UK Retail Briefing - April 2012

ANALYST COMMENT
Tough times are good for high streets
Administrations up sharply
Every failure is different
But it’s not all bad news
HEADLINES FOR THE MONTH
Grocers
Clothing
Multi-sector retailing
Department stores
DIY retailing
Electricals retailing
Music and video goods retailing
Furniture
Home shopping
Jewellery
Books and stationery
Sports and leisure goods
Garden centres
RETAIL SALES – BACKGROUND AND OUTLOOK
Key points
Retail sales trends
Figure 1: Retail sales trends, 2011-12
The BRC data for March
Figure 2: UK retail sales y/y growth, BRC vs ONS, 2010-12
John Lewis
Figure 3: John Lewis: Year-on-year growth, 2011-12
Inflation and wages
Figure 4: RPI vs Average weekly earnings growth, 2008-12
Inflation fell again
Figure 5: Annual percentage change in the Consumer Price Index for selected product groups, 2011-12
Looking forward
SECTOR FOCUS – MIXED GOODS/DEPARTMENT STORES
 MINTEL’S TRACKER SURVEY
Figure 6: Mintel Tracker Survey extracts: Trends in activities done and consider to do, Jul 2011-Mar 2012
Figure 7: Mintel Tracker Survey extracts: Trends in what extra money is spent on, Nov 2009-Mar 2012
 SECTOR RELATIVES
Figure 8: Mixed goods retailers’ share of all retail sales, 2006-11
 RETAIL SALES DATA
Figure 9: Mixed goods retailers’ sales, 2006-11
 CONSUMER PRICES INDEX
Figure 10: Consumer prices inflation for selected categories, Jan 2011-Jan 2012
 CONSUMER SPENDING
Figure 11: Consumer expenditure on selected product categories, 2006-11
 LEADING RETAILERS
The department stores
Figure 12: Department store retailers: Leading operators, 2010/11
The variety stores
Figure 13: Variety store retailers: Leading operators, 2010/11
NEWS ANALYSIS
 GROCERS
UK: Asda
…launches £5 off £40 shop promotion for Easter
…George gives support to British manufacturers
UK: Iceland deal complete
UK: Kwik Save 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
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
 MULTI-SECTOR RETAILING
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
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
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
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
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