RETAILNATION was launched by Javelin Group and Acxiom at a seminar held at Westfield London. These are the slides from that day.

1. 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

2. 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

3. 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

4. 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

5. Javelin Group
Experts in retail & ecommerce
• UK’s leading retail consultancy
• 75 retail professionals: est. 1997 Retail strategy
Retail operations
• Advise retailers, brands, property
investors/developers, private equity Retail technology
Retail locations
• Clients: M&S, Tesco, Sainsburys,
Morrisons, Debenhams, JLP, Sony,
Nike, Goldman Sachs, Terrafirma,
BAA, Hammerson, Lend Lease
November 25 2009

6. Acxiom
Global interactive marketing
services company
Deep consumer insight • Focus on deep consumer insight
Consumer data &
• 6,000 employees: est. 1969
analytics
Information technology • Enabling multiple verticals to
Data integration understand and act on customer
information to drive effective
Integrated channel
business decisions
marketing
• Recent wins include Ebay, Yahoo,
Centrica, BT, TUI, Odeon
November 25 2009

7. 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

8. Who is RETAILNATION for?
• Retailers
• Consumer Brands
• Developers
• Owners/Investors
• Property Agents
• Media Planners
• Planning Authorities
• Private Equity / Venture Capitalists
November 25 2009

9. RETAILNATION Objectives
• 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
November 25 2009

10. 7 key inputs...
1. Research Opinion Poll
2. Personicx Geo
3. VENUESCORE
4. SHOPSCORE
5. X-SPEND
6. TELEATLAS drivetimes
7. Gravity model of national shopping patterns
November 25 2009

11. Unique location insight tools
Consumers Shopping Shopping Venues
Patterns & Retailers
November 25 2009

12. Input 1: Research Opinion Poll
• 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
November 25 2009

13. Input 2: Personicx Geo
• 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
November 25 2009

14. Input 3: VENUESCORE
• 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
November 25 2009

15. Input 4: SHOPSCORE
• 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
November 25 2009

16. Input 5: X-SPEND
• 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
November 25 2009

17. Input 6: TELEATLAS Drivetimes
• 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
November 25 2009

18. 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

19. Example: Birmingham, Centre
•18,000+
180 +
150 to 180 respondents
120 to 150
90 to 120
identify
60 to 90 Birmingham,
30 to 60
1 to 30 Centre as their
primary
destination for
Clothing
shopping
November 25 2009

20. 2 catchment definitions...
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!
November 25 2009

21. Research-based catchment: Birmingham, Centre
Total
Tertiary
Catchment
2,280,800 Population
3.61million
Core
773,460
Secondary
559,750
Primary (Core + Secondary)
Catchment Population
1.33 million
November 25 2009

22. 2 catchment definitions...
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

23. 2 catchment definitions...
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

24. RETAILNATION catchment: Birmingham, Centre
Total
Catchment
Population
2.91 million
Secondary
656,120
Core
772,490 Tertiary
1,483,220
Primary (Core + Secondary)
Catchment Population
1.43 million
November 25 2009

25. RETAILNATION catchment: Solihull
Total
Catchment
Population
2.36 million
Core
274,480
Secondary
667,075
Tertiary
1,424,380
Primary (Core + Secondary)
Catchment Population
941,555
November 25 2009

26. RETAILNATION catchment: Westfield London
Total
Catchment
Population
3.78 million
Tertiary
1,916,615
Core
998,585
Secondary
873,225
Primary (Core + Secondary)
Catchment Population
1.87 million
November 25 2009

27. RETAILNATION coverage
• Catchments defined for:
> 1,304 comparison venues
> 2,335 bulky goods venues
> 5,012 grocery venues
November 25 2009

28. RETAILNATION catchment: Lakeside Retail Park
Total
Catchment
Tertiary Population
1,442,450
2.52 million
Secondary
730,495
Core
351,570
Primary (Core + Secondary)
Catchment Population
1.08m
November 25 2009

29. RETAILNATION catchment: Morrisons, Bolton
Total
Catchment
Population
98k
Tertiary
30,765
Core
29,360
Primary (Core + Secondary) Secondary
Catchment Population 37,860
67k
November 25 2009

30. Catchment profiling
• Catchments profiled across a range of demographic, lifestyle
and behavioural data:
- Demographics, e.g.:
> Gender
> Age
> Car ownership
> Home ownership
> Income
> House prices
> Etc.
November 25 2009

31. Catchment profiling
• 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
November 25 2009

32. Catchment profiling
• 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
November 25 2009

33. Personicx highlights below average affluence levels
UK Average= 100
Q1: Top 20%
Q2:
Q3:
Primary Catchment Boundary
Q4:
Q5: Bottom 20% Total catchment boundary
November 25 2009

34. 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
Together, these 10
5. Companionship & Coaches
groups account for
6. Rent Books & Benefits
49% of catchment
7. Gardeners World
residents (vs. 20% of
the UK population)
8. Semi-Detached Success
9. Unemployment Blues
10. Betting & Bingo
November 25 2009

35. 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

36. 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
1,196.5 866.5 2,063.0 2,467.4 4,530.4
Sub-Total
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

37. Catchment shopping patterns
• Birmingham retains 61% of spend in its Primary catchment
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%
November 25 2009

38. Birmingham, Centre: comparison market size
• Market size of £1.06 billion
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

39. Top 20 UK Market Sizes
Top 20 Venues: Comparison Market Size
Market Comparison Market
Clothing Market Size
Venue Location Grade Size Size VENUESCORE Rank Venuescore Fashionscore
(£m)
Rank (£m)
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

40. Market Sizes vs. VENUESCORE
1,600
Oxford St
1,400
1,200
Comparison Market Size (£m)
Glasgow
Birmingham
1,000
Manchester
Leeds
800
Liverpool
Bluewater
Westfield London
The Trafford Centre Belfast
600
Meadowhall Edinburgh
Kingston On Thames Southampton Norwich
Derby Nottingham
Lakeside Leicester
Guildford
400
200 250 300 350 400 450 500 550 600 650 700
Venuescore
November 25 2009

41. Birmingham shopper profile
• 10 Personicx Geo groups dominate B‟ham‟s shoppers:
1. Family Focus
2. Factories & Council Estates
3. Full City Homes
4. Companionship & Coaches
Together, these 10
5. Gardeners World
groups account for
6. Widowed & Retired
42% of shoppers
7. Rent Books & Benefits
residents (vs. 19% of
the UK population
8. City Manual Workers
and 48% of the
9. Semi-Detached Success
catchment)
10. Income Supported
November 25 2009

42. 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
City Manual
Workers
Income Supported
Betting & Bingo
November 25 2009

43. Catchment & Shopper Profile vs UK Avge.
200
CATCHMENT INDEX Gardeners World
180
City Manual Workers
City Singletons
Income Supported
160
Exploit & Budget Families
Rent Books & Benefits
Metropolitan Semi's
140
Dominate
Financially Savvy Retirees
Shrewd Solos
Opportunity
120
Detached in the City Suburbs Local Life
Retired Solos on a Tight Budget
for Growth?
Value Brands & Tabloids
Healthy, Wealthy & Wise
Betting and Bingo
Organic & Urban Adventurous Students Households
Jam-packed
100
Urban Terraces
- 20 40 60 80 100 120 140 160 180 200
Small Town Office Workers
Travel & Timeshare Aged in the City Suburbs SHOPPER INDEX
Educated Professionals 80
Hobbies in City Suburbs Spending Sporty Families
Social Explorers
Affluent Modern Families Gourmet Travellers Low Cash, Low Credit
Conventional Givers Mature Convertible Drivers 60
Urban Travellers
Single Students
Independent Thinkers
Organic Supporters Budget Conscious Pensioners
Coaches & Conservatories 40
Pastoral Volunteers Healthy Urbanites
Flats & Convertibles
Charities & Trust Funds 20
Gardening & Grandchildren
Children & Camping
-
November 25 2009

44. Peer venue comparisons
• Birmingham “peer” benchmarks:
– Glasgow, Centre
– Manchester, Centre
– Edinburgh, Centre
– Leeds, Centre
– Liverpool, Centre
– Nottingham, Centre
November 25 2009

45. Peer venue comparisons
• 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

46. Peer venue comparisons
• Catchment comparisons:
– Catchment population
– Catchment available spend
– Spend index
– Car ownership
– Age profile
– Social grade
– Average house price
– Average income
November 25 2009

47. Peer venue comparisons
RETAILNATION • Analogy Template
BIRMINGHAM, MANCHESTER, EDINBURGH, LIVERPOOL, NOTTINGHAM,
GLASGOW, CENTRE LEEDS, CENTRE
CENTRE CENTRE CENTRE CENTRE 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

48. 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

49. 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

50. The Retail World is Changing
• The consumer is changing….a lot!!!
November 25 2009

51. Is this Retailing?
…or is it Entertainment?
November 25 2009

52. New Competitive Landscape
• Other outlets
• Other centres
• Other touchpoints
The opportunity cost of doing something different
November 25 2009

53. The Retail Audience
• Consumers and customers
• I make, you use
• I sell, you buy
November 25 2009

54. The Retail Audience
• Multifaceted relationship
– Engagement
– Interaction
– Feedback
November 25 2009

55. 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

56. 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

57. Birmingham, Centre: Habitat evaluation
Total
Catchment
Population
2.91 million
Secondary
656,120
Core
772,490 Tertiary
1,483,220
Primary (Core + Secondary)
Catchment Population
1.43 million
November 25 2009

58. Personicx Geo Fan: Birmingham Catchment & Shoppers
Habitat
November 25 2009

59. 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
November 25 2009

60. Birmingham shopper profile
• 10 Personicx Geo groups dominate B‟ham‟s shoppers:
1. Family Focus
2. Factories & Council Estates
3. Full City Homes
4. Companionship & Coaches
5. Gardeners World
6. Widowed & Retired
7. Rent Books & Benefits
8. City Manual Workers
9. Semi-Detached Success
10. Income Supported
November 25 2009

61. Habitat campaign
• Objective
– Raise awareness of Habitat store
– Drive traffic to store
– Stimulate purchasing
– Promote catalogue
– Prove ROI on DM
November 25 2009

62. Habitat Counts
Email
November 25 2009

63. Process
• DM volumes
• E mail volumes
• Mail piece
• Voucher
• Data collection mechanism
• Store redemption
Response rates to 25%
November 25 2009

64. 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

65. 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
Sports Fashion plc
November 25 2009

66. 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

67. RETAILNATION & PERSONICX GEO
November 25 2009

68. November 25 2009

69. November 25 2009

70. November 25 2009

71. Alastair Browne
Site Research & Development Manager
RETAILNATION & PERSONICX GEO
November 25 2009

72. 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

73. 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

74. JD Site Research - Overview
• 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.
November 25 2009

75. JD Site Research – Key Resources
• 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!!!
November 25 2009

76. JD Site Research - Output
• 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.
November 25 2009

77. RETAILNATION & PERSONICX GEO
• 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

78. RETAILNATION – Catchment Analysis
• Overlaid JD customer flow data with RETAILNATION catchments.
LONDON, HOLLOWAY ROAD
WESTWOOD CROSS BLUEWATER
• 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

79. RETAILNATION – Catchment Overlap
• 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
November 25 2009

80. PERSONICX GEO – Customer Profiling
• PERSONICX GEO allows JD to identify key groups that demonstrate a
high propensity to shop at JD.
JD - CUSTOMER PERSONICX-GEO PROFILE VS. UK AVERAGE
150
100
JD INDEX (% VARIANCE TO UK)
50
0
-50
-100
PERSONICX-GEO
November 25 2009

81. PERSONICX GEO – Gains Analysis
• PERSONICX GEO achieves a high level of discrimination.
JD CUSTOMER PERSONICX PROFILE - GAINS ANALYSIS
100
90
80
70
60
% OF CUSTOMERS
50
40
30
20
10
Personicx GEO
0
0 10 20 30 40 50 60 70 80 90 100
% POPULATION
November 25 2009

82. PERSONICX GEO – JD Clusters
• 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
November 25 2009

83. PERSONICX GEO – JD Clusters
“JD
Traditionalists”
City Manual
Workers
Income Supported
Full City Homes
November 25 2009

84. PERSONICX GEO – JD Clusters
JD CUSTOMER PERSONICX CLUSTERS VS. UK AVERAGE
100
80
60
% VARIANCE TO UK AVERAGE
40
20
0
1 2 3 4 5 6 7 8 9 10
-20
-40
-60
JD CLUSTERS
November 25 2009

85. PERSONICX GEO – Key Business Applications
• 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
November 25 2009

86. PERSONICX GEO – Marketing Opportunities
• New stores – target key sales areas.
November 25 2009

87. November 25 2009

88. PERSONICX GEO – JD Clusters vs. Market Share
• Detailed in-sight into sales performance by Postsector.
JD MARKET SHARE VS. POSTSECTOR PERSONICX PROFILE
80
60
JD PERSONICX INDEX (% VARIANCE TO UK AVERAGE)
40
20
0
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
-20
-40
-60
JD % MARKET SHARE
November 25 2009

89. PERSONICX GEO – Sales Opportunities
• Identify gaps and latent sales opportunities in catchment areas.
Market Share Index
November 25 2009

90. RETAILNATION – Location Market Size Analysis
• JD has examined the relationship between market share and market size.
JD MARKET SHARE VS. RETAILNATION LOCATION MARKET SIZE
(Sales Area 2,000 - 4,000 sq ft)
10.0%
9.0%
8.0%
7.0%
JD MARKET SHARE
6.0%
5.0%
4.0%
R2 = 0.75
3.0%
R2 (Personicx) = 0.79
2.0%
1.0%
0.0%
£- £100 £200 £300 £400 £500 £600 £700
RETAILNATION CLOTHING MARKET SIZE (£M) November 25 2009

91. RETAILNATION – Location Market Size Analysis
• 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.
November 25 2009

92. RETAILNATION – New Store Sales Forecasting
• Combine JD and RN sales flows to develop market penetration model.
RETAIL NATION MARKET PENETRATION VS. JD MARKET PENETRATION
25%
2
R = 0.64
20%
JD - % Market Penetration
15%
10%
5%
0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Retail Nation - % Market Penetration
November 25 2009

93. RETAILNATION & PERSONICX GEO – Summary
• RETAILNATION and PERSONICX GEO provides:
- An enhanced understanding our existing store network
- Influence on future growth strategies, in particular in-sight into
“New” markets
November 25 2009

94. November 25 2009

95. Who is RETAILNATION for?
• Retailers
• Consumer Brands
• Developers
• Owners/Investors
• Property Agents
• Media Planners
• Planning Authorities
• Private Equity / Venture Capitalists
November 25 2009

96. RETAILNATION Delivers...
• 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
November 25 2009

97. 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
November 25 2009