FSP Retail Business Consultants

Helping retailers make informed decisions

FSP RETAIL BUSINESS CONSULTANTS

Retailer Services
The FSP approach is not simply about analysis. At its heart, FSP Directors are retailers and
over 100 years of retailing experience is directed into every project to test, challenge and
provide advice, before it is offered to clients. We share your passion for retailing.

Location
Selection

Brand &
Consumer
Research

October 26, 2015

Expansion
Strategy

In addition FSP provides:

Market Intelligence
Competitor/ Cannibalisation
Impact Analysis
Customer Demand
Forecasting
Customer Profiling
Concept Development

Turnover
Estimation

FSP RETAIL BUSINESS CONSULTANTS

Retailer Clients
FSP and sister company Pragma advise a variety of retailers including:

October 26, 2015

FSP RETAIL BUSINESS CONSULTANTS

Example Retailer Case Studies

FSP RETAIL BUSINESS CONSULTANTS

Case Study: Global Sports Footwear Retailer

Service : Location Strategy & Brand Awareness
FSP was commissioned to assist with the search for an optimal location for a new flagship store, by
providing insight into suitable London sub-markets.

The Challenge
In order to strengthen its retail presence and grow brand-awareness in the UK,
the client sought to establish a network of company stores, including a flagship
Experience store in London. The aim of this Experience store was to promote
the brands wider range of lifestyle footwear and apparel, as well as celebrate
its heritage of producing quality shoes for sport.

What We Did
Customer Insight: FSP segmented and quantified customer demand
using our unique FISH categorisation system. We gave detailed insight
into key performance influencing factors including catchment populations
and customer demographics. Understanding the catchment profiles and
consumer Lifestages was imperative for pinpointing ideal store locations
Location Selection: FSP identified key trading streets including
competitor locations, existing channels of distribution and sub markets.
FSP provided street summaries identifying important KPIs suited
specifically for the client

Business Context
The client is one of the worlds leading sports
footwear brands. The brand has a strong
reputation among serious sports enthusiasts,
as well as those seeking a blend of performance
and fashionability. Although the company has
been manufacturing in Cumbria for 30 years,
current UK distribution is primarily through
specialist sports operators such as Sweatshop
and generalists such as Schuh.
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October 26, 2015

Benchmarking: FSP identified, by location, areas of competition from

sports retailers and footwear retailers and provided turnover and density
estimations to help grade the opportunity for the client. Other data provided
included: number or stores, FISH and price positioning, Zone A rental
levels, estimated floor space, nearby tube stations, and breakdown of
residents, workers and tourists

Result
FSP submitted a list of recommendations based on the insights provided.
The client was keen to follow and apply our insight into their roadmap
strategy prior to instruction on a new store in London.

Case Study: Example Location Trading Report

KPIs for Seven Dials, London
135,000

Total Selling Area (ft)

Estimated Retail Sales (m)
Average Sales Density (/ft)*

Neal Street

Urban Outfitters

Diesel

162
1,200

Average Selling Area (ft)*

971

Assured Individual Retailers

12

Sports Retailers

Footwear Retailers

17

*Excluding Department Stores

Source: FSP/CES/GOAD

October 26, 2015

FSP RETAIL BUSINESS CONSULTANTS

Case Study: Example Segmentation Analysis

70
60
Number of Retailers

Seven Dials is located to the north of

Long Acre in London and includes
brands such as Urban Outfitters, Nike,
American Apparel and Superdry
The area is home to Neal St, a
specialist footwear destination which
includes Offspring, Josef Siebel, Toms,
Superga, Office and Size?
The FISH mix is favourable, with high
proportions of both Young and Assured
retailers, however footfall is relatively
low compared with other central
London locations

50
40
30
20
10
0
Clothing &
Footwear

C&F
FISH
Key Location Information
450

Footfall Index

26

Footwear Market Size (m)

% Residents

46

% Tourists

50

% Workers

4
Covent Garden (11)

Nearby Tube Stations

(Annual Exits, millions)

Household
Goods

Leisure
Goods

Department
Stores

C&F
Price

Classic
7%
Family
14%

Zone A Rent (/ft)

Personal
Goods

Food &
Beverage

Others

Premium
Lower
4%
Middle /
Value
2%

Young
34%

Middle
53%

Upper
Middle
41%

Assured
45%

Leicester Square (20)

Holborn (17)
Source: FSP/CES/Nash Bond/Transport for London/NWEC

October 26, 2015

FSP RETAIL BUSINESS CONSULTANTS

Case Study: Major Swedish Hardware Chain

Service: UK Expansion Support
FSP was commissioned to provide insight and direction as the client sought to expand their UK presence.
They required an understanding of their UK shoppers and assistance in prioritising new locations.

The Challenge
The client had developed a mature business in Scandinavia where their
shopper was readily identified and successfully targeted. The challenge was
translating this shopper into other markets, including the UK, and then ensuring
that chosen locations were suitable. Expected turnovers were also reviewed, to
check they fell in line with board expectations.

What We Did
FSP delivered a suite of reports and supporting evidence to the clients UK team
that could then be incorporated into their recommendations to the main board in
Sweden.
Shopper Profile: Using demographic profiling, FSP closely classified the pre
identified client shopper and used this to create a demand surface. This
allowed FSP to classify locations with high numbers of key shoppers

Business Context
The client, a Swedish hardware store chain
and mail-order firm that specialises in hardware,
home, leisure, electrical and multimedia products.
It is one of the biggest of its type in Scandinavia,
with a total of approximately 180 stores. In 2008,
the company opened its first UK retail store in
Croydon, South London. It later opened 13 further
stores across the country.
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October 26, 2015

Turnover Estimation: With detailed knowledge on catchment dynamics and

market penetration, FSP was able to estimate site turnovers for the identified
locations
Benchmarking: FSP ranked identified locations against existing portfolio
stores and competitors in terms of turnovers, catchment sizes and key
customer profiles

Result
FSPs analysis highlighted how trading performance relates to factors such
as competitor provision, catchment size and lifestyle preference for the
brand offer. The top 250 sites, in terms of estimated turnover, were delivered
to form their expansion strategy targets. The data was also used by
marketing teams to assist activity and to build interest in their stores.

Case Study: Reporting Outputs

Modelled Customer Potential (k)

FSP supplied the client with a deck of supporting evidence for the UK expansion team to incorporate into
recommendations for their Corporate Board.
450
400
350
300
250
200
150
100
50
0

FSP identified specific location retail catchment potential

FSP ranked benchmark towns by expenditure

We constructed a scorecard methodology to help rank identified target locations. Client specific
indicators were used to identify the optimum mix of attributes for any location.

Location

Total Key Client % Key Client

Shoppers
Shoppers

No of
% of
Complimentary Complimentary
Retailers
Stores

% Multiple
Total
Client Ranking Client Ranking vs
Clothing &
Weighted
(based upon
Shopper Pop
Footwear
Client Score
Ranking
weights)
Representations

Location A

28

201

12

Location B

23

10

23

283

34

Location C

16

20

48

334

16

Location D

24

32

18

379

21

October 26, 2015

Case Study: A Leading Linen and Homeware Retailer

Service : Concept Testing
FSP was commissioned to help the client gain valuable insight into customer feedback on their new store concepts,
packaging and product ranges.

The Challenge
The clients primary channels of distribution for the UK were department store
and concession led. The challenge was to create a flagship stand alone store
that would represent the brand to its full capacity whilst testing new concepts
and products for future store roll out. Using qualitative research, FSP advised
on the key requirements of consumers that would give the store the best
chance of success. It was essential that the concept was in tune with the
behaviour, merchandise expectation and locational requirements of key
customer groups.

What We Did
FSP worked closely with the client to identify the areas where qualitative
research could support with detailed feedback. This was used in conjunction
with desk- based analysis to provide a fully informed set of results.

Business Context
The client specialises at retailing towels,
bathrobes and bedlinen in stores throughout the
UK. The company sells online and in Europe, the
U.S. and Australia. The company has a long-term
relationship with tennis, producing the towels
used by players on court at Wimbledon since 1987.
Their UK business is predominantly via
department stores and concession stores and a
small number of outlet centres.

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October 26, 2015

Qualitative research: FSP ran a series of focus group split by geographical

location and family composition. Participants were hand picked, utilising a
careful screening process to represent the brands true customers in key
trading locations. Questions were closely in line with the required aspirations
from the clients internal teams
Customer profiling: FSP analysed existing customer postcode data by
demographic profile, allowing an estimate of penetration by shopper type to
be made. The ideal shopper could then be evaluated and was used to identify
ideal benchmark locations for future store expansion, in light of current
concession footprint and complementary retailers

Result
The feedback was evaluated and presented with recommendations to the
clients board, where it was used to shape the location, look and feel of
the brand throughout all its consumer touchpoints.

Case Study: Focus Group Output

FSP was able to respond to and advise the client on the full range of aspects listed in their initial
requirements .
Recommendations not only related to the type of customer or location but went into greater depth to
address key topics for them relating to product, packaging, customer service and store format.

FSP communicated
the major motivators
that influence the
shopping behaviour
and spending
patterns of customers
within client stores.
The analysis helped the
client to enhance not
only the look and feel of
the stores but to also
address customer
service improvements.

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October 26, 2015

Case Study: A British, Lifestyle Retailer

Service : Location Selection, Turnover Estimation
FSP was commissioned to provide insight and direction as the client sought to expand across the UK. They required
assistance to prioritise a list of target locations. FSP constructed a bespoke and robust model to help identify
potential new locations and to predict gross sales.

The Challenge
The client had developed a portfolio with a diverse and varied mix of store
locations. The model generated by FSP had to provide strong indicators of
potential new store performance and comparable analysis for locations as
varied as regional flagships to seaside towns.

What we did
A robust and tangible model had to be developed by FSP to assist the selection
process. Elements of this model are outlined below.
Shopper Profile: Using demographic profiling, FSP classified the clients
existing shoppers, and used this to create a demand surface. This allowed
FSP to identify towns with high numbers of key shoppers a key factor in
identifying potential new sites

Business Context
The client, a British fashion and lifestyle brand
that sells clothing, footwear, accessories and
home products inspired by British country
lifestyles.
The company has 99 retail stores in the UK with a
turnover of over 117m. The brand has since
expanded overseas with particularly successful
sales in Germany and USA.

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October 26, 2015

Key Revenue drivers: A number of factors were tested against existing

stores gross sales. Several factors were identified as important drivers of
gross sales, these included:
Floor space provision relative to market size
Whether or not the town was an NSLSP Top 200 location
Number of key shoppers in the catchment
Number of residents aged 25-44 in the NSLSP catchment

Result
FSP delivered a model that had a high degree of accuracy in predicting
gross sales. We worked closely with the clients internal teams in
producing a prioritised list of locations to focus on.

Case Study: Recommended locations

FSP supplied the client with an interactive web based portal (DELV Data Enlivenment and
Visualisation) to provide key data and further understanding for each of the FSP identified
locations.
Shown are current stores (as of 2012), and
potential new sites, identified by FSP
When new sites are selected, a text box with
key demographic characteristics is shown,
allowing the client to view sites at a glance
and prioritise stores based on a range of
specified characteristics

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October 26, 2015

Pragma & St. Ives Group Global Expertise

Trading Performance

Space Supportable

Footfall Forecasts

Commercial Performance

International
Strategy
Brand Positioning

14

October 26, 2015

Concept Development

Tenant Mix

Financial
Analysis &
Modelling

Customer Attitudes

Customer Segmentation

Catchment Analysis

Customer
Insight

Brand &
Concept
Development

Market
Analysis

Space
Configuration &
Planning

Space Allocation & Utilisation

Space Configuration

Concept Generation & Mix

Market Segmentation

Market Projections

Competitor Mapping

FSP RETAIL BUSINESS CONSULTANTS

Testimonials
FSP's retail experience has given us knowledge of the trading
potential of new sites, while their clear advice on local market
strategy has had a direct impact on our approach.
Mark Gregory, Managing Director

I am very pleased to have given the approval to the research as this

really does appear to me to be money well spent.
Robert Wood, Fund Manager, Continental European Real Estate

I think this is an extremely good piece of work. The amount of insight

relating to what customers want is amazing. You all did an excellent
job.
Alexandra Petit , Group Head of Insight, Hammerson Plc

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October 26, 2015

FSP RETAIL BUSINESS CONSULTANTS

Simon Rosenberg
Senior Consultant

FSP RETAIL BUSINESS

CONSULTANTS

T +44(0)1949 474740
M +44(0)7495 638285
F +44(0)1494 474262

19 Manor Courtyard
Hughenden Avenue
High Wycombe
UK, HP13 5RE

Simon@fspretail.com

T +44(0)1494 474740
F +44(0)1494 474262
fspretail@fspretail.com
www.fspretail.com
www.snap-shop.co.uk