Sima case history coin 18 marzo 2015
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Transcript of Sima case history coin 18 marzo 2015
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CASE HISTORY COIN
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• 1916 Vittorio Coin starts the Gruppo Coin activities
• 1926 First Coin Store (Mirano, Venice)
• 1965 Coin P.za 5 Giornate opens (Milan)
• 1972 First “Organizzazione Vendite Speciali” (Oviesse) store
• 1986 Coin is the first retailer to develop a fidelity card program in Italy
• 1995 Oviesse become an apparel retailer
• 1998 Acquisition of La Standa
• 1999 Listing of Gruppo Coin on the Milan Stock Exchange
• 2005 PAI equity fund becomes Gruppo Coin majority shareholder
• 2008 Acquisition of Melablu
• 2010 Acquisition of UPIM
• 2011 BC Partners becomes Gruppo Coin majority shareholder
• 2011 Excelsior opens in Milan
• 2012 Acquisition of IANA
• 2013 Excelsior opens in Verona
• 2014 Coin Excelsior opens in Rome
COIN: one hundred years of history
Established in 1926, Coin is the largest Italian department store €413,2 m net sales in 2014 77 stores in Italy and 20 abroad, located downtown in the most important Italian cities and shopping areas Portfolio of 800 brands 46 million visitors every year 21,6 million items sold and 12 million receipts
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Coin in a snapshot
● NET SALES
● SQM BUILDING
2012
43%
22%
35%
SQM: 91.335
2012
33%
17%
50%
NET SALES (€/1000): 276.158
2010
41%
24%
35%
NET SALES (€/1000): 273.814
2010
48%
26%
26%
SQM: 82.010
2008
57%
32%
11%
hb
ws
concession
NET SALES (€/1000): 232.935
2008
61%
31%
8%
hb
ws
concession
SQM: 74.100
Where we come from: Net Sales and Sqm building 2008–2010–2012
TOTAL CATEGORY (Beauty and Home not included)
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Where we come from: Trend 2007-2011
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*Capex 2007-2011: 61,7 mio € (Italian new openings, conversions and refurbishing)
Bridge Ebitda (2007-2011)
Ebitda trend (2007 – 2011 ) is positive thanks to network development otherwise
is offset because of division costs and the decrease of LfL Ebitda Store
∆ Division Costs ∆ HQ costs ∆ Ebitda Coin 2011Ebitda Coin 2007 ∆ Store Ebitda ∆ Store Ebitda
LfL New opening/closure
Store Ebitda ∆ GM ∆ Personnel ∆ Rent ∆ Space ∆ Operating ∆ Rent Store Ebitda ∆
2007 costs costs costs income 2011 2007-2011
Partners 0,6 0,0 -6,5 -8,0 -2,6 -4,2 41,4 20,7 20,1
Wholesales 7,5 -11,8 2,4 1,4 0,6 0,9 0,0 1,0 -6,5
Housebrand 31,4 -34,0 8,2 4,2 1,9 2,9 0,0 14,6 -16,8
Total 39,5 -45,8 4,1 -2,4 -0,1 -0,4 41,4 36,3 -3,2 M€
Space Impact: -36,1M€
Sales Density: -7,7M€
Gm Impact: -2,0M€
Network
2007
Bridge Ebitda of the same dos from 2007 to 2011
Ebitda trend is negative because of the Gross Margin decrease is higher than rent
incomes increase
Where we come from: Trend 2007-2011
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1. WHAT WORKED AND WE FURTHER IMPROVE:
• Concession Model
• Cost control
• Format Coin (customer experience)
Going Forward
2. WHAT HAS NOT WORKED AND WE ADDRESS:
• Wholesales man/woman/ accessories: reduction of sales
density and Ebitda
• House brand: fall of sales density
• Upim conversion and new opening underperforming
3. WHAT WE “ TURN AROUND”
• Customer Experience
“consumer have to dream while walking”
“memorability and uniqueness of the experience”
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The market share of department stores in Italy is the lowest in Europe but…
% share men/women/kids clothing market in terms of value per sales channel
Source:
European Customer Panel 2012
# Monobrand POP breakdown by channel of distribution: Based on 21 brands
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38,7 41,2 44,0
3,23,6
4,09,0 7,57,1
34,7 32,7 29,7
3,5 3,4 3,37,1 7,0 6,53,0 3,0 3,0
0,8 1,5 2,4
2011 2012 2013
Other Channels (w/o Outlets&E-Commerce)
Market
Hyper+Super
Independent stores
E-Commerce
Large Surface retailers
Department Store
Specialized retail channels
Multibrand
Channels
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…showing significant growth opportunities vs. independent multibrand
-3,0% -5,0% -6,5% Market Share
3,2 3,6 4,0
Department stores
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Italian Market Concentration
sport
5,5%children
14,1%
leather
2,5% underwear
4,4%
apparel
54,9%
footwear
18,6%
In 2013, over 7.000 independent apparel stores
went out of business; (1°quarter 2014 -3.000)
Multibrand apparel
channel 51.000 (without
footwear)
Source : Fashion Bank
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Apparel/accessories consumption according to price range
BRIDGE /
BEST
MASS
MODERA
TE
GOOD
BETTER
-3,3
-5,0
-10,0
-8,6
-4,6
-6,6 Total Var
VAR % 13/12
CORR. VALUE
Source: Fashion Consumer Panel
and internal elaboration
50
98
141
204
310
Price index numbers
2012 2013
49
95
141
209
323 Luxury
Accessible
luxury
Medium
price
Low
price
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WHAT WE HAVE DONE: Coin Strategy
CONSOLIDATE THE MARKET, CREATING A PREMIUM DEPARTMENT STORE
NETWORK:
•Increase the space allocated to brands in concession (33%) with a positive impact on
the business profitability and working capital (stock/sqm -29% in the last 4 years),
limiting the presence of housebrands/wholesale to the minimum
•Trading up brand mix, leveraging concession model with accessible luxury brands,
growing average ticket.
• Progressive conversion of the most relevant stores in the Coin Excelsior format
(premium contemporary) following Coin Excelsior Rome extremely positive results.
• Optimizing sales people kpi efficiency (sales/eft, sqm/eft), improving performance
via selection training and incentive plans
EBITDA
+ +
CASH FLOW
++++
BRAND
POSITIONING
UPGRADE
+++
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Sales and sqm per commercial mix
TOTAL CATEGORIES (Perfurmery and Home escluded)
● NET SALES
● SQM BUILDING
2013
43%
19%
38%
SQM: 90.797
2013
30%
15%
55%
NET SALES (€/1000): 268.215
2010
41%
24%
35%
NET SALES (€/1000): 273.814
2010
48%
26%
26%
SQM: 82.010
2008
57%
32%
11%
hb
ws
partner
NET SALES (€/1000): 232.935
2008
61%
31%
8%
hb
ws
partner
SQM: 74.100
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Italian Market Share: upgrade evolution
.
Luxury
0%
Accessible
luxury High
0,8%
Accessible luxury
medium low
1,9%
Medium price
1,9%
Low price
0%
Market share
2013
Coin Italy
LV,
Chanel,
Dior,
Cucinelli,
Gucci,
Lanvin,
Prada….
Ralph
Lauren,
Moncler
MaxMara,
Zegna, Fay
Twin Set, Liu
Jo, M. Kors,
MbyM, Paul
Smith, …
Seventy,
Longcha
mp,
Furla,
Boggi,…
Upim, Piazza Italia, Terranova,
Iper, mercatini OVS, H&M
Zara,
Mango, Motivi..
Marlboro
Classics
Marina
Yacthing
Miss Siixtiy
Stefanel,
THilfiger,
Esprit
Benetton
2013 Market share
2013
Luxury
12-13%
Accessible
luxury High
38-45
Fast fashion
Medium price
32-38%
Low price
11-13%
Coin MKt Share:
2012 1,36%
2013 1,49%
Luxury
Over 400%
of leverage price
More 200% of leverage price Accessible Luxury From 125 to 200% of leverage price
From 75 to 125% of leverage price Fast Fashion Medium Price From 50 to 75% of leverage price
Low Price
Up to 50%
of leverage price
?
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Italian Market Share: upgrade evolution
.
Luxury
0%
Accessible
luxury High
0,8%
Accessible luxury
medium low
1,9%
Medium price
1,9%
Low price
0%
Market share
2013
Coin Italy
LV,
Chanel,
Dior,
Cucinelli,
Gucci,
Lanvin,
Prada….
Ralph
Lauren,
Moncler
MaxMara,
Zegna, Fay
Twin Set, Liu
Jo, M. Kors,
MbyM, Paul
Smith, …
Seventy,
Longcha
mp,
Furla,
Boggi,…
Upim, Piazza Italia, Terranova,
Iper, mercatini OVS, H&M
Zara,
Mango, Motivi..
Marlboro
Classics
Marina
Yacthing
Miss Siixtiy
Stefanel,
THilfiger,
Esprit
Benetton
2013 Market share
2013
Luxury
12-13%
Accessible
luxury High
38-45
Fast fashion
Medium price
32-38%
Low price
11-13%
Coin MKt Share:
2012 1,36%
2013 1,49%
2014 1,62%
Luxury
Over 400%
of leverage price
More 200% of leverage price Accessible Luxury From 125 to 200% of leverage price
From 75 to 125% of leverage price Fast Fashion Medium Price From 50 to 75% of leverage price
Low Price
Up to 50%
of leverage price
LOW PRICE
CLASSIC CONTEMPORARY
.
TRADITIONAL NEO TRADITIONAL CONTEMPORARY TRENDY
en
try p
ric
e
me
diu
m
hg
h
HIGH PRICE
lu
xu
ry
Brand Mix Evolution
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Stores and Brand Mix Evolution
2005 / 2008 2009 / 2013 2014
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COIN EXCELSIOR - Roma Cola di Rienzo
2014 2012
(K/€)
Building Sqm 3.140 4.240* (+35%)
Concession Sqm 1.232 2.320 * (+88%)
Building Sales 27.816 45.790 (+65%)
Sales Density 8.858 10.800 (+22%)
Average Ticket 49,16 70,26 (+43%)
*with food market
** current rent
***calculated on building net sales
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Store Clusters – Clusterization Criteria AMBASSADOR (12):• Market > 500 mln €
• Population > 1 mln
• Average market income > 100
• Sales/sqm > 4.500
• % of total Building Sales Coin: 42%
• % of total Store EBITDA Coin: 48%
• Central locations
• High quality stores
CITY BOUTIQUE (28):
• % of total Building Sales Coin : 40%
• % of total Store EBITDA Coin: 39%
SHOPPING CENTER (5)
• % of total Building Sales Coin: 13%
• % of total Store EBITDA Coin: 13%
COIN FACTORY STORE (8):
• Size < 2.000 mq
• % of total Building Sales Coin: 5%
• Rent ≈ 10%
• Popular areas in large cities or central areas in small cities
AMBASSADOR (12, of which 5 potential Coin Excelsior)
• Market> 500 mln euro
• Population> 1 mln
• Average market income > 100
• Sales/sqm > 4.500
• % of totale Builiding Sales Coin: 42%
• % of total Store EBITDA Coin: 48%
• Central locations
• High quality store
CITY BOUTIQUE (11)
• % of total Building Sales Coin: 40%
• % of total Store EBITDA Coin: 39%
SHOPPING CENTER (7)
• % of total Building Sales Coin: 13%
• % of total Store EBITDA Coin: 13%
OTHERS (24)
• Size < 2,000
• % of total Building Sales Coin: 5%
• Rent 10%
• Popular areas in large cities or central areas in small
cities
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Direct Store Network - 2014
Becoming a Total Retailer
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ON LINE
• Web Site
• Social Network
• Ecommerce
OFF LINE
• In Store Windows
• Video Wall
• Digital Totem
• Radio
• TV
• Leaflet
BETWEEN ON & OFF LINE
• SMS
• Push Notification
• App
Becoming a real omnichannel retailer:CRM to enhance the Customer Experience
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CRM : the Key for Omnichanneling
CRM is the Bridge between the Customer and the Brand channels.
CRM is the key to obtain a omni-channel retail strategy to promote your brand,
improve the consumer experience and increase revenues.
Customer Omnichannel Experience
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In-Store TV
250 monitors located on the ground floor of
33 stores
Digital Communication – In-Store TV
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Radio & Digital Totems
•
Coin Music Design is present in all stores
with a radio station broadcasting the best of
international pop, electro dance and R’n’B
music.
Digital Communication – Radio & Digital Totem
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Digital Showcase
Innovative Digital Windows: a backdrop
comprising FullHD screens to combine digital
contents
and product display
Digital Communication – Digital Windows
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iBeacons & Proximity marketing
•
Innovative Third Parties APP to start using
iBeacons tecnology in the Store
Digital Communication – Proximity Marketing
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In Store Event, using Video Wall
Blogger Engagement
Coin FaceBook Page
Google Glass test in store
Digital Communication – Events combining Online & Offline
30
Digital Communication – Google Hangout
31
Digital Communication – Google Virtual Tour
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Coin.it
200,000 unique visitors per month // 1 million page views
per month // 11 millions DEM sent per year //
Social Networks with a high level of fan activities
Twitter // Facebook // Google Plus //
Andorid & IOS App
Launch in March 2015
Coincasa.it
Launched in November 2014, the first
Coin E-commerce.
From April 2015 Click & Collect will be
available
Digital Communication – Digital Assets
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Coincard
Large database (over 2 millions people)
862,000 active consumer (84% women, 16% men)
47% of Coin sales
Virtual Coincard
From March 2015 even on your Smartphone for existing users and new ones
Customer Omnichannel Experience – The role of COINCARD
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