Embed Size (px)
Citation preview
1
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April6,2017
July14,2017
OurChannelChecksreportsfeatureobservationsfromourrecentstoretours.Inthisreport,welookatnewandinnovativefoodserviceofferingsinUKretail.
1) Foodserviceofferingscanincreasedwelltimein-storeandcanincreasespendingby18%onaverageintheUK,butupto38%inLondon.
2) UKconsumersaregrowingtheirspendingatrestaurantsandcafésmorethantheyaretheirspendingatretail.
3) Apparelretailersuseknownfoodservicebrandsin-storewhichcomplementtheirownimage.
4) Departmentstoresofferthewidestchoiceoffoodservice,withSelfridgesoffering16differenteat-inrestaurantsaswellasmultiplefoodstallsanddelicatessens.
5) Grocerysuperstoresareinnovatingwithwinebarsandsushibars.
Channel Checks: Foodservice in London Stores
Deborah Weinswig
Managing Director,
Fung Global Retail & Technology
US: 917.655.6790
HK: 852.6119.1779
CN: 86.186.1420.3016
2
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April6,2017
July14,2017
IntroductionHavingaqualityproductisnolongerenoughforretailerstocreatecustomerloyaltyandbrandstrength.Instead,brick-and-mortarstoresarefocusingonthequalityoftheentirein-storeexperience.
Sofar,ourChannelChecksreportshaveanalyzedthewaysretailersarediversifyingtheirstoreexperience—fromdigitalizingthein-storeexperiencetoaddingnewproductcategories.ThisreportcoversourstoretoursatLondonretailersthathaveexpandedtheirbrandpropositionintoafoodserviceandbeveragesoffering.Webeginbyprovidingsomecontextonfoodserviceinretail.
FoodserviceIncreasesShopperSpendShoppingmallshavebeenvisiblytransformingtoeconompassnotonlyretail,butalsoentertainment,foodandeveneducation.ThistrendisalsobeingmirroredinstandalonestoresacrosstheUK,asretailersseektoincreasedwelltimesandultimatelytheamountcustomersspend.
• SeeourreportTheMallisNotDead:Part1formoreonthistopic.
Foodserviceofferingsinretailcanrangefromconvenienceofferingstoexperimentalrestaurants.Somestoreswevisitedofferabasiccafé,whileothershadaseasonalrooftopterrace.
Foodservicecanplayaneffectiveroleinencouragingshoppersto“staylonger,spendlonger”:Britswhoeatduringashoppingvisitdwellonaverage27minuteslonger,andspend18%morepervisit,accordingtopropertymanagementfirmJLL.InLondon—wheremanyshoppersaremoreaffluentandthechoiceofcasualdiningiscountless—storesthatofferfoodservicecanseeshoppersdwellonly10%longer,butspend38%moreonaverage,accordingtoIntelligentBusinessSystems.
Moreover,foodserviceofferingsallowretailerstotapahigher-growthmarket.UKconsumersincreasedtheirspendingatrestaurantsandcafésby3.9%in2016,accordingtotheOfficeforNationalStatistics.Thiscomparedtoa1.8%riseinfoodretailers’salesanda3.3%increaseintotalretailsales.
High-growthfoodserviceoperatorshaveseenasurgeinprivateequityinvestmentduetotheirrelativeimmunityfromthegrowthofonlineshoppingandtheriseindiningoutaspartofashoppingtrip,accordingtoAccentureStrategy’sJavelinGroup.
ChannelChecks:FoodserviceinUKRetailTheFungGlobalRetail&Technologyteamvisitedapparelretailers,departmentstoresandgrocerystores,whichhaveafoodserviceoffering.AllthestoreswereinLondon;mostwerelocatedaroundtheOxfordStreetarea,exceptforWaitrosewhichwasinKing’sCross.Wevisitedthemallonaweekday.
Londonersspend38%morewhenstoreshaveafoodserviceoffering.
3
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April6,2017
July14,2017
ApparelRetailers
PrimarkPrimarklaunchedacaféinitsOxfordStreet/TottenhamCourtRoadstoreinlate2016.ThestorefeaturestheInsomniaCoffeeCompany,anIrishchain,whichopeneditsfirstPrimarkshopinBrentinOctober2016.Thecaféofferscoffee,pastriesandsandwiches,aswellashotmealswithseparatebreakfastandlunchmenus.
Source:primark.com/en/homepage
LululemonLululemon’sflagshipstoreopenedinJanuary2017andhostsNeatNutrition,ahealthnutrientcompanywhichprovidesproteinshakesandcoffee.AsLululemonrunsfitnessclassesfromitsin-storestudio,thebarisparticularlypopularforcustomersattendingthese,accordingtooneretailassistantwespoketo.
Primark,OxfordStreetandlululemon,RegentStreetSource:FungGlobalRetail&Technology
4
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April6,2017
July14,2017
TopshopWevisitedtheflagshipstoresforfashionchainTopshop,valueapparelretailerPrimarkandathleisurebrandlululemontoseewhatfoodserviceapparelretailersareoffering.Eachoftheseretailerschosetofeatureexternalbrandsthatalignwiththeirownbrandimageandvalues.
Topshop’slargeststoreinLondon,onOxfordStreet,offersthreetypesoffoodservice;aBenugocafé(previouslyEat),aBubbleologybarandaLola’scupcakesstand.Theseon-trend,highlysocial-mediashareablebrandshelppromotetheTopshopbrandandcustomerengagement.StaffworkinghereevenhaveuniformspartneredwithTopshopwhichchangeeveryseason,accordingtoTheCaterer.BubbleologyandLola’swerebusywhenwevisited,andtheBenugocaféwaslessbusy,withafewpeopleworkingonlaptopsasitoffersfreeWi-Fi.
Topshop,OxfordStreetSource:FungGlobalRetail&Technology
Topshop’slargeststoreinLondon,onOxfordStreet,offersthreetypesoffoodservice.
5
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April6,2017
July14,2017
DepartmentStoresDepartmentstorestendtogoaboveandbeyondwiththechoicetheyofferinfoodservice.WevisitedtheflagshipstoresofDebenhams,JohnLewisandSelfridges,alllocatedonOxfordStreet.
DebenhamsDebenhamsoffersnotonlyapermanentrestaurantandacafé,butaChikitchenandaPatisserieValerie.Byofferingpermanentfoodservicesandtemporarypartnerships,Debenhamscankeepupwithnewfoodtrendsandaddseasonalinterest.
Source:debenhams.com/en-hk
HollandandBarrettHollandandBarrettistheUK’sleadinghealthfoodretailer.Itsfoodserviceofferingpromotestheupsellingofitsownproductsthroughofferinga“FuelontheMove”concept:customerscanmakeproteinshakesforon-the-goorchoosefromapick-and-mixofferingofdriedfruitandnuts.
HollandandBarrett,OxfordStreetSource:FungGlobalRetail&Technology
Foodstoresusefoodservicetoupselltheirproductsandincreaseawarenessofnewproducts.
6
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April6,2017
July14,2017
JohnLewisJohnLewisoffersfivein-storerestaurants—Benugocafé,Rossopomodoropizzeria,burgerrestaurantHamHolyBurger,LebanesecanteenComptoirLibanaisandThePlaceToEat,whichisJohnLewis’sownrestaurant—withafurthersushiandwinebarlocatedinitsFoodhall.
Debenhams,OxfordStreetSource:FungGlobalRetail&Technology
SelfridgesSelfridgesoffersevengreaterchoice.Thereisatleastoneplacetositandeatonalmosteveryfloorofthedepartmentstore,asitboastsanimpressive16restaurantsintheOxfordStreetstore.Moreover,Selfridgesanditsrenownedfoodhallofferedextrachoicewithfoodstallsanddelicatessens.Eachsummer,SelfridgesalsoopensitsrooftoprestaurantasanexperientialdiningexperiencewithviewsacrossLondon.
Selfridges,OxfordStreetSource:FungGlobalRetail&Technology
Departmentstoreshavethewidestarrayoffoodservice,withSelfridgesoffering16placestositandeat.
7
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April6,2017
July14,2017
FoodandGroceryStoresItisnothingnewforgrocerysuperstorestoofferin-storecafésoron-the-gomealdeals.However,weobservethatfoodstoresareusingnewtypesoffoodservicetoupselltheirinstoreproducts.WevisitedHollandandBarrettonOxfordStreetandWaitroseatKing’sCross.
WaitroseTheKing’sCrossWaitrosestoreisoneoftheretailer’slargestbranchesinCentralLondon.Itoffersajuicebar,bakery,winebarandterraceoverlookingthenearbycanal.Notonlydothesefeaturesencouragedwelltime,butthesupermarketusesthesefeaturestopromotenewofferingsandallowcustomersto“trybeforebuy.”Thestorealsooffersacookingschoolforcustomerstobookinatlunchtimeorafterworkhours.
Waitrose,King’sCrossSource:FungGlobalRetail&Technology
KeyTakeaways• Asbrick-and-mortarretailbecomesmorefocusedonthequalityof
theexperience,retailersarerampinguptheirfoodserviceofferings.
• Departmentstoreshavelongofferedcafésandrestaurants,buttheyareofferingmorechoicethanever,withnicheortemporaryfoodserviceofferingsaddinginterestin-store.
• Moreapparelspecialistretailersarehostingfoodandbeveragesoutletsintheirstores,withevenvalueretailerPrimarklaunchingin-storecafés.
• Grocerysuperstoresareinnovating,too,withwinebarsandsushibars.
ReadersmayalsobeinterestedinourMay2016reportFoodService&Shopping.
8
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April6,2017
July14,2017
DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comKatieMarshallResearch&MarketingAssistantHongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,18thFloorNewYork,NY10018Tel:6468397017
FungGlobalRetailTech.com
