How Britain Shops for Homewares 2012

The proportion of consumers shopping for homewares has declined again this year falling 3.3 percentage points to 41.4% of shoppers. The sector has lost 7.8 percentage points in three years, a substantial share of the shopping population. How Britain Shops Homewares examines, who shops for personal care, where they shop, and whether they are satisfied with their current store.

Features and Benefits

• Effectively plan your marketing strategy by identifying underdeveloped demographic groups for both your and your competitors customers
• Improve your offer and gain more appeal with your customers by discovering the drivers of loyalty and disloyalty among your customers
• Identify which customer groups offer the most opportunities with data segmented by geography and demographics

Highlights

• The proportion of consumers shopping for homewares has declined again, marking the third year of decline for the sector. Pressures on disposable incomes, as well as uncertainty surrounding the housing market has put homewares purchases firmly at the back of people's minds as they divert spending towards more essential purchases.
• For the third year running, shopping around has stayed level at an average of 1.5 stores used by homewares shoppers in addition to their main store. Asda and Tesco have managed to deter their customers from shopping around, with below average levels, while John Lewis, Marks & Spencer and Wilkinson return the average score.
• Price is the most important factor affecting loyalty for homewares shoppers, reflecting the impact that the wider economy has had on discretionary spending, and thus the homewares sector. Consumers have been cutting back on discretionary purchases, and the essential purchases which have been made have been far more considered than before.

Your Key Questions Answered

• How has the profile of the consumers shopping at the main homewares players changed over the past year and what has caused this?
• What drives consumers to shop for homewares at both you and your competitors? What makes them disloyal?
• How many other stores do your shoppers use for homewares and what stores are these?

EXECUTIVE SUMMARY
Verdict view
Key findings
(Untitled sub-section)

Main conclusions
Homewares shoppers continue to decline
Proportion of AB shoppers rises
Tesco tops visitor share while Asda has more main users
Shopping around stays level for third consecutive year
IKEA customers most loyal
Loyalty continues to be driven by price

Retailer highlights
Asda retains its main user crown for homewares but Tesco applies further pressure
Young professionals have traded away from Tesco
Loyalty drops for Sainsbury's as customers shop around
Main user share rises at Dunelm Mill, as demographic reach broadens
Argos loses ground among AB shoppers
Wilkinson achieves strong gains in loyalty
Loyalty reaches a 10 year peak for IKEA
M&S gains visitor and main user share
Visitor share grows at John Lewis as expansion of standalone home stores continues
Debenhams sinks to 10th in homewares for visitor and main user share

SECTOR SUMMARY

Share of shopper
More considered discretionary purchases lead to share of shopper falling again

Penetration of homewares shoppers
Penetration remains weighted towards women and the more affluent

Retailer usage
Asda retains top spot for main users but relinquishes visitor crown to Tesco
Main user share by region

Conversion rates
Sector conversion rate falls to 10 year low

Shopping around
Remains static for third straight year

Loyalty
Declines marginally on previous survey

Drivers of loyalty/ disloyalty
Price remains key for customers

ARGOS

Check & reserve boosts top-line performance but competitors threaten its core DE shopper
Visitor and main user share improves for first time since 2009
Argos loses ground among AB shoppers
While conversion has improved, it remains below historical levels
Despite topline improvements, its grip on its core DE shopper is eroding
Loyalty dips for the first time since 2009

Visitors
First improvement in share since 2009

Main users
Click and collect helps boost main user share

Conversion rates
Conversion falls sharply among its DE shoppers

Loyalty
Strong gains among young shoppers more than counterbalanced by losses among older shoppers

Competitors
Customers shop around more as competition heats up

ASDA
Despite robust shares and higher conversion, Asda should develop its offer further
Asda retains its main user crown, but Tesco is applying further pressure in homewares
Penetration remains strong among younger customers as it loses ground for main users
Asda improves conversion but rate remains second behind John Lewis
Loyalty continues to be an issue for Asda as it slips to second bottom among profiled retailers

Visitors
Down across all socioeconomic groups

Main users
Deep losses among younger customers

Conversion rates
Improved best offer helps convert more AB and C1 shoppers

Loyalty
Loyalty declines for the second straight year

Competitors
Shopping around falls to five year low

DEBENHAMS
Strong declines in visitor share and loyalty but opportunity for improvement
Sinks to the bottom in homewares for visitor and main user share …
… nevertheless conversion improves
Sharp decline in loyalty of Debenhams homewares shopper
Other stores used highlights the dangers of its midmarket position
Aspirational appeal and lack of crossover between sectors highlight potential gains

Visitors
Visitor share falls for second straight year

Main users
Decline since 2008 peak continues

Conversion rates
Conversion shows mild improvement, fuelled by sharp increase in C1 shoppers

Loyalty
Falls to lowest level since 2008

Competitors
Plenty of scope to encourage existing Debenhams shoppers to use the retailer more

DUNELM MILL
Conversion grows as Dunelm loyalty increases
Footfall plateaus as consumers gravitate towards grocers
Main user share rises, as demographic reach broadens
Conversion rate grows as visitor share stalls
Loyalty increases moving Dunelm Mill up to seventh
Product quality makes the biggest gain as loyalty driver

Visitors
Visitor share stalls as Tesco and Sainsbury's benefit from food footfall and cross-selling

Main users
Growth in main user share indicates focused proposition

Conversion rates
Conversion recovers as footfall stalls

Loyalty
Dunelm Mill moves to seventh from ninth as loyalty begins to recover

Competitors
Savvy consumers spread their spending

IKEA
Still able to create and satisfy customer base
Visitor and main user shares remain impacted by a weak housing market
But it gains significant traction among DE shoppers
Loyalty reaches a 10 year peak to claim homewares top spot
Growing prevalence of designer ranges puts IKEA's position under threat

Visitors
Weak housing market leads to visitor share continuing to decline

Main users
Decline but share is more resilient than for visitors

Conversion rates
Conversion rates improve but remain below levels reported in 2010

Loyalty
Price and range continue to support exceptional loyalty performance

Competitors
Some retailers with improved designer offer gain at the expense of IKEA

JOHN LEWIS
Recovery in visitor share, but conversion continues to decline
Visitor share grows as expansion of standalone home stores continues
Conversion falls as main user share fails to keep up with visitor share
Loyalty among C1s holds up but it declines among C2s
Second biggest decline in loyalty sees John Lewis lose top spot

Visitors
Visitor share grows following a four year decline

Main users
John Lewis overtakes IKEA with growth in user share

Conversion rates
Conversion drops as user growth fails to keep up

Loyalty
Loyalty falls as John Lewis overtaken by IKEA

Competitors
Competitor use remains lower than most, but grows in 2012

MARKS & SPENCER
While conversion remains an issue, its main users have become more loyal
M&S gains visitor and main user share
Conversion slips …
… but loyalty increases significantly
Department stores still the main competition for Marks & Spencer in homewares

Visitors
Recovers in 2012 but below 2009 levels

Main users
Improvement driven by older customer

Conversion rates
Low conversion rates continue for the retailer

Loyalty
Significant improvement within this metric leads to retailer reaching new five year peak

Competitors
Department stores remain main threat

SAINSBURY'S
Mixed fortunes with improved reach, but not range
Homewares visitor share rises with ongoing store expansion
Still skewed to AB shoppers
Loyalty drops as customers shop around
Convenience is key but range will drive shoppers to switch away

Visitors
Ongoing expansion fuels growing visitor share

Main users
Steady improvement as Sainsbury's reaches more shoppers

Conversion rates
Convinces shoppers that TU brand has worth

Loyalty
Declines as range disappoints with prices under scrutiny

Competitors
Greater choice elsewhere tempts Sainsbury's shoppers away

TESCO
Tesco reaches more shoppers but fails to win their loyalty
Visitor share rises as space expansion peaks
Room to improve on converting visitors
Young professionals have traded away
Shoppers raise bar for Tesco making loyalty harder to win

Visitors
Value appeal grows

Main users
Recovers to pre-recession levels

Conversion rates
Room to improve

Loyalty
Shoppers raise bar for Tesco making loyalty harder to win

Competitors
Increased options drive continued shopping around

WILKINSON
Achieves positive performance across the board
Uplifts in visitor and main user share allow the retailer to reach new peaks
Strong gains among more affluent AB shoppers …
… but it appears to have lost ground when it comes to less affluent DE shoppers
Loyalty gains
Perceptions shifting

Visitors
Hit new peak

Main users
Reaches 10 year peak for main user share

Conversion rates
Strong visitor uplift impacts on rate

Loyalty
Attains new peak

Competitors
Shopping around increases

APPENDIX
Methodology
Selection of parliamentary constituencies
Selection of enumeration districts
Selection of respondents
Post survey weighting

Ask the analyst

Global Retail FreeView

Verdict Research consulting

Disclaimer

TABLES
Table: Profile of homewares shoppers – by region 2012
Table: Percentage of active homewares shoppers regularly using each retailer 2008–12
Table: Percentage of active homewares shoppers regualrly using each retailer 2008–12
Table: Share of active homewares shoppers naming a retailer as their main store (%), by TV region, 2012
Table: Average rate of conversion from visitor to main user by TV region 2012
Table: Average number of other stores used by TV region 2012
Table: Percentage of homewares shoppers that are loyal to their main store by TV region 2012
Table: Detailed drivers of loyalty 2012
Table: Homewares loyalty score 2008–12
Table: Homewares loyalty score (continued) 2008–12
Table: Homewares disloyalty score 2008–12
Table: Homewares disloyalty score (continued) 2008–12
Table: What disloyal users preferred about other homewares stores 2008–12
Table: What disloyal users preferred about other homewares stores (continued) 2008–12
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other homewares stores used 2008–11
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other homewares stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other homewares stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other homewares stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other homewares stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other homewares stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other homewares stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other homewares stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other homewares stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other homewares stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Sample sizes by sector 2012

FIGURES
Figure: Homewares share of shopper 2008–12
Figure: Profile of homewares shoppers by gender 2008–12
Figure: Profile of homewares shoppers by age bracket 2008–12
Figure: Profile of homewares shoppers by socioeconomic class 2008–12
Figure: Percentage of consumers who shop for homewares, by demographics 2012
Figure: Percentage of consumers who shop for homewares, by TV region 2012
Figure: Concentration of main user share of Top Five retailers in 2010
Figure: Concentration of main user share of Top Five retailers in 2011
Figure: Concentration of main user share of Top Five retailers in 2012
Figure: Average rate of conversion from visitor to main user 2008–12
Figure: Rate of conversion from visitor to main user by retailer 2012
Figure: Average number of other stores used 2012
Figure: Average number of other stores used, by retailer, 2008–12
Figure: Percentage of homewares shoppers that are loyal to their main store 2008–12
Figure: Percentage of homewares shoppers loyal to their main store by demographic group 2012
Figure: Percentage of homewares shoppers that are loyal to their main store by retailer 2012
Figure: Percentage point change in loyalty rates since last year, by retailer, 2012
Figure: Percentage of loyal main users identifying drivers of loyalty 2008–12
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2012
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2012
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2012
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2008–12
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2008–12
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2008–12
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2012
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2012
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2008–12
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2008–12