UK Remote Shopping 2011

UK Remote Shopping 2011: This sector has continued to outperform store based retailers for growth, as shoppers become more comfortable about buying online. This report provides market sizes for the three channels which make up this market, with forecasts up to 2014, retailer profiles and comprehensive analysis of the key issues within the sector.

Features and benefits

• Analysis and 5 year forecasts for the online, mail order and TV shopping markets along with the total remote market
• Full profiles on 15 of the main retailers within the remote retail market, along with five shorter profiles for some of the smaller retailers.
• Insight into the key retail issues currently influencing the UK remote retail sector

Highlights

Despite the more austere customer and challening economic conditions, the remote retail market is set to grow by 10.4% in 2010. The exceptional growth of online has driven this growth and it is set to make up 82.1% of the market in 2010.While store based retailers make up the majority of online purchases, with 47.8% of the online market, the most dynamic channel in 2009 was pureplay retailers, which grew by 30.8%. The main driver of this was customers becoming increasingly confident about buying from pureplays, as well as the growing range that these retailers are offering.While m-commerce is currently a small part of the remote market, many retailers have already used this new technology to drive sales. For instance, 6% of Ocado's sales in 2010 were from m-commerce. In 2011, we forecast that more retailers will look to utilise m-commerce as a sales channel, through mobile optimised websites or through applications.

Your key questions answered

• Learn about the size of the overall remote market, its subcomponents and future prospects.
• Compare the performance and prospects of a number of retailers, with market shares for the overall remote market and individual channels.
• Gain a better understanding of the future trends that are set to impact this market and how you can capitalise on them.

Table of contents

Overview
Summary
Executive summary
Key findings
Remote shopping expands 10.4% in 2010…
…generating the majority of retail growth this year
Online dominant and essential to retail investment plans
Service improvements drive online takeup
Total mail order sales have stagnated but there are major winners and losers
Catalogues evolve into new complementary role
Mass market operators gain share and will force others to differentiate
Fashion pureplays outperform the market
Traditional agency operators lose most share
M-commerce beats expectations and is set to become a source of growth in 2011
International retailing has risks but is a significant opportunity
Remote shopping expands 10.4% in 2010 …
… generating the majority of retail growth this year
Online dominant and crucial to retail investment plans
Service improvements drive online takeup
Pureplays reinforce role as successful business model
Total mail order sales have stagnated but there are major winners and losers
Catalogues evolve into complementary marketing role
Mass market operators gain share in 2010
Fashion pureplays outperform market
Traditional agency operators lose most share
M-commerce beats expectations and will become a source of growth in 2011
International retailing has risks but is a significant opportunity
Market Analysis
Definition of remote retail
Remote shopping market
Remote shopping channels
Channel analysis
Online sales
Total online market
Online market components
Mail order sales
Total mail order sales
Direct
Agency
TV shopping
Remote shopping market forecast
Key Issues
Remote shopping provides major retail opportunities
Online increasingly drives performance of remote
Online increasingly drives performance of remote
Retailers use click and collect more to drive footfall into store
Pairing up with others increases customer convenience
Mail order and TV shopping increasingly shift online
Catalogues lack flexibility and features of online
Future of the catalogue
TV shopping cannot rely forever for growth from switchover
Shopping channels see online boost as well
TV shopping set to converge with online
Huge online ranges an opportunity but also a possible problem
Wider choice drives growth
Ranges risk potential overexpansion
Retailers provide personalised web experience
Service proposition evolves
M-commerce apps boom but can they generate sales?
Sales results better than expected
But are apps the right strategy?
International retailing
Rapid expansion of coverage
Expanding internationally offers many benefits to retailers
Foreign currency payments crucial to overseas growth
Barriers to clear for international success
Can be challenging for new entrants to gain traction in a new market
Customer concerns also a significant hurdle to clear
Company Data Analysis
Marketplace operators gain ground
Non-food the main driver for Tesco
Argos benefits from convenience and widening online range
Fashion pureplays hit their target audiences
Despite improved performance from direct clothing operators, they fail to keep pace with the market
Betterware boosted by the recession
Agency home shopping and Findel lose out
TV shopping retailers see their share marginally decline
Channel analysis
Online
Direct mail order
Agency mail order
TV shopping
Key operating statistics
Advertising
Amazon
Drives home technological and scale advantages
Recent key events
Grows via new categories
Proposition
Financials
Extremely rapid expansion continues
Market shares
Outlook
Benefits of scale from new product areas but these could pose problems
Argos
Under pressure from costs and competition
Recent key events
Investment in key areas of business
Proposition
Financials
Extremely rapid expansion continues
Current trading
Market shares
Outlook
Scale of operations will help but future problems loom
ASOS
International becomes main growth driver
Recent key events
Focuses on service and range
Proposition
Financials
Rapid expansion continues
International starts to drive growth
Market shares
Outlook
Pureplay fashion champion builds on its strengths
Avon
Misses out on health and beauty growth
Recent key events
Cuts costs to restore profitability
Proposition
Financials
Slight recovery under way
Market shares
Outlook
Suffers from pitfalls of door-to-door model
eBay
Marketplace growth momentum returns
Recent key events
M-commerce and fashion to spearhead growth
Proposition
Financials
Recession hits eBay sales hard
Market shares
Outlook
Remains innovative but competition increases
Findel
Tries to stabilise and invest in ongoing businesses
Recent key events
Drastic restructuring continues
Propositions
Financials
Educational division underperformance hits results
Market shares
Outlook
Rapid turnaround needed in continuing businesses
Flying Brands
Vulnerable to much larger rivals
Recent key events
New acquisitions and strategic focus
Proposition
Financials
Boosts profits by cutting loss-makers
Market shares
Outlook
Builds sales in profitable areas
FreemansGrattan Holdings
Marketplace growth momentum returns
Recent key events
Continues shake up under new management
Propositions
Financials
Sales collapse on restructuring
Market shares
Outlook
Last chance for FGH to put things right
N Brown
Expands from core plus-size womenswear business
Recent key events
Acquisitions as well as organic growth
Propositions
Financials
Educational division underperformance hits results
Market shares
Outlook
Successful diversification from core business
Next Directory
Efficiency keeps profits rising
Recent key events
Further range improvements but cost inflation a worry
Proposition
Financials
Directory continues to outperform
Market shares
Outlook
Performs well in exceptionally tough environment
Ocado
Unique online model yet to prove itself
Recent key events
Rapid growth but profitability still not secure
Proposition
Financials
Sales rise consistently year-on-year by around 25.0%
Market shares
Outlook
Service standards and product ranges key to future success
QVC
Business holds up despite recession
Recent key events
Promotes links between new media and TV channels
Proposition
Financials
Subdued growth
Market shares
Outlook
Technology development a challenge but also an opportunity
Shop Direct Group
Conversion to online retail almost complete
Recent key events
Aims for growth with new ranges
Propositions
Financials
70.0% of sales online
Market shares
Outlook
Needs topline growth to drive operating profits
Sit-Up
Reviewing strategic options under new ownership
Recent key events
Trying to get back on track under new ownership
Proposition
Financials
Price-drop return should boost revenue
Market shares
Outlook
Initiating new strategies for future growth
Tesco
Online growth loses dynamism
Recent key events
Sophistication and breadth of e-commerce grows
Proposition
Financials
Growth hit by consumer slowdown and lower grocery inflation
Market shares
Outlook
Still the online grocery leader, but competition increases
Smaller Remote Retailers
Betterware
Outlook
Boden
Outlook
M and M Direct
Outlook
Net-a-Porter
Outlook
Redcats
Outlook
Appendix
Ask the analyst
Verdict consulting
Disclaimer

TABLE OF FIGURES
Figure 1: Remote shopping sales 2000–2011e
Figure 2: Breakdown of remote shopping market 2009 and 2011e
Figure 3: Remote shopping channels 2010e and 2011e
Figure 4: Main channels’ share of remote shopping 2005–2011e
Figure 5: Remote shopping y-o-y change % in sales by segment 2005–2011e
Figure 6: Total online sales & growth rates 2000–2011e
Figure 7: Breakdown of online market 2009 and 2011e
Figure 8: Online sales as a percentage of total retail 2000–2014e
Figure 9: Online sales as a percentage of total remote shopping sales 2001–2011e
Figure 10: Total physical retailers online sales & growth 2001–2011e
Figure 11: Physical retailers online sales vs total online sales 2005–2011e
Figure 12: Physical retailers online vs total online sales growth 2005–2011e
Figure 13: Total pureplay retailers online sales & growth 2001–2011e
Figure 14: Pureplay retailers online sales vs total online sales 2005–2011e
Figure 15: Online pureplay vs total online sales growth 2005–2011e
Figure 16: Total mail order retailers online sales & growth 2001–2011e
Figure 17: Mail order retailers online sales vs total online sales 2005–2011e
Figure 18: Mail order retailers online vs total online sales growth 2005–2011e
Figure 19: Total mail order market sales and growth rates 2000–2011e
Figure 20: Breakdown of mail order market 2009 and 2011e
Figure 21: Mail order change % vs. total retail sales growth 2000–2011e
Figure 22: Mail order share of total retail and non-food retail 2000–2011e
Figure 23: Mail order sales growth online & non-online % 2000–2011e
Figure 24: Direct, door-to-door and agency shares of market 2005–2011e
Figure 25: Total direct mail order sales incl D2D and change % 2000–2011e
Figure 26: Y-o-y change in direct excl D2D vs total remote sales % 2000–2011e
Figure 27: Y-o-y change in direct excl D2D vs total mail order sales % 2000–2011e
Figure 28: Y-o-y change in door-to-door vs direct sales excl D2D % 2000–2011e
Figure 29: Y-o-y change in door-to-door vs total mail order sales % 2000–2011e
Figure 30: Agency sales and change % 2000–2011e
Figure 31: Y-o-y change in agency vs total mail order sales % 2000–2011e
Figure 32: TV shopping sales & y-o-y change % 2000–2011e
Figure 33: Y-o-y change in TV shopping vs total remote sales % 2000–2011e
Figure 34: Remote shopping channels 2009–2014e
Figure 35: Remote shopping as a percentage of total retail 2001–2014e
Figure 36: Remote vs. store based shopping, change in £bn spent 1999–2014e
Figure 37: % of adult population with access to digital TV at the end of Q4 1999–2009
Figure 38: What UK shoppers use their mobiles for while shopping 2010
Figure 39: Potential barriers when expanding internationally 2010
Figure 40: Winners & losers in remote shopping market 2010e on 2009
Figure 41: Winners & losers in online market 2010e on 2009
Figure 42: Winners & losers in direct mail order market 2010e on 2009
Figure 43: Winners & losers in agency mail order market 2010e on 2009
Figure 44: Amazon UK
Figure 45: Amazon UK sales and growth to December 2005–2010e
Figure 46: Amazon group operating profit to December 2004–2009
Figure 47: Amazon remote and online market share 2005–2010e
Figure 48: Argos
Figure 49: Argos UK sales and growth to February 2005–2010
Figure 50: Argos operating profit to February 2005–2010
Figure 51: Argos remote and online market share 2005–2010e
Figure 52: ASOS
Figure 53: ASOS UK sales and growth to March 2005–2010
Figure 54: ASOS group operating profit to March 2005–2010
Figure 55: ASOS remote and online market share 2005–2010e
Figure 56: Avon
Figure 57: Avon UK sales and growth to December 2005–2010e
Figure 58: Avon operating profit to December 2005–2009
Figure 59: Avon remote market share 2005–2010e
Figure 60: Avon door-to-door market share 2005–2010e
Figure 61: eBay
Figure 62: eBay UK sales and growth to December 2005–2010e
Figure 63: eBay group operating profit to December 2005–2009
Figure 64: eBay remote and online market share 2005–2010e
Figure 65: Findel
Figure 66: Findel UK Home Shopping sales and growth to March 2005–2010
Figure 67: Findel home shopping operating profit to March 2005–2010
Figure 68: Findel remote shopping market share 2005–2010e
Figure 69: Findel direct and online market share 2005–2010e
Figure 70: Flying Brands
Figure 71: Flying Brands UK sales and growth to December 2005–2010e
Figure 72: Flying Brands operating profit to December 2005–2009
Figure 73: Flying Brands global divisional sales 2008 and 2009
Figure 74: Flying Brands remote shopping market share 2005–2010e
Figure 75: FreemansGrattan Holdings
Figure 76: Freemans UK sales and growth to February 2005–2010
Figure 77: Grattan UK sales and growth to February 2005–2010
Figure 78: Freemans operating losses to February 2005–2010
Figure 79: Grattan operating profit to February 2005–2010
Figure 80: FreemansGrattan Holdings remote shopping market share 2005–2010e
Figure 81: FreemansGrattan Holdings direct market share 2005–2010e
Figure 82: FreemansGrattan Holdings agency market share 2005–2010e
Figure 83: N Brown
Figure 84: N Brown UK sales and growth to February 2005–2010e
Figure 85: N Brown operating profit to February 2005–2010
Figure 86: N Brown remote shopping market share 2005–2010e
Figure 87: N Brown online and direct mail order market share 2005–2010
Figure 88: Next Directory
Figure 89: Next Directory UK sales and growth to January 2005–2010e
Figure 90: Next Directory operating profit to January 2005–2010
Figure 91: Next Directory global divisional breakdown 2006–2010
Figure 92: Next Directory active customers & average spend to Jan 2005–2010
Figure 93: Next Directory remote and online market share 2005–2010e
Figure 94: Next Directory direct mail order and online market share 2005–2010e
Figure 95: Ocado
Figure 96: Ocado UK sales and growth to November 2005–2010e
Figure 97: Ocado operating losses to February 2005–2009
Figure 98: Ocado remote and online market share 2005–2010e
Figure 99: QVC
Figure 100: QVC UK sales and growth to December 2005–2010e
Figure 101: QVC operating profit to December 2005–2009
Figure 102: QVC remote and online market share 2005–2010e
Figure 103: QVC TV shopping market share 2005–2010e
Figure 104: Shop Direct Group
Figure 105: Shop Direct Group UK sales and growth to March 2005–2010e
Figure 106: Shop Direct Group operating profit to March 2005–2009
Figure 107: Shop Direct Group remote and online market shares 2005–2010e
Figure 108: Shop Direct Group direct market share 2005–2010e
Figure 109: Shop Direct Group agency market share 2005–2010e
Figure 110: Sit-up
Figure 111: Sit-Up UK sales and growth to December 2005–2010e
Figure 112: Sit-Up operating profit to December 2005–2009
Figure 113: Sit-Up remote and online market shares 2005–2010e
Figure 114: Sit-Up TV market share 2005–2010e
Figure 115: Tesco Direct
Figure 116: Tesco UK sales and growth to February 2005–2010
Figure 117: Tesco operating profit to February 2005–2010
Figure 118: Tesco remote and online market shares 2005–2010e
Figure 119: Betterware remote and door-to-door market share 2005–2010e
Figure 120: Boden remote and direct mail order market share 2005–2010e
Figure 121: M and M Direct remote and online market share 2005–2010e
Figure 122: Net-a-Porter remote and online market share 2005–2010e
Figure 123: Redcats remote and direct mail order market share 2005–2010e

TABLE OF TABLES
Table 1: Remote retail market definition 2010
Table 2: Remote shopping – sales by channel 2000 –2011e
Table 3: Online shopping – sales by channel 2000–2011e
Table 4: Remote shopping sales by channel 2000–2011e
Table 5: Direct sales breakdown 2000–2011e
Table 6: Remote market 2009–2014e
Table 7: Change in remote, shop based and total retail market, £m and % Y-o-Y, 2004-2014e
Table 8: Remote shopping market share 2005–2010e
Table 9: Online market share trends 2005–2010e
Table 10: Direct mail order market share trends 2005–2010e
Table 11: Door-to-door market share trends 2005–2010e
Table 12: Agency mail order market share trends 2005–2010e
Table 13: TV shopping market share trends 2005–2010e
Table 14: Key operating statistics 2008/09–2009/10
Table 15: Remote shopping retailers advertising spend by medium 2009
Table 16: Amazon company overview 2010
Table 17: Amazon retail proposition 2010
Table 18: Amazon trading record 2004–2010e
Table 19: Argos company overview 2010
Table 20: Argos retail proposition 2010
Table 21: Argos trading record 2004–2010e
Table 22: ASOS company overview 2010
Table 23: ASOS retail proposition 2010
Table 24: ASOS trading record 2004–2010
Table 25: ASOS UK & international trading breakdown 2004–2010
Table 26: Avon company overview 2010
Table 27: Avon retail proposition 2010
Table 28: Avon trading record 2004–2010e
Table 29: eBay company overview 2010
Table 30: eBay retail proposition 2010
Table 31: eBay trading record 2004–2010
Table 32: Findel company overview 2010
Table 33: Findel cash with order proposition 2010
Table 34: Findel credit business – catalogue retail proposition 2010
Table 35: Findel UK trading record 2000–2010e
Table 36: Findel home shopping trading record 2000–2010e
Table 37: Findel UK divisional trading record 2010 on 2009
Table 38: Flying Brands company overview 2010
Table 39: Flying Brands retail proposition 2010
Table 40: Flying Brands UK trading record 2000–2010e
Table 41: FreemansGrattan Holdings company overview 2010
Table 42: FreemansGrattan Holdings agency catalogues retail proposition 2010
Table 43: FreemansGrattan Holdings direct catalogues retail proposition 2010
Table 44: Freemans mail order trading record 2005–2010
Table 45: Grattan mail order trading record 2005–2010
Table 46: N Brown company overview 2010
Table 47: N Brown younger target titles retail proposition 2010
Table 48: N Brown midlife target titles retail proposition 2010
Table 49: N Brown elderly target titles retail proposition 2010
Table 50: N Brown other website titles – retail proposition 2010
Table 51: N Brown UK trading record 2000–2010e
Table 52: N Brown sales by catalogue target 2005-2010
Table 53: N Brown sales by sector 2005–2010
Table 54: Next Directory company overview 2010
Table 55: Next Directory retail proposition 2010
Table 56: Next Directory UK trading record 2000–2010
Table 57: Ocado company overview 2010
Table 58: Ocado retail proposition 2010
Table 59: Ocado UK trading record 2000–2010e
Table 60: QVC company overview 2010
Table 61: QVC retail proposition 2010
Table 62: QVC UK trading record 2004–2010e
Table 63: Shop Direct Group company overview 2010
Table 64: Shop Direct Group – direct retail proposition 2010
Table 65: Shop Direct Group – agency retail proposition 2010
Table 66: Shop Direct Group UK trading record 2005–2010e
Table 67: Sit-Up company overview 2010
Table 68: Sit-Up direct retail proposition 2010
Table 69: Sit-Up UK trading record 2004–2010e
Table 70: Tesco Direct overview 2010
Table 71: Tesco direct retail proposition 2010
Table 72: Tesco UK trading record 2004–2010
Table 73: Tesco online trading record 2004–2010e
Table 74: Betterware key operating statistics 2005–2010e
Table 75: Boden key operating statistics 2005–2010e
Table 76: M and M Direct key operating statistics 2005–2010
Table 77: Net-a-Porter key operating statistics 2005–2010e
Table 78: Redcats UK key operating statistics 2005–2010e

Related research categories

By market: United Kingdom (in Europe)