United Kingdom (UK) Department Stores Retailing Market Trends, Analysis, Key Players and Forecast to 2027

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United Kingdom (UK) Department Stores Retailing Market Report Overview

The department stores retailing market size in the UK was GBP12.28 billion in 2022. The market is forecasted to grow at a CAGR of more than 4% during 2022-2027. London-based locations and stores like Harrods, Selfridges, and Harvey Nichols have a high tourism appeal, particularly among those from the US, Middle East, and Asia. This preference drives the UK department stores. Moreover, with the recovery of the tourism market, the UK department store market will receive an influx of international footfall as well.

UK Department Stores Retailing Market Outlook, 2022-2027 (GBP Billion)

UK Department Stores Retailing Market Outlook, 2022-2027 (GBP Billion)

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The United Kingdom (UK) Department Stores Retailing market research report offers a comprehensive insight and analysis of the department stores channel in the UK, the main trends and hot issues, major players, and consumer attitudes, as well as provides market forecasts out to 2027. The report also provides key channels used for purchasing products, the main factors driving the market, and the major challenges faced.

Market Size (2022) GBP12.28 billion
CAGR (2022-2027) >4%
Historical Period 2017-2022
Forecast Period 2023-2027
Key Categories ·        Clothing & Footwear

·        Electricals

·        Homewares

·        Furniture & Floorcoverings

·        Health & Beauty

·        Food & Grocery

·        DIY & Gardening

Key Channels ·        Online

·        Offline

Key Retailers ·        John Lewis & Partners

·        Marks & Spencer

·        Harrods

·        Selfridges

·        House of Fraser

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UK Department Stores Retailing Market Drivers

  • Despite inflation, customer loyalty towards luxury brands such as LVMH has helped them remain resilient in the face of turbulent market conditions. Nonetheless, premium players in the department store market must also look to entice spend from the growing middle class, which sees luxury goods as status symbols.
  • With inflationary pressure maintaining its squeeze on discretionary spending, the promotion of the department store’s own brand will be vital to enticing expenditure. Own brand alternatives allow department stores to give consumers the option to trade down, rather than consumers holding off on non-essential purchases altogether.

UK Department Stores Retailing Market Trends

The key trends in the UK department stores retailing market are cross-channel shopping, available payment options, loyalty schemes, rental services, and resale.

  • Cross-channel shopping: Following the impact of the COVID-19 pandemic on sales, department stores must improve the cross-channel shopping experience for consumers to bolster both physical and online sales performance. Technology such as RFID (radio frequency identification) will enable retailers to streamline their operations, as well as provide consumers with more accurate and up-to-date information.

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UK Department Stores Retailing Market Segmentation by Categories

Clothing & footwear had the highest value in 2022.

Some of the key categories in the UK department stores retailing market are clothing & footwear, electricals, homewares, furniture & floorcoverings, health & beauty, food & grocery, and DIY & gardening. The clothing & footwear department stores retailing market is outperforming the overall market and constitutes a high proportion of most department store offers. Hence, the growth in this sector will be the driving force in the performance of the overall market.

UK Department Stores Retailing Market Analysis by Categories, 2022 (%)

UK Department Stores Retailing Market Analysis by Categories, 2022 (%)

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UK Department Stores Retailing Market Segmentation by Channels

In 2022, customers preferred buying offline rather than online.

The key channels in the UK department stores retailing market are online and offline. During the pandemic, the online channel was more popular among the UK department stores retail customers. Hence, department stores were forced to invest in their online platforms to ensure that they maintained their customers, rather than lose out to competitors with stronger online propositions.

UK Department Stores Retailing Market Analysis by Channels, 2022 (%)

UK Department Stores Retailing Market Analysis by Channels, 2022 (%)

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UK Department Stores Retailing Market – Competitive Landscape

John Lewis & Partners had the highest revenue among the retailers in the UK department stores retailing market in 2022.

Some of the key retailers in the UK department stores retailing market are:

  • John Lewis & Partners
  • Marks & Spencer
  • Harrods
  • Selfridges
  • House of Fraser

UK Department Stores Retailing Market Analysis by Retailers, 2022 (%)

UK Department Stores Retailing Market Analysis by Retailers, 2022 (%)

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UK Department Stores Retailing Market – Latest Developments

  • In January 2023, John Lewis & Partners introduced a rewards credit card to compete with other retailers and strengthen its customer relationships. This card enables customers to accrue loyalty points when money is spent both with John Lewis & Partners and elsewhere, which can be cashed in as a voucher to spend with the retailer. The credit card also enables customers to spread the cost of big-ticket items to further facilitate spend, as economic challenges persist.

Segments Covered in the Report

UK Department Stores Retailing Market Categories Outlook (Value, GBP Billion, 2017-2027)

  • Clothing & Footwear
  • Electricals
  • Homewares
  • Furniture & Floorcoverings
  • Health & Beauty
  • Food & Grocery
  • DIY & Gardening

UK Department Stores Retailing Market Channels Outlook (Value, GBP Billion, 2017-2027)

  • Online
  • Offline

Key Highlights

  • Clothing & footwear is forecast to contribute nearly half to the UK department store retailing market by 2027, however it is not expected to recover to the heights of 2017.
  • Department stores have an opportunity to utilize both online and offline platforms to succeed, events and customer experiences that go across multiple sectors giving them a USP compared to other specialists.
  • From 2022, consumer shopping habits began to normalize, with the offline channel strengthening once again as footfall began to improve. However, the online market has not shrunk to its pre-pandemic size as the improvements and investments into the online channel have ensured that consumers are using both channels rather than just shopping instore.

Reasons to Buy

  • Use our in-depth consumer and market insight to learn about the growth of different sectors in the department stores market.
  • Understand where consumers shop and why they choose to shop at various department stores for different products to capitalize on the growth in the department stores market.
  • Discover the trends in the department stores market to better understand how to adapt and stay ahead of the latest changes in consumer behavior.

Harrods
Beales
John Lewis & Partners
Harvey Nichols
Hoopers
Liberty
Marks & Spencer
House of Fraser
Selfridges
TJ Hughes
Fenwick
Lookfantastic
Fortnum & Mason
Morleys
Menarys

Table of Contents

  • 1. Executive Summary
  • 2. Key Trends in the UK Department Stores Retailing Market 2022-2027

    • 2.1. Drivers and inhibitors
    • 2.2. Key trends
    • 2.3. Strategies for success

  • 3. UK Department Stores Retailing Market 2022-2027

    • 3.1. Market size and forecasts
    • 3.2. Channel performance and forecasts
    • 3.3. Online performance and forecasts

  • 4. UK Department Stores Retailing Market 2022-2027

    • 4.1. Category trends
    • 4.2. Category performance and forecasts

  • 5. Competitive Landscape

    • 5.1. Revenue and market shares of top 5 players
    • 5.2. Sector market shares of top 5 players
    • 5.3. Profiles of leading players

  • 6. Methodology, Definitions & Contacts

Table

UK Department Stores finance options, 2023

UK Department Stores Sector Penetration: Value and Forecast, 2022 & 2027

Top Five Players in the UK Department Store Market, 2022

UK Department Stores Category Penetration by demographic, 2023

UK Department Stores Channel Usage by demographic, 2023

UK Department Stores Services Usage by demographic, 2023

Impact of loyalty cards on department store shopping habits by demographic, 2023

Drivers of Own Brand Purchases at UK Department Stores by demographic, 2023

Figures

Consumers who have used Buy Now Pay Later options, 2022-2023

Consumers who have a loyalty card for a department store, by age, 2023

Proportion of consumers that stated they had rented childrenswear items, overall and key categories, in the last 12 months, 2023

Categories which consumers have bought secondhand in the last 12 months, 2023

UK Department Stores Market GBPm, 2017, 2022 & 2027

UK Department Stores Retailing Market Value GBPm, 2017-2027

UK Department Stores Retailing Market Annual Growth %, 2017-2027

UK Department Stores Retailing Growth vs Total Retail Growth, 2017-2027

UK Department Stores Retailing Growth including vs excluding Marks & Spencer, 2017-2027

UK Department Stores Market Size including and excluding Marks & Spencer, 2017-2022

UK Department Stores Retailing Channel Size as a proportion of Total Retail, 2017, 2022 & 2027

UK Department Stores Retailing Sector growth in department stores versus overall sector growth, 2022-2027e

UK Department Stores Retailing Market by Sector %, 2017-2027

UK Department Stores Online Market Size GBP m and Online Penetration %, 2017-2027

UK Department Store: size of the market split by online and offline GBP m, 2017-2023e

UK Department Stores Retailing Channel Growth, 2017-2027

Market Shares of Top 5 UK Department Stores, 2022

Sector detail: Clothing & Footwear Market Shares of Top 5 UK Department Stores, 2022

Sector detail: Home & Electricals Market Shares of Top 5 UK Department Stores, 2022

Sector detail: Health & Beauty Market Shares of Top 5 UK Department Stores, 2022

John Lewis & Partners’ UK Department store sales GBP m, 2017-2022, and annual growth %

John Lewis & Partners’ UK Department store market share %, 2017-2023e

John Lewis & Partners’ split between online vs offline sales, 2019-2023

Fenwick’s UK Department store sales GBP m, 2017-2022, and annual growth %

Fenwick’s UK Department store market share %, 2017-2023e

Harrods’ UK Department store sales GBP m, 2017-2022, and annual growth %

Harrods’ UK Department store market share %, 2017-2023e

Harrods’ Shopper Age profile, 2023

Selfridges’ UK Department store sales GBP m, 2017-2022, and annual growth %

Selfridges’ UK Department store market share %, 2017-2023e

Selfridges’ Shopper Age profile, 2023

UK Department Stores Visitor Penetration %, 2023

UK Department Stores Visitor Profile %, 2023

UK Department Stores Shopper Penetration %, 2023

UK Department Stores Shopper Profile %, 2023

Top 10 UK Department Stores Visited %, 2023

Top 10 UK Department Stores Purchased From %, 2023

UK Department Stores Category Penetration %, 2023

UK Department Stores Channel Usage %, 2023

UK Department Store Channel Usage by Department Store %, 2023

UK Department Stores Purchase Frequency, 2023

UK Department Stores Consumer Drivers, 2023

UK Department Stores Services Usage (Overall), 2023

UK Department Stores Food & Leisure Services Usage %, 2023

UK Department Stores Product Services Usage %, 2023

UK Department Stores Advisory Services Usage %, 2023

UK Department Stores Everyday Services Usage %, 2023

UK Department Stores Instore Delivery, Collection, Storage & Technology Services Usage %, 2023

UK Department Stores Improvements, 2023

UK Department Stores Loyalty Cards, 2023

Impact of loyalty cards on department store shopping habits %, 2023

UK Department Stores Own Brands, Top 5, 2023

Drivers of Own Brand Purchases at UK Department Stores %, 2023

Department store statements, 2023

Frequently asked questions

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