www.cbre.fr

HOW WE SHOP

IN FRANCE November 2014

HOW WE SHOP IN FRANCE

FRANCE SURVEY

www.cbre.fr

2014

HOW WE SHOP IN

By Sabine Echalier, Deputy Director, France

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They segmented their clothing spend, from value to luxury retail brands, and gave us an insight into their future shopping habits. The first reaction to the survey findings was presented in our report: How We Shop – Inside the Minds of Europe’s Consumers. This report examines in more details where and how people shop in France.

Online Tablet

Online Mobile Phone

Factory Outlet Centres

Out of town SC

Town Centre SC

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Town Centre High Street

In France, we surveyed 1,061 consumers aged between 16-64 years, via an online survey. Whilst the sample is small and does not represent the entire France population, the survey is sufficiently robust to provide a good indication of where and how French shop. However, some responses will clearly be influenced by the composition of the sample (such as the online shopping frequency).

Proportion of consumers who have ever used different methods / outlets for clothing and footwear shopping

Local/ Neighbourhood Shops

Consumers told us what attracts them to their preferred shopping centres and the extent to which they use digital marketing initiatives while inside.

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Town centres (high street and shopping centres) remain the 1st choice for over 80% of consumers for clothing and footwear shopping Out of town destinations are also chosen by a high proportion of consumers (over 2/3) Whatever the location (urban centre and peripheral locations), shopping centre is chosen by over 75% of consumers Shopping online for fashion continues to grow in importance - 73% use a computer, mobile phones (15%) and tablets (13%) are still underused compared with most of European countries.

Town Centre Supermarkets

The results reveal the different channels consumers use when shopping for food and clothes; also highlighting the continuing importance of the physical store to online shoppers.

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Out of town Retail Park big box retail warehousing

Between March and April 2013, we surveyed 10,000 consumers in 10 European countries1 to discover where and how they shop. This new survey builds upon our ground-breaking research on consumer attitudes to online shopping, published in 2011.

Methods / outlets for clothing and footwear shopping

WHERE DO CONSUMERS SHOP

Out of town Super/ hypermarket

INTRODUCTION

Online over Computer

FRANCE

Source: CBRE HOW WE SHOP IN FRANCE

© 2014, CBRE

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FRANCE SURVEY

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2014

Frequency of Shopping for Clothing and Footwear (Number of Visits a Year)

Frequency

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•

•

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Compared with some other countries in Europe, French people shop less frequently than in other countries. French attach importance to the traditional city centre where they can find a wide diversity of activities to make including shopping. In average, French go more than 10 times a year in a city centre when shopping for clothing and footwear. Surprisingly, in comparison with some European markets, French people shop less frequently. Italian shops 20.7 times a year in town centre shopping centres, Spanish 17.2, British 16.9 and German 14.3. This is also generally true for other channels of shopping (town centre shopping centre, town centre supermarket and online). Young people are the most likely to shop in city centre where main fashion retailers are present. This is also the place where they usually live during their studies and where they can spend extra time for other activities (pubs, restaurants, culture…). Even though local / neighbourhood shops are not firstly chosen for clothing and footwear shopping, the younger group (16-24 years) is more captive than the rest of the population as proved by the frequency of their visits in the city centre and local and neighbourhood shops. Whatever the location (city centre or out of town), the shopping centre is a retail channel favoured by French people. The online shopping has been widely adopted by French shoppers as they use both channels: online and physical (high street and shopping centre) shopping. For online shopping the ‘traditional’ computer remains the main tool, tablets and the mobile phones are not used very often. Generally, young people shop more often than older people.

Total

16-24 55-64

Male

Female

Town Centre SC

11,7

17,7

9,0

11,3

12,1

Online over a computer

10,9

16,8

7,6

11,4

10,5

Town Centre High Street

10,2

17,5

6,7

10,6

9,9

Out of town SC

9,7

13,2

6,8

10,4

9,1

Town Centre Supermarket

9,4

11,6

8,2

9,1

9,7

Out of Town Super/ hypermarket

9,1

10,7

10,0

9,1

9,1

Local/ Neighbourhood Shops

8,5

13,0

8,2

9,5

7,5

Out of town retail park

7,5

8,8

5,9

8,9

6,2

Online Mobile Phone

3,6

6,6

0,5

5,0

2,2

Online Tablet

3,3

6,2

0,5

4,4

2,2

Factory Outlet Centre

3,2

5,0

1,3

4,3

2,2

Source: CBRE HOW WE SHOP IN FRANCE

© 2014, CBRE

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FRANCE SURVEY

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2014

Proportion of Consumers who have ever used different methods/outlets for Grocery Shopping large/main Food Shops for Households

Frequency of Shopping for Grocery – large/main shops •

90%

•

80% 70% 60% 50% 40%

•

30% 20% 10%

• Online Tablet

Online Mobile Phone

Factory Outlet Centres

Online over Computer (desktop)

Out of Town Retail Park big box retail warehousing

Local/ Neighbourhood Shops

Town Centre High Street

Town Centre SC

Out of town S C

Out-of-town Supermarket/ hypermarket

Town Centre Supermarkets

0%

• •

•

Frequency of Shopping for Grocery – large/main shops for Households (number of visits a year) Total

Methods/outlets for Grocery Shopping large/main Food Shops for Households •

•

The town centre supermarket is the most popular destination for the main grocery shopping with a visit every 2 weeks. Local/neighbourhood shops are the 2nd most frequently visited. This illustrates the fact that people buy a smaller basket more often when shopping locally, compared with out of town locations where the shopping list tends to be more consequent and may not require so frequent visits. Men are very participative in grocery shopping. Except for town centre supermarkets, when not equal to women, they visit more often the different shopping places. They are also much more likely to use online tools compared with women. The age group of 25-34 shops online with desktop about once a month whereas the 55-64 group once a year.

The hyper/supermarket is the main choice for grocery shopping (out of town / town centres and shopping centres where the traditional anchor is a hyper/supermarket). Local/neighbourhood shops are more often preferred for grocery shopping (70%) than for clothing shopping (52%). At the opposite, the online grocery shopping is not anchored in French’s habits yet, as only 30% have ever used this method against 73% for fashion shopping. Online grocery shopping with a mobile phone or a tablet is minor.

1624

2534

3544

4554

55Male Female 64

Town Centre 34,1 34,0 34,1 35,0 33,0 34,5 Supermarket Local/ Neighbourhood 26,5 19,0 19,4 25,9 31,1 35,3 Shops Out of Town Super/ 23,8 20,3 20,2 26,1 22,8 28,4 hypermarket

32,6

35,6

26,3

26,6

24,1

23,4

Town Centre 22,2 25,2 23,3 20,7 21,2 21,0 Shopping Centre

22,8

21,6

Out of town 21,4 21,0 20,5 22,0 18,7 24,7 shopping centre

23,4

19,6

19,9 23,6 17,3 18,4 19,6 21,0

20,1

19,7

9,0

10,0

9,2

9,8

5,6

10,7

10,0

8,0

6,1

6,2

11,8

7,0

4,7

1,3

6,7

5,5

4,5

7,8

5,1

4,2

3,6

2,5

6,0

3,1

Online Tablet

3,0

4,7

4,9

4,1

1,4

0,1

4,4

1,6

Online Mobile Phone

2,7

4,9

3,8

3,0

3,0

0,1

3,7

1,7

Town Centre High Street Out of town retail park Online over a computer Factory Outlet Centre

Source: CBRE HOW WE SHOP IN FRANCE

© 2014, CBRE

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FRANCE SURVEY

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2014

ONLINE COMPLEMENTS IN STORE

HOW DO CONSUMERS GET THERE •

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The car remains the favourite mean of transport to go shopping. Logically, the use of car is even more widely used for out of town destinations. The peripheral shopping areas are mainly organized for drivers despite the growing encouragement to use public transport. As proved by results on figure 12, the criteria n°1 is the presence of a free parking within a shopping centre. The car still occupies a central position in everyday’s French life. The car is less often used for more urban location. Nevertheless the share remains surprisingly high for local/neighbourhood.

Mode of Transport used by Consumers on their last Clothing and Footwear shopping trip 100%

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Car Walk

90%

Bus/tram

80% 70% 60% 50%

•

40% 30%

Method of delivery

Home delivery is by far the preferred method of receiving clothing and footwear goods purchased online (half of responses). This share rises to 58% for young class (16-24) and go down to 43% for the 55-64 age class, highlighting the correlation existing between mobility and age (having a car, the time…). If only 6% would never buy online, for most of online purchasers physical stores still have a key role before buying online. 79% consider it is important to have access to physical stores to view/touch clothes and shoes before buying online. The older the shoppers are the higher the share is. Even though older shoppers are more numerous to refuse shopping online, this share remains quite low (11%). Then the 2nd preference for the delivery of online shopping is to pick-up from a local delivery point which has been inherited from the traditional mail-order. This is followed by pick-up from a store branch near home. This method was not very developed by retailers in the past years as the retail network for physical and online was treated separately. But this has been growing more and more along the last years as retailers are seeing interest to generate more footfall in their physical stores to increase their sales. Pick up from a central locker within a shopping centre is not widely developed in France explaining the very low share of this method.

20% 10% Local/ Neighbourhood Shops

Town Centre High Street

Town Centre SC

Town Centre Supermarkets

Factory Outlet Centres

Out of town SC

Out of Town Retail Park big box retail warehousing

Out-of-town Supermarket/ hypermarket

0%

Preferred Method of Receiving Grocery Goods Purchased Online Physical delivery to home Pick up from store branch near home Pick up from a local delivery point Pick up from store branch near work Pick up from central locker in a shopping centre/mall Delivery to work

Source: CBRE HOW WE SHOP IN FRANCE

© 2014, CBRE

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FRANCE SURVEY

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2014

Physical delivery to home Pick up from store branch near home Pick up from a local delivery point

VALUE AND MID-MARKET RETAILERS DOMINATE FASHION SPENDING

Pick up from store branch near work Pick up from central locker in a shopping centre/mall

•

Delivery to work

How Important is it to have access to a physical store before buying online Extremely Important (5)

Important (4)

Somewhat Important (3)

Somewhat unimportant (2)

Not at all important (1)

I would never buy online

35%

0%

23%

20%

40%

21%

60%

•

11% 4% 6%

80%

•

•

100%

•

How Important is it to have access to a physical store to view/touch Grocery goods before buying online Extremely Important (5)

Important (4)

Somewhat Important (3)

Somewhat unimportant (2)

Not at all important (1)

I would never buy online

38%

0%

20%

19%

40%

12%

11% 5%

60%

80%

Proportion spent on each sector over the last 12 months (%)

16%

100%

The share of pick up from store near home is much more important (40%) for grocery than for clothing (18%). The click-and-collect trend has grown along the last few years in city centre (directly at the store) as well as in periphery with the drive concept where there is a dedicated place for collecting. The delivery to home is only at the 2nd place with 36%. Even though for the grocery the physical store keeps an importance to view/touch good before buying online, it seems less important than for clothing. Industrial products are well known and it does not seem so important to view them before buying online. HOW WE SHOP IN FRANCE

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Fashion spend in France is mostly shared on value and mid-market (90.8%). In detail, over half of the total spend is for value. Women spend more in value fashion and the more rural the population is the higher the share of value fashion is. Even though young consumers have less revenues then the rest of the population, they are much more likely to buy aspirational and luxury goods. The brand has a strong importance for younger shoppers. They tend to spend generally less but buy higher range fashion. Surprisingly men spend more aspirational and luxury in proportion compared to women. Paris and South East of France (urban population with the highest incomes and purchasing power) are the areas where the share of aspirational and luxury has the strongest proportion in total expenditure. Despite the low share of aspirational and luxury in French expenditure, this segment of the market performs well thanks to tourists who are the main consumers of these products. Value products register an important market share in the total expenditure

© 2014, CBRE

Total

16-24

55-64

Male

Female

Value / mid-market

90,8

89,5

92,0

88,4

93,1

Aspirational

7,1

7,5

6,4

9,0

5,3

Luxury

2,1

3,1

1,7

2,6

1,6

Source: CBRE 7

FRANCE SURVEY

www.cbre.fr

2014

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The digital technology has been developing very rapidly in everyday life, in retail in general and into shopping centres in particular where it has found a good place to expand, mixing with physical shopping practices. The use of smart phones has widely changed our way of shopping. The omnicanal is getting to reality. The younger class is more likely to use digital tools. But it is amazing to see to which extent they have taken such an important place in their everyday life. The 1st practice, made at least once by over half of the surveyed sample whilst in a shopping centre, is searching e-vouchers/coupons. The share for the 16-24 age class reach 2/3 against 1/3 for 55-64 age class. Even though it has been evolving very fast, the potential of growth in using digital tools is still important. More than 60% have never used the shopping centre app, QR codes to access shopping centre websites or compare prices on mobile phone. Interestingly, men use more technology than women when shopping.

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WHAT MAKES A SHOPPING CENTRE ATTRACTIVE? Free parking availability, convenience to travel to, cleanliness, price, security and atmosphere are quoted as the most important factors. The older the shoppers are the more important these factors are. This highlights the generation gap and as a consequence in the expectations of a shopping experience. The shopping centre is part of a special experience where all the retail aspects are supposed to be concentrated in one place. Globally, the accessibility is a crucial point when choosing a specific centre. The existence of a parking is very important but it has to be free. A chargeable parking would be considered as a discriminant factor. Price is also a factor which is very important. The range of retailers, the presence of specific retailers is also part of the attractivity of a given shopping centre but it is noticeable that the shopping centre is a place where people like to be. The comfort is part of the pleasure. This is proved by the importance of quoted criteria such as the cleanliness, security and atmosphere. The consumer is looking for a special experience. This is even enhanced by the following factors such as the general environment, the fact the shopping centre is enclosed/covered, a place to spend time (not necessarily to shop), a good place to meet friends.

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Percentage of Consumers that have ever carried out these actions when visiting a shopping centre Total

70%

16-24

55-64

60% 50% 40%

Importance of Factors for Consumers when visiting a shopping centre

30% 20% 10%

55-64

3,2 3

I compared the price on my mobile whilst instore

3,4

I use QR codes to access their websites

3,6

I use the shopping centre app

4 3,8

I access the blogs and review sites to evaluate the product

I search for e-vouchers/coupons whilst in store/shopping centre

4,2

I search social network sites for feedbacks and comments

0%

4,4

I use the transactional website of the shopping centre

16-24

I order goods online in stores in the centre

All

I pick up goods that I have purchased online from a central collection point

4,6

Source: CBRE HOW WE SHOP IN FRANCE

© 2014, CBRE

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FRANCE SURVEY

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2014

Anticipated Frequency of doing the following in two years time (balance between those that said more, about the same and less) more

the same

less

shopping online using a computer pick up from a delivery point pick up from physical stores shopping in local/neighbourhood shops shopping in major city centre/out of town malls using car for shopping shopping online using a tablet shopping online using a mobile pick up from a central locker in a shopping centre 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Source: CBRE

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French consumers are generally conservative as they do not intend to radically change their shopping habits in the next 2 years. The answer ‘the same’ represents half or more of responses.

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In detail, physical shopping keeps an important role in consumers’ habits. 62% of respondents said they will continue to shop into a traditional shopping place and 59% locally. Shopping locally is getting more and more important in everyday life.

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City centre and shopping locally is more and more integrated by retailers. Some traditional out-of-town retailers as well as traditional brands of hyper/supermarkets and hard discounters have been developing for recent years concepts for inner cities.

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Online shopping is set to grow as 37% said they will use this method more. Even though results tend to show that the youngest people are more likely to use more online tools, the gap between both is not as deep as expected. Whereas we saw along the analysis that men are generally more incline to online tools for shopping, 38% of women said they will shop more online against 36% for men.

HOW WE SHOP IN FRANCE

© 2014, CBRE

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There is no big trend for growth of picking up from a delivery point or a store. This tends to show that even though online shopping is led to grow, the pick-up of good at a specific point is not necessarily the most preferred. Home delivery should increase at the condition that the cost of this service is not chargeable.

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Shopping online yes, but the survey shows a disinterest for the use of a tablet and a mobile. We think that app are not sufficiently developed and not efficient enough yet. This result may change in the future if an effort is made for improving these IT tools.

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For more information regarding this Survey, please contact:

Research - France

Sabine Echalier

Deputy Director Tel: +33 1 53 64 37 04 E-mail: [email protected]

Aurélie Lemoine

Head of Research Tel: +33 1 53 64 36 35 E-mail: [email protected]

DISCLAIMER CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.