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.
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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 1
Key Findings 1
Main Conclusions 2
Market Analysis 8
Just Under 16.0% Of All Uk Retail Expenditure Went To International Retailers In 2009 8
Sectors 14
Clothing & Footwear: Fragmented And Mature, But Attracts New Entrants 14
Food & Grocery: Home Grown Retailers Take Aggressive Stance Against Invaders 18
Electricals: Challenged By Major New Entrant 21
Health & Beauty And Pharmacy: International Retailers Take £1.00 Of Every £4.00 Spent 24
Home-Related Sectors: Hit Hard By Economic Downturn 26
Jewellery: Signet Dominant Player In Mass Market 29
Appendix 30
Methodology 30
Abbreviations 30
Further Reading 30
Ask The Analyst 30
Verdict Consulting 31
Disclaimer 31
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