Ireu Top500 Ecommerce Eu
Ireu Top500 Ecommerce Eu
Ireu Top500 Ecommerce Eu
A performance ranking of
Europe’s Top500 ecommerce
and multichannel retailers
2017
w w w. i n t e r n e t r e t a i l i n g . n e t / I R E U
3
Contents
Meet the team... IREU Top500 2017
Ian Jindal
Editor-in-Chief
Publisher, speaker,
advisor and NED, 04 Editor-in-chief’s introduction
Ian leads our editorial
and research businesses. 05 Research at a glance
[email protected]
Jonathan Wright
06 Methodology
Editor
Jonathan is an editor 07 What constitutes a retailer?
and journalist who has
written extensively 09 Partner perspective
about digital business and culture.
[email protected] 10 Strategic context: winds of change blowing through retail
Chloe Rigby
Editor
12 The IREU Top500 Footprint: the largest retailers
Chloe is the editor of
InternetRetailing.net 14 The IREU Top500 Performance: best-performing retailers
and an award-winning
business journalist. 16 Top500 distribution: understanding ecommerce geography
[email protected]
18 Strategy & Innovation: taking the lead
Martin Shaw
Senior Researcher
As head of the research
20 The Customer: meeting consumer expectations
team, Martin devises
both the scope and
22 Operations & Logistics: a range of options
the methods of InternetRetailing’s
extensive research. 24 Merchandising: communicate the product
[email protected]
26 Brand Engagement: reach out to customers
Fernando Santos
Research Project 28 Mobile & Cross-channel: shoppers on the move
Manager
Fernando ensures
research and analysis
30 Marketplaces
is complete, and that editors are
briefed, for each Dimension Report. 31 Brexit and an uncertain future
[email protected]
32 Ongoing research
33 Knowledge Partners
34 Conclusion
www.internetretailing.net/IREU
4 What constitutes a retailer?
Introduction
WELCOME TO THE second 2017 IREU Top500. My congratulations go
to all retailers included in this year’s Index and, in particular, to the Elite
retailers that top the rankings. There’s plenty of change in this year’s
line-up, with Apple, H&M and Zara now joined by Boots, IKEA and Nike.
As Sean Fleming points out in our strategic context feature (page 10), the
DELOLW\WRUHDFKDQGWKHQVWD\LQWKH(OLWHFDWHJRU\UHSUHVHQWVVLJQL¿FDQW
and constant progress.
Across the Index we’ve seen improvements to the way that retailers
are selling and performing across the European Economic Area, plus
Switzerland. It’s notable that the top category is now dominated by global
brands that have created and exported their own distinctive formulas
for retailing. All have strong roots in stores and enjoy close relationships
with customers who often act as brand advocates. All have innovated to
develop high-quality products that are relevant to their customers.
As a result, all have created a heritage that means we can’t now imagine
modern urban life without these major players. They have experimented
with, and embraced, changing retail formats as well as the move to digital
shopping. At the same time, they have continued to focus on staying both
excellent and consistent across their operations.
The theme that we’re detecting most strongly across this group of Elite
retailers is that of synthesis. These retailers are bringing the customer,
the product and the operations that underpin their businesses together
with the values of innovation, invention and integrity.
7KLVWRSFDWHJRU\LVQRWDEOHIRULWVLQWHUQDWLRQDOÀDYRXU2QO\RQH
of these retailers (Boots) hails from the UK, while the others are from
GL̆HUHQWSDUWVRI(XURSHDQGWKH867KH7RSKRZHYHUDUHPRVWO\
British. This is due, at least in part, to the fact that this research started
with the IRUK Top500, which analyses the performance of British brands
in an exercise that goes beyond which retailer has the highest turnover,
ecommerce revenues or web. It has since expanded to the larger market
of Europe as we look to learn which best-practice approaches are now
widely used, and which are still emerging in a fast-evolving retail market.
Throughout the pages of this report, we’re learning about what works
for leading EEA retailers in our six key Performance Dimensions. We’re
also looking at other factors that are bringing change to retailing on this
continent, from marketplaces to Brexit.
We hope that this year’s IREU Top500 will prove a useful tool for
retailers across the continent as they benchmark progress against peers,
competitors and growth partners to explore options that could help to
make their businesses more responsive in a world where the customer
LV¿UPO\LQFKDUJH,W¶VZRUNWKDWZLOOFRQWLQXHRYHUWKHQH[WPRQWKV
To keep up to speed with the changing world of European retail
throughout the year, go to www.internetretailing.net/subscribe and
select IREU from the options, or visit www.internetretailing.net/ireu
Ian Jindal
Editor-in-Chief, InternetRetailing
[email protected]
www.internetretailing.net/IREU
Research at a glance 5
Research at a glance
THE ELEMENTS INCLUDED in each Dimension 3.4 Mobile app – stock check features [retailers
are summarised below: with mobile apps]
www.internetretailing.net/IREU
6 Methodology
Methodology
Through this analysis of the leading European 4. Merchandising: considered whether
retailers, researchers aimed to understand UHWDLOHUVHQDEOHGFXVWRPHUVWR¿QGWKH
how successful multinational retailers go product quickly and then understand it
about competing with local indigenous through relevant images, information and
WUDGHUVWKURXJKWKHXVHRIFRXQWU\VSHFL¿F third-party reviews and ratings. Analysis
strategies that take account of the language, of stock newness was integrated to capture
culture and legalities of retail in each market. the full picture of merchandising activities.
2XUPHWULFV¿UVWJDXJHGWKH7RSUHWDLOHUV 5. Brand Engagement: assessed how
in the 31 countries of the European Economic retailers connected brands with the
Area, plus Switzerland, by Footprint, or size. customer, through social media and
:HWKHQPRYHGRQWRDQDO\VHWKH7RSOLVW direct marketing engagement and
across six Performance Dimensions: through search visibility.
6. Mobile & Cross-channel: considered
0. Footprint: RQOLQHDQGR̈LQHUHYHQXH how mobile websites were optimised and
web engagement and the store estate of the use of mobile apps. Cross-channel links
retailer businesses give the preliminary were analysed through the availability of
rank based on size and market impact SURGXFWFROOHFWLRQGURSR̆UHWXUQVDQG
from the customer’s perspective. In-house the ease of multi-device shopping.
UHVHDUFKLGHQWL¿HGHDFKUHWDLOHU¶VSK\VLFDO
SUHVHQFHDQG¿QDQFLDOSHUIRUPDQFHDFURVV Judgment
the region. Where that information was All judges and judgment systems are fallible
not available, our algorithms inferred data DQGRXUUHVHDUFKLVQRGL̆HUHQWLQWKDW
based on researched metrics. This analysis regard. Our methods and metrics have
was moderated and weighted in the evolved and become more sophisticated as
following Dimensions: ZH¶YHPRYHGRQIURPPHWKRGV¿UVWXVHGLQ
WKH,58.7RS
1. Strategy & Innovation: the extent
to which the retailer is adapting for growth, Knowledge Partners
international commerce and embracing We could not have completed this research
innovative approaches. without the generous advice and practical
2. The Customer: websites were tested for help of our Knowledge Partners. We’re
speed, as well as for the more subjective grateful to them all for the highly revealing
ease of navigation and search relevance, insights they’ve delivered and the generosity
which were considered likely to contribute with which they did this. Brand View,
to customer satisfaction. Researchers BuiltWith, Edited, Evidon, Hitwise, NCC
charted whether retailers personalised Group, Poq, and SimilarWeb are the IREU
customer communication channels or left 7RS.QRZOHGJH3DUWQHUVRI
WKHPWKHVDPHLQGL̆HUHQWFRXQWULHV
3. Operations & Logistics:
measuring the service promise for
deliveries, returns and collections.
www.internetretailing.net/IREU
Introduction 7
www.internetretailing.net/IREU
The most extensive
analysis on
Europe’s Top500
Retailers
Plus Six Annual Reports: The InternetRetailing Europe Top500 (IREU 500)
is the first Europe-wide retail performance index,
Brand Engagement: September 2017 gauging and comparing best practice across the
Mobile & Cross-channel: November 2017 trading bloc’s 500 most significant retailers.
Merchandising: January 2018 The Top500 blends quantitative data and qualitative
The Customer: March 2018 assessment to create the most important and
thought-provoking index of its kind. The reports
Strategy & Innovation: May 2018 provide case studies, best practice and suggested
Operations & Logistics: May 2018 approaches, emerging trends and interviews.
Register at internetretailing.net/ireu to
receive the latest reports direct to your inbox
Register for details
Partner perspective 9
Company spotlight
Rajan Balasundaram, Leader Strategist and Innovator;
VP Solutions at Emarsys, tells us about the challenges facing retail
HUKVWWVY[\UP[PLZVќLYLKI`HY[PÄJPHSPU[LSSPNLUJL(0
What does Emarsys do and on past behaviour or similarity to the consumer and don’t make them
what is its USP? to other customers. feel like they are being stalked.
Emarsys is a global B2C marketing $,ZLOOKDYHSURIRXQGH̆HFWVRQ
cloud company. It helps retailers the retail industry. It can provide a How is Emarsys helping retailers
to work at scale, personalising XQL¿HGSHUVRQDOLVHGH[SHULHQFHZLWK with these challenges?
interactions with individual the consumer, which is agnostic of Emarsys has been helping retailers
consumers in a seamless manner channel. This will make the in-store ZLWKLWV$,R̆HULQJIRUWKHSDVW
across channels. H[SHULHQFHWKHVDPHDVWKHZHE 12 months with some customers
H[SHULHQFHIRULQVWDQFH seeing an uplift in revenue of up to
What challenges are marketers AI can solve the problem of 0DQ\UHWDLOHUVVWDUWHGWHVWLQJ
facing in retail today? SHUVRQDOLVLQJWKHH[SHULHQFHIRU AI with sample segments of 10% of
Retail channels are merging and the end consumer. It can predict their consumer database, gradually
consumers are demanding a seamless what a customer will do, as well increasing the segment size to 50%
H[SHULHQFH0RELOHKDVJLYHQWKHP as highlighting to someone in the and upwards as the technology
the power in many ways, including business what message will produce proved itself. AI in retail is still in its
WKHDELOLW\WRFKHFNRQOLQHR̆HUV the best outcome. AI can work out infancy but it won’t be long before
while standing in store. from business goals which promotions, marketers turn on the full capabilities.
Disparate teams within the retail R̆HUVDQGSURGXFWVHOHFWLRQZLOO ,PSOHPHQWDWLRQVDUHH[SHFWHGWR
organisation are trying to solve SHUIRUPEHVWZKHQR̆HUHGWR skyrocket in 2019.
VLPLODUFKDOOHQJHVEXWLQGL̆HUHQW individual consumers. It will factor
in margins and discount levels based
ZD\VUHVXOWLQJLQDQH[SHULHQFHIRU
consumers that may not be joined on rules around short-term revenue
Emarsys in brief
up. Retailers, therefore, need one DQGORQJWHUPSUR¿WJRDOV Date launched: 2000.
database, which can bring all of these It gives the right discount levels Global reach:JOREDOṘFH
teams together – a single source of the to the right customers. Where one locations, serving more than
truth providing one place in which all consumer can be swayed by a 20% 2,000 clients in 140 countries.
of their data can be brought together, discount, another is more likely to Customers: eBay, Toys ‘R’ Us,
analysed and acted upon. FRQYHUWZKHQR̆HUHGIUHHGHOLYHU\ Nike, Canon, Volvo, American
IRUH[DPSOH$,FDQSUHGLFWZKHWKHU ([SUHVVDQG/¶2UpDO
How big an opportunity is AI product A or product B should be Employees: more than 700.
for retailers? included in a certain communication. Contact: for further information
The amount of data held about 7KLVXQL¿HGSHUVRQDOLVHGH[SHULHQFH contact Emarsys via Twitter at
customers is enormous. Analysing for customers is agnostic of channels twitter.com/emarsys, Facebook
that data, segmenting it and drawing VRHDFKR̆HUFDQEHSUHVHQWHG wwwfacebook.com/emarsys or
insight from it is better suited to a through the best channel whether /LQNHGLQOLQNHGLQFRPFRPSDQ\
PDFKLQHWKDQWRKXPDQV$UWL¿FLDO WKDW¶VDPRELOHR̆HUHPDLOZHE emarsys www.emarsys.com
intelligence (AI) can utilise machine or via ‘clientelling’ in store.
learning and pattern recognition As with all forms of personalisation,
to work out the best way to interact $,DXWRPDWHGR̆HUVQHHGWREH
with individual customers based presented in a way that is seamless
www.internetretailing.net/IREU
10 Strategic context
www.internetretailing.net/IREU
Strategic context 11
www.internetretailing.net/IREU
12 IREU 500 2017
Largest 50
Aldi Darty Ikea Pandora
Amazon Decathlon Kik Pull & Bear
Apple Deichmann LeroyMerlin Rewe
Argos Dm Lidl Rossmann
Auchan Douglas Mango Sainsbury’s
Bershka E.Leclerc Marks & Spencer SportsDirect.com
Biedronka Edeka Massimo Dutti Stradivarius
Boots El-Giganten Media Markt Tchibo
C&A Empik.com Mercadona Tesco
Carrefour Euronics Nespresso Topshop
Castorama Fnac New Look Zara
Coop H&M Nike
Coop Norden Hagebaumarkt OBI
Largest 100
A.T.U. Eduscho Jack & Jones RTV Euro AGD
Albert Heijn Ernsting’s Family JD Sports Samsung
B&Q Etam Kiabi Saturn
Blokker Expert Komputronik :JYL^Ä_
Boulanger Galeria Kaufhof Lindex Specsavers
Brico Dépôt Game Lloyds Pharmacy Superdrug
BUT Games Workshop Maisons du Monde Swarovski
Camaieu Gemo Media World Swatch
Carphone Warehouse Guess Micromania TK Maxx
Conforama Halfords Müller Wilko
Currys Hema Norauto Yves Rocher
Desigual Hornbach Otto
Dia Hugo Boss Plus.de
www.internetretailing.net/IREU
IREU 500 2017 13
Largest 150
Adidas G-Star Raw Morrisons Tom Tailor
Allegro Galeries Lafayette Neonet ;VTT`/PSÄNLY
Altex .PÄ Next Toolstation
Asda Google Play Obaïbi-Okaïdi Topman
Bauhaus Holland & Barrett Oysho ;V`ZŃ<Z
Cache Cache Homebase PC World <UPL\YV
Clarks Jennyfer Pepe Jeans London <YIHU6\[Ä[[LYZ
Clas Ohlson JYSK Pets at Home Waitrose
COS Kruidvat Pimkie WHSmith
Debenhams Lapeyre Promod Wickes
Diesel Lego Real Worten
Dorothy Perkins Microsoft Reserved
Esprit Mondadori Store Sally
Largest 250
Aliexpress Fashion ID Karwei Public.gr
Alinéa Flanco King Jouet QVC
Allopneus.com Forever 21 Kotsovolos Ralph Lauren
Alternate Fossil LaFeltrinelli River Island
Alza France Loisirs Louis Vuitton Roller.de
Aubert Fust Lush Schuh
Bata Gamma Mall.cz Spar
Bol.com GAP Manor Sportisimo
BonPrix GearBest Maplin Electronics Tape À L’Oeil
Brico Gigantti Martinus Tati
Cdiscount Go Sport Matalan Thalia
Chaussea Görtz Materiel.net Thomann
Christ Gucci Matras ;Y\ɈH\[
Continente H.Samuel Monki <UP[LK*VSVYZVM)LUL[[VU
Coradrive.fr Habitat Monoprix Vente-Privee
Cultura-Socultur hmv.com Monsoon Waterstones
Digitec Hollister MyToys Weltbild.at
Dr.Max Home Bargains Nature & Decouvertes Witt Weiden
Dunelm House of Fraser Notebooksbilliger Women’secret
E-shop.gr HP Oasis X-Kom
eBay Iceland Ocado XXXL
Ecco IKKS 6ɉJL 5.10.15.
El Corte Inglés Intersport Okay
Elkjop John Lewis Paperchase
eMag JouéClub Poco
Euro Car Parts Karstadt Praktiker
Largest 350
Abercrombie & Fitch Charles Tyrwhitt Furniture Village LightInTheBox PcComponente Top Secret
AKI Claire’s Globetrotter M-Electronics Migros Plaisio <IHSKP
AllSaints Cotswold Outdoor GO Outdoors Mediagalaxy Radiopopular <UKPa
Ann Summers Cyberport Grosbill Medion The Range <UPXSV
Asics Dänisches Bettenlager Heine Migros Richer Sounds Vanden Borre
Asos Datart Hobbycraft Militaria Rue du Commerce Venezia
Bang Good DeBijenkorf Jessops Mindfactory.de Selfridges Vero Moda
Baur Dior Kärcher Miss Selfridge size? Vertbaudet
BCC Dr. Martens Kasa Mohito Smyths Victoria’s Secret
Bild Shop Dreams Kijkshop.nl MömaX Spartoo Wayfair
Bonobo Jeans Eroski Krëfel Mothercare Sport Zone Webhallen
Breuninger Evans Cycles La Redoute Mountain Warehouse Stadium Wish
Bricoman Eventim Lacoste Nay TechnoMarket The Works
Carhartt Ex Libris Lakeland NetOnNet Technopolis Zalando
Cath Kidston Extreme Digital Laura Ashley Ole Ole Ted Baker & Other Stories
Ceneo Fat Face LDLC Oscaro Thansen.dk
Chain Reaction Cycles Frankonia Leen Bakker Oxybul TomTom
Largest 500
A.S. Adventure Bristol Forbidden Planet Microspot.ch Quiz Trony
Accessorize Burberry Gall & Gall Mimovrste Reiss <:*
Adolfo Dominguez Burton Goldsmiths Mio Electronics Brand Reservix Vans
Aktiesport Camper Hippoland Mironet RS Components Verkkokauppa
American Golf CarpetRight Hobbs London Misco Ryman Very
Apotek1 Cass Art /VɈULY Miss Etam s.Oliver Viking
Asus Cotton Traders Hunkemöller Missguided Scapino Vistaprint
ATS Euromaster Crocs 0U[LYÅVYH Morgan Schwab W. Kruk
Baby-Markt Czc.cz Jacamo MS Mode Shoe Zone Wallis
bareMinerals D-Mail Jack Wills Music Store Simply Be Warehouse
Bathstore Decitre JBC Myprotein Smyk We Fashion
BazarChic Delhaize.be JD Williams Net-A-Porter SoleTrader Wiggle
Bever Disney Store Just Eat The North Face Space.NK Woodbrass
Bijou Brigitte Dunnes Stores Karen Millen NotOnTheHighStreet.com Sportscheck Xenos
Bilka Dustin Klingel Orchestra Spreadshirt XXL
Billa Early Learning Centre Komplett 6]LYJSVJRLYZ<2 Staples Yoox
Blue Inc Ebuyer.com Konzum Peacocks Steg Electronics Yours Womenswear
Boden Electro Depot L’Occitane Pearl Superdry Zazzle
The Body Shop Electro World Lefdal The Perfume Shop T.S. Bohemia 3Suisses
Bonmarché Ellos Libri Philips Thomas Sabo
Boohoo.com The Entertainer Lipsy Phone House Thorntons
BookDepository.com Ernest Jones Littlewoods Photobox Timberland
Bose Evans M&Co 7VZ[6ɉJL:OVW Timpson
Bottega Verde -LLS\UPX\LJVT MajesticWine Prenatal Tokmanni
Boux Avenue Foot Locker MandM Direct Privalia Topps Tiles
Brantano Footasylum Medimax Puma Trainline
www.internetretailing.net/IREU
14 Top500 Performance List
Congratulations to the
IREU Top500 2017
This is our 2017 ranking of the Top500 in Europe, based upon each retailer’s performance across
our six Performance Dimensions: Strategy & Innovation, The Customer, Operations & Logistics,
Merchandising, Brand Engagement, and Mobile & Cross-channel
Our Elite retailers are statistically ahead of all others and they represent the pinnacle of European
multichannel retailing. Congratulations to Apple, Boots, H&M, IKEA, Nike and Zara
2017
Dm Kiabi Samsung
2017
www.internetretailing.net/IREU
Top500 Performance List 15
2017
Camaieu Hugo Boss Promod
Disney Store Hunkemöller River Island
eMag Jack & Jones Rossmann
Ernsting’s Family Lego s.Oliver
Eroski Lush Sally
Expert Maplin Electronics Specsavers
Accessorize Footasylum Microsoft Swatch
Albert Heijn Galeria Kaufhof Migros Tchibo
Alternate Galeries Lafayette Miss Selfridge Thalia
Ann Summers GAP Mondadori Store <UPL\YV
Blokker GO Outdoors Monoprix <YIHU6\[Ä[[LYZ
Bol.com Hema Monsoon Wallis
Boohoo.com Hollister Phone House Wilko
Boulanger Hornbach Prenatal Yves Rocher
2017
www.internetretailing.net/IREU
16 Top500 distribution
Top500 retailers
operating in a country
The number of IREU 500 retailers to have more than €10m revenue per annum from a member state
IREU 2017
www.internetretailing.net/IREU
Top500 distribution 17
Which member states are most important to a retailer? At one end of the
extreme we see the UK, France or Germany being the most important
markets for the majority of Top500 retailers. At the other, seven countries
aren’t the most important market for even one Top500 retailer.
IREU 2017
www.internetretailing.net/IREU
18 Strategy & Innovation
5(7$,/(567+$7&20%,1(VFDOHZLWK
PDUNHWOHDGLQJDQGMRLQHGXSDSSURDFKHV
WRGHOLYHUFRQQHFWHGUHWDLOVWDQGRXWLQ
WKH6WUDWHJ\ ,QQRYDWLRQ3HUIRUPDQFH
'LPHQVLRQ5HVHDUFKHUVPHDVXUHGWUDGHUV¶
SHUIRUPDQFHWKURXJKWKHVHUYLFHVWKDWWKH\
R̆HUWKDWDUHQRW\HWPDLQVWUHDPRUWKDW
PDNHFRPSHOOLQJVHQVHLQDPXOWLFKDQQHO 0RVWDOVRR̆HUDPRELOHDSSKDYLQJDQ
EXVLQHVV7KHVHDUHIRXQGLQDUHDVIURP $QGURLGDSSZLWKVXSSRUWLQJL26
ORJLVWLFVDQGFXVWRPHUVHUYLFHVWRORFDOLVDWLRQ :KHQLWFRPHVWRYLVXDOPHUFKDQGLVLQJ
IRULQWHUQDWLRQDODXGLHQFHV UHWDLOHUVLOOXVWUDWHSURGXFWVZLWKDQDYHUDJH
RIEHWZHHQWKUHHDQGIRXULPDJHVZKLOH
What the Top500 do HQDEOHZHEVLWHYLVLWRUVWRVDYHSURGXFWVWR
7RSUHWDLOHUVVHOOLQEHWZHHQWZRDQG DZLVKOLVW
WKUHHPDUNHWVWKURXJKRXWWKH(XURSHDQ
(FRQRPLF$UHDSOXV6ZLW]HUODQG7KH\GR How the leaders perform
VRLQEHWZHHQWZRDQGWKUHHODQJXDJHVZKLOH /DUJHUHWDLOHUVWKDWFRPELQHRSHUDWLRQDO
DFFHSWLQJEHWZHHQWKUHHDQGIRXUFXUUHQFLHV H[FHOOHQFHZLWKDZLGHLQWHUQDWLRQDOUHDFK
(DFKORFDOLVHVFRPPXQLFDWLRQFKDQQHOV VWDQGRXWLQWKLV3HUIRUPDQFH'LPHQVLRQ
VXFKDVEORJVHPDLOSKRQHDQGVRFLDOPHGLD +HDOWKDQGEHDXW\UHWDLOHU%RRWVVWDQGVRXW
WREHWZHHQWZRDQGWKUHHGL̆HUHQWFRXQWULHV IRULWVÀH[LEOHGHOLYHU\SURPLVHWKDWLQFOXGHV
DQGODQJXDJHV QRPLQDWHGGD\DQG6DWXUGD\GHOLYHU\ZKLFK
7UDGHUVR̆HUVKRSSHUVDFKRLFHRIEHWZHHQ LWFRPELQHVZLWKHQDEOLQJVKRSSHUVWREX\
WZRDQGWKUHHGHOLYHU\RSWLRQV7KHPRVW LQWKUHH(($ODQJXDJHV,WV(QJOLVKODQJXDJH
ZLGHO\R̆HUHGSUHPLXPRSWLRQLVQH[WGD\ ZHEVLWHZLOOGHOLYHUWKURXJKRXWWKHHQWLUH
GHOLYHU\ZKLOHQRPLQDWHGGD\ VLQJOHPDUNHW
DQGWLPHVDPHGD\6DWXUGD\ 8.GHSDUWPHQWVWRUHJURXS+RXVHRI
DQG6XQGD\GHOLYHULHVDUH )UDVHUR̆HUVVDPHGD\QRPLQDWHGGD\
FXUUHQWO\OHVVZLGHO\DYDLODEOH DQGQRPLQDWHGWLPHGHOLYHU\6ZHGLVK
0RVWR̆HUVRPHIRUPRIPXOWLFKDQQHO KRPHZDUHVFRPSDQ\,.($SHUIRUPV
GHOLYHU\VHUYLFHZLWKHQDEOLQJVKRSSHUV VWURQJO\DFURVV(XURSHHQDEOLQJFXVWRPHUV
WRSLFNXSRQOLQHRUGHUVLQWKHVWRUHDQG WRVKRSLQODQJXDJHVLQFOXGLQJ&DWDODQ
HQDEOLQJVKRSSHUVWRUHWXUQWKHLURQOLQH %DVTXHDQG6SDQLVK
RUGHUVWRWKHVWRUH5HWXUQVDUHSURFHVVHG )UHQFKIDVKLRQUHWDLOHU/D5HGRXWH
LQDQDYHUDJHRIGD\V VXSSRUWV(($ODQJXDJHVDQG¿YH
FXUUHQFLHVZKLOHVKRSSHUVDW6ZHGLVK
IDVKLRQJLDQW+ 0FDQFKRRVHEHWZHHQ
www.internetretailing.net/IREU
Strategy & Innovation 19
Localisation
The number of EEA countries, currencies and languages to which the average Top500 company has localised
A ABC
平
communication communication currencies websites websites
channels localised channels localised supported localised to localised to
to countries to languages countries languages
ODQJXDJHV8.FRPSXWHUVSHFLDOLVW3&:RUOG
KDVDSDUWLFXODUO\VWURQJGHOLYHU\R̆HUZLWK ,WLVQRWDEOHWKDW7RSUHWDLOHUVRSHUDWLQJ
VDPHGD\DQGQRPLQDWHGWLPHGHOLYHU\ LQWKH8.DUHPRVWOLNHO\WRR̆HUQH[WGD\
VHUYLFHVERWKDYDLODEOH VDPHGD\QRPLQDWHGGD\DQGQRPLQDWHG
6SDQLVKIDVKLRQEUDQG=DUDHQDEOHV WLPHGHOLYHU\HYHQWKRXJKWKHPDMRULW\
VKRSSHUVWRSD\LQFXUUHQFLHVDQGUHDG
Average retailers GRQRWR̆HUWKHVHRSWLRQV8.EDVHGDQG
LWVZHEVLWHLQODQJXDJHVZKLOH=DODQGR still tend to )UDQFHEDVHGVKRSSHUVHQMR\WKHZLGHVW
VXSSRUWVVHYHQFXUUHQFLHVDQGODQJXDJHV FKRLFHRIGHOLYHU\RSWLRQVRQDYHUDJHDW
have a purely
EHWZHHQWZRDQGWKUHHZKLOHWKRVHLQ
How the markets vary domestic 3RODQG*UHHFH6SDLQDQG*HUPDQ\KDYHDQ
:KLOHWKHDYHUDJH(XURSHDQUHWDLOHUPD\ outlook, DYHUDJHRIWZRRSWLRQV
VXSSRUWEHWZHHQWZRDQGWKUHHPDUNHWV &ROOHFWLRQLVPRVWZLGHO\IRXQGLQWKH8.
DQGODQJXDJHVDWWKHOHYHORIWKHLQGLYLGXDO supporting just ZKHUHRIUHWDLOHUVOLVWHGLQWKH,5(8
PDUNHWVDYHUDJHUHWDLOHUVVWLOOWHQGWRKDYH one language 7RSR̆HUWKHPXOWLFKDQQHOVHUYLFH
DSXUHO\GRPHVWLFRXWORRNVXSSRUWLQJMXVW 5HWDLOHUVWUDGLQJLQ*HUPDQ\GLVSOD\PRUH
RQHPDUNHWLQRQHODQJXDJH&RQVXPHUVLQ LPDJHVSHUSURGXFWWKDQWKH(XURSHDQ
FRXQWULHVZKHUHPRUHWKDQRQHODQJXDJHLV DYHUDJHDWEHWZHHQIRXUDQG¿YH$OPRVW
VSRNHQWHQGWRUHÀHFWWKDWFKRLFHRQWKHLU WZRWKLUGVRIUHWDLOHUVWUDGLQJLQ,WDO\
ZHEVLWH)RUWKDWUHDVRQ%HOJLDQFRQVXPHUV HQDEOHVKRSSHUVWRVDYHSURGXFWVWR
DUHPRVWOLNHO\WRKDYHWKHFKRLFHRI DZLVKOLVW
FRPPXQLFDWLQJLQPRUHWKDQRQHODQJXDJH
IROORZHGE\6ZLW]HUODQG5HWDLOHUVWUDGLQJLQ
ERWKFRXQWULHVR̆HURQDYHUDJHEHWZHHQRQH
DQGWZRODQJXDJHRSWLRQV
www.internetretailing.net/IREU
20 The Customer
www.internetretailing.net/IREU
The Customer 21
54%
ic ia
Po ea*
ia
Sw s
ze er n
ep y
Fr c
Fi e
Ire d
Be nd
D ium
ly
Po nd
om al
G ia
e
an
nd
li
ar
e
ai
an
ec
Ita
om ak
et str
ug
a
an
nd
ub
w
an
ed
la
la
Sp
g
gd
Ar
m
ch m
rla
lg
nl
re
or
on lov
er
rt
un
Au
la
en
in
he
itz
H
R
G
K
R
Sw
d
N
te
ni
Ec
C
U
an
pe
ro
Eu
Some small states, owing to the small sample size, are omitted from this table IREU 2017
www.internetretailing.net/IREU
22 Operations & Logistics
Operations
& Logistics 2QDYHUDJHUHWDLOHUVR̆HUEHWZHHQWZRDQG
WKUHHGHOLYHU\RSWLRQV7KHPRVWSRSXODU
SUHPLXPRSWLRQLVQH[WGD\GHOLYHU\
Choice is key for retailers designing delivery, 1RPLQDWHGGD\DQGWLPHVDPH
GD\6DWXUGD\DQG6XQGD\
collections and returns services that meet the GHOLYHULHVDUHFXUUHQWO\OHVVZLGHO\DYDLODEOH
needs of customers 7KHPDMRULW\R̆HUFXVWRPHUVVRPHIRUP
RIPXOWLFKDQQHOGHOLYHU\VHUYLFHZLWK
5(7$,/(567+$7*,9(DFKRLFHRIGHOLYHU\ HQDEOLQJSLFNXSLQVWRUHDQGVXSSRUWLQJ
RSWLRQVHQDEOHFROOHFWLRQIURPVWRUHDQG UHWXUQLQJRQOLQHRUGHUVWRWKHVWRUH2QH
SURYLGHHDV\UHWXUQVRSWLRQVDUHZHOOSODFHG LQ¿YH7RSWUDGHUVR̆HUVDVWRUH
WRFRPSHWHLQDUHWDLOHQYLURQPHQWZKHUH VWRFNFKHFNHULQDPRELOHDSSZKLOHKDYH
FXVWRPHUVH[SHFWHDV\VKRSSLQJ,W¶VDOVR DGGLWLRQDOVWRFNFKHFNLQJIHDWXUHV
ZKDWPDNHVWKHPVWDQGRXWLQWKH2SHUDWLRQV :KHQLWFRPHVWRUHWXUQVRIWKHLQGH[¶V
/RJLVWLFV3HUIRUPDQFH'LPHQVLRQ UHWDLOHUVHQDEOHVKRSSHUVWRUHWXUQLWHPVYLD
SRVW7KHQH[WPRVWSRSXODURSWLRQR̆HUHG
What the Top500 do LVUHWXUQWRVWRUHZLWKSLFNXSIURP
0RVW,5(87RSUHWDLOHUVR̆HUWKHLU KRPHR̆HUHGE\DQGYLDDGURSR̆SRLQW
FXVWRPHUVUHDVRQDEO\ÀH[LEOHGHOLYHU\ E\6KRSSHUVFDQUHWXUQJRRGVIRUD
FROOHFWLRQDQGUHWXUQVHUYLFHVZLWKPDQ\RI UHIXQGZLWKLQGD\VRQDYHUDJHDOWKRXJK
WKHPFKDUJLQJIRUWKHP0HGLDQVWDQGDUG GD\VLVWKHPHGLDQ
GHOLYHU\DPRQJWKHLQGH[¶VUHWDLOHUVFRVWV
¼DQGWDNHVEHWZHHQIRXUDQG¿YHGD\V
WRDUULYH7KHPHGLDQWKUHVKROGIRUIUHH
VKLSSLQJLV¼
;VWJVTWHUPLZ[VVɈLYJSPJRHUKJVSSLJ[PUHJV\U[Y`
Belgium 62%
Netherlands 60%
Germany 58%
Austria 57%
France 51%
Spain 47%
;OL,,(ÄN\YLPZH^LPNO[LKH]LYHNL
Some small states, owing to the small sample size, are omitted from this table IREU 2017
www.internetretailing.net/IREU
Operations & Logistics 23
+PɈLYLUJLZIL[^LLUTHYRL[Z
/RJLVWLFVSURPLVHVXOWLPDWHO\GHSHQG
ODUJHO\RQWKHDYDLODELOLW\RILQIUDVWUXFWXUH
DQGWKLUGSDUW\VHUYLFHVR̆HUHGZLWKLQHDFK
What the leaders do PDUNHW%HFDXVHRIWKLV,QWHUQHW5HWDLOLQJ
7UDGHVXSSOLHU6FUHZ¿[VWDQGVRXWLQWKH UHVHDUFKVKRZVDZLGHGLVSDULW\LQWKHW\SHV
7RSIRUR̆HULQJÀH[LEOHDQGUHODWLYHO\ RIVHUYLFHVRQR̆HUZLWKLQWKH(XURSHDQ
XQXVXDOGHOLYHU\RSWLRQVLQFOXGLQJ6DWXUGD\ (FRQRPLF$UHDSOXV6ZLW]HUODQG
DQG6XQGD\GHOLYHU\DQGQRPLQDWHGWLPH &ROOHFWLRQLVPRVWZLGHO\IRXQGLQWKH8.
GHOLYHU\ZKLFKLVR̆HUHGE\MXVWRI ZKHUHRIUHWDLOHUVOLVWHGLQWKH,5(8
7RSUHWDLOHUV6FUHZ¿[LVDOVRDPRQJWKH 7RSR̆HUWKHPXOWLFKDQQHOVHUYLFH-XVW
RIUHWDLOHUVWKDWR̆HUUHWXUQVYLDSLFNXS DTXDUWHURIOLVWHGUHWDLOHUVR̆HUWKH
IURPWKHKRXVH VHUYLFHLQ+XQJDU\7KHPDMRULW\RI
8.VXSHUPDUNHW6DLQVEXU\¶VR̆HUV UHWDLOHUVVHOOLQJLQ,UHODQGHQDEOHVKRSSHUV
6DWXUGD\VDPHGD\QRPLQDWHGWLPHDQGGD\ WRUHWXUQRQOLQHRUGHUVWRWKHVWRUH
GHOLYHULHVIRUQRQIRRGSURGXFWV&RPSXWHU 8.DQG)UDQFHEDVHGVKRSSHUVHQMR\WKH Logistics
UHWDLOHU$SSOHHQDEOHVVWRFNFKHFNLQJIURPD ZLGHVWFKRLFHRIGHOLYHU\RSWLRQVRQDYHUDJH
PRELOHDSSDQGLVDPRQJWKHWKDWR̆HU DWEHWZHHQWZRDQGWKUHHZKLOHWKRVHLQ promises
DGGLWLRQDOVWRFNFKHFNLQJIHDWXUHV5HWXUQVDUH 3RODQG*UHHFH6SDLQDQG*HUPDQ\JHQHUDOO\ depend on the
SUHSDLGDQGSLFNHGXSIURPWKHKRXVH KDYHMXVWWZRRSWLRQV
*URFHU:DLWURVHR̆HUVKLJKO\ÀH[LEOH 6RPHRI7RSUHWDLOHUVR̆HUQH[WGD\
availability of
UHWXUQVIRULWVQRQIRRGGHOLYHULHVUHIXQGLQJ GHOLYHU\ZLWKLQWKH8.ZKHUHDVQRUHWDLOHUV infrastructure
WKHFRVWRIUHWXUQLQJDQGR̆HULQJSUHSDLG R̆HUWKLVVHUYLFHLQ1RUZD\/LWKXDQLD
and services
UHWXUQV,WLVDPRQJDVPDOOJURXSWKDWR̆HUV 6ORYHQLDRU&URDWLD
WKHFKRLFHRIUHWXUQLQJYLDSLFNXSIURPWKH 1RPLQDWHGGD\GHOLYHU\LVR̆HUHGE\ within each
KRXVHDQGYLDGURSR̆DWDWKLUGSDUW\SLFN DQGQRPLQDWHGWLPHGHOLYHU\R̆HUHGE\ market
XSORFDWLRQ6XSHUPDUNHW$VGDSURPLVHV RI8.UHWDLOHUVZLWKQHLWKHUVHUYLFHDYDLODEOH
QRPLQDWHGGD\DQGWLPHGHOLYHULHVDORQJVLGH LQ1RUZD\/X[HPERXUJRU&URDWLD7KH8.
6DWXUGD\DQG6XQGD\GHOLYHU\6FKXKHQDEOHV VWDQGVRXWRQVDPHGD\R̆HUHGE\RIWKH
LWVFXVWRPHUVWRFKRRVHGD\DQGWLPHRI 7RSUHWDLOHUVGHOLYHULQJWRWKLVFRXQWU\
GHOLYHU\LQFOXGLQJ6XQGD\VDQGLVDPRQJ 7KDW¶VIROORZHGE\RIWKHUHWDLOHUVWKDW
WKHWKDWR̆HUVDPHGD\GHOLYHU\ GHOLYHUWR1RUZD\
0RYLQJLQWRFRQWLQHQWDO(XURSHWKH6SDLQ
EDVHG,QGLWH[JURXSIHDWXUHVWKUHHWLPHVKHUH
WKURXJKLWVEUDQGV3XOO %HDU%HUVKNDDQG
=DUDIRUVHUYLFHVLQFOXGLQJVWRFNFKHFNLQJLQ
WKHDSSDQGÀH[LEOHUHIXQGSROLFLHV)UHQFK
FORWKLQJWRKRPHZDUHVUHWDLOHU/D5HGRXWH
JLYHVSUHSDLGUHWXUQVZKLFKFDQEHSLFNHGXS
IURPWKHKRPHRUGURSSHGR̆DWDWKLUGSDUW\
ORFDWLRQIRUDIXOOUHIXQG
www.internetretailing.net/IREU
24 Merchandising
Communicate
the product products with friends, while 37% enable social
validation and 23% enable shoppers to Like
their products on Facebook.
Explaining products in detail is crucial More than two-thirds (69%) recommend
similar products to shoppers, while 22%
for successful online trading recommend an upgrade through up-selling,
with 53% enabling shoppers to save products
to a wishlist.
RETAILERS THAT STAND out in the Just under half (49%) of Top500 retailers
Merchandising Performance Dimension require customers to register before checking
go the extra mile to explain their products out, while they also need to complete between
and show how they are relevant to potential three and four pages at checkout.
buyers. Images, product descriptions,
reviews, ratings, website navigation, social What the leaders do
sharing, cross-selling and upselling are all Social shoppers are catered for at UK DIY
key tools, as is ensuring that customers who retailer Homebase, which enables shoppers
have chosen their products can then buy them to Like products on Facebook and to validate
easily through short checkout procedures, products on social networks. It shares
with no requirement to register. product ratings and encourages browsers to
trade up through the use of upselling.
What the Top500 do UK grocer Ocado also uses upselling.
Most IREU Top500 retailers make their 9LVLWRUVWRLWVVLWHFDQ¿OWHUWKHLUVHDUFKHVE\
websites easy to search and navigate. Drop- brand as well as see product ratings and use
GRZQVHDUFKVXJJHVWLRQVDUHR̆HUHGE\ social validation.
ZLWKHQDEOLQJFXVWRPHUVWR¿OWHUWKHLU UK fashion retailer Very makes it easy for
search by price and 72% by product type. VKRSSHUVWR¿QGWKHLUZD\DURXQGLWVZHEVLWH
Filtering search by brand is enabled by 51% of 6KRSSHUVFDQ¿OWHUWKHLUVHDUFKHVE\EUDQG
retailers while a third (33%) ensure that the or use the real-time suggestions that drop
website displays results even when shoppers down as they type in the search box. The
search for an item that’s not stocked. retailer makes alternative product suggestions.
Product information is communicated Shoppers can also Like products.
through more than descriptions and reviews as Littlewoods is one of the 10% of Top500
ratings and images also play their part. Across retailers that has a ‘bestseller’ ribbon. Its
Europe, retailers showed between three and products are Like-able and its website shows
four product images, with about 50% showing product ratings.
product ratings and 52% product reviews. Smyths shows product images, ratings and
Most (77%) use banner advertising, while 10% reviews and enables search by brand. It does,
XVHDµEHVWVHOOHU¶ULEERQWRÀDJXSSRSXODU however, require customers to register before
SURGXFWV7KHXVHRIR̆HUVLVZLGHVSUHDG they checkout.
81% of Top500 retailers display obvious
promotions on their product pages.
Social media plays an important part in
the selling process for many traders. More
than half (53%) enable shoppers to share
www.internetretailing.net/IREU
Merchandising 25
64%
6%
ok
os
&M
ls
ds
es
is
go
&S
x
&F
ex
te
r
ge
m
r
ho
de
o
ax
ho
Ve
Za
ch
As
oo
Lo
oh
an
or
M
a
N
(F
H
Le
id
M
ui
ps
ic
nh
at
-P
w
M
Bo
lfr
sg
ew
o
N
TK
To
hn
e
e
sc
-A
Se
ttl
eb
is
y
N
Jo
ve
Te
et
M
Li
D
N
ar
H
IREU 2017
Researched in collaboration with Knowledge Partner Edited in May and June 2017
www.internetretailing.net/IREU
26 Brand Engagement
Reach out
to customers The research team also looked at how Top500
retailers enable customers to rate and share
products via their mobile apps. They found
Enabling shoppers to follow and share on social that 40% enable sharing items on social media
from the mobile app, while 12% enable social
media, while making it easier for them to get in media Likes. Just over a quarter (27%) display
touch through a range of channels, helps retail star ratings, while just under a quarter (25%)
IYHUKZLUNHNLLќLJ[P]LS` R̆HUZULWWHQSURGXFWUHYLHZV
www.internetretailing.net/IREU
Brand Engagement 27
Market variations
InternetRetailing research suggests some
sizeable variations in brand engagement
between markets. The average British Hungarian consumers appear the most
UHWDLOHUIRUH[DPSOHVXSSRUWVPRUHZD\VIRU predisposed to give the thumbs up to a
customers to get in touch, at between four Facebook page, with retailers who trade there
DQG¿YH7KDW¶VIROORZHGE\*HUPDQ6SDQLVK having a median of 291,585 Likes. Twitter Research found
Dutch and French retailers, at between appears to be much more widely used in the
that 80% of new
three and four. At the other end of the scale, UK than other markets, with British retailers
+XQJDULDQDQG'DQLVKUHWDLOHUVR̆HURQ enjoying a median following of 26,154. customers to
average, between one and two channels. Search referrals carried most weight in the Top500 websites
The average European retailer may support UK, with 81% of new customers referred from
between two and three markets and languages a search engine, followed by Germany (65%) came via
but at the level of the individual markets, and Italy (64%). search engines
average retailers still tend to have a purely
domestic outlook, supporting just one market
in one language – or between one and two
languages in Belgium and Switzerland, where
more than one language is spoken.
Top500 retailers that support social media likes of their products (%)
Finland 35%
Norway 32%
Portugal 30%
Sweden 29%
Ireland 29%
Poland 27%
Belgium 27%
France 26%
Spain 24%
European Economic Area* 23%
;OL,,(ÄN\YLPZH^LPNO[LKH]LYHNL
Some small states, owing to the small sample size, are omitted from this table IREU 2017
www.internetretailing.net/IREU
28 Mobile & Cross-channel
Shoppers on
What the Top500 do
4\S[PJOHUULSYL[HPSLYZVɈLYPUNYL[\YUVMLJVTTLYJLVYKLYZ[VZ[VYL
Ireland 65%
Greece 54%
Hungary 52%
Denmark 50%
United Kingdom 47%
Norway 47%
Poland 47%
Sweden 46%
Germany 45%
Switzerland 44%
European Economic Area* 43%
Slovakia 42%
Italy 42%
Austria 41%
Netherlands 40%
;OL,,(ÄN\YLPZH^LPNO[LKH]LYHNL
Some small states, owing to the small sample size, are omitted from this table IREU 2017
www.internetretailing.net/IREU
Mobile & Cross-channel 29
www.internetretailing.net/IREU
30 Marketplaces
Marketplaces
Even in the age of Brexit, selling on EU online marketplaces makes
sense, says Dan Wilson, editor of our sister title, tamebay.com
AMAZON CERTAINLY GETS the column And what about Brexit? There is one obvious
inches and any examination of the upside: the relative strength of the euro
marketplace environment in Europe will means sales in sterling look rather attractive
reveal the Seattle-based ecommerce giant right now, so long as you’re in the UK and
as a dominating force. But it’s important to selling to the EU. Naturally, there is also
remember that it isn’t the only show in town. uncertainty. Will the UK adopt a Norwegian-
eBay remains a key player that’s still style EEA position, a hard Brexit or retain
popular with many retailers. It also operates free movement of goods? Nobody knows and
in more EU countries than Amazon, which any change in circumstance is still nearly two
only has dedicated websites in the UK, years away. There doesn’t seem much point
France, Italy, Spain and Germany, with some in dragging your heels until there is clarity as
IXO¿OPHQWLQ3RODQGDQGWKH&]HFK5HSXEOLF WKDW¶VPRVWOLNHO\VWLOODORQJZD\R̆
But even these two marketplace titans don’t Even in a hard Brexit situation, it strikes
KDYHDVWUDQJOHKROG,Q)UDQFH3ULFH0LQLVWHU Tamebay that the best place to be selling is
(part of the Rakuten Group), CDiscount and on pan-EU marketplaces. It will be expedient
La Redoute are all powerful. For the BeNeLux to them to help merchants to surf any storm.
countries, Bol is vital. Looking east, Allegro Indeed, that’s exactly what they do already.
is bigger than both Amazon and eBay in The greatest single headache right now
3RODQG$QGGRQ¶WIRUJHWWKHOLNHVRI=DODQGR for marketplace sellers trading cross-border
Spartoo and Fruugo – all are open to third- among all the member states is VAT. If
party retailers that want to sell online via merchants sell to each country, then this
marketplaces in various parts of Europe. FRXOGPHDQ¿OLQJDVPDQ\DVVHSDUDWH9$7
The challenge for retailers, big and small, returns a year. Needless to say, services have
is to be platform agnostic. It isn’t a case of emerged that will cope with that problem.
having an ‘Amazon-like strategy’ or an Even Amazon will do returns for a fee. But
‘eBay-type approach’. The focus must be on the point remains that it always makes sense
making sales to customers via any channel to be part of the club.
that doesn’t damage or dilute the brand. It is very tough, and very expensive, to
7KHHYHU\GD\WDVNVRIIXO¿OOLQJRQH make a splash quickly with a retail brand
marketplace or another are not markedly selling directly from a website. But as a
GL̆HUHQWDVORQJDVUHWDLOHUVKDYHWKHEDFN PDUNHWSODFHVHOOHUUHWDLOHUVFDQ¿QGVDOHV
end management and despatch processes in faster. The question of where to sell depends
place. Language can be a problem but once on you and your goods.
that’s cracked, retailers can sell pretty much
anything, anywhere. The many multichannel
marketplace providers that can plug into
many (if not all) of the 400 or so EU online
retail sites can do much to grease the wheels
of commerce.
www.internetretailing.net/IREU
Brexit 31
FRUIT AND VEG pickers are in short supply What the implications might be in post-Brexit
this year in the UK, apparently. The reason Europe for regulations and the bureaucracy
– and it’s unlikely you need it spelled out to of cross-border trading are presently anyone’s
you – is Brexit. Or rather, the uncertainty guess. To speculate on them here would be of
surrounding Brexit because in the 12-plus limited value, but this complete lack of any
months since the UK voted to leave the certainty, or even a coherent strategy, is a
European Union, much has been said but problem in itself.
little has been decided. However, rather than sit around waiting for
Unless you’re a hedge fund manager, politicians and civil servants to do something,
uncertainty is bad for business. However, the business community has been getting on
I’m betting you’re not a hedge fund manager. with life. Despite, according to a news story
Although I am simultaneously betting a in InternetRetailing in June, “68% of UK
slightly smaller amount that you are. retailers have yet to start planning for Brexit”,
The problem facing fruit and vegetable some others are meeting the European
farmers is present in other labour-intensive question head-on.
sectors too, in varying degrees. With Take AO.com and ASOS. Both have
uncertainty over their future in the UK, many distribution centres on the European
EU nationals who were living and working mainland. Having stock located within the EU
here have left. The exact size of this so-called is advantageous on a practical level, of course,
‘Brexodus’ is unknown but any disruption to but it goes beyond that, giving such retailers
the supply of labour, and more importantly a real sense of European identity. Not only
the skills contained within, is a concern in are they physically part of the market they
retail and its associated distribution sector. serve but as a result of that proximity, it is
7KHUHLVDOVRWKHUHFHQWÀXFWXDWLRQRQ also likely that sales to the rest of Europe will
the currency exchange market to consider. JURZ±LQYROXPHYDOXHDQGVLJQL¿FDQFH±
On 22 June 2016, the day before the EU potentially changing the culture and outlook
referendum, the pound was trading at €1.30. of those retailers.
By early July, it had fallen to €1.16 and, by Will more British retailers ultimately seek
23 June 2017, it was at €1.13. out a second home on the continent? For the
It’s a similar story when comparing the next year at least, and possibly for longer,
pound to the US dollar – the post-referendum your guess really is as good as our’s.
period has seen lower values for sterling than
at any time in more than ten years. All of
which pushes up costs for businesses buying
in goods and services from overseas.
(Source: forex data taken from XE.com)
www.internetretailing.net/IREU
32 Ongoing research
Ongoing research
OUR RESEARCH DOESN’T stop here. Instead, we see the annual
publication of the IREU Top500 as an important moment in an ongoing
process. Over the next year and beyond, we will continue to analyse the
performance of Europe’s leading retailers. Through this process, we
ZLOOFRQWLQXHWRUH¿QHWKHPHWULFVZHXVHDVZHDLPWRSURYLGHWKHPRVW
comprehensive quantitative and qualitative analysis of the European
retail sector to our readers.
Through the year, we will also publish a series of six Dimension
5HSRUWV(DFKIRFXVHVRQDGL̆HUHQWDVSHFWRIUHWDLOSUDFWLFH±6WUDWHJ\
& Innovation, The Customer, Operations & Logistics, Merchandising,
%UDQG(QJDJHPHQWDQG0RELOH &URVVFKDQQHO±DQGDVVHVVHVKRZ
leading European retailers are performing in these Dimensions. Each
Dimension Report features best practice case studies, interviews with
leading retailers and expert analysis of industry developments.
Looking beyond Europe, we are expanding the international scope
of our research. Already, we have completed initial work on the IRAU
and IR-ASEAN. These assess, respectively, retailers operating in
Australia, and in territories that are members of the Association of
Southeast Asian Nations. Both of these Indices will be completed for
September 2017.
Late in the year, we will be updating the InternetRetailing
Multichannel Brand Index (IRBX), which looks in depth at how brands
work as they contest ground traditionally owned by retailers through
their own direct-to-customer operations. In January 2018, we will
publish the new version of the IRUK Top500, which looks in depth at
UK retailers. By then, we should be getting some fascinating data about
how Brexit is impacting on British retailers.
Finally, we produce separate, in-depth research into some of the
Top500 in collaboration with our Knowledge Partners (see facing page)
DQGZHZRXOGOLNHWRDFNQRZOHGJHVRPHVSHFL¿FFRQWULEXWLRQVKHUH
The Product and Merchandising Tracker, researched in partnership
with Brand View, reveals the merchandising sophistication of some
of the largest retailers across several verticals, including the type of
information and imagery that can be found on their product display
pages. Edited, the fashion strategy company, collaborates with
,QWHUQHW5HWDLOLQJWRUHYLHZWKHSULFLQJDQGVHOORXW¿JXUHVIRUWKH
largest fashion retailers operating in the UK. Follow the research blog
on internetretailing.net for updates on these and other research topics.
www.internetretailing.net/IREU
Knowledge Partners 33
Knowledge Partners
0U[LYUL[9L[HPSPUN^V\SKSPRL[V[OHURV\Y2UV^SLKNL7HY[ULYZ[OLJVTWHUPLZ[OH[OH]LVќLYLK
original research insights, plus advice and guidance, in putting together the IREU 500
Edited Poq
,KP[LK[YHJRLK[OLWYVK\J[ZVɈLYLKHUK[OLWYPJLZ 7VXJVU[YPI\[LKHKH[HZL[VU[OLYLSH[P]L]HS\LVMHWW
[OL`^LYLVɈLYLKH[VMMHZOPVUYL[HPSLYZV]LY[OL MLH[\YLZTLHZ\YLKI`[PTLZWLU[PUHWWH]LYHNLVYKLY
[^LS]LTVU[OWLYPVK[V1\UL;OPZYL]LHSLKZ[VJR ]HS\LHUKJVU]LYZPVUYH[L;OLHWWKL]LSVWLYHSZV
UL^ULZZHUK[\YUV]LYWS\Z[OLIYLHK[OHUKKLW[OVM HZZPZ[LKPU[OLKLZPNUHUKYLZLHYJOVMHWHU,\YVWLHU
KPZJV\U[PUNHJYVZZ[OLSHYNLZ[MHZOPVUYL[HPSLYZ HWWJHWHIPSP[`Z[\K`\ZLKPU[OPZYLWVY[
edited.com www.poqcommerce.com
Evidon SimilarWeb
,]PKVUWYV]PKLKHUPUZPNO[PU[V[OLLUNHNLTLU[SL]LSVM :PTPSHY>LIH^LI[YHɉJTVUP[VYPUNJVTWHU`
LUKJVUZ\TLYZ\ZPUNPUKP]PK\HSYL[HPS^LIZP[LZHUKPU JVU[YPI\[LKKH[HVU[OLU\TILYVM\ZLYZ\ZPUN
HKKP[PVU[YHJRLKYL[HPSLYZ»\ZHNLVM[OPYKWHY[`ZVM[^HYL 09,<^LIZP[LZVUHJV\U[Y`ZWLJPÄJIHZPZ
www.evidon.com www.similarweb.com
www.internetretailing.net/IREU
34 Conclusion
www.internetretailing.net/IREU