Back to School - UK

Issues in the Market

Other issues

Definition

Abbreviations

Market in Brief

Strong market for ‘Back to School’ items

Fewer schools and pupils

Families in decline

Pricing highs and lows

The cost of schooling

Mum holds the purse strings

Supermarkets vs specialist

Quality matters

Supermarket sweep - Asda the leading uniform seller

Schools are an opportunity

The wonder of Woolies

Sports stores gaining ground

Fashion factors

Government guidance

Size matters

Environmental and ethical issues

Educational impact of technology

Room for both in the future

Industry Insight

Key points

A highly seasonal business

Year round offer is a service

Supermarkets’ advertising power

Over-pricing a myth or reality?

Quality is the new currency

Government intervention

Uniforms are as popular as ever

Parents and children equally important

Fashion is the shape of things to come

Size is a big issue

Tax low on parents’ agenda

Internet offers benefits for all

Eco and ethical emerging issues

The future has its challenges

Internal Market Environment

Key points

School numbers

Figure 1: Schools in the UK, academic year 1990/91-2005/06

Figure 2: School pupils, by type of school, UK, 1990-2006

Home schooling

School leaving age

Fashion

Figure 3: The amount of say 11-14 year olds have about what they wear, 2005 and 2007

Figure 4: Agreement with statements on fashion and appearance, aged 7-14, by gender, 2006

Technology

Figure 5: Household ownership of PCs, 2001-06

Health issues

The tax issue

Number of children per family

Figure 6: Household size, UK, 2003-12

One parent families

Figure 7: Dependent children by family type, 1997-2006

Government consultation process

OFT enquiry

Uniform trend

The cost of free schooling

Formation of Schoolwear Association

Broader Market Environment

Key points

Economy

Inflation and interest rates

Figure 8: Percentage change in CPI, all goods and clothing and footwear, UK, 2001-06

Figure 9: Interest rates, 2001-07

Unemployment

Figure 10: UK workforce and employment, by gender, 2002-12

PDI and consumer spending

Figure 11: Trends in personal disposable income and consumer expenditure, 2002-12

Population trends

Figure 12: Trends in the age structure of the UK population, by gender, 2002-12

Number of children

Figure 13: Trends in the number of children, 2002-12

Families

Figure 14: Forecast adult population trends, by lifestage, 2002-12

A more affluent population

Figure 15: Adult population trends, by socio-economic group, 2002-12

Lifestyle trends

Figure 16: Attitudes towards the environment, 2002-07

Figure 17: ‘I would be prepared to pay more for environmentally-friendly products’, by lifestage and gender, 2007 Q3

Ethical labour

Figure 18: Environmental and ethical issues, which are of concern, October 2006

Market in Context

Key points

School uniform vs childrenswear trends

Figure 19: Market shares of childrenswear and schoolwear, by type of outlet, 2005 and 2006

Sports clothing

Figure 20: Comparison of spending on sports clothing and uniform purchases at sports shops, 2002-07

Footwear

Figure 21: Comparison of spending on footwear and school footwear, 2002-07

Stationery

Figure 22: UK retail sales of paper-based personal stationery and writing instruments, by value, 2002-07

Figure 23: UK retail sales of paper-based personal stationery, by outlet type, 2002-06

Bags and rucksacks

Figure 24: UK retail sales of rucksacks, at current prices, 2002-07

Overall expenditure vs spending on school items

Figure 25: Schoolwear and stationery, as a share of occasional and total consumer expenditure, 2006

Expenditure on children’s clothes vs schoolwear

Figure 26: UK retail sales of childrenswear (0-15) and schoolwear, 2002-07

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Market Size and Forecast

Key points

Figure 27: Consumer spending on back to school items*, at current and constant 2002 prices, 2002-07

School uniform

Figure 28: Consumer spending on school uniform, at current and constant 2002 prices, 2002-07

Future

Forecast

Figure 29: Market size and forecast for ‘back to school’ items, at current and constant 2007 prices, 2002-12

Factors incorporated in the forecast

The Consumer - How Much is Spent

Key points

The cost of schooling

Figure 30: Average spend per child on ‘back to school’ items, last 12 months, by key socio-economic groups, May 2007

Figure 31: Average spend by number of retailers where school clothing and footwear bought, last 12 months, May 2007

Figure 32: Average spend by number of stores where school stationery items bought from, last 12 months, May 2007

How Much is Spent - Detailed Consumer Demographics

Figure 33: Average spend per child, by marital status, lifestage, children’s ages in household, region, ACORN categories, Internet usage, newspapers used, commercial TV viewing and supermarket used, May 2007

Figure 34: Average spend per child on ‘back to school’ items, by marital status, children’s ages in household, region, ACORN categories, Internet usage, newspapers used, commercial TV viewing and supermarket used, May 2007

The Consumer - Where School Items are Bought

Key points

Schoolwear and footwear

Figure 35: Retailer where school clothing and footwear was bought, last 12 months, May 2007

Figure 36: Retailer where school clothing and footwear bought, last 12 months, by key socio-economic groups, May 2007

Figure 37: Retailer where school clothing and footwear bought, last 12 months, by key socio-economic groups, May 2007

Consumer repertoire

Figure 38: Number of retailers where school clothing and footwear bought, last 12 months, May 2007

Figure 39: Number of retailers where school clothing and footwear bought, last 12 months, by retailer, May 2007

Stationery

Figure 40: Main retailers where school stationery items bought from, last 12 months, by key socio-economic groups, May 2007

Figure 41: Retailers where school stationery items bought from, last 12 months, by key socio-economic groups, May 2007

Figure 42: Retailers where school stationery items bought from, last 12 months, by key socio-economic groups, May 2007

Stationery retailers

Figure 43: Number of stores customers bought from, last 12 months, May 2007

Figure 44: Number of stores bought from, by retailer, last 12 months, by retailer, May 2007

Where School Items are Bought - Detailed Consumer Demographics

Figure 45: Retailer where school clothing and footwear are bought, last 12 months, byregion, ACORN categories, media usage, commercial TV viewing and supermarket used, May 2007

Figure 46: Retailer where school clothing and footwear bought, last 12 months, by region, ACORN categories, media usage, commercial TV viewing and supermarket used, May 2007

Figure 47: Retailers where school stationery items bought from, last 12 months, region, ACORN categories, media usage, comercial TV viewing and supermarket used, May 2007

Retail Competitor Analysis

Key points

Figure 69: Comparison of leading ‘back to school’ retailers, May 2007

Main retailers’ strengths and weaknesses

Figure 70: Comparison of leading ‘back to school’ retailers, May 2007

Retailer Profiles

Uniform specialists

National Schoolwear Centres

Background

Financial performance

Store portfolio

Retail offering

Operational issues

Advertising and marketing

e-commerce and home shopping

Strategic evaluation

John Cheatle Group

Background

Financial performance

Figure 71: Financial performance, 2001-06

Store portfolio

Retail offering

e-commerce and home shopping

Strategic evaluation

Non-specialists

Marks & Spencer

Background

Financial performance

Figure 72: Marks & Spencer financial performance, 2003-07

Store portfolio

Retail offering

Advertising and marketing

e-commerce and home shopping

Strategic evaluation

Woolworths Group Plc

Background

Financial performance

Figure 73: Financial performance, 2003-07

Store portfolio

Retail offering

Advertising and marketing

e-commerce and home shopping

Strategic evaluation

Bhs Group Ltd

Background

Financial performance

Figure 74: Bhs Ltd, financial performance, 2002-06

Store portfolio

Retail offering

e-commerce and home shopping

Strategic evaluation

John Lewis Plc

Background

Financial performance

Figure 75: John Lewis Partnership: Group financial performance, 2002/3-2006/07

Store portfolio

Retail offering

Advertising and marketing

e-commerce and home shopping

Strategic evaluation

Asda

Background

Financial performance

Figure 76: Asda, financial performance, 2001-07

Store portfolio

Retail offering

Operational issues

Advertising and marketing

e-commerce and home shopping

Strategic evaluation

Tesco

Background

Financial performance

Figure 77: Tesco Plc, financial performance, 2002-07

Store portfolio

Retail offering

Operational issues

Advertising and marketing

e-commerce and home shopping

Strategic evaluation

Sports Direct International Plc (formerly Sports World International)

Background

Financial performance

Figure 78: Sports direct International, financial performance, 2001/02-05/06

Store portfolio

Retail offering

e-commerce and home shopping

Strategic evaluation

C&J Clark Group

Background

Financial performance

Figure 79: C&J Clark Group: Group financial performance, 2001/02-05/06

Store portfolio

Retail offering

Operational issues

Advertising and marketing

E-commerce and home shopping

Strategic evaluation

WH Smith Group Plc

Background

Financial performance

Figure 80: WH Smith UK: Group financial performance, 2002-06

Store portfolio

Retail offering

Operational issues

e-commerce and home shopping

Strategic evaluation

Ryman/Partners (Chancerealm Ltd)

Background

Financial performance

Figure 81: Ryman/Partners, 2002-06

Store portfolio

Retail offering

e-commerce and home shopping

Strategic evaluation

Retail Advertising and Promotion

Total spending

Figure 82: Advertising expenditure on ‘back to school’ items, by retailer, 2002-07