International Retail in the UK

Introduction

Verdict Research: The UK is often seen by international retailers as a stepping stone to Continental Europe, and by other European retailers as a natural market extension, yet they often underestimate the challenges. They face a mature, low growth market, and a demanding consumer. This brief analyses their impact on each sector, their strategies, the threats to incumbent businesses and the issues.

Scope

*Total retail expenditure, and by individual sector, apportioned to international retailers in the UK in 2009

*Analysis by sector of international retailers' influence and strategies as well as the challenges they face

*Sectors covered: clothing & footwear, food & grocery, electricals, health & beauty, home related markets and jewellery

Highlights

US retailers account for 67% of international retailers' UK sales and Continental European retailers 28%, with food & grocery, health & beauty and clothing & footwear taking the greatest participation. Wal-Mart's ownership of Asda is a major factor in the US' share it not only has a high share in food & grocery, it is a major player in non-food.

Another big US retailer is set to have a major impact on the UK electricals sector. Best Buy Europe can only grow its share of the market significantly by taking sales from incumbent competitors. It has studied the UK market intensively and has a model that differentiates itself from competitors and delivers what UK consumers are demanding.

The highly fragmented clothing sector is attracting the most activity from international retailers, particularly the premium sector, but there is also greater activity in home related sectors, despite the difficulties these sectors have experienced following the credit crunch and the collapse of the UK housing market.

Reasons to Purchase

*Identify which UK sectors are most at threat from international expansion

*Understand the strategies used for market entry and the challenges and difficulties new entrants face

*Assess the opportunities and risks for foreign retailers in the UK market

Table of contents

EXECUTIVE SUMMARY
Key findings
Main conclusions
MARKET analysis
Just under 16.0% of all UK retail expenditure went to international retailers in 2009
SECTORS
Clothing & footwear: fragmented and mature, but attracts new entrants
Food & grocery: home grown retailers take aggressive stance against invaders
Electricals: challenged by major new entrant
Health & beauty and pharmacy: international retailers take £1.00 of every £4.00 spent
Home-related sectors: hit hard by economic downturn
Jewellery: Signet dominant player in mass market
APPENDIX
Methodology
Abbreviations
Further reading
Ask the analyst
Verdict consulting
Disclaimer

TABLE OF FIGURES
Figure 1: Retail expenditure and share via international retailers 2009
Figure 2: International retailers share of sales by type of retailer % 2009
Figure 3: International retailers sales by type of retailer £bn 2009
Figure 4: Sector penetration: international retailers share of each sectors sales 2009
Figure 5: International retailers sales split by global location of parent 2009
Figure 6: International clothing retailers positioning in UK market 2010
Figure 7: Trends for international entry into the UK clothing market 2008–2010
Figure 8: Challenges for international operators in the UK food & grocery sector 2010
Figure 9: How Asda could attain 10.1% of UK retail sales 2010
Figure 10: Market shares in UK electricals 2009 & Best Buy projected share 2014
Figure 11: Split of international retailers sales of UK health & beauty and pharmacy 2009
Figure 12: New international entrants in UK home sector 2010
Figure 13: Split of international jewellery retailers UK sales – year end 2008/09

LIST OF TABLES
Table 1: Top 12 international operators in the UK 2009
Table 2: Leading international retailers in UK clothing and footwear 2009
Table 3: Leading international retailers in UK electricals 2009

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Related research categories

By sector: Retail (in Off-trade)

By market: United Kingdom (in Europe)