4. Brantano UK - Macintosh Retail Group

Analysts Presentation
Macintosh Retail Group UK
1
October 13, 2011
Timetable
10.15
Frank De Moor - welcome
10.15
David Short – MD Brantano
10.40
Andrew White – COO Jones Bootmaker
11.00
Warehouse Tour
11.30
Lunch
12.30
Travel to Tamworth
13.10
Visit Brantano store in Tamworth
13.45
Travel to Birmingham
14.15
Visit Jones Bootmaker and Gordon Scott stores
15.30
Return to airport
2
1. UK MARKET OVERVIEW
3
Footwear market growth 2000 - 2010e
Market size
£m
Y-o-Y change
%
9.000
6,0
4,5
4,6
4,5
4,0
3,4
4,0
8.000
1,9
1,8
1,9
2,0
0,7
0,6
7.000
0,0
-1,5
6.000
-2,0
5.482
4.949
5.000
5.117
5.209
5.588
5.505
5.609
5.245
-4,0
4.731
4.549
4.353
-6,0
4.000
-8,0
3.000
-10,0
2000
2001
2002
2003
2004
2005
2006
Source: Verdict Research
2007
2008
2009
2010e
4
Footwear market price inflation 2000 – 2010e
Source: Verdict Research
5
UK Footwear Specialists
5.1%
9.8%
3.4%
6
Footwear space growth of clothing specialists
Source: Verdict Research
7
UK Clothing and Sports specialists
4.7%
6.6%
3.0%
6.7%
8
Channel share of footwear market - 2005 v 2010e
4%
6%
15%
16%
27%
34%
45%
37%
Source: Verdict Research
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2. Brantano UK – 2006 / 2010
10
Key Dates
1998
Brantano acquires 47 Shoe City Stores from BSC
1999
Shoe City stores renamed and refitted.
2001
Head Office and DC relocated to Coalville.
2003
27 stores purchased from Famous Brunswick Warehouse
2008
MRG purchase Brantano UK
11
Head Office

based in Coalville, Leicestershire.

100,000 square foot DC

78 Head Office staff

50 DC operatives
12
Current Store Portfolio

145 stores.

1,050,000 square feet selling space.

Typical store 7500 sq. ft. (700 sq. metres).

1850 retail sales staff (706 FTE).

Retail parks / Out of Town.

Easy Access / Free Parking.

Self service by size.

Convenient family shopping.
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Product Ranges

shoes for the whole family

ladies, men’s, children’s, sports, wellingtons,
slippers.

a wide range of complementary accessories.

a professional fitting service and dominant
range of children’s shoes.

mid market socio-economic groups.

mainstream classic / mainstream fashion.

good – better – best philosophy.

Clarks, Hush Puppies, Rocket Dog, Skechers,
Caterpillar, Nike, Adidas, Puma.
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3. Brantano UK – Numbers and Initiatives
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Brantano UK before acquisition

Poor product ranges with no brand authority.

Store lay out and design out-dated and poor store standards.

Inadequate stock management and range planning processes.

Expensive and misdirected marketing.

Retail execution not customer focussed.

Head office structure too heavy.
Brantano UK loss making
Brantano Margin Growth
Key initiatives post acquisition…
• Reduced branded mix
• Direct sourcing of own label shoes through Mac HK
 Control of styling
 Control of quality
 First cost FOB prices
 Margin control
• Robust planning process
• Disciplined in season management
 Reduced margin erosion
17
Improve Store Design
Fresh, contemporary feel to
our new stores and refits
18
Improve Store Layout
Product authority on
core areas
Hanging boots add value to
product and easier to shop
19
Improve Brand Authority
20
Brantano EBITDA evolution
Under Brantano ownership
Under MRG ownership
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4. Brantano UK – The Future
22
Grow Store Portfolio

Accelerate portfolio growth with 30 new store openings in
the next 3 years.

Appointed a new Acquisition Surveyor to focus on new
stores.
23
Launch new Internet site – www.brantano.co.uk
Launched
September 21st
Providing customers with an improved customer
journey, a new intuitive search functionality and a
quick and easy check out process.
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Launch new Internet site – www.brantano.co.uk
Key focus on driving customers to our website…and our stores
• New online affiliate marketing
programme launches October 2011.
• Optimise our existing customer
database to raise awareness of our
brand and drive traffic to our stores.
• Focus on SEO to bring new customers
to our website.
• Use the internet site to widen our reach
in the UK.
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Launch new Internet site – www.brantano.co.uk
…and driving additional sales through our website.
• Sell via Amazon from December 2011.
• Offer the full range of Clarks and Hush
Puppies with a back to back ordering
system.
• Further increase our range of ‘web
exclusive’ brands and styles.
• Link Intreza to the UK market.
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Targets for Brantano in UK market

Become the destination footwear store for families
nationwide.

Build on position as dominant Out of Town footwear retailer.

Add a further 30 stores in next 3 years.

Continue to build margins with improved sourcing.

Increase leverage with increased volumes.

Launched new web site September 2011.

Maximise potential of Internet.

Move from recovery phase to period of growth.

Consistent EBIT improvement.
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