Key performance indicators

Measuring progress against our strategy.

Customers

Relevance to strategy

  • Product
  • Price
  • People
  • Place

Definition

The number of customer accounts which made a retail purchase in the last 12 months. The figures now include our USA customers. They continue to exclude Figleaves which has an independent management team.

Performance

Our active customer file increased by 0.7% to 4.30m during FY17. Our customer metrics improved through the year, with active customers down in the first half and then up mid single-digits in the second half, supported by strong new customer recruitment.

Outlook

We will continue to attract new customers to our business through our product offering, marketing campaigns and customer service proposition.

Risk

  • Failure to change
  • Competition
  • People

Relevance to strategy

  • Product
  • Price
  • People
  • Place

Definition

The number of Power Brand (JD Williams, Simply Be and Jacamo) customer accounts which made a retail purchase in the last 12 months. The figures now include our USA customers.

Performance

Again we saw an improving trend through the year. The key driver of this trend was the migration of the Fifty Plus title into the JD Williams brand (these customers are included within the JD Williams customer file); the customer file of the Fifty Plus title declined, as planned, during the migration process. If we exclude Fifty Plus customers, Power Brand active customers were up 9.9%.

Outlook

The migration of Fifty Plus will be completed by the start of the second half FY18, and this title should therefore cease to be a drag on customer metrics.

Risk

  • Failure to change
  • Competition
  • People

Relevance to strategy

  • Product
  • Price
  • People
  • Place

Definition

We define our most loyal customers as those who have purchased from us in each of the last four clothing seasons.

Performance

We are pleased to report that our most loyal customers increased by 3.6% year on year, a significant improvement from the 0.4% decline reported last year. The primary driver of the performance was the turnaround in our Traditional Segment.

Outlook

Further strengthening customer loyalty is a key business focus. We do this by continuously improving our product offering, service and delivery proposition.

Risk

  • Failure to change
  • Competition

Relevance to strategy

  • Product
  • Price
  • People
  • Place

Definition

Our latest overall customer satisfaction score, as measured independently by the UK Customer Services Institute.

Performance

We were proud to receive a rating of 86.4% in the latest survey. We have also moved up one place in the UK retail sector, and now have the second-highest rating overall, behind only Amazon. Our score continues to be over 4ppts higher than the retail sector average.

Outlook

Customer satisfaction is driven by a wide range of factors, such as product quality and value, the delivery service and dealing with complaints. We talk to our customers every day to ensure we are doing the best job we possibly can.

Risk

  • Failure to change
  • Competition
  • People
  • Regulatory environment

KPIs on this page are on a 52 week basis unless otherwise stated.

Product

Relevance to strategy

  • Product
  • Price

Definition

Our market share in UK Ladieswear, in size 16 and higher. Market share is calculated using internal and Kantar data, and these figures relate to the 24 weeks ending 17 February 2017.

Performance

Ladieswear had its best performance for almost a decade, and this resulted in a very encouraging increase in market share. We saw market share gains across every customer age range. The performance is due to significant changes we have made to our design, buying and merchandising people and processes over the past few years.

Outlook

We expect the market backdrop to remain competitive. We will focus on further growing market share through continued improvements to our products, everyday great value and efficient promotions.

Risk

  • Failure to change
  • Competition
  • People

Relevance to strategy

  • Product
  • Price

Definition

Our market share in UK Menswear, in chest size 44" and higher. Market share is calculated using internal and Kantar data, and these figures relate to the 24 weeks ending 17 February 2017.

Performance

Against an ongoing competitive market holding our share flat was a solid result, although our objective is to grow share over the medium term.

Outlook

We expect the market backdrop to remain competitive. We will focus on further growing market share through continued improvements to our products, everyday great value and efficient promotions.

Risk

  • Failure to change
  • Competition
  • People

Relevance to strategy

  • Product
  • Price
  • Place

Definition

The amount, measured in value, of products which are returned to us by customers, over the last 12 months.

Performance

We saw another good performance in our returns rate, with the primary driver being the continued improvements in our product offering, including fit, quality and value for money. The ongoing increase in the proportion of cash customers also benefited the rate, as these customers naturally have a lower returns rate than credit account customers.

Outlook

Ladieswear has the highest returns rate by category, and the strong performance in the second half and as we ended the year is an ongoing headwind. Product improvements and new cash customers should continue to help this KPI.

Risk

  • Failure to change
  • Competition

KPIs on this page are on a 52 week basis unless otherwise stated.

Online

Relevance to strategy

  • People
  • Place

Definition

The percentage of sales, excluding stores and International, which comes to us online. Our second largest channel is through our contact centre.

Performance

Online penetration is now almost 70%, with online revenue up 10% year on year. Some customers are unlikely to ever migrate online; we estimate that these account for roughly half of the non-online proportion. Whilst we are online-first in our approach, we are happy to serve customers in whichever way they would like to shop with us.

Outlook

We continue to invest in both our online platform and in hiring and developing digital talent. The online penetration of new customers is an important leading indicator for overall future penetration.

Risk

  • Failure to change
  • Competition
  • People
  • Cyber security

Relevance to strategy

  • People
  • Place

Definition

The percentage of sales from new customers, excluding stores and International, which comes to us online.

Performance

This metric passed 75% for the first time, a key milestone. By brand, JD Williams saw the most significant increase, from 65% to 80%.

Outlook

We continue to target our new customer recruitment campaigns to focus primarily on online shoppers, and therefore we would expect this metric to continue to increase looking forwards.

Risk

  • Failure to change
  • Competition
  • People
  • Cyber security

Relevance to strategy

  • People
  • Place

Definition

The percentage of website sessions which result in an order being placed.

Performance

At 5.6% our conversion rate remains significantly above the industry average. The decline was entirely due to the increasing share of mobile sessions, which naturally have a lower conversion rate than PCs. The conversion rate for smartphones and tablets each increased, by 8% and 3% respectively.

Outlook

The continued increase in share from mobiles represents a drag to the overall conversion rate. We are focused on increasing the conversion rate of each device type.

Risk

  • Competition
  • People
  • Cyber security

Relevance to strategy

  • People
  • Place

Definition

The percentage of our total online traffic which comes from either a smartphone or a tablet device.

Performance

Mobile devices include both smartphones and tablets; of these, smartphones are the device of choice, with web sessions here increasing by 49% to account for 46% of all traffic. This trend was even stronger for JD Williams, where smartphone sessions more than doubled compared to last year.

Outlook

We adopt a 'mobile first' approach to all of our digital improvements, and expect the trend of customers shopping more and more on their smartphones to continue. The launch of our first app during the year, together with further improvements to our mobile optimisation, should result in further progress in this metric this year.

Risk

  • Competition
  • People
  • Cyber security

KPIs on this page are on a 52 week basis unless otherwise stated.

Financial Services

Relevance to strategy

  • Product
  • Price

Definition

Arrears over 28 days are defined as customer debts with two or more missed payments.

Performance

We saw a very strong performance in arrears rate, down 100bps year on year. This was driven by the improvement in the quality of our customer loan book, together with our ongoing efforts to proactively help customers manage their accounts.

Outlook

New customer recruitment typically results in an increase in arrears rate. Offsetting this, we expect the loan book quality to continue to be strong and we therefore expect a broadly flat rate over the coming year.

Risk

  • Failure to change
  • Competition
  • People
  • Regulatory environment

Relevance to strategy

  • Product
  • Price

Definition

Closing bad debt provision as a percentage of gross trade receivables.

Performance

Our provision rate improved significantly during the year. This was a result of two factors. Firstly, we benefitted from the sale of a small quantum of high risk payment arrangement debt, which we were able to sell for a slightly better rate than book value; given the risk profile of this debt the sale had a disproportionate impact on the provision rate. Secondly, the change reflects the continued improvement in the quality of the debt book.

Outlook

New customer recruitment typically results in an increase in the provisions rate. Offsetting this, we expect the loan book quality to continue to be strong and we therefore expect a broadly flat rate over the coming year.

Risk

  • Failure to change
  • Competition
  • People
  • Regulatory environment

Relevance to strategy

  • Product
  • Price

Definition

The number of new customers opening a credit account and rolling a balance in the last six months.

Performance

Although over the long term we aim to increase new credit rollers, the key enabler of this will be our new Financial Services products which are not yet fully live. During the year we nevertheless saw an improving trend, from -19% in the first half to -5% in the second half. For the year as a whole we added 249,000 new credit rollers.

Outlook

We started trialling lower interest rates for new customers in the run-up to peak. Whilst it is still too early to assess the full impacts of this trial, this is the first stage of our efforts to expand our Financial Services offering to enable us to grow our credit customer numbers.

Risk

  • Failure to change
  • Competition
  • People
  • Regulatory environment

KPIs on this page are on a 52 week basis unless otherwise stated.