European Retail Briefing - April 2012

ANALYST COMMENT
Price is no longer enough in German retailing
What we’ve seen
Food retail
Figure 1: Penny’s new store format
Clothing retail
Other sectors
What this means
RETAIL SALES REVIEW
Key points
 FRANCE
Figure 1: France: Retail sales trends, 2011-12
Inflation
Figure 2: France: Inflation, 2011-12
 GERMANY
Figure 3: Germany: Retail sales trends, 2011-12
Inflation
Figure 4: Germany: Inflation, 2011-12
 ITALY
Figure 5: Italy: Retail sales trends, 2011-12
Inflation
Figure 6: Italy: Inflation, 2011-12
 NETHERLANDS
Figure 7: The Netherlands: Retail sales trends, 2011-12
Inflation
Figure 8: The Netherlands: Inflation, 2011-12
 SPAIN
Figure 9: Spain: Retail sales trends, 2011-12
Inflation
Figure 10: Spain: Inflation, 2011-12
 UK
Figure 11: UK: Retail sales trends, 2011-12
Inflation
Figure 12: UK: Annual percentage change in Consumer Price Index for selected product groups, 2011-12
HEADLINES FOR THE MONTH
Grocers
Clothing
Footwear
Multi-sector retailing
Department stores
DIY retailing
Electricals retailing
Music and video goods retailing
Furniture
Home shopping
Health and beauty
Jewellery
Books and stationery
Sports and leisure goods
Garden centres
NEWS ANALYSIS
 GROCERS
France: Auchan vows to get aggressive on pricing after weak full year
France: Carrefour long-term debt cut by rating agencies
Germany: Penny updates refurbishment plans
Spain: Mercadona sales rise in 2011
UK: Asda
…launches £5 off £40 shop promotion for Easter
…George gives support to British manufacturers
UK: Iceland deal complete
UK: Kwiksave to return to high street next month
UK: Midcounties acquires Harry Tuffin's
UK: Morrisons
…new format will target high-end customers
…sets out plans to become biggest fresh food maker
…to donate job creation fund
UK: Sainsbury's
…aims to take market share from Game's demise
…becomes second largest online grocer
…campaign ruled out by ASA
…like-for-like sales rise 2.6%
UK: Tesco
…considering rise in pension age
…Dotcom-Only store experiences problems
…drops premium clothing
…to launch in-store kiosks with access to full range
…UK boss exits
…upgrades Value brand
UK: The Co-operative Food sees sales fall
 OFF-LICENCES
UK: Oddbins relaunches website with increased personalisation
 OTHER FOOD SPECIALISTS
UK: Greggs sales boosted by store expansion programme
UK: Holland & Barrett promotes new Know-how
 CLOTHING RETAILING
France: Hermes reports net profits rise of 41%
Germany: Hugo Boss reports "record" results for 2011 but expects slower 2012
Germany: Zalando extends European reach
Italy: Prada to add 160 stores to retail estate
Italy: Versace returns to profit
Russian Federation: Bosco plans European expansion
Spain: Inditex profits up 12%
Sweden: H&M plans launch of premium brand
Sweden: H&M
…new brand named "& Other Stories"
…reports like-for-like sales rise in February
UK: Aquascutum seeks new owner
UK: Aurora could close half its stores
UK: Cherokee to relaunch in Tesco UK
UK: French Connection launches retail review after profits fall
UK: Matalan founder acquires Fenn Wright Manson
UK: Moss Bros returns to profit in full year
UK: Next
…reports profits rise but warns of uncertainty
…to launch 19 mini stores
UK: Peacocks
…plans online launch for 2013
…seeks extension on payment terms
UK: Ted Baker reports "excellent" full-year
UK: Eveden considers sale
 FOOTWEAR RETAILING
Denmark: Ecco full year results set company record
 MULTI-SECTOR RETAILING
Germany: Metro fares well in tough economy
Ireland: Marks & Spencer launches Irish site as veteran Andrew Skinner exits
UK: Halfords plans investment as sales are flat
UK: Marks & Spencer sets up Savile Row office
UK: Matalan founder acquires Fenn Wright Manson
UK: Mothercare
…prepares to up store closures
…review puts 160 head office staff at risk
UK: Laura Ashley reports "resilient" results
 MIXED GOODS RETAILING
UK: Poundland buys eight Peacocks stores
UK: Argos reports 8.5% like-for-like sales fall
 DEPARTMENT STORES
France: Galaries Lafayette reports rising sales
Russian Federation: Debenhams to re-enter Russia
UK: Beales reports falling sales
UK: Debenhams
…reports positive first half
…to increase homewares range
UK: Harrods
…owner acquires stake in LVMH
…to launch in-store technology
UK: House of Fraser stake owned by Landsbanki may be sold
UK: TJ Hughes new owner plans store drive
 DIY RETAILING
Germany: Hornbach Group reports strong German sales
Germany: Praktiker net profit falls
UK: Kingfisher eyes new markets as profits rise
UK: Wilkinson among bidders for Robert Dyas
 ELECTRICAL RETAILING
UK: Comet
…plans closure of 61 stores
…sees sales rise to 2-year record
 MUSIC AND VIDEO GOODS RETAILING
UK: Game
…back in trouble
…enters administration with 277 stores to close
…future in jeopardy as value wiped out
…offered lifeline by Comet owner OpCapita
…receives interest from potential bidders
…UK stores bought by OpCapita
UK: HMV
…Live attracts attention of O2 owner
…set to benefit as Game Group struggles
UK: Sony Music among bidders for HMV Live
 CARPET RETAILING
UK: Carpetright plans to refresh estate in next two years
 FURNITURE RETAILING
Sweden: Ikea puts shopping centre project on hold
UK: DFS
…reports sharp fall in EBITDA
…to launch first high street store
UK: Feather & Blacks sees sales boosted by multichannel
UK: Ikea to build new store in Reading
 HOME SHOPPING
UK: Brand Alley reports 60% rise in sales
UK: Eveden
…acquired by Wacoal
…considers sale
UK: Feelunique owners to sell a stake
UK: Findel full year sales rise as turnaround plan continues
UK: Groupon facing OFT action
UK: Ocado boss says online grocery shopping to get personal
 HEALTH AND BEAUTY RETAILING
Germany: Celesio to sell DocMorris as full year profits fall
Germany: Schlecker
…has closed 2,200 outlets
…to close 2000 German stores
UK: Feelunique owners to sell a stake
UK: Superdrug launches Superprice campaign
 JEWELLERY RETAILING
UK: Azendi in administration
UK: H Stern to launch in UK
 BOOK AND STATIONERY RETAILING
UK: Clinton Cards
…profits fall and founder exits
…to restructure Birthdays if buyer not found
 SPORTS AND LEISURE GOODS RETAILING
UK: Blacks to rebrand as turnaround begins
UK: Go Outdoors hires Halfords digital boss
UK: JD and Sports Direct battle for Firetrap
UK: JJB receives lifeline from Dick's
UK: Sports Direct
…acquires WDT
…starts pricing war with JJB
 GARDEN CENTRES
UK: Garden Centre Group acquired by Terra Firma
 ECONOMY
UK: BRC director general Stephen Robertson exits
UK: Government launches Portas Plus plans
UK: Hammerson wins race for Croydon centre
UK: Kantar: Asda gains market share as Tesco loses out
UK: Land Securities to introduce wi-fi to all shopping centres
UK: Inflation continues to fall
UK: Minimum wage frozen for young, adult rate increase of 1.8%
UK: Olympics will provide Sunday trading boost for retailers
UK: Retail administrations up 15% in Q1 on 2011
UK: ONS: Retail sales fall in February
UK: Scottish retail sales fall in February
UK: Shop price inflation up, driven by food
UK: Supermarkets prime targets for minimum alcohol pricing
BEAUTY RETAILING IN EUROPE
 YVES ROCHER GROUP
Strategic evaluation
Background
Company performance
Store formats
Retail offering
e-commerce and home shopping