Ireu Top500 Ecommerce Eu

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At a glance
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The report discusses the top 500 European retailers and their performance across different dimensions like strategy, innovation, customer experience, operations etc.

The report covers topics like the methodology used, profiles of top performers, strategic context and changes in retail, performance across different geographies, and the impact of factors like mobile and cross-channel shopping.

Some of the top performers like Apple, H&M, Zara, Boots, IKEA and Nike are discussed. These retailers are noted to have brought together customer experience, products and operations with a focus on innovation, invention and integrity.

Sponsored by

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

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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]

0. Footprint Dimension 4. Merchandising


0.1 EEA retail turnover, ranging from €2m to 4.1 Customer-perspective website review,
€70bn – average €2bn including 23 metrics covering design,
0.2 The ecommerce subset of the above, ranging navigation, the relevance of search results,
from €2m to €30bn – average €330m product information and visual appeal
(($ZHEWUḊFUDQJLQJIURPPWREQ± 4.2 Mobile app assessment, including nine
average 202m page views per annum PHWULFVFRYHULQJXVHRIQRWL¿FDWLRQVSURGXFW
0.4 Number of EEA stores, ranging from 0 to display and personalisation [retailers with
±DYHUDJHVWRUHV mobile apps]
4.3 Merchandising and product review,
1. Strategy & Innovation including number and depth of promotions,
1.1 Growth orientation across the EEA, measuring the fraction of a retailer’s range with reviews
how many supported languages, currencies, and descriptions, the number of images per
DQGFRXQWULHVUHWDLOHUVR̆HUUHJDUGOHVVRIKRZ product and the fraction of range that is out
VLJQL¿FDQWFXUUHQWVDOHVDUHYLDWKRVHSRUWDOV of stock [largest retailers]
1.2 Strategic practice, including an expert-
designated selection of metrics that catalogue 5. Brand Engagement
a retailer’s embrace of technological or 5.1 Social media presence and availability,
organisational best practice including 22 metrics, taking into account
1.3 Innovative practice, including a selection of the use of 10 social networks, email and
metrics from other Dimensions that, to date, blogs; the size of audience and interaction
are only used by the leaders with it on Twitter; and the net change over
three months
2. The Customer 5.2 Facebook assessment, including 13 metrics,
2.1 Desktop and mobile homepage performance, covering the total number of people talking
including engineering and responsiveness – about the brand, the frequency of posts and
VSHHGLQGH[WLPHWR¿UVWE\WHWLPHWRYLVXDO interaction with recent posts
completion, use of third-party tags, etc 5.3 Website review: assessing the integration of
2.2 Customer service response time and social media, sharing and social validation
helpfulness – Facebook, email and phone 5.4 Mobile app: assessing the incorporation of
2.3 Number of socially active customers and their social media, sharing and social validation
interaction levels [retailers with mobile apps]
:HEVLWHQDYLJDWLRQ±WKHHDVHRI¿QGLQJD 5.5 Search assessment including total
desired product, including tabs, icons, search applicable keywords, total reach, share
DQG¿OWHULQJ of search compared to other retailers
2.5 Customer feedback – incorporation of and relative visibility in search results
customer reviews and product ratings on the [some jurisdictions]
product display page
2.6 Mobile app – incorporation of customer 6. Mobile & Cross-channel
reviews and product ratings [retailers with 6.1 Mobile home page performance, including
mobile apps] engineering and responsiveness: speed
LQGH[WLPHWR¿UVWE\WHWLPHWRYLVXDO
3. Operations & Logistics completion, etc
3.1 Delivery, including 10 metrics covering the 6.2 Mobile app, including 24 metrics, measuring
range of options, plus competitiveness of the usability and functionality of apps and
time frames and pricing weighting features according to their impact
3.2 Returns, including 10 metrics covering the on average order value (AOV), time spent on
ease of the returns and refund process to the app and conversion rate
customer, plus the range of options, including 6.3 Cross-channel, taking into account use of
return to store SK\VLFDOVWRUHHVWDWHIRURUGHUIXO¿OPHQWDQG
3.3 Collection – a summary of collection return, store information on the website,
SRLQWVR̆HUHGE\UHWDLOHUVLQFOXGLQJRZQ in-store functions of apps and cross-channel
stores, transport locations, lockers and loyalty accounts [retailers with stores]
third-party stores

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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

What constitutes a retailer?


THE MULTICHANNEL RETAIL landscape Exceptions: in every good list there’s an
is more complex than merely ‘having a exception, where we may include a business
website’ or ‘operating a store’, especially when GXHWRLWVLQÀXHQFHXSRQUHWDLOHUVDQG
considering companies operating at a pan- retailers’ customers. Some of these companies
European level. In choosing which companies ZLOOEHLQFOXGHGZLWKLQ,5(87RS
WRLQFOXGHLQWKH,5(87RSZHKDYH and others are tracked for information on
considered companies’ intent, capabilities their impact on retailers.
and activities around the recruitment and
PRQHWLVDWLRQRIFXVWRPHUV7KHGH¿QLWLRQRI
a ‘retailer’ for inclusion in our research is:

Destination: the retailer has created a


destination that, in the minds of customers,
is a source of product, service or experience.
Whether this destination is a shop, a site,
a place, a time or an event, it’s the sense of Companies excluded from
‘locus’ that counts.
the IREU Top500
Purpose: the retailer has created goods Marketplaces: where a candidate retailer
and/or services for the purpose of selling, for is simply a marketplace, the company is not
consumption by the purchasing consumer. featured. Where a marketplace undertakes
customer acquisition, manages payment,
Merchandising: the retailer actively sells FXVWRPLVHVR̆HUVDQGUHFRPPHQGDWLRQV
and is not just a portal for taking customers’ DQGR̆HUVUHFRXUVHRQSXUFKDVHVWKHQWKH
money. This means the selection, promotion company will be eligible for inclusion. For
DQGWDLORULQJRIUHWDLOR̆HUVIRUFXVWRPHUV PRUHRQWKHLQÀXHQFHRIPDUNHWSODFHVRQ
WKHRYHUDOOUHWDLOODQGVFDSHVHHSDJH
Acquisition: the retailer actively markets,
recruits and attracts customers with a 3XUHWUDQVDFWLRQWDUL̆Vwhere
promise or proposition to the destination. ecommerce is ancillary to the primary
purpose of a business, we will not
Sale: the retailer takes the customer’s money. necessarily include them. Online payment
The retailer owns the transaction as the for gas or electricity is excluded since
merchant of record. the purpose here is supplying energy.
Travel companies are not included in the
Recourse: the retailer is responsible for the ,5(87RS:HKDYHDOVRH[FOXGHG
VHUYLFHIXO¿OPHQWDQGFXVWRPHUVDWLVIDFWLRQ media-streaming services.
owing from the sale.
Business-to-business and direct-
Fascia-focused: the assessment focuses selling brands: while the scope of retail
on individual trading names, rather than is normally direct to consumer, two trends
a parent company that may operate more are challenging this: the move for brands
than one brand. Since the group structure DQGSUHYLRXVO\VROHO\%%EXVLQHVVHV
is invisible to customers, it does not have to sell direct to consumers; and the
a bearing on the position of brands owned LQFUHDVLQJO\UHWDLOOLNHEHKDYLRXURI%%
by a group. The challenge is to turn group brands (in terms of acquisition, promotion,
capabilities into trading advantages that the personalisation and service). We have
customer would notice across brands. WKHUHIRUHLQFOXGHGFHUWDLQ%%EXVLQHVVHV
and direct-selling brands.

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

The winds of change pushing


European retail on a fresh course
If a week is a long time in politics, then perhaps they serve, while remaining successful
a year is an epoch in the fast-moving retail internationally. That’s not an easy balancing
act, requiring focus, determination and
sector, writes Sean Fleming, launch editor of
attention to detail across all lines of business.
InternetRetailing’s sister title, edelivery.net When IKEA opens a new store, as it last did
in the UK in July 2016, it conducts in-depth
research into the local market. As you might
5()/(&7,1*217+(¿QGLQJVRIWKH expect, this involves assessing consumer
InternetRetailing EU Top500, it is possible tastes but it also includes an analysis of the
to identify several themes to which the types and sizes of housing and homes. A walk
industry should pay careful attention in the through IKEA’s year-old Reading store will
years ahead. An examination of some of the take you past room layouts and displays that
changes that have occurred in the Index also UHÀHFWWKHZD\ORFDOSHRSOHOLYH
demonstrates the importance of constantly Yes, it is a global player, with over 300
improving upon what you do. stores worldwide, but such zealous attention
The summit of European retail to detail at a local level means that while
performance belongs to the six retailers in RQH,.($VWRUHPD\VXSHU¿FLDOO\VHHPOLNH
the Elite category. These are the retailers DQ\RWKHUHDFKKDVEHHQFRQ¿JXUHGYHU\
that are simply an order of magnitude better VSHFL¿FDOO\WRWKHORFDOLW\LWVHUYHV&RPELQH
than everyone else. This is not a question of that with a clearly Swedish sense of identity
turnover, growth, or any other commonplace (their crèche is called Småland – a play on
two-dimensional metric, but is based on an ZRUGVWKDWUHIHUHQFHVWKHORFDWLRQRIWKH¿UVW
assessment and analysis of best practice as it IKEA store) and a highly centralised approach
is applied against a set of criteria. to operations that includes everything from
In 2016, the Elite retailers were Apple, manufacturing to recycling, and you start to
%RQ3UL['HFDWKORQ+ 01H[WDQG=DUD get a sense of what being Elite involves.
2IWKRVH$SSOH+ 0DQG=DUDVWD\HGXS Boots is the only British retail brand in the
WKLV\HDU7KH\KDYHEHHQMRLQHGLQE\ Elite category. What it gets right is the size
Boots, IKEA and Nike, all of which were in of its on-the-ground presence – which it has
the 2016 Leading category. maintained for decades – plus its broad range
of services for its very large customer base.
Running to stand still Apple and Nike are not retailers in the
That three retailers were able to stay in traditional sense, of course, but they are very
the Elite category doesn’t mean they have large international brands. More on this later.
PDLQWDLQHGVWDQGDUGVZKLOHRWKHUVIHOOR̆WKH
pace. Far from it – they have all continued to The model
improve. Since standing still is not an option, The next category are the 19 Leaders which,
remaining in the Elite category is a sign of together with the Elite retailers, go to make up
constant progress. the Top 25 of the IREU Top500. This category
7KH(OLWHUHWDLOHUOLVWKDVDYHU\ is dominated by British retail names, with 15
international line-up, with two Swedish, one out of the 19 hailing from the UK. Among these
Spanish and one UK retailer alongside two DUH0DUNV 6SHQFHU3&:RUOG6FUHZ¿[
WKDWDUHJOREDOEUDQGVRI86RULJLQ+ 0 Superdrug and Tesco.
,.($DQG=DUDVFRUHKLJKO\LQWKHZD\WKH\
operate as local retailers in every territory

www.internetretailing.net/IREU
Strategic context 11

It may well be that UK retailers are


outperforming all others, although there’s
another reason for this British invasion.
When the criteria and performance Performance and consistency at scale are key
Dimensions were developed for the IREU measures for success in the IREU Top500. To
Top500, the inspiration for what was working some, the absence of Amazon from the Elite
well (and what was not) was taken from category may seem odd, with Amazon being
the UK market. So in that sense, the model the elephant in the retail room that everyone
retailer could be said to have been British. wants to talk about… constantly. Yes, it’s large
Yet while British retailers are currently and yes it does a lot of things very well. But
performing well, a growing number of their Amazon doesn’t rank as highly in our Index
European competitors also appear in the as it does in the public psyche.
rankings, albeit toward the lower end. This Will that always be the case? Predicting the
VWUDWL¿FDWLRQLVDSLFWXUHWKDWPD\ZHOOFKDQJH future is a foolhardy pastime but it’s unlikely.
in the next few years. $PD]RQKDVUDUHO\VWRRGVWLOO+DYLQJWDNHQ
2QHWKLQJWKDW¶VDOUHDG\FKDQJHGLVWKH on bookshops and won, it then disrupted
QXPEHURIEUDQGVRQWKH,QGH[*OREDO its own business model with the Kindle and
brands such as Apple or Nike tend to perform won again. The announcement in June of its
well regardless of borders since their cross- intention to acquire US food retailer Whole
country, transnational relevance and reach Foods, the launch of Prime Wardrobe and its
SOD\VZHOODQ\ZKHUH+RZHYHUIRUPDQ\ dalliance with drone delivery all demonstrate
retailers, it remains a challenge to break into Amazon’s desire continually to keep moving.
QHZWHUULWRULHVZLWKRXWGLOXWLQJWKHLUR̆HURU
ability to respond locally. Tomorrow never knows
The other inescapable truth is that a With that in mind, the question of how the rest
growing number of brands now also operate of the retail sector will approach innovation
as retailers, running direct as well as waits to be answered. Retailers have to focus
indirect sales channels by developing and RQWZRVLPXOWDQHRXVLQQRYDWLRQWUDFNV2QH
sustaining meaningful engagements with is around developing new services and IP, the
their customers via traditional channels of other around their own operational capabilities
communication and social media. The line and keeping the promises they make to their
between retailer and brand is more blurred existing customers.
than ever. A lot of research and development resources
are focused on providing incremental
Prime mover improvements in product, customer
It’s not just the number of brands in the Index engagement and operations. But at best,
that stands out, but also the extent to which these deliver short-term gains before the
internet retailing has begun to give way to rivals follow suit and catch up. Yesterday’s
retailing in a broader sense, with a relatively innovations inevitably become tomorrow’s
decreasing presence of the ecommerce startup. commodity and with that comes the erosion
7KLVLVDUHÀHFWLRQRIUHWDLOHUSHUIRUPDQFH of any tactical, innovation-driven, competitive
across the board. Retailers that get it right, that advantage they may have had.
are pursuing excellence in a meaningful way, 0DNLQJWKHQH[WWUXO\VLJQL¿FDQWOHDSLQ
are doing so in an integrated fashion. retail innovation will be about more than this
kind of piece-by-piece search for marginal
JDLQV+RZWKHUHWDLOVHFWRUFKRRVHVWRVTXDUH
up to this challenge has the potential to shake
up not just the rankings in the IREU Top500
but the sector as a whole.

www.internetretailing.net/IREU
12 IREU 500 2017

Where did we start?


The largest in Europe
We have published the Footprint list of the largest 500 retailers in Europe every year since 2015.
;OL-VV[WYPU[PZHJVTIPUH[PVUVMHYL[HPSLY»ZYL]LU\LZVUSPULZHSLZ^LI[YHѝJHUKZ[VYLU\TILYZ
and is an indication of their visibility to the European consumer. Here are the retailers clustered by
Footprint size and listed alphabetically. Once we factor in their performance in our six Dimensions,
[OLPYÄUHSWLYMVYTHUJLYHURPUNPZZOV^UVUWHNL

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

Amazon Halfords Sainsbury’s


2017

Argos Homebase :JYL^Ä_


BonPrix House of Fraser SportsDirect.com
Currys Marks & Spencer Superdrug
Debenhams New Look Tesco
Decathlon Next
Deichmann PC World

The Body Shop John Lewis Saturn


2017

Carrefour Lidl Schuh


Clarks Mango Smyths
Darty Matalan TK Maxx
Dorothy Perkins Media Markt Topman
Alza Euronics Mothercare Zalando
Asda Intersport Otto
B&Q JD Sports Pull & Bear

Dm Kiabi Samsung
2017

Douglas La Redoute Stradivarius


Dunelm LeroyMerlin Swarovski
eBay Littlewoods ;VTT`/PSÄNLY
Empik.com Lloyds Pharmacy Toolstation
Esprit Massimo Dutti Topshop
Adidas Evans Cycles Morrisons ;V`ZŃ<Z
Asos Fnac Nespresso Very
Auchan Game OBI Waitrose
Bershka Gemo Ocado Waterstones
C&A H.Samuel 6ɉ JL Weltbild.at
Carphone Warehouse Hagebaumarkt Pandora WHSmith
Clas Ohlson Holland & Barrett Pets at Home Wickes
Coop Jack Wills Pimkie Wiggle

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

E.Leclerc Karwei The Perfume Shop


Early Learning Centre Kik Public.gr
Ebuyer.com Komputronik Quiz
Eduscho Konzum Ralph Lauren
El Corte Inglés Kruidvat Real
El-Giganten L’Occitane Rewe
A.S. Adventure Etam Lakeland RTV Euro AGD
(;< Evans Lapeyre Rue du Commerce
Bauhaus Fat Face Laura Ashley Ryman
Blue Inc Foot Locker Leen Bakker Selfridges
Boden Forbidden Planet Lindex Simply Be
Brantano Forever 21 Lipsy size?
Brico Dépôt G-Star Raw Louis Vuitton Spar
)<; Games Workshop M&Co Staples
Castorama .PÄ Maisons du Monde Superdry
Cdiscount Görtz MajesticWine Topps Tiles
Chain Reaction Cycles Gucci Mall.cz <UPXSV
Christ hmv.com MandM Direct <UP[LK*VSVYZVM)LUL[[VU
Claire’s Hobbs London Matras <:*
Conforama Hobbycraft Media World Vero Moda
Cotswold Outdoor Home Bargains Micromania Victoria’s Secret
Cultura-Socultur HP Missguided Wayfair
Delhaize.be Iceland Mountain Warehouse The Works
Desigual Jacamo Net-A-Porter Worten
Diesel Jessops NotOnTheHighStreet.com Yours Womenswear
Dreams JYSK Oasis
E-shop.gr Karstadt Paperchase
2017

Bijou Brigitte Dr. Martens JBC Okay Tati


Billa Ecco JD Williams Orchestra Ted Baker
Bose Electro Depot Jennyfer Oysho Thomann
3 Bottega Verde
Brico
Burberry
Elkjop
The Entertainer
Ernest Jones
Karen Millen
Kasa
Kijkshop.nl
Peacocks
Plus.de
7VZ[6ɉJL:OVW
Thorntons
Timberland
Vanden Borre
Abercrombie & Fitch Burton Euro Car Parts Krëfel Puma Vente-Privee
Aktiesport Cache Cache Ex Libris LaFeltrinelli QVC Warehouse
Aliexpress CarpetRight -LLS\UPX\LJVT Materiel.net The Range We Fashion
Allegro Cath Kidston Furniture Village MS Mode Reiss Women’secret
American Golf Charles Tyrwhitt Gamma Müller Richer Sounds Xenos
Apotek1 Chaussea Go Sport Myprotein Roller.de XXL
Asics Continente Goldsmiths MyToys RS Components XXXL
ATS Euromaster COS Google Play Nature & Decouvertes Scapino Yoox
Aubert Cotton Traders Guess Neonet Shoe Zone Zeeman
Bata D-Mail Habitat Norauto Sport Zone & Other Stories
Bathstore Dänisches Bettenlager IKKS The North Face Spreadshirt
Biedronka Dia 0U[LYÅVYH Obaïbi-Okaïdi Tape À L’Oeil

Breuninger Fossil Mediagalaxy Philips Top Secret


2017

Bricoman France Loisirs Medimax Photobox Trainline


Bristol Frankonia Medion Plaisio Trony
Camper Fust Mercadona Poco ;Y\ɈH\[
Carhartt Gall & Gall Microspot.ch Praktiker <IHSKP
Cass Art GearBest Militaria Privalia <UKPa
Adolfo Dominguez Ceneo Gigantti Mimovrste Radiopopular Vans
AKI Coop Norden Globetrotter Mindfactory.de Reserved Venezia
Aldi Coradrive.fr Grosbill Mio Electronics Brand Reservix Verkkokauppa
Alinéa Crocs Heine Mironet Schwab Vertbaudet
Allopneus.com Cyberport Hippoland Misco Smyk Viking
AllSaints Czc.cz /VɈULY Miss Etam SoleTrader Vistaprint
Altex Datart JouéClub Mohito Space.NK W. Kruk
Asus DeBijenkorf Just Eat MömaX Spartoo Webhallen
Baby-Markt Decitre Kärcher Monki Sportisimo Wish
Bang Good Digitec King Jouet Morgan Sportscheck Witt Weiden
bareMinerals Dior Klingel Music Store Stadium Woodbrass
Baur Dr.Max Komplett Nay Steg Electronics X-Kom
BazarChic Dunnes Stores Kotsovolos NetOnNet T.S. Bohemia Zazzle
BCC Dustin Lacoste Notebooksbilliger TechnoMarket 3Suisses
Bever Edeka LDLC Ole Ole Technopolis 5.10.15.
Bild Shop Electro World Lefdal Oscaro Thansen.dk
Bilka Ellos Libri 6]LYJSVJRLYZ<2 Thomas Sabo
Bonmarché Eventim LightInTheBox Oxybul Timpson
Bonobo Jeans Extreme Digital M-Electronics Migros PcComponente Tokmanni
BookDepository.com Fashion ID Manor Pearl Tom Tailor
Boux Avenue Flanco Martinus Pepe Jeans London TomTom

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

To become big outside its country of origin, a retailer needs


to adopt new ways of doing business. The heat map below
reveals those countries where the largest numbers of Top500
retailers have revenue greater than €10m per annum.

IREU 2017

www.internetretailing.net/IREU
Top500 distribution 17

The most important


markets to retailers
The number of IREU 500 retailers for which a country is their largest market in the EEA

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

Taking the lead


Retailers gain strategic advantage when they
are early to adopt innovative approaches

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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

communication communication currencies websites websites
channels localised channels localised supported localised to localised to
to countries to languages countries languages

Top500 average 2.1 2.2 3.5 3.4 3.7


IREU 2017

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www.internetretailing.net/IREU
20 The Customer

Meeting consumer expectations


;VW,\YVWLHUYL[HPSLYZVќLYOPNOSL]LSZVMZLY]PJLHJYVZZJOHUULSZ

RETAILERS STAND OUT in The Customer


Performance Dimension when they focus on
the shopper experience to deliver consistent
and responsive service across communication refunding returned goods as well as in-depth
channels time and time again. product reviews on its mobile app.
At a time when what the customer wants 3ROLVKERRNV¿OPDQGPXVLFUHWDLOHU
is moving to the centre of the shopping Empik.com wins its place for comprehensive
experience, retailers that stand out in this use of product reviews and ratings across
'LPHQVLRQDUHGRLQJDOOWKH\FDQWRUHÀHFW its mobile app and desktop site. Electronics
the wide-ranging demands of consumers. and home appliances retailer RTV Euro
AGD, more commonly known in Poland
What leading retailers do simply as Euro, stood out for its 3.1-second
Fashion retailer Matalan stands out for desktop website loading time, which is
the breadth of its customer service. It faster than the average for Poland of 6.8
communicates with customers across 10 seconds. Euro is also notable for its seven
channels, including six social channels FRPPXQLFDWLRQFKDQQHOVLQFOXGLQJ¿YH
(Facebook, Twitter, GooglePlus, YouTube, social media channels, telephone and a web
Pinterest and Instagram). It resolved issues submission form through which shoppers can
H̆HFWLYHO\DQGUHVSRQGHGWRVLPSOH)DFHERRN communicate with the company.
enquiries in an hour. Dutch online department store Bol.com
7UDGHVXSSOLHU6FUHZ¿[JDYHH̆HFWLYH stands out for its comprehensive product
customer service. It also stood out in ratings and reviews, while Swedish hardware
InternetRetailing research for making the business Clas Ohlson engages with shoppers
returns process easy and convenient for across seven channels, including YouTube,
customers, including return of ecommerce Instagram, Facebook and Twitter. It also
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reviews. The retailer enables shoppers SURGXFWVWKURXJKH̆HFWLYHQDYLJDWLRQDQGWR
to connect with it across eight channels, discover more about them through reviews
including its busy community forum as and ratings.
ZHOODV<RX7XEHZKHUHLWR̆HUVDZLGH Spanish department store El Corte Inglés
range of video content such as product supports six social channels, with its returns
recommendations and demonstrations. policy for online orders allowing customers
UK department store House of Fraser WRXVHGURSR̆SRLQWVDQGVWRUHV
VWRRGRXWIRUH̆HFWLYHDQGUHVSRQVLYH
customer service, with questions answered
in 24 minutes. It also has a policy of fully

www.internetretailing.net/IREU
The Customer 21

What the Top500 do


Leading European traders in this Dimension by retailers in Germany, the Netherlands and
answer customer queries across a wide 6SDLQZKLFKDOOR̆HUEHWZHHQWKUHHDQGIRXU
range of channels. Top500 retailers engage country-localised communication channels.
with customers through an average of four 5HWDLOHUVWUDGLQJLQ/DWYLDR̆HUHG
WR¿YHFKDQQHOVDQGDPHGLDQRIIRXUZLWK markedly speedy websites. Desktop sites
those channels typically including email, in this market were visually complete in an
telephone, web submission forms and social average of 5.7 seconds, followed by Belgium
media. But while leading retailers stand out (6.8 seconds). Latvian mobile sites were
for high levels of service via email, Facebook visually complete in 4.5 seconds, followed
and phone, the average Top500 service is British retailers by Lithuania at 4.8 seconds.
less impressive. Retailers take a median of The amount of product information shared
19 hours to respond to a customer email but
tend to offer varies. Product ratings are deployed by more
half an hour to respond to a Facebook query, more choice than half of retailers trading in Hungary
with phone queries resolved in a median of (54%), the UK and Norway (51%), but
when it comes
90 seconds. less than a third (30%) in Greece. Product
Around half of Top500 retailers inform to engaging reviews are more available on websites in
potential customers through the use of with customers Hungary (54%), the UK (53%) and Poland
ratings and reviews. The median Top500 (52%), and less available in Portugal (34%)
retailer takes 14 days to process returns and Romania (35%). Reviews on a mobile
DSSDUHVOLJKWO\OHVVFRPPRQEHLQJR̆HUHG
Varying approaches between markets by 45% of Irish retailers, 41% of Austrian
%ULWLVKUHWDLOHUVWHQGWRR̆HUPRUHFKRLFH retailers and 34% of British retailers.
when it comes to engaging with customers. 1RUZHJLDQUHWDLOHUVR̆HUDQDYHUDJHRI
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ways for shoppers to get in touch, followed 6SDQLVKUHWDLOHUVR̆HUGD\V

Ratings and reviews


The fraction of Top500 websites localised to a country that provide customer-created ratings and reviews

54%

Websites that include


30% product ratings

Websites that include


product reviews

*The EEA figure is a


weighted average
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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
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RSWLRQVHQDEOHFROOHFWLRQIURPVWRUHDQG UHWXUQLQJRQOLQHRUGHUVWRWKHVWRUH2QH
SURYLGHHDV\UHWXUQVRSWLRQVDUHZHOOSODFHG LQ¿YH  7RSWUDGHUVR̆HUVDVWRUH
WRFRPSHWHLQDUHWDLOHQYLURQPHQWZKHUH VWRFNFKHFNHULQDPRELOHDSSZKLOHKDYH
FXVWRPHUVH[SHFWHDV\VKRSSLQJ,W¶VDOVR DGGLWLRQDOVWRFNFKHFNLQJIHDWXUHV
ZKDWPDNHVWKHPVWDQGRXWLQWKH2SHUDWLRQV :KHQLWFRPHVWRUHWXUQVRIWKHLQGH[¶V
/RJLVWLFV3HUIRUPDQFH'LPHQVLRQ UHWDLOHUVHQDEOHVKRSSHUVWRUHWXUQLWHPVYLD
SRVW7KHQH[WPRVWSRSXODURSWLRQR̆HUHG
What the Top500 do LVUHWXUQWRVWRUH  ZLWKSLFNXSIURP
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

Click and collect in Europe


The countries where more than half of the Top500 to operate in the country offer click and collect

;VWJVTWHUPLZ[VVɈLYJSPJRHUKJVSSLJ[PUHJV\U[Y` 

United Kingdom 67%

European Economic Area* 64%

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$UHDSOXV6ZLW]HUODQG
DQG6XQGD\GHOLYHU\DQGQRPLQDWHGWLPH &ROOHFWLRQLVPRVWZLGHO\IRXQGLQWKH8.
GHOLYHU\ZKLFKLVR̆HUHGE\MXVWRI ZKHUHRIUHWDLOHUVOLVWHGLQWKH,5(8
7RSUHWDLOHUV6FUHZ¿[LVDOVRDPRQJWKH 7RSR̆HUWKHPXOWLFKDQQHOVHUYLFH-XVW
RIUHWDLOHUVWKDWR̆HUUHWXUQVYLDSLFNXS DTXDUWHU  RIOLVWHGUHWDLOHUVR̆HUWKH
IURPWKHKRXVH VHUYLFHLQ+XQJDU\7KHPDMRULW\  RI
8.VXSHUPDUNHW6DLQVEXU\¶VR̆HUV UHWDLOHUVVHOOLQJLQ,UHODQGHQDEOHVKRSSHUV
6DWXUGD\VDPHGD\QRPLQDWHGWLPHDQGGD\ WRUHWXUQRQOLQHRUGHUVWRWKHVWRUH
GHOLYHULHVIRUQRQIRRGSURGXFWV&RPSXWHU 8.DQG)UDQFHEDVHGVKRSSHUVHQMR\WKH Logistics
UHWDLOHU$SSOHHQDEOHVVWRFNFKHFNLQJIURPD ZLGHVWFKRLFHRIGHOLYHU\RSWLRQVRQDYHUDJH
PRELOHDSSDQGLVDPRQJWKHWKDWR̆HU DWEHWZHHQWZRDQGWKUHHZKLOHWKRVHLQ promises
DGGLWLRQDOVWRFNFKHFNLQJIHDWXUHV5HWXUQVDUH 3RODQG*UHHFH6SDLQDQG*HUPDQ\JHQHUDOO\ depend on the
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*URFHU:DLWURVHR̆HUVKLJKO\ÀH[LEOH 6RPHRI7RSUHWDLOHUVR̆HUQH[WGD\
availability of
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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

British retailers enable shoppers to see what


previous purchasers thought, with 50%
sharing product ratings and 52% showing
product reviews. By contrast, 22% of retailers
Beyond the UK market, Polish entertainment selling to the Bulgarian market show product
and electronics retailer Empik.com uses ratings, with the same proportion also
the ‘bestseller’ ribbon as well as product showing reviews.
ratings and reviews. German healthcare and Banner advertising is most commonly used
household goods business DM enables search in Spain (85%), where the smallest percentage
by brand, social validation and Likes. of retailers (43%) require visitors to register
before checking out. German
How markets vary Those selling in Ireland enable shoppers to
shoppers are
*HUPDQVKRSSHUVDUHOLNHO\WR¿QGLWHDVLHU check out in an average of between three and
WKDQPRVWWRJHWDURXQGDZHEVLWHRI four pages, while those selling in Romania do likely to find it
UHWDLOHUVWUDGLQJLQWKDWPDUNHWR̆HUGURS the same job in between two and three pages. easier than most
down search suggestions (contrasting with InternetRetailing Knowledge Partner Brand
35% in Bulgaria), while 73% enable search by 9LHZORRNHGVSHFL¿FDOO\DW8.UHWDLOHUV to get around
price (49% in Bulgaria) and 83% by product Its data suggests that 38% of products a website
type (50% in Norway). Retailers in Germany were on promotion at the time of analysis,
DOVRR̆HUPRUHSURGXFWLPDJHVWKDQWKH ZLWKUHWDLOHUVR̆HULQJDPHGLDQRI
(XURSHDQDYHUDJHDWEHWZHHQIRXUDQG¿YH promotions. An average of 3% of products on
R̆HUZHUHPLVVLQJGHVFULSWLRQVZKLOH
had reviews.

Stock replenishment of fashion retailers in the UK


The percentage, for each retailer, of its total sold products that were new in the month leading to 2 June 2017

64%

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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

What the leaders do


Global homewares retailer IKEA enables its
RETAILERS THAT STAND out in this Brand European customers, wherever they hail from
Engagement Performance Dimension make and whatever their mother tongue, to view
themselves available to customers wherever its website in a home language. It supports a
they are. It’s about starting conversations WRWDORIODQJXDJHVLQ(($PDUNHWVR̆HULQJ
where consumers are listening, and being both Basque and Spanish within Spain and
in the right place to answer queries and both Latvian and Russian within Latvia.
questions, while using ratings and reviews to IKEA’s 16 communication channels include
KDUQHVVWKHLQVLJKWVDQGH[SHULHQFHRISHRSOH four social media channels.
who have previously bought a product. French value fashion retailer Kiabi has a
ÀH[LEOHDSSURDFKWRHQJDJHPHQW:HEVLWH
What the Top500 do visitors can Like its products on social media,
On average, Top500 IREU retailers trade while those visiting its Facebook page can
in two or three markets in the European switch between regions. This enables shoppers
Economic Area (EEA), plus Switzerland, WRHQJDJHLQVHYHQODQJXDJHVDQGYLDVL[VRFLDO
and they support between two and three media channels, including Facebook, Twitter
languages. Most retailers, however, support and YouTube. Visitors to its website can also
just one language in one market, suggesting put their questions to the Kiabi community.
that many EEA retailers work only with their British ethical retailer The Body Shop stands
domestic market and in their own language. out in InternetRetailing research as one of the
Research carried out by Knowledge Partner few retailers that has both star ratings and
Hitwise for InternetRetailing found that 80% written reviews on its mobile app. It enables
of new visitors to Top500 websites came via shoppers to Like products on social media and
search engines. Shoppers have, on average, to switch between Facebook pages by region.
four channels to choose from when contacting Swedish fast fashion retailer H&M supports
a European retailer, more often than not 17 languages within EEA markets and
including Facebook. 305 of the Top500 FRPPXQLFDWHVYLDFKDQQHOVLQFOXGLQJVL[
retailers are on this platform, with an average social media channels.
of 6.5m page Likes and a median of 291,585.
Researchers found that the 279 retailers
with Twitter feeds have an average of 157,949
followers (median 26,154). Around half of
UHWDLOHUVHQDEOHFRQVXPHUVWR¿QGRXWZKDW
others think of their products, with 50%
showing product ratings and 52% displaying
product reviews.

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.

Social validation on the product page


Top500 retailers that show social media Likes on the product pages of their country-localised websites

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

the move Leading European retailers are developing


cross-channel services that satisfy customer
demands for convenient shopping. A majority
of the IREU Top500 (64%) now enable online
Websites, apps and cross-channel services
shoppers to pick up their online orders in
that meet the demands of smartphone- store. But less than half (43%) allow shoppers
^PLSKPUNJ\Z[VTLYZVќLYHTVYLQVPULK\W to return items ordered online to the store.
shopping experience Mobile websites download at an average
8.6 seconds, becoming visually complete
in 7.1 seconds. Mobile apps are relatively
commonplace, with 369 of the Top500
FORWARD-THINKING RETAIL BOARDS retailers having a mobile app, of which 63%
are recognising the popularity of the are Android and 66% iOS.
smartphone among customers, not only as a Researchers looked in detail at features
buying and browsing device but also as a way available on the 324 iOS apps and found
WREULGJHWKHJDSEHWZHHQRQOLQHDQGR̈LQH that making the sale was a priority, with 67%
:HOOVSHFL¿HGPRELOHDSSVIDVWORDGLQJ now transactional. A third (34%) enable the
mobile websites and slick multichannel transaction to take place within the app,
services characterise the retailers that through a native shopping environment.
stand out in this Mobile & Cross-channel Almost two-thirds (60%) support push
Performance Dimension. QRWL¿FDWLRQVZKLOHR̆HUGDLO\GHDOV
6KRZLQJSURGXFWVR̆WRJRRGH̆HFWLVD
priority for the 44% that have a choice of
images and the 43% that enable zoom.

Returning ecommerce orders to physical stores


Countries where more than 40% of the Top500 to operate physical stores permit the in-store return of ecommerce orders

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

$OPRVWKDOI  HQDEOHPRELOHXVHUVWR¿QG


their nearest store from the app, while 21%
enable them to check if an item is in stock at
WKDWVWRUH$PLQRULW\RIUHWDLOHUV  R̆HU
additional stock checker features.
Sharing on social is a relatively popular
feature, with 40% enabling this. Although
only 13% of mobile apps show social
media Likes, 44% of apps feature wishlist
functionality, 27% feature product star ratings
and 25% written product reviews. More than
three-quarters of apps (76%) were bug-free at
the time of testing.

What the leaders do


UK toy retailer Smyths uses its app to share How markets vary
useful product information, from social media Click and collect is found most widely in the
Likes to store stock checker, star ratings and 8.ZKHUHRI7RSUHWDLOHUVR̆HUWKH
reviews. UK prep fashion retailer Jack Wills’ service. That’s followed by Belgium (62%)
mobile app stands out for some relatively and The Netherlands and Norway (60%).
uncommon features, including a barcode Retailers in Portugal (28%), Hungary (24%)
scanner, the ability to share an item on social DQG%XOJDULD  DUHOHDVWOLNHO\WRR̆HU
media, product image zoom and being able the service.
to shop within the app, using native shopping. Returning an item ordered online to a Returning an
Online UK grocer Ocado illustrates store seems easiest in Ireland, where 65% of item ordered
products in its app using written reviews and Top500 retailers are set up to deal with this.
VWDUUDWLQJV,WR̆HUVDGDLO\GHDODQGHQDEOHV Close behind are Bulgarian (58%) and Greek online to a store
shoppers to scan items via a barcode scanner. (54%) traders. Lagging behind are retailers in seems easiest in
Shoppers can zoom in on images from the Czech Republic and Belgium (both 36%).
product page on UK fashion retailer Very’s Irish and Polish retailers are among the Ireland
mobile app, while those items are promoted most likely to have an Android app, at 93% of
through reviews, ratings and daily deals. Top500 retailers in these markets. Practically
No frills Polish supermarket Biedronka all Italian (99%), French, Portuguese and
stands out, enabling native shopping and the Polish (98%) retailers listed had an iOS app,
ability to share an item on social media, to as did, at the bottom end, 58% of the 240 UK
]RRPLQRQLPDJHVDQGWR¿QGVWRUHV$OEHUW retailers listed.
Heijn has a barcode scanner and scores well Some 72% of Swiss retailers had
RQSHUVRQDOLVDWLRQDVZHOODVR̆HULQJDFKRLFH transactional apps, while a native shopping
of product images and a wishlist. approach was most common in Portugal
(45%). Swedish retailers were most likely
WRR̆HUDUDQJHRILPDJHVDQGWRHQDEOH
shoppers to zoom in on them.

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

Brexit and an uncertain future


Challenges around the UK leaving the EU lie ahead, suggests Sean Fleming

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

Brand View Hitwise


Brand View measured comparable product ranges /P[^PZLTLHZ\YLK[OLPUIV\UK[YHɉJ[V;VW
HTVUNZL]LYHSYL[HPS]LY[PJHSZMVYKPɈLYLUJLZPUIV[O ^LIZP[LZ[LSSPUN\Z[OLYLSH[P]L]HS\L[VYL[HPSLYZVM
WYPJPUNZ[YH[LN`HUKTLYJOHUKPZPUNPUJS\KPUN[OL ZLHYJOKPYLJ[]PZP[ZZVJPHSTLKPHHUKV[OLYZV\YJLZ
features on product display pages. www.hitwise.com
www.brandview.com
NCC Group
BuiltWith 5**.YV\WHJVTWHU`[OH[HTVUNV[OLYZLY]PJLZ
)\PS[>P[OH^LIZP[LHZZLZZTLU[JVTWHU`MV\UK[OL VɈLYZ^LIZP[LTVUP[VYPUNHUKJVUZ\S[HUJ`ZLY]PJLZ[V
[LJOUVSVNPLZPU\ZLVUL]LY`09,<^LIZP[L¶MYVT YL[HPSLYZWLYMVYTLKT\S[PWSL[LZ[ZVMHSS,,(SVJHSPZLK
ecommerce platforms to logistics plug-ins. SHUKPUNWHNLZVM[OL09,<
www.builtwith.com www.nccgroup.trust

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

Editors: Chloe Rigby


and Jonathan Wright
Editor-in-Chief: Ian Jindal
Conclusion
Design: Lydia Cooke IN RESEARCHING AND updating the InternetRetailing
Top500, it’s been fascinating to observe developments
Publishing Director: Chris Cooke
within the sector. In particular, and this is something we
Group Account Director:
Andy James have found with the IRUK Top500 too, we notice time
[email protected] and time again how cutting-edge practices are adopted by
Account Director: Marvin Roberts other retailers. Within multichannel retail and ecommerce,
[email protected]
today’s innovations quickly become industry standards –
Tel: 020 7933 8999
ZKHUHWKDWLVUHWDLOHUVFDQVHHDEXVLQHVVEHQH¿W
Internet Retailing That’s not to say that all European retailers are
Internet Retailing Media Services Ltd, performing at the highest level. Retailing at scale requires
52-54 Gracechurch Street,
London, EC3V 0EH
a combination of imagination, planning and resources. In
Printed in Great Britain. WKLVFRQWH[WWKHVL[(OLWHUHWDLOHUVZH¶YHLGHQWL¿HG±$SSOH
Boots, H&M, IKEA, Nike and Zara – have all got the mix
ISSN 1759-0582 right for their particular sections of the markets.
This latter point is especially important because, while
elements of best practice cut across these retailers, each
has its own unique approach to serving its customers.
Boots, for example, has its hugely successful loyalty card,
For circulation enquiries contact:
Internet Retailing Media Services Ltd, Nike enables customers to personalise new trainers, Apple
PO Box 6009 connects channels brilliantly and so on. These companies
Thatcham, Berkshire aren’t Elite retailers just because they do lots of things well,
RG19 4TT
which they do, they are Elite companies because in areas of
Tel: 01635 879361
Fax: 01635 868594 retail practice that really matter in their markets, they are
[email protected] measurably better at what they do than their competitors.
Whether they will still be rated as Elite retailers next
No part of this circulation may be
year is another matter. As we’ve already noted in these
reproduced, stored in a retrieval
system or transmitted by any pages, it takes continuous improvement to maintain the
means without the publisher’s highest standards. Again, as we’ve already noted, there
permission. The editorial content will be another factor playing in here over the next year:
KVLZUV[ULJLZZHYPS`YLÅLJ[
the views of the publisher.
Brexit. To look at this from the perspective of retailers
The publisher accepts no based outside the UK, even the possibility of a hard Brexit
responsibility for any errors may be great news as British retailers scramble to cope
contained within the publication. ZLWKDZRUOGZKHUHWDUL̆VDUHSODFHGRQH[SRUWVDQGWKH
Research information published
pound plunges. Considering the patient, long-term work
in InternetRetailing Top500 German and Scandinavian retailers in particular have
Dimension Reports is based XQGHUWDNHQWRGHYHORSPXOWLFKDQQHOR̆HULQJVWKH\PD\EH
on data supplied by RetailX
DPRQJWKHEHQH¿FLDULHVKHUH
www. retailx.net
However, things may not be that simple. In the medium
www.internetretailing.net term, it may be that British retailers focus more on
European operations, innovating in order to solve the
problems a hard Brexit causes. This may actually increase
competition. Even next year, when we update the IREU
Top500 again, we may get early clues as to which outcome
seems most likely.

www.internetretailing.net/IREU

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