Department Stores: Inc Impact Of COVID-19 - Italy - April 2020

Department Stores: Inc Impact Of COVID-19 - Italy - April 2020

  • Mintel
  • April 2020
  • Retail
  • 0 pages

Report Description

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Department stores in Italy are under assault from multiple directions at the moment, with intense competition from online generalists like Amazon, online pureplayers such as Zalando and YNAP, as well as store-based specialists with well-developed omnichannel business models.

To survive, they need to focus on giving customers what these other rivals may not be so well able to and this means greater levels of individual customer service and making a visit to a department store a real experience. It is too early to quantify but the COVID-19 outbreak seems certain to have a significant impact on the department stores sector and especially market leader Rinascente, which derives 30% of its sales from tourists, in 2020, due to the government decree ordering the closure of non-essential stores

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Table of contents

OVERVIEW
What you need to know
Key issues covered in this Report
Areas covered in this Report
EXECUTIVE SUMMARY
The market
Consumer spending
Sector size and forecast
Figure 1: Italy: department stores, estimated sector sales (excluding VAT), 2015-19
Companies and brands
Key metrics
Market shares
Figure 2: Italy: leading department store retailers’ estimated shares of department store sales, 2019
Online
The consumer
Where they shop
Figure 3: Italy: department stores shopped at in the last 12 months, January 2020
What they buy
Figure 4: Italy: items bought from a department store in the last 12 months, January 2020
Attitudes to department stores
Figure 5: Italy: attitudes to shopping in department stores, January 2020
What we think
THE IMPACT OF COVID-19 ON DEPARTMENT STORES
Short, medium and long-term impact on the sector
Figure 6: Short, Medium and long term impact of COVID-19 on Department Stores, May 2020
Opportunities and threats
Repercussions of COVID-19 could be permanent in some countries
Social distancing measures will change the experience and retailers must react
Figure 7: OpenTable retail slot booking system, San Francisco, May 2020
Disruption to tourism will hit department stores
Strong online business is key to survival
Adapting services to the ‘new-norm’
Community, co-operation and ethical considerations come to the fore
Impact on the department store sector
Loss of tourism and local shoppers will hit department stores hard
Forecast
Figure 8: Europe: Department stores market size and forecast, 2015-24
Figure 9: Europe: Detailed Department stores market size and forecast, by country, 2014-24
The impact of COVID-19 on consumer behaviour across Europe
Figure 10: Europe: Those extremely worried about the risk of being exposed to COVID-19, March and April 2020*
Figure 11: Europe: Those extremely worried about how the outbreak will affect their lifestyle, March and April 2020*
Figure 12: Europe: Changes made to lives as a result of the COVID-19, April 2020*
People expect to spend less on key categories sold by department stores
Figure 13: Europe: Net balance of expected spending* on categories sold by department stores, April 2020**
How the crisis will affect key consumer segments
Concern about infection and changes to lifestyle both increase with age
Figure 14: Europe: Those extremely worried about the risk of being exposed to COVID-19, by age, April 2020*
Across Europe spending patterns will be subdued in the short term
Figure 15: Europe: Net balance of expected spending* on beauty and toiletries, by age, April 2020**
Figure 16: Europe: Net balance of expected spending* on clothing and accessories, by age, April 2020**
Men are more likely to spend more on clothing, women on beauty & personal care
Figure 17: Europe: Net balance of expected spending* on beauty and toiletries, by gender, April 2020**
Figure 18: Europe: Net balance of expected spending* on clothing and accessories, by gender, April 2020**
Increase in online shopping varies across countries
Figure 19: Europe: Proportion of shoppers who increased their online shopping, April 2020*
The shift to online entails more than just having an online shop
COVID-19: Market context
United Kingdom
France
Germany
Italy
Spain
ISSUES AND INSIGHTS
COVID-19 set to have major impact on Italian department store sales
How can department stores differentiate themselves more effectively?
The facts
The implications
Online offers customers a choice and helps to broaden coverage
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Consumer spending grows faster than the overall economy
Department stores have a small share of the markets they compete in
Department store sales continue to grow
CONSUMER SPENDING
Figure 20: Italy: consumer spending on key department store product categories, (including VAT), at current prices, 2015-19
Department stores’ share of clothing and beauty markets
Clothing
Figure 21: Italy: estimated distribution of consumer spending on clothing and footwear by channel, 2018
Beauty
Figure 22: Italy: estimated distribution of consumer spending on beauty and personal care products by channel, 2018
SECTOR SIZE AND FORECAST
Department store sector size
Figure 23: Italy: department stores, estimated sector sales (excluding VAT), 2015-19
Mixed goods retailers sector
Figure 24: Italy: mixed goods retailers, sales (excluding VAT), 2015-19
Figure 25: Italy: Mixed goods retailers, forecast sales (excluding VAT), 2020-24
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Rinascente focuses on tourists and unique stores tailored to location
Coin returns to Italian ownership
COVID-19 will hit hard
Rinascente leads the market
Main players slow to adopt e-commerce
LEADING PLAYERS
Rinascente
Small store network attracts tourists
Looking to move increasingly upmarket…
…and closing loss-making stores
Using pop-ups to try out new brands…
…and digital technologies to improve service
Transactional site coming this year
Coin
Returns to Italian ownership
Evaluation of estate followed by revamps
Other department store operators
Figure 26: Italy: leading department store retailers, estimated net revenues*, 2015-19
Figure 27: Italy: leading department store retailers, outlets, 2015-19
Figure 28: Italy: leading department store retailers, annual sales per outlet, 2015-19
MARKET SHARES
Figure 29: Italy: leading department store retailers’ estimated shares of department store sales, 2015-19
Figure 30: Italy: leading department store retailers’ estimated shares of mixed goods retailers’ sales, 2015-19
ONLINE
Figure 31: Italy: online buyers in last 12 months, by country, 2015-19
Shopping online
Leading online players
THE CONSUMER – WHAT YOU NEED TO KNOW
Fewer than one in three have bought from a department store in the past year
Fashion items are the most popular purchases
Younger shoppers keener on experiential aspects
WHERE THEY SHOP
Fewer than one in three visited a department store in the past year
Figure 32: Italy: department stores shopped at in the last 12 months, January 2020
Rinascente attracts a slightly younger shopper
Figure 33: Italy: consumers that have shopped at a Rinascente or Coin department store in the last 12 months, by age and gender, January 2020
Department store shoppers most likely to be from higher earning households
Figure 34: Italy: consumers that have shopped at a Rinascente or Coin department store in the last 12 months, by net monthly household income, January 2020
WHAT THEY BUY
Fashion items are the most popular purchases
Figure 35: Italy: items bought from department store in the past 12 months, January 2020
Buyers most likely to be older with some exceptions
Figure 36: Italy: items bought from department store in the past 12 months, by age, January 2020
Clear gender demarcation
Figure 37: Italy: items bought from department store in the past 12 months, by gender, January 2020
ATTITUDES TO SHOPPING IN DEPARTMENT STORES
Figure 38: Italy: attitudes to shopping in department stores, January 2020
Younger shoppers keener on experiential aspects
Figure 39: Italy: Agreement with attitudes to shopping in department stores, by age, January 2020
Women prefer to shop in-store
Figure 40: Italy: Agreement with attitudes to shopping in department stores, by gender, January 2020
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources

 

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