House of Fraser Market Analysis: UK Department Store Competitor
This paper presents a market analysis of House of Fraser, the UK-based department store chain founded in Glasgow in 1891. The analysis traces the company's historical growth through acquisitions and store openings, then benchmarks its performance against six major competitors — including Marks & Spencer, John Lewis, Harrods, and Debenhams — across key metrics such as gearing ratios, liquidity ratios, outlet counts, and sales market share. The paper also highlights House of Fraser's corporate social responsibility commitments, including its ethical sourcing policies, fair trade advocacy, and anti-fur stance, concluding that the company remains a stable and competitive player in the UK department store market.
- Company History and Background: Founding, growth, and key acquisitions since 1891
- Competitive Landscape: Six major UK department store competitors identified
- Financial Performance Comparison: Gearing and liquidity ratios versus John Lewis
- Market Share Analysis: Outlet count and sales share rankings across competitors
- Corporate Social Responsibility and Outlook: Ethical sourcing, fair trade, and growth outlook
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What makes this paper effective
- The paper uses concrete financial metrics — gearing ratios and liquidity ratios — to support competitive comparisons rather than relying solely on qualitative claims.
- It contextualizes House of Fraser within a clearly defined competitive set, giving the reader a structured sense of where the company ranks across multiple dimensions (outlets, sales share, market share).
- The inclusion of corporate social responsibility details broadens the analysis beyond financials, providing a more rounded company profile.
Key academic technique demonstrated
The paper demonstrates basic comparative market analysis by systematically measuring one company against its peers across several distinct metrics. Rather than evaluating House of Fraser in isolation, the author anchors each claim in a ranked comparison — who leads the market, who is the closest competitor — a useful technique for business and marketing papers at the undergraduate level.
Structure breakdown
The paper opens with a historical overview establishing the company's origins and growth trajectory. It then identifies competitors and applies financial ratio analysis before shifting to market share data across outlets and total sales. The paper closes with a qualitative assessment of the company's social responsibility policies and economic resilience. This moves logically from history → competition → quantitative data → qualitative outlook.
Company History and Background
House of Fraser was founded in 1891 by James Arthur in Glasgow. Originally a drapery shop, the store quickly expanded, and by the end of 1891 the entire Fraser family was investing in the company. At that point, the store was renamed Frasers & Sons. Over time, the business grew from selling draperies to selling clothing, shoes, and other department store goods.
The company has continued to grow through the acquisition of smaller businesses. In 2005, House of Fraser acquired Jenner's department store, and in 2006 it took over Baugur. In 2008, the company opened three new stores in London, Belfast, and Bristol. The company has continued to expand and remains a strong competitor in the UK retail sector.
Competitive Landscape
House of Fraser is ranked highly in the market overall. Its six major competitors are Marks & Spencer, John Lewis, Harrods, Debenhams, Selfridges, and Fenwick. Of these, John Lewis is by far the most direct competitor.
Financial Performance Comparison
John Lewis maintains a lower but more consistent gearing ratio than House of Fraser, indicating a tighter ratio of debt to equity. Additionally, John Lewis has a higher overall liquidity ratio, recorded at 0.474 compared to House of Fraser's 0.494.
Works Cited
Brand Republic (2009). Debenhams, House of Fraser and John Lewis go head-to-head in price war.
Enotes (2012). Gearing.
Fame (2012). John Lewis.
Fame (2012). House of Fraser.
Funding Universe (2012). House of Fraser PLC. http://www.fundinguniverse.com/company-histories/House-of-Fraser-PLC-Company-History.html
House of Fraser (2012). Company Information.
House of Fraser Website (2011). Fame (Financial Data).
Investopedia (2012). Current Ratio. http://www.investopedia.com/terms/c/currentratio.asp
Mintel (2011). Department Stores Retailing — UK — March 2011. http://academic.mintel.com/sinatra/oxygen_academic/display/&id=545274
Office for National Statistics (2012). Consumer Prices Indices — Series.
Office for National Statistics (2012). Consumer Prices Indices — RPI Annual Percentage Changes 1948 to 2011.
Wikipedia (2012). House of Fraser. http://en.wikipedia.org/wiki/House_of_Fraser
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