison Market

Size

(£m)

VENUESCORE Rank Venuescore Fashionscore

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

Market Sizes vs. VENUESCORE

Oxford St

Glasgow

Birmingham

Manchester

Leeds

LiverpoolBluewater

Westfield London

The Trafford Centre Belfast

EdinburghMeadowhall

NorwichSouthamptonKingston On Thames

Derby NottinghamGuildford

LeicesterLakeside

400

600

800

1,000

1,200

1,400

1,600

200 250 300 350 400 450 500 550 600 650 700

Co

mp

ari

so

n M

ark

et

Siz

e (

£m

)

Venuescore

November 25 2009

Birmingham shopper profile

• 10 Personicx Geo groups dominate B‟ham‟s shoppers:

1. Family Focus


3. Full City Homes


5. Gardeners World



8. City Manual Workers


10. Income Supported

Together, these 10

groups account for

42% of shoppers

residents (vs. 19% of

the UK population

and 48% of the

catchment)

November 25 2009

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

Betting & Bingo

City Manual

Workers

Income Supported

November 25 2009

Catchment & Shopper Profile vs UK Avge.

Affluent Modern Families

Spending Sporty FamiliesHobbies in City Suburbs

Travel & Timeshare

Budget Families

Metropolitan Semi's

City Manual Workers

Income Supported

Children & Camping

Gourmet Travellers

Organic & Urban

Urban Terraces

Healthy, Wealthy & Wise

Detached in the City Suburbs

Single Students

Gardeners World

Shrewd Solos

Jam-packed Households

Low Cash, Low Credit

Rent Books & Benefits

Retired Solos on a Tight Budget

Local Life

Organic Supporters

Mature Convertible Drivers

Financially Savvy Retirees

Charities & Trust Funds

Coaches & Conservatories

Conventional Givers

Gardening & Grandchildren

Betting and Bingo

Aged in the City Suburbs

Budget Conscious Pensioners

Pastoral Volunteers

Urban Travellers

Flats & Convertibles

Social Explorers

Healthy Urbanites

Educated Professionals

Adventurous Students

Small Town Office Workers

City Singletons

Independent Thinkers

Value Brands & Tabloids

-

20

40

60

80

100

120

140

160

180

200

- 20 40 60 80 100 120 140 160 180 200

CATCHMENT INDEX

SHOPPER INDEX

Exploit &

DominateOpportunity

for Growth?

November 25 2009

Peer venue comparisons

• Birmingham “peer” benchmarks:

– Glasgow, Centre

– Manchester, Centre

– Edinburgh, Centre

– Leeds, Centre

– Liverpool, Centre

– Nottingham, Centre

November 25 2009


• 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


• Catchment comparisons:

– Catchment population

– Catchment available spend

– Spend index

– Car ownership

– Age profile

– Social grade

– Average house price

– Average income

November 25 2009


RETAILNATION • Analogy Template

BIRMINGHAM,

CENTREGLASGOW, CENTRE

MANCHESTER,

CENTRE

EDINBURGH,

CENTRELEEDS, CENTRE

LIVERPOOL,

CENTRE

NOTTINGHAM,

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

Agenda







November 25 2009

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

The Retail World is Changing

• The consumer is changing….a lot!!!

November 25 2009

Is this Retailing?

…or is it Entertainment?

November 25 2009

New Competitive Landscape

• Other outlets

• Other centres

• Other touchpoints

The opportunity cost of doing something different

November 25 2009

The Retail Audience

• Consumers and customers

• I make, you use

• I sell, you buy

November 25 2009

The Retail Audience

• Multifaceted relationship

– Engagement

– Interaction

– Feedback

November 25 2009

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

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

Birmingham, Centre: Habitat evaluation

Secondary

656,120

Total

Catchment

Population

2.91 million

Core

772,490 Tertiary

1,483,220



1.43 million

November 25 2009

Personicx Geo Fan: Birmingham Catchment & Shoppers

Habitat

November 25 2009

Birmingham catchment profile

• 10 Personicx Geo groups dominate B‟ham‟s catchment:

1. Family Focus


3. Full City Homes




7. Gardeners World


9. Unemployment Blues

10. Betting & Bingo

November 25 2009

Birmingham shopper profile

• 10 Personicx Geo groups dominate B‟ham‟s shoppers:

1. Family Focus


3. Full City Homes


5. Gardeners World



8. City Manual Workers


10. Income Supported

November 25 2009

Habitat campaign

• Objective

– Raise awareness of Habitat store

– Drive traffic to store

– Stimulate purchasing

– Promote catalogue

– Prove ROI on DM

November 25 2009

Habitat Counts

Email

November 25 2009

Process

• DM volumes

• E mail volumes

• Mail piece

• Voucher

• Data collection mechanism

• Store redemption

Response rates to 25%

November 25 2009

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

Agenda







Sports Fashion plc

November 25 2009

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

RETAILNATION & PERSONICX GEO

November 25 2009

November 25 2009

November 25 2009

November 25 2009

Alastair Browne

Site Research & Development Manager


November 25 2009

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

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

• 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.

JD Site Research - Overview

November 25 2009

• 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!!!

JD Site Research – Key Resources

November 25 2009

• 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.

JD Site Research - Output

November 25 2009

• 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

• Overlaid JD customer flow data with RETAILNATION catchments.

RETAILNATION – Catchment Analysis

BLUEWATERWESTWOOD CROSSLONDON, HOLLOWAY ROAD

• 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

• 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

RETAILNATION – Catchment Overlap

November 25 2009

• PERSONICX GEO allows JD to identify key groups that demonstrate a

high propensity to shop at JD.

PERSONICX GEO – Customer Profiling

JD - CUSTOMER PERSONICX-GEO PROFILE VS. UK AVERAGE

-100

-50

0

50

100

150

PERSONICX-GEO

JD

IN

DE

X (

% V

AR

IAN

CE

TO

UK

)

November 25 2009

• PERSONICX GEO achieves a high level of discrimination.

PERSONICX GEO – Gains Analysis

JD CUSTOMER PERSONICX PROFILE - GAINS ANALYSIS

0

10

20

30

40

50

60

70

80

90

100

0 10 20 30 40 50 60 70 80 90 100

% POPULATION

% O

F C

US

TO

ME

RS

Personicx GEO

November 25 2009

• 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

PERSONICX GEO – JD Clusters

November 25 2009


Income Supported

Full City Homes

City Manual

Workers

“JD

Traditionalists”

November 25 2009

JD CUSTOMER PERSONICX CLUSTERS VS. UK AVERAGE

-60

-40

-20

0

20

40

60

80

100

1 2 3 4 5 6 7 8 9 10

JD CLUSTERS

% V

AR

IAN

CE

TO

UK

AV

ER

AG

E


November 25 2009

• 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

PERSONICX GEO – Key Business Applications

November 25 2009

• New stores – target key sales areas.

PERSONICX GEO – Marketing Opportunities

November 25 2009

November 25 2009

JD MARKET SHARE VS. POSTSECTOR PERSONICX PROFILE

-60

-40

-20

0

20

40

60

80

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

JD % MARKET SHARE

JD

PE

RS

ON

ICX

IN

DE

X (

% V

AR

IAN

CE

TO

UK

AV

ER

AG

E)

• Detailed in-sight into sales performance by Postsector.

PERSONICX GEO – JD Clusters vs. Market Share

November 25 2009

• Identify gaps and latent sales opportunities in catchment areas.

PERSONICX GEO – Sales Opportunities

Market Share Index

November 25 2009

• JD has examined the relationship between market share and market size.

RETAILNATION – Location Market Size Analysis

JD MARKET SHARE VS. RETAILNATION LOCATION MARKET SIZE(Sales Area 2,000 - 4,000 sq ft)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

£- £100 £200 £300 £400 £500 £600 £700

RETAILNATION CLOTHING MARKET SIZE (£M)

JD

MA

RK

ET

SH

AR

E

R2 = 0.75

R2 (Personicx) = 0.79

November 25 2009

• 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.

RETAILNATION – Location Market Size Analysis

November 25 2009

• Combine JD and RN sales flows to develop market penetration model.

RETAILNATION – New Store Sales Forecasting

RETAIL NATION MARKET PENETRATION VS. JD MARKET PENETRATION

R2 = 0.64

0%

5%

10%

15%

20%

25%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Retail Nation - % Market Penetration

JD

- %

Ma

rke

t P

en

etr

ati

on

November 25 2009

• RETAILNATION and PERSONICX GEO provides:

An enhanced understanding our existing store network

Influence on future growth strategies, in particular in-sight into

“New” markets

RETAILNATION & PERSONICX GEO – Summary

November 25 2009

November 25 2009

Who is RETAILNATION for?

• Retailers

• Consumer Brands

• Developers

• Owners/Investors

• Property Agents

• Media Planners

• Planning Authorities

• Private Equity / Venture Capitalists

November 25 2009

• 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

RETAILNATION Delivers...

November 25 2009

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

Documents

Retailnation Launch Presentation Lite