October 2015 · men’s and women’s denim jeans, in London, in October 2015. ... there is an...

38
www.retailmap.com October 2015 | price & range review of denim jeans |

Transcript of October 2015 · men’s and women’s denim jeans, in London, in October 2015. ... there is an...

www.retailmap.com

October 2015 |

price & range review of denim jeans |

www.retailmap.com contents

2

October 2015

introduction 3

key findings 4

range size & mix analysis 5

women’s price architecture 9

men’s price architecture 14

women’s average price architecture vs men’s 19

women’s price tier analysis 21

men’s price tier analysis 23

women’s & men’s combined price tier analysis 26

market map analysis 29

overall promotional analysis 32

appendix – price tier methodology 36

price & range review of denim jeans |

www.retailmap.com introduction

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October 2015

This report contains the results of Retailmap's range and price survey of men’s and women’s denim jeans, in London, in October 2015.

•  The fieldwork took place in the 1 week period commencing 7th October 2015.

•  For each product category surveyed, Retailmap has recorded the number of options in each retailer's range by original, full unit price point, to provide an overall view of entry, average and exit price architecture.

•  In addition to price positioning, Retailmap has also analysed competitor range size.

•  Debenhams’ data includes only their Own Label and Designers At Debenhams ranges.

•  Urban Outfitters was audited only for men’s jeans.

•  Unless stated otherwise to the right, all stores were audited at Westfield White City.

The following retailers were surveyed :-

–  American Eagle Outfitters –  Blue Inc –  Burton –  Debenhams –  Diesel –  Dorothy Perkins –  Gap –  G-Star –  Guess –  H&M –  Hollister –  Jack & Jones

–  Levi’s –  M&S –  New Look –  Next –  Primark (Westfield Stratford) –  Pull & Bear –  River Island –  Superdry –  Topshop/Topman –  Uniqlo –  Urban Outfitters –  Zara (Westfield Stratford)

price & range review of denim jeans |

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4

Value Sector

•  Taking Primark as the key value retailer in the competitor set, it is interesting to see that the retailer actually has a larger number of options within men’s jeans (55) than in women’s (49). It is not only in terms of range size where Primark appears to be more competitive within men’s jeans. When looking at price, Primark’s average price of men’s jeans (£11.15) is actually lower than the entry price of the next lowest retailers (New Look, H&M at £14.99). Compare this to women’s jeans, where Primark’s entry price (£7) is only 99 pence lower than those of New Look and H&M.

Mid Market

•  Looking at M&S, the retailer has a considerably larger range size within women’s (113 options) than men’s (40). But given that, there is actually little difference in the price architecture of both departments – with women’s only being £1.96 higher at average price than men’s, and 50 pence higher at entry.

•  Zara’s price positioning within denim jeans places them competitively against Gap, River Island and Topshop/Man. Within men’s jeans, Zara’s average price is around 20% lower than that of River Island – with that differential increasing to around 30% lower in women’s denim jeans.

•  Since entering the UK market, American Eagle Outfitters (AEO) has aimed to be a destination of choice when it comes to denim jeans. However, in terms of pure price & range, you could be forgiven for think that the retailer gets lost amongst the competition. With regards to range size, AEO is only broadly in line with the women’s survey average, whilst in terms of price the retailer has narrow price architecture – with a difference of only £12 between entry and exit price (compared to £29 at Debenhams).

•  Another retailer with a “quirk” in their full price range is Gap. Looking at women’s jeans, Gap has an average price which is higher than Superdry, Hollister and Topshop. Their range also has a large gap from their entry price (£22.95) to their next price point of £34.95. This could be an area where they are missing “up trading” customers.

Upper Middle

•  G Star’s entry and exit price architecture for women’s and men’s is exactly the same (£80 entry, £140 exit). However, their range size of women’s is less than half that of their men’s range (15 vs 36 options). Despite this, there is only a £4 difference at average price across the two departments.

•  When looking at the retailer set of Levi’s, Guess, G-Star and Diesel, there is an interesting market dynamic. Within women’s jeans, the entry price of said retailers are at least £5 higher than the exit price of the next nearest retailer (Gap). But within men’s jeans, their ranges have a direct overlap with multiple different retailers.

Men’s vs Women’s Price Architecture

•  When looking at the market average price architecture of women’s denim jeans vs men’s, there is surprisingly little difference. There is only £1 difference at entry and average price, and only £4 difference at exit. Men’s is the department which is only slightly higher at all three price metrics.

key findings |

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October 2015

denim jeans | range size & mix analysis

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women's denim jeans | range size | Oct '15

•  the chart shows cash values of the entry, average and exit price shopping bags for each retailer. •  the shopping bag is based on a list of comparable product categories common to all retailers (see shopping bag tables) •  further details on shopping bag composition can be found in shopping bag methodology.

113

98

84

71 6863 62

54 52 51 49 48 46 46 44 43

24 23 23 2215

0

20

40

60

80

100

120

num

ber o

f opt

ions

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men's denim jeans | range size | Oct '15

•  the chart shows cash values of the entry, average and exit price shopping bags for each retailer. •  the shopping bag is based on a list of comparable product categories common to all retailers (see shopping bag tables) •  further details on shopping bag composition can be found in shopping bag methodology.

91

60 58 56 55 55 53 51 48 46 45 43 42 41 40 40 38 36 3428 25 23

16 16

0

10

20

30

40

50

60

70

80

90

100

num

ber o

f opt

ions

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denim jeans | range mix by product | Oct '15

department American Eagle Blue Inc Burton Deben

hams Diesel Dorothy Perkins Gap G-Star Guess H&M Hollister Jack &

Jones Levi's

women's denim jeans 54 - - 98 46 22 51 15 24 84 23 - 44

men's denim jeans 51 41 23 91 53 - 38 36 16 42 34 58 56

total 105 41 23 189 99 22 89 51 40 126 57 58 100

department M&S New Look Next Primark Pull and

BearRiver Island Superdry Topman Topshop Uniqlo Urban

Outfitters Zara Survey Average

women's denim jeans 113 62 63 49 46 48 23 - 68 43 - 71 52

men's denim jeans 40 25 60 55 46 45 16 55 - 28 48 40 43

total 153 87 123 104 92 93 39 55 68 71 48 111 82

•  Urban Outfitters was audited only for men’s jeans.

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October 2015

women’s denim jeans | price architecture analysis

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women's denim jeans | denim jean price architecture | Oct '15

•  the chart shows cash values of the entry, average and exit price denim jeans for each retailer.

£15£30 £35 £40 £28 £40 £45 £50 £48 £45 £49 £44

£60£70 £66

£110£119

£140

£270

£11£23 £23 £24 £24 £29 £31 £31 £33 £35 £40 £40 £40 £42 £45 £48 £48

£89 £95£109

£156

£7£13 £8 £8 £22 £18 £16 £18 £20

£36 £39 £32 £35£23

£35

£75 £75 £80£90

£0

£40

£80

£120

£160

£200

£240

£280

shop

ping

bag

£

exit price average price entry price

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women’s denim jeans | original unit price (£) architecture | Oct ’15 (area of bubble relates to number of options at each original unit price (£) point)

Source: Retailmap Survey, October '15

£32.00

£44.00

£16.00

£45.00£90.00

£270.00

£22.00

£28.00

£22.95

£69.95

£80.00

£140.00

£75.00

£119.00

£7.99

£39.99

£39.00

£49.00 £75.00

£110.00

£18.00

£49.50

£7.99

£34.99

£20.00

£48.00

£7.00

£15.00

£12.99

£29.99

£35.00

£60.00

£44.99

£36.00

£45.00

£34.90

£17.99

£39.99

£0.00

£50.00

£100.00

£150.00

£200.00

£250.00

£300.00

pric

e po

ints

w

Primark New Look

H&M Pull and Bear

Deb's Zara M&S Next DP Gap American Eagle

Uniqlo River Island

Topshop Hollister Superdry Levi's Guess G-Star Diesel

£40.11£31.31

£155.65

£24.00

£48.15

£109.33

£95.33

£23.53

£39.87

£89.32

£31.31£23.34

£32.97

£11.10

£22.77

£41.54 £39.74£28.71

(options) (54)(98) (46)(22) (51) (15)(24)(84) (23) (44)(113)(62) (63)(49) (46) (48) (23)(68)(43)(71)

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women’s denim jeans | price architecture | no. of options by price point | Oct ’15

Source: Retailmap Survey, October '15

orig. unit price (£) Primark New Look H&M Pull and

Bear Deb's Zara M&S Next DP Gap American Eagle Uniqlo River Island Topshop Hollister Superdry Levi's Guess G-Star Diesel Survey Total

£7.00 7 - - - - - - - - - - - - - - - - - - - 7£7.01-£8.00 - 1 3 - - - - - - - - - - - - - - - - - 4£9.01-£10.00 20 - - - - - - - - - - - - - - - - - - - 20£11.01-£12.00 7 - - - - - - - - - - - - - - - - - - - 7£12.01-£13.00 7 2 1 4 - - - - - - - - - - - - - - - - 14£14.01-£15.00 8 1 18 - - - - - - - - - - - - - - - - - 27£15.01-£16.00 - - - 1 1 - - - - - - - - - - - - - - - 2£17.01-£18.00 - - - 7 11 1 5 - - - - - - - - - - - - - 24£19.01-£20.00 - 8 24 7 4 6 - 6 - - - - - - - - - - - - 55£20.01-£25.00 - 47 4 8 15 9 29 9 14 1 - - - - - - - - - - 136£25.01-£30.00 - 1 27 19 20 45 22 23 8 - - - - - - - - - - - 165£30.01-£35.00 - 2 - - 14 - 31 2 - 1 8 43 1 - - - - - - - 102£35.01-£40.00 - - 7 - 16 10 21 3 - - 13 - 25 44 21 - - - - - 160£40.01-£45.00 - - - - 17 - 4 15 - 19 33 - 21 24 - 23 - - - - 156£45.01-£50.00 - - - - - - 1 5 - 25 - - - - 2 - - - - - 33£50.01-£60.00 - - - - - - - - - 4 - - 1 - - - - - - - 5£60.01-£70.00 - - - - - - - - - 1 - - - - - - - - - - 1£70.01-£80.00 - - - - - - - - - - - - - - - - 9 6 1 - 16£80.01-£90.00 - - - - - - - - - - - - - - - - 18 2 3 2 25£90.01-£100.99 - - - - - - - - - - - - - - - - 16 5 - 2 23£101.00-£125.99 - - - - - - - - - - - - - - - - 1 11 9 10 31£126.00-£150.99 - - - - - - - - - - - - - - - - - - 2 13 15£151.00-£175.99 - - - - - - - - - - - - - - - - - - - 8 8£176.00-£200.99 - - - - - - - - - - - - - - - - - - - 3 3£201.00-£225.99 - - - - - - - - - - - - - - - - - - - 2 2£226.00-£250.99 - - - - - - - - - - - - - - - - - - - 1 1£251.00-£270.00 - - - - - - - - - - - - - - - - - - - 5 5

Total 49 62 84 46 98 71 113 63 22 51 54 43 48 68 23 23 44 24 15 46 1047

www.retailmap.com

American Eagle Debenhams Diesel Dorothy

Perkins Gap G-Star Guess H&M Hollister Levi's M&S New Look Next Primark Pull and Bear River Island Superdry Topshop Uniqlo Zara Survey

Averageexit price £44 £45 £270 £28 £70 £140 £119 £40 £49 £110 £50 £35 £48 £15 £30 £60 £45 £45 £35 £40 £66entry price £32 £16 £90 £22 £23 £80 £75 £8 £39 £75 £18 £8 £20 £7 £13 £35 £45 £36 £35 £18 £35price stretch 1.4 2.8 3.0 1.3 3.0 1.8 1.6 5.0 1.3 1.5 2.8 4.4 2.4 2.1 2.3 1.7 1.0 1.3 1.0 2.2 1.9

5.0

4.4

3.0 3.0 2.8 2.82.4 2.3 2.2 2.1

1.9 1.8 1.7 1.6 1.5 1.4 1.3 1.3 1.31.0 1.0

0

1

2

3

4

5

6pr

ice

stre

tch

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women's denim jeans | price stretch | Oct '15

•  the chart shows each retailer's price architecture stretch (the breadth between a retailer's entry price and exit price denim jeans) •  a high number means a wider price architecture stretch, a low number means a narrower stretch •  allows you to quickly compare each retailer’s price architecture stretch

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October 2015

men’s denim jeans | price architecture analysis

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men's denim jeans | denim jean price architecture | Oct '15

£16£30 £30 £36 £40 £35 £40 £40

£60£75

£50£60

£74

£50£70

£85£65

£140

£100£109

£140

£260

£11£22 £25 £25 £26 £29 £29 £34 £35 £35 £37 £39 £39 £43 £43 £44 £49

£62 £63 £66

£84 £90

£106

£148

£5£15 £20 £18 £15 £25 £18 £20 £20 £30 £20

£30 £32 £33 £36 £40£60

£40

£65£75 £80

£90

£0

£40

£80

£120

£160

£200

£240

£280

shop

ping

bag

£

exit price average price entry price

•  the chart shows cash values of the entry, average and exit price denim jeans for each retailer.

www.retailmap.com

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men’s denim jeans | original unit price (£) architecture | Oct ’15 (area of bubble relates to number of options at each original unit price (£) point)

Source: Retailmap Survey, October '15

£32.00

£74.00

£19.99

£29.99

£25.00

£35.00

£20.00

£49.50£90.00

£260.00

£32.95

£49.95 £80.00

£140.00

£75.00

£109.00

£14.99

£39.99

£39.00

£40.00

£85.00

£65.00

£100.00

£17.50

£39.50

£14.99

£29.99

£20.00

£60.00

£5.00

£16.00

£17.99

£35.99

£30.00

£60.00

£59.99

£64.99

£30.00

£75.00

£34.90£40.00

£140.00

£19.99

£39.99

£0.00

£50.00

£100.00

£150.00

£200.00

£250.00

£300.00

pric

e po

ints

m

Primark New Look

H&M M&S Pull and Bear

Blue Inc Zara Next Deb's Burton Topman River Island

American Eagle

Gap Uniqlo Hollister Jack & Jones

Urban Outfitter

Superdry Levi's Guess G-Star Diesel

£43.10

£24.99 £28.78£39.04

£147.55

£44.45

£105.69

£89.63

£25.82

£61.72

£84.38

£29.35£21.95

£34.55

£11.15

£25.03

£42.78

£63.12

£36.53

£65.58

£33.79

(options) (51)(41) (23)(91) (53)(38) (36)(16)(42) (34) (58) (56)(40)(25) (60)(55) (46) (45) (16)(55) (28) (45)(40)

www.retailmap.com

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men’s denim jeans | price architecture | no. of options by price point | Oct ’15

Source: Retailmap Survey, October '15

orig. unit price (£) Primark New Look H&M M&S Pull and

Bear Blue Inc Zara Next Deb's Burton Topman River Island American Eagle Gap Uniqlo Hollister Jack &

JonesUrban

Outfitters Superdry Levi's Guess G-Star Diesel Survey Total

£5.00 2 - - - - - - - - - - - - - - - - - - - - - - 2£7.01-£8.00 5 - - - - - - - - - - - - - - - - - - - - - - 5£8.01-£9.00 8 - - - - - - - - - - - - - - - - - - - - - - 8£9.01-£10.00 15 - - - - - - - - - - - - - - - - - - - - - - 15£11.01-£12.00 10 - - - - - - - - - - - - - - - - - - - - - - 10£13.01-£14.00 8 - - - - - - - - - - - - - - - - - - - - - - 8£14.01-£15.00 3 1 9 - - - - - - - - - - - - - - - - - - - - 13£15.01-£16.00 4 - - - - - - - - - - - - - - - - - - - - - - 4£17.01-£18.00 - - - 2 4 - - - - - - - - - - - - - - - - - - 6£19.01-£20.00 - 13 10 6 17 17 5 4 1 - - - - - - - - - - - - - - 73£20.01-£25.00 - 10 2 7 6 7 - 6 - 8 - - - - - - - - - - - - - 46£25.01-£30.00 - 1 14 9 9 17 12 18 25 7 20 6 - - - - - - - - - - - 138£30.01-£35.00 - - - 9 - - - 13 15 8 2 5 7 3 28 - - - - - - - - 90£35.01-£40.00 - - 7 7 10 - 23 10 2 - 28 9 6 7 - 34 4 1 - - - - - 148£40.01-£45.00 - - - - - - - 3 43 - 4 18 33 18 - - 2 13 - - - - - 134£45.01-£50.00 - - - - - - - - 5 - - 2 1 10 - - 4 11 - - - - - 33£50.01-£60.00 - - - - - - - 6 - - - 5 1 - - - 16 1 6 - - - - 35£60.01-£70.00 - - - - - - - - - - - - - - - - 27 7 10 4 - - - 48£70.01-£80.00 - - - - - - - - - - 1 - 3 - - - 3 - - 19 5 1 - 32£80.01-£90.00 - - - - - - - - - - - - - - - - 2 6 - 22 4 15 2 51£90.01-£100.99 - - - - - - - - - - - - - - - - - - - 11 4 2 3 20£101.00-£125.99 - - - - - - - - - - - - - - - - - 3 - - 3 12 14 32£126.00-£150.99 - - - - - - - - - - - - - - - - - 3 - - - 6 16 25£151.00-£175.99 - - - - - - - - - - - - - - - - - - - - - - 4 4£176.00-£200.99 - - - - - - - - - - - - - - - - - - - - - - 7 7£201.00-£225.99 - - - - - - - - - - - - - - - - - - - - - - 5 5£226.00-£250.99 - - - - - - - - - - - - - - - - - - - - - - 1 1£251.00-£260.00 - - - - - - - - - - - - - - - - - - - - - - 1 1

Total 55 25 42 40 46 41 40 60 91 23 55 45 51 38 28 34 58 45 16 56 16 36 53 994

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American Eagle Blue Inc Burton Debenhams Diesel Gap G-Star Guess H&M Hollister Jack & Jones Levi's M&S New Look Next Primark Pull and

Bear River Island Superdry Topman Uniqlo Urban Outfitters Zara Survey

Averageexit price £74 £30 £35 £50 £260 £50 £140 £109 £40 £39 £85 £100 £40 £30 £60 £16 £36 £60 £65 £75 £35 £140 £40 £70entry price £32 £20 £25 £20 £90 £33 £80 £75 £15 £39 £40 £65 £18 £15 £20 £5 £18 £30 £60 £30 £35 £40 £20 £36price stretch 2.3 1.5 1.4 2.5 2.9 1.5 1.8 1.5 2.7 1.0 2.1 1.5 2.3 2.0 3.0 3.2 2.0 2.0 1.1 2.5 1.0 3.5 2.0 2.0

3.53.2

3.0 2.92.7

2.5 2.52.3 2.3

2.1 2.0 2.0 2.0 2.0 2.01.8

1.5 1.5 1.5 1.5 1.4

1.1 1.0 1.0

0

1

2

3

4pr

ice

stre

tch

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men's denim jeans | price stretch | Oct '15

•  the chart shows each retailer's price architecture stretch (the breadth between a retailer's entry price and exit price denim jeans) •  a high number means a wider price architecture stretch, a low number means a narrower stretch •  allows you to quickly compare each retailer’s price architecture stretch

www.retailmap.com

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October 2015

denim jeans | women’s average price architecture vs men’s average

www.retailmap.com

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survey average of women’s denim jeans vs. men's | Oct '15

•  the chart shows cash values of the entry, average and exit price shopping bags for the women’s and men’s survey average.

£66£70

£48 £49

£35 £36

£0

£10

£20

£30

£40

£50

£60

£70

£80

women's average men's average

shop

ping

bag

£

exit price average price entry price

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October 2015

women’s denim jeans | price tier analysis

www.retailmap.com

0% 50% 100%

Levi's

100%

0% 50% 100%

Guess

100%

0% 50% 100%

G-Star

100%

0% 50% 100%

Diesel

100%

0% 50% 100%

Gap

2%

2%37%59%

0% 50% 100%

River Island

6%77%

17%

0% 50% 100%

Superdry

100%

0% 50% 100%

Topshop

40%54%

6%

0% 50% 100%

American Eagle

39%61%

0% 50% 100%

Hollister

91%

9%

0% 50% 100%

Next

19%24%25%

32%

0% 50% 100%

Uniqlo

100%

0% 50% 100%

Debenhams

18%26%34%

12%10%

0% 50% 100%

M&S

23%27%27%19%

4%

0% 50% 100%

Zara

10%76%

14%

0% 50% 100%

New Look

19%77%

3%

0% 50% 100%

H&M

55%37%

8%

0% 50% 100%

Pull and Bear

41%59%

0% 50% 100%

Dorothy Perkins

59%41%

0% 50% 100%

Primark

100%

22

women's denim jeans | price tier analysis | Oct '15

•  the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. •  each tier represents 20% of the market by price •  the market is defined by the competitor set •  a detailed explanation of price tier methodology appears in the appendix

lower

lower middle

middle

upper middle

upper

lower

lower middle

middle

upper middle

upper

lower

lower middle

middle

upper middle

upper

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October 2015

men’s denim jeans | price tier analysis

www.retailmap.com

0% 50% 100%

Hollister

100%

0% 50% 100%

Topman

40%

51%

7%

2%

0% 50% 100%

Zara

28%

15%

58%

0% 50% 100%

Next

17%

52%

17%

15%

0% 50% 100%

Uniqlo

100%

0% 50% 100%

M&S

38%

45%

18%

0% 50% 100%

H&M

50%

33%

17%

0% 50% 100%

Burton

35%

65%

0% 50% 100%

Pull and Bear

74%

4%

22%

0% 50% 100%

Blue Inc

59%

41%

0% 50% 100%

New Look

96%

4%

0% 50% 100%

Primark

100%

24

men's denim jeans | price tier analysis | Oct '15 | slide 1 of 2

•  the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. •  each tier represents 20% of the market by price •  the market is defined by the competitor set •  a detailed explanation of price tier methodology appears in the appendix

lower

lower middle

middle

upper middle

upper

lower

lower middle

middle

upper middle

upper

www.retailmap.com

0% 50% 100%

Guess

100%

0% 50% 100%

G-Star

100%

0% 50% 100%

Diesel

100%

0% 50% 100%

Levi's

7%

93%

0% 50% 100%

Urban Outfitters

2%

71%

27%

0% 50% 100%

Jack & Jones

7%

71%

22%

0% 50% 100%

Superdry

100%

0% 50% 100%

Gap

8%

18%

74%

0% 50% 100%

River Island

24%

20%

56%

0% 50% 100%

Debenhams

1%

44%

3%

52%

0% 50% 100%

American Eagle

14%

76%

4%

6%

25

•  the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. •  each tier represents 20% of the market by price •  the market is defined by the competitor set •  a detailed explanation of price tier methodology appears in the appendix

lower

lower middle

middle

upper middle

upper

lower

lower middle

middle

upper middle

upper

men's denim jeans | price tier analysis | Oct '15 | slide 2 of 2

www.retailmap.com

26

October 2015

women’s & men’s denim jeans | combined price tier analysis

www.retailmap.com

0% 50% 100%

Superdry

100%

0% 50% 100%

River Island

12%13%

67%9%

0% 50% 100%

Topshop

40%54%

6%

0% 50% 100%

American Eagle

7%57%

33%3%

0% 50% 100%

Hollister

96%

4%

0% 50% 100%

Debenhams

10%34%

19%31%

5%

0% 50% 100%

Topman

40%51%

7%2%

0% 50% 100%

Next

18%37%

21%7%16%

0% 50% 100%

Uniqlo

39%61%

0% 50% 100%

M&S

27%31%25%14%3%

0% 50% 100%

Zara

16%54%

21%9%

0% 50% 100%

Burton

35%65%

0% 50% 100%

H&M

53%36%

6%6%

0% 50% 100%

New Look

41%56%

2%

0% 50% 100%

Pull and Bear

58%32%

11%

0% 50% 100%

Blue Inc

59%41%

0% 50% 100%

Dorothy Perkins

59%41%

0% 50% 100%

Primark

100%

27

women’s and men’s combined | price tier analysis | Oct '15 | slide 1 of 2

•  the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. •  each tier represents 20% of the market by price •  the market is defined by the competitor set •  a detailed explanation of price tier methodology appears in the appendix

lower

lower middle

middle

upper middle

upper

lower

lower middle

middle

upper middle

upper

lower

lower middle

middle

upper middle

upper

www.retailmap.com

0% 50% 100%

Guess

100%

0% 50% 100%

G-Star

100%

0% 50% 100%

Diesel

100%

0% 50% 100%

Levi's

4%96%

0% 50% 100%

Urban Outfitters

2%71%

27%

0% 50% 100%

Jack & Jones

7%71%

22%

0% 50% 100%

Gap

1%3%9%

53%34%

28

•  the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. •  each tier represents 20% of the market by price •  the market is defined by the competitor set •  a detailed explanation of price tier methodology appears in the appendix

lower

lower middle

middle

upper middle

upper

lower

lower middle

middle

upper middle

upper

women’s and men’s combined | price tier analysis | Oct '15 | slide 2 of 2

www.retailmap.com

29

October 2015

denim jeans | market map positioning

www.retailmap.com

30

women’s denim jeans | market map | Oct ’15 total range size versus average price

•  this analysis plots each retailer on a market map in terms of range size (no. of options) and average price of a denim jean. •  the size of each retailer’s bubble is relative to their range size. •  use this analysis to identify competitor clusters or outlying retailers in the competitive marketplace based on range size and average price position.

AmericanEagle

Debenhams

Diesel

Dorothy Perkins

Gap

G-Star

Guess

H&M

Hollister

Levi's

M&S

New Look

Next

PrimarkPull and Bear

River IslandSuperdry

Topshop

Uniqlo

Zara

£0.00

£10.00

£20.00

£30.00

£40.00

£50.00

£60.00

£70.00

£80.00

£90.00

£100.00

£110.00

£120.00

£130.00

£140.00

£150.00

£160.00

£170.00

10 30 50 70 90 110 130

aver

age

pric

e de

nim

jean

range size

www.retailmap.com

31

men’s denim jeans | market map | Oct ’15 total range size versus average price

AmericanEagle

Blue Inc

BurtonDebenhams

Diesel

Gap

G-Star

Guess

H&M

Hollister

Jack & Jones

Levi's

M&S

New Look

Next

Primark

PullandBear

RiverIsland

Superdry

TopmanUniqlo

UrbanOutfitters

Zara

£0.00

£10.00

£20.00

£30.00

£40.00

£50.00

£60.00

£70.00

£80.00

£90.00

£100.00

£110.00

£120.00

£130.00

£140.00

£150.00

£160.00

£170.00

10 20 30 40 50 60 70 80 90 100

aver

age

pric

e de

nim

jean

range size

•  this analysis plots each retailer on a market map in terms of range size (no. of options) and average price of a denim jean. •  the size of each retailer’s bubble is relative to their range size. •  use this analysis to identify competitor clusters or outlying retailers in the competitive marketplace based on range size and average price position.

www.retailmap.com

32

October 2015

denim jeans | overall promotional analysis

www.retailmap.com

33

denim jeans | range mix by promotion type | no. & % of options | Oct ’15

•  the table shows the range mix by promotion type, for each retailer, both as a number of options and percent of the total range. •  the data shown is a combined total across women’s and men’s denim jeans. •  the table only shows retailers who had promotional activity at the time of the survey.

promotion type American Eagle Blue Inc Burton Deben

hamsDorothy Perkins Gap H&M Hollister Jack &

Jones M&S New Look

River Island Uniqlo Urban

OutfittersSurvey

Average94 - - 4 - - - - 27 - - - - - 42

100% - - 8% - - - - 100% - - - - - 48%- 17 - 6 2 9 1 5 - 4 3 1 3 21 7- 100% - 12% 100% 56% 100% 100% - 100% 100% 100% 100% 100% 27%- - 19 39 - - - - - - - - - - 29- - 100% 80% - - - - - - - - - - 22%- - - - - 7 - - - - - - - - 7- - - - - 44% - - - - - - - - 3%

94 17 19 49 2 16 1 5 27 4 3 1 3 21 19100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

% off

mixed sale

multibuy

£ off

total

www.retailmap.com

34

denim jeans | range mix by promotion or multibuy | no. & % of options | Oct ’15

•  the table shows the range mix by promotion or multibuy split, for each retailer, both as a number of options and percent of the total range. •  the data shown is a combined total across women’s and men’s denim jeans. •  the table only shows retailers who had promotional activity at the time of the survey.

promotion vs. multibuy American Eagle Blue Inc Burton Debenha

msDorothy Perkins Gap H&M Hollister Jack &

Jones M&S New Look

River Island Uniqlo Urban

OutfittersGrand Total

94 17 - 10 2 16 1 5 27 4 3 1 3 21 16100% 100% - 20% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 78%- - 19 39 - - - - - - - - - - 29- - 100% 80% - - - - - - - - - - 22%

94 17 19 49 2 16 1 5 27 4 3 1 3 21 19100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

promotion

multibuy

total

www.retailmap.com

35

denim jeans | promotion and depth | % of options | Oct ’15

•  the left chart shows the % of a retailers range that is on promotion (promotion or markdown) at the time of the audit. •  the right chart shows the depth of promotion, the amount of possible savings, in each retailer at the time of audit represented as a %. •  the data shown is a combined total across women’s and men’s denim jeans. •  the charts only show retailers who had promotional activity at the time of the survey.

1%

1%

3%

3%

4%

9%

9%

13%

18%

26%

41%

47%

47%

83%

90%

0% 25% 50% 75% 100%

H&M

River Island

M&S

New Look

Uniqlo

Hollister

Dorothy Perkins

Survey Average

Gap

Debenhams

Blue Inc

Jack & Jones

Urban Outfitters

Burton

American Eagle

denim jeans% of options on promotion

20%

20%

25%

27%

31%

32%

34%

38%

38%

38%

50%

50%

57%

58%

72%

0% 25% 50% 75% 100%

Blue Inc

Burton

American Eagle

Debenhams

Urban Outfitters

Survey Average

Gap

River Island

M&S

Hollister

H&M

Jack & Jones

New Look

Dorothy Perkins

Uniqlo

denim jean% depth of promotion

www.retailmap.com

appendix | price tiers methodology & price bands

36

October 2015

www.retailmap.com

original unit price Retailer 1 Retailer 2 Retailer 3 Retailer 4 Retailer 5 Retailer 6 Retailer 7 Retailer 8 Retailer 9 Retailer 10 Survey

TotalSurvey

AverageCummulative

Survey Average£5.00 2 - - - - - - - - - 2 1% 1%£6.00 - 1 - - - - - - - - 1 0% 1%£7.00 - - 3 - - - - - - - 3 1% 3%£9.00 - - 6 - - - - - - - 6 3% 5%£9.99 - - - 3 2 - - - - - 5 2% 7%£10.00 5 5 6 - - 5 - - - - 21 9% 17%£11.00 - - 6 - - - - - - - 6 3% 19%£12.00 - - - - - 1 - - - - 1 0% 20%£12.50 - - - - - - 5 4 - - 9 4% 24%£12.99 - - - 3 - - - - - - 3 1% 25%£13.00 - - 2 - - - - - - - 2 1% 26%£14.00 5 9 - - - 9 4 - - - 27 12% 38%£14.99 - - - 2 2 - - - - - 4 2% 40%£15.00 - - 4 - - - - - 5 - 9 4% 43%£16.00 - - - - - 8 3 - - - 11 5% 48%£16.99 - - - 3 - - - - - - 3 1% 50%£18.00 - - - - - 6 - - - - 6 3% 52%£19.50 - - - - - - - 4 - - 4 2% 54%£19.99 - - - 5 8 - - - - - 13 6% 60%£20.00 - - - - - 3 2 - - 4 9 4% 64%£22.50 - - - - - - - 3 - - 3 1% 65%£22.99 - - - 3 - - - - - - 3 1% 66%£24.99 - - - - 4 - - - - - 4 2% 68%£25.00 - - - - - - 1 10 10 - 21 9% 77%£25.99 - - - 2 - - - - - - 2 1% 78%£26.00 - - - - - - - - - 2 2 1% 79%£27.50 - - - - - - - 3 - - 3 1% 80%£28.00 - - - - - - - - - 4 4 2% 82%£29.50 - - - - - - - 16 - - 16 7% 89%£29.99 - - - - 8 - - - - - 8 4% 93%£30.00 - - - - - - - - 4 2 6 3% 95%£32.00 - - - - - - - - - 2 2 1% 96%£32.50 - - - - - - - 1 - - 1 0% 96%£34.99 - - - - 1 - - - - - 1 0% 97%£35.00 - - - - - - - 1 - - 1 0% 97%£39.50 - - - - - - - 1 - - 1 0% 98%£40.00 - - - - - - - - - 1 1 0% 98%£42.00 - - - - - - - - - 2 2 1% 99%£45.00 - - - - - - - - - 2 2 1% 100%Total 12 15 27 21 25 32 15 43 19 19 228 100% -

• Each product category is split into 5 equal parts in terms of overall number of options

• Each of these 5 equal parts has a price tier name (lower, lower middle etc)

• The price tiers are then added to the database

• If a category can not be split into 5 equal (or roughly equal) tiers then it is excluded from the analysis• This price tier analysis provides a strategic measure of a retailer’s price architecture approach

HIGHEST 20% OF OPTIONS =

UPPER PRICE TIER

example price architecture - no. of options by original price point

LOWEST 20% OF OPTIONS =

LOWER PRICE TIER

SECOND HIGHEST 20% OF OPTIONS =

UPPER MIDDLE PRICE TIER

MIDDLE 20% OF OPTIONS =

MIDDLE PRICE TIER

SECOND 20% OF OPTIONS =

LOWER MIDDLE PRICE TIER

•  Each product category is split into 5 equal parts in terms of overall number of options •  Each of these 5 equal parts has a price tier name (lower, lower middle etc.) •  If a category can not be split into 5 equal (or roughly equal) tiers then it is excluded from the analysis •  This price tier analysis provides a strategic measure of a retailer’s price architecture approach

price tier methodology | example price tier architecture – no. of options by original price point

37

If you have any questions or comments on this report, please contact:

Retailmap 4-5 Phoenix Park

Telford Way Stephenson Industrial Estate

Coalville Leicestershire LE67 3HB

UK

T: +44 (0)1530 837399 E: [email protected]

www.retailmap.com

Pricing analysis & research for retailers