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 (Continued on back) 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]
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