House of Fraser - International Housewares Association

Transcription

House of Fraser - International Housewares Association
Key Retailer Report
November 2014
With 60 stores, House of Frasier is third largest department store group
in the UK. Recently purchased by a Chinese parent company, there is a
high expectation for international growth for House of Frasier stores
online reach.
Corporate website: www.houseoffraser.co.uk/announcements
Consumer website: www.houseoffraser.co.uk
Contact Information (buying office)
27 Baker Street
London W1U 8AH, United Kingdom
Mr. Martin Shires, Head of Buying - Homewares Brands &
Hospitality and Dining
+44(0)207 003 4000
Email: [email protected]
Ms. Emma Cubley, Electrical, Kitchen and Dining Buyer
Tel: +44(0)207 003 4000
Email: [email protected]
Background Information
Year Established: A small drapers store opened in Glasgow in 1849.
Hugh Fraser, later to become Lord Fraser of Allander, joined the family
business in the 1920s with big plans and changed the business into a
thriving department store and started acquiring other independent
department stores throughout the 30s, 40s and 50s (including Harrods
in 1959). Then his son continued to acquire more stores throughout
the 1960s and 70s. In March 1994, House of Fraser was refloated on
the London Stock Exchange (Harrods was sold in a separate deal).
Since then House of Fraser has closed its older stores but also
opened new stores in city centers and anchor stores in out of town
shopping malls.
Number of Stores: 60
Total Annual Sales: £1,151.7m to end of Jan 2013 (from £1,117.8m to
Jan 2012)
Store Locations: Currently all House of Fraser Stores are in the United
Kingdom and Ireland, with one franchise store in Abu Dhabi.
Type of Store: All 60 stores are full department stores.
Average Store Size: Average store size is around 340,000 square feet
Housewares Percentage of
- Total Sales: 10%
- Total Square Meters: 10%
Position within the Market: UK's third largest department store group
Target Consumer: Above-average income consumer
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Stores and Products
Store Layout/Look/Feel: House of Fraser stores are high end department stores,
although there are still a few older stores in the portfolio in town centers which are smaller
and therefore do not have the same lifestyle displays
Home/Housewares Product Categories: All kitchenwares, dining, and home accessories
products. They stock both brands and own label
Pricing Strategy: Quality and design at great prices Quality/Design/Branding Strategy:
High quality alongside good design. They stock brands and their own label products as
well as exclusives from major brands such as Kylie Minogue Bedding exclusively for
House of Fraser.
Company Brands Sold: Le Creuset, Meyer, Kitchenaid, Global
Private Label Brands Sold: House of Fraser and Linea
Key Marketing Tools & Promotions: House of Fraser uses both
conventional advertising - TV and press, as well as digital marketing.
Suppliers and Sourcing
Sourcing Strategies: -
Global
Direct from global factories
Direct from vendors/product suppliers
Through Distributors.
Supplier Expectations Regarding: - Products: Products have to be aimed at the top-end of the market
- Pricing: Offer value for money for quality products
- Promotions: Hold regular events for cardholders
- Other: They develop own label products which can then be dual branded.
Success Factors and Expansion Plans & Expectations
Success Factors: The House of Fraser brand is differentiated from other department store groups in the UK by its 160
year history in the UK retail market, its wide geographic reach (across the UK and online), its broad range of high quality
premium branded merchandise offered at competitive prices, its increasing exclusive house brand offering and its
commitment to providing an imaginative, exciting and relevant shopping experience to customer.
They are undertaking significant work on extending and improving their email capabilities and presentation of customer
communication and effectiveness.
Expansion Plans: In April 2014 House of Fraser was sold to a Chinese conglomerate, Sanpower, which obtained 89% of the
shares. Nanjing Xinjiekou Department Store company bought an 89% stake in the Highland Group (the parent company of
House of Fraser). It was announced that this is the largest acquisition by a Chinese listed company of a foreign retailer. The
new owners stated that they are looking forward to bringing international brands to China through House of Fraser stores,
and are confident that House of Fraser will become a leading global department store chain. Before the announcement of
this sale, House of Fraser had announced they planned to open another 20 stores across the UK and Ireland by 2019.
Market Expectations: House of Fraser, under its new owners, is expecting to grow its brand in China and other overseas
countries. It has also stated that in the UK, internet sales continue to grow and in 2013 were 11% of all group sales.
Other Important Things to Know About This Retailer: Store refurbishment in the UK is a key part of their growth
strategy. Internet sales also continue to grow - in 2013, they increased by 53% over previous year (2012) which was on
top of a sales growth of 90% over sales in 2011.
The House of Fraser profile updated (November 2014) by:
IHA UK Office
Pam Plant
Tel: + 44 777 4132199
Email: [email protected]