IRUK 500

Update 3: Product and Merchandising Tracker September 2016

Debenhams’ fragrance range showed the biggest improvement in the Merchandising Deployment analysis, moving up three places to occupy second place in September’s Product and Merchandising Tracker. Tesco tops the Merchandising Deployment table for the second month in a row while Boots leads the biggest discounters table in September. The Tracker monitors the merchandising deployment and discount strategies of 27 Elite and Leading [http://internetretailing.net/iruk/the-uks-top-500-ecommerce-retailers/] Top500 retailers across six product categories and is updated regularly. 

Companies operating in the Grocery and Fragrance sectors were leading the field for merchandising deployment between August and September (see table 1). The fragrance retailer Debenhams rank rose by three places over the month due to such factors as an increase of the fraction of its products with reviews by 26 percent.
Tesco, for the second month in a row, leads the Merchandising Deployment analysis, which measures the fraction of missing product videos, missing product description, and the number of images per product, in addition to other metrics. The share of the supermarket’s range that lacked images and descriptions dropped by 3.7 and 2.4 percentage points, respectively, in September compared to August.

Table 1: Merchandising Deployment Leaders – September 2016

Retailer  Sector Position change: August to September
1 Tesco [IRDX RTSC] Grocery  
2 Debenhams [IRDX RDEB] Fragrance 3
3 Ocado [IRDX ROCA] Grocery 1
4 Boots [IRDX RBOO] Fragrance 1
5 Sainsbury’s [IRDX RSBR] Grocery 1
Taking account of the percentage of range with reviews, descriptions, product videos, and images; and the average number of images per product.

Table 2: Moving Up the Ranks in Merchandising Deployment – September 2016

Retailer Improvement rank: August to September
1 Debenhams 3
2 Currys [IRDX RCUR] 3
3 Appliances Direct 2
4 Mothercare [IRDX RMOC] 2
5 Toys Я Us [IRDX RTOY] 2

Half of the six Grocery retailers analysed by the Product and Merchandising Tracker reduced the proportion of missing product descriptions on their websites between August and September.  Eighty percent of Grocery retailers analysed by the Product and Merchandising Tracker reduced the proportion of missing product descriptions on their websites between July and September.

Sixty percent of Grocery retailers increased the fraction of their product range that feature reviews over the same time period. The average grocery retailer included in our study now has 53 percent of its products reviewed. Waitrose [IRDX RWAI], over the one-month period of August, saw the largest increase in the share of its products with reviews – from 53 to 56 percent.

The Grocery sector was, however, hit by the UK’s decision to leave the European Union. “Wholesale prices increased for some of the brand suppliers such as Unilever”, says Chris Elliott, insight analyst at Brand View [IRDX VBVW]. Yet, average depth of price cut increased in the last month for 83 percent of Grocery retailers, suggesting that supermarkets are trying to maintain competitive pricing.

Debenhams and Currys were the biggest improvers in the Merchandising Deployment analysis. Currys offers nearly 14 percent more products with customer reviews and a reduced fraction of products – from 69% to 79% that were out of stock in September compared to August.

Currys offers nearly 5 percent more products with customer reviews and a reduced fraction of products – from 76% to 79% that were out of stock in September compared to July.

Table 3: The Biggest Discounters – September 2016

Retailer  Sector Position change: August to September
1 Boots [IRDX RBOO] Fragrance   1
2 Superdrug [IRDX RSUD] Fragrance  1
3 Debenhams [IRDX RDEB] Fragrance   11
4 Appliances Direct [IRDX RAPD] Appliances  1
5 Hughes Electrical [IRDX RHUG] Appliances, Electrical 1
Taking account of the percentage of products on promotion and the average depth of cut.

Most Fragrance retailers decreased percentage of products on promotion compared to August. One noticeable increase, however,  comes from Debenhams, which offered nearly 98 percent of its fragrance products on promotion. The department store offered the highest number of promotions in the month of September compared to the other Fragrance retailers included in this study. Despite the share of products on promotion declining for Fragrance retailers, they had the highest average depth of cut of any sector covered by the Tracker.

Appliances Direct had the largest share of products on promotion in September of any retailer included in this study.

The average retailer in the DIY sector increased the fraction of its products on promotion and increased, also, the average depth of price cut between August and September. Screwfix [IRDX RSCR] led the way, more than doubling its total number of promotions and the average depth of price cut over the period. B&Q [IRDX RDIY] offered the highest share of products on promotion in September and Homebase, [IRDX RHMB] the highest average depth of price cut. 

About the Product and Merchandising Tracker

InternetRetailing partners with Brand View to analyse the approach to discounting and product display adopted by the UK’s top retailers across six categories of retail. The tracker covers products in the Appliances, DIY, Electrical, Fragrance, Grocery, and Toys sectors. The index is updated periodically.

Mentioned in this piece…

Tesco

Tesco

IRDX: RTSC

Tesco is the largest British supermarket chain. Tesco has a comprehensive multichannel offering, including mobile and tablet websites, click-and-collect options and home delivery. (more…)

Debenhams

Debenhams

IRDX: RDEB

Debenhams is a multinational retailer operating under a department store format in the United Kingdom and Ireland with franchise stores in other countries. (more…)

Ocado

Ocado

IRDX: ROCA

Ocado is an online supermarket and the largest online-only food retailer by turnover in the world.
(more…)

Boots

Boots

IRDX: RBOO

Boots is a pharmacy chain and multichannel retailer with outlets on most high streets throughout the UK and Ireland. (more…)

Sainsbury’s

Sainsbury’s

IRDX: RSBR

Sainsbury’s is a British supermarket chain with a significant share of the UK market. (more…)

Currys

Currys

IRDX: RCUR

Currys is a British electrical retailer operating in the UK and Ireland. Part of the Dixons Carphone company, it specialises in selling home electronics and household appliances. (more…)

Mothercare

Mothercare

IRDX: RMOC

Mothercare is a retailer of products for mothers-to-be and general merchandise for babies and children up to the age of eight. (more…)

Toys Я Us

Toys Я Us

IRDX: RTOY

Toys R Us (stylised as Toys Я Us) is a dedicated toy and juvenile-products retailer. The company operates more than 872 Toys R Us and Babies R Us stores in the United States, more than 715 international stores and over 180 licensed stores in 35 countries and jurisdictions. (more…)

Waitrose

Waitrose

IRDX: RWAI

Waitrose forms the food retail division of Britain’s largest employee-owned retailer, the John Lewis Partnership. The company is the sixth-largest grocery retailer in the UK, with approximately 5% of the market. (more…)

Brand View

Brand View

IRDX: VBVW

Brand View is a global provider of price, promotion, product content and online product positioning analytics. (more…)

Boots

Boots

IRDX: RBOO

Boots is a pharmacy chain and multichannel retailer with outlets on most high streets throughout the UK and Ireland. (more…)

Superdrug

Superdrug

IRDX: RSUD

Superdrug is a UK-based health and beauty retailer with 850 stores in the UK and Ireland. (more…)

Debenhams

Debenhams

IRDX: RDEB

Debenhams is a multinational retailer operating under a department store format in the United Kingdom and Ireland with franchise stores in other countries. (more…)

Appliances Direct

Appliances Direct

IRDX: RAPD

Appliances Direct are the specialist appliance division of the BuyItDirect Group. BuyItDirect has an annual turnover in excess of £100m and employs over 150 staff. The company has been around for 12 years. (more…)

Hughes

Hughes

IRDX: RHUG

Hughes is a high street and online electrical retailer, trading under the Hughes and Apollo fascias and formerly under the Bennetts brand. (more…)

Screwfix

Screwfix

IRDX: RSCR

Screwfix is an in-store, direct and online retailer of trade tools, accessories and hardware products. (more…)

B&Q

B&Q

IRDX: RDIY

B&Q is the largest home improvement and garden centre retailer in the UK and Ireland. The company retails through hundreds of stores and its eCommerce site, diy.com. It is a wholly owned subsidiary of Kingfisher plc. (more…)

Homebase

Homebase

IRDX: RHMB

Homebase is a British home improvement store and garden centre, with 342 stores across the United Kingdom and Republic of Ireland, serving around 60 million transactions a year, and a growing internet offering. (more…)