Analysis of the Homeware Sector

I have researched brands within the homeware sector of retail to see who is performing successfully and to explore where Abercrombie and Fitch can fit in if they were to rebrand and relaunch as a homeware and lifestyle brand.

John Lewis:

> John Lewis state "John Lewis and Partners is a chain of high-end department stores operating throughout the United Kingdom."

> They are performing will with gross sales improving each year, increasing from £10,171.5m in 2014, to £10,942.6m in 2015, £11,018.8m in 2016, to £11,374.2m in 2017.

> They sell a huge variety of products ranging from categories including, home and garden, furniture and lights, and under these categories featuring, bedding, mirrors, tableware, vases etc.

> John Lewis does offer premium prices with items such as bedding costing up to £100.

Marks and Spencer Home:

> M&S home offer a similar service and similar items to that of John Lewis selling everything from bedroom, bathroom and kitchen products.

> Marks and Spencer home prices are also quite premium, but more affordable than John Lewis with, using the same example of bedding, with the majority of them costing £49.50 with the odd few costing up to £89 or £99.

> The group revenue for Marks and Spencer's clothing and home actually decreased from 2017 to 2018 by 1.4%, decreasing from £3,792.7m in 2017 to £3,741.1m in 2018.

Anthropologie:

> Anthropologie states "Anthropologie is an American clothing retailer that currently operates over 200 stores worldwide featuring a curated assortment of clothing, jewellery, intimates, home furniture and décor, beauty, and gifts."

> Anthropologie definitely offer high end prices with bedding costing up to £248.

> Anthropologie is part of URBN brands, which includes other brands such as Urban Outfitters. - I couldn't find specific financial statements for Anthropologie but for Urban Outfitters.

> For one quarter in April 2016 their net sales were $762,577, in July 2016 $890,568, in October 2016 they were $862,491 and then in January 2017 they increased to $1,030,158.

I think Abercrombie and Fitch would perform similarly to Anthropologie as a homeware brand as Anthropologie have a very specific theme of boho items and I recommend that Abercrombie and Fitch have a specific theme of American outdoor products. Anthropologie also have a similar target market to what I have recommended Abercrombie to have as a homeware and lifestyle brand as they market towards an older consumer of 30-49 years old and market mainly towards females. I have suggested that Abercrombie market towards an older audience than they do now, but not as old as Anthropologie, so A&F will be able to fill that gap of 26-34 year olds. I think that John Lewis and M&S Home will also be competitors to Abercrombie and Fitch but more on the price side as they all sell premium priced, high quality items, rather than on a style aspect as John Lewis and M&S sell traditional and basic homeware goods, where as Anthropologie and Abercrombie have their specific and more niche unique selling point.