European Retail Briefing - November 2017

ANALYST COMMENT – AMAZON – GAINING MOMENTUM
What it’s been doing
Amazon’s strategy
Prime
Products
Food
It tries anything
Achilles heel?
And most important of all – customers like it
Where next?
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 1: Major European economies: year-on-year retail sales value growth, 2016-17
Figure 2: Major European economies: year-on-year retail sales volume growth, 2016-17
Inflation
Figure 3: Major European economies: all items CPI, 2016-17
Figure 4: Major European economies: food price inflation, 2016-17
INNOVATION AND LAUNCH ACTIVITY
France: Carrefour lets customers deliver groceries
Germany: Zalando launches gift guide chatbot
Netherlands: Jumbo launches weekend florist initiative
Belgium: Parcify trials delivery straight to customer’s kitchens
Belgium: Delhaize opens store rooftop farm
Japan: Amazon opens bar in Tokyo
International: Amazon introduces teenager-friendly shopping
International: IKEA debuts furniture line for pets
International: Tommy Hilfiger extends disability friendly clothing range
US: Amazon launches in-house delivery
HEADLINES FOR THE MONTH
Co-ops
Grocers
Clothing retailing
Department stores
Electrical retailing
Online shopping
NEWS ANALYSIS – FOOD AND DRINK
 CO-OPS
Italy: Coop Sicilia and Coop Eridana to merge with Coop Alleanza 3.0
Switzerland: Coop Switzerland releases reusable produce bags
UK: Nisa recommends the Co-op takeover offer to its members
 GROCERS
Austria: METRO opens carbon neutral store
Belgium: Lidl Belgium launches online pick-up service
France: Auchan
…opens new store format Auchanbio
…installs click-and-collect lockers in car park
France: Carrefour
…group sales up despite decline in France
…launches optician chain
France: Groupe Casino sees sales rise by 3.4%
Germany: Aldi Nord and Süd introduce gift cards
Germany: Aldi Süd
…launches new car sharing service
…trials electric and gas powered trucks
Germany: METRO ends year with 1.6% sales growth
Italy: Penny Market to open seven new supermarkets
Lithuania: ICA Gruppen’s acquisition of IKI approved
Netherlands: Ahold Delhaize operating income up 40.5% in Q3
Portugal: Continente sets up DIY brand
Portugal: Jerónimo Martins profits fall 43%
Russia: Revenues fall 8.3% at Dixy Group
Russia: X5 sales rise by nearly a quarter
Spain: DIA Group sales edge up 1.5%
Sweden: ICA launches Halloween fruit and veg alternatives
UK: Aldi reveals wine advent calendar
UK: Asda names Roger Burnley as new CEO
UK: Morrisons sales rise for eighth consecutive quarter
UK: Sainsbury's
…cuts 2,000 jobs
…expands one hour delivery
…launches grab & go van
…sales up 17%
…sets up record label
UK: Tesco launches Christmas advert alongside charity pledge
UK: Waitrose trials packaging made from tomato plants
 OFF-LICENCES
UK: Conviviality retail sales up 10%
UK: Majestic Wine appoints new non-executive director
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
France: Kering revenues increase by 23.2%
France: LVMH revenues grow
UK: AllSaints sales increase by 20% whilst profits fall
UK: Burberry
…chief creative officer to leave the company
…revenues rise 9%
UK: FatFace record fall in profits despite increase in revenue
UK: French Connection to start selling affordable bridalwear
UK: Jigsaw seeks new ownership
UK: Matalan sales rise in Q2
UK: Next sales rise thanks to online performance
UK: Peter Werth to close all physical stores
UK: Primark sales soar 19%
UK: QUIZ sees strong growth
UK: River Island unveils first unisex kidswear collection
UK: Sales up at Coast and Oasis
UK: Superdry retail up 12.8%
UK: Ted Baker retail sales grow
UK: Zara sales rise whilst profits fall
UK: Footasylum to float on AIM
UK: Shoe Zone revenues fall in 2016
NEWS ANALYSIS – MULTI-SECTOR
Finland: Kesko reports an 8.7% growth in sales
Germany: Globus increases turnover by 6.2%
UK: Argos increases Fast Track capabilities with new fulfilment centres
UK: Flying Tiger Copenhagen sees former owner return
UK: Halfords profits fall 9.8%
UK: Mothercare to look at cutting up to 200 jobs
UK: M&S
…clothing director leaves for White Stuff
…potentially to close more stores
…to start selling mortgages
…sales rise 2.6%
 SHOPPING CENTRES
UK: Travelodge opens in Intu shopping centre
 DEPARTMENT STORES
Germany: Signa Holding makes bid for Galeria Kaufhof
UK: Debenhams
…profits fall by 44.2%
…to launch instore gyms
UK: Harrods profits soar
UK: John Lewis launches ‘concierge’ shopping experience
UK: Liberty sales, footfall and profit rise
UK: Selfridges sales increase by 16%
NEWS ANALYSIS – HOME AND HOUSEHOLD GOODS
UK: Bunnings
…sales fell by 17.5% in Q1
…to open 100 UK stores over five to eight years
UK: Travis Perkins sees sales rise
 ELECTRICAL RETAILING
France: Fnac Darty sales increase by 5.8%
Germany: Ceconomy sales edged up 0.6% in 2016
UK: Carphone Warehouse collaborates with Goji and Nails Inc
 CARPET RETAILING
UK: Carpetright sales up by 1.8%
 FURNITURE RETAILING
UK: Dunelm profits and sales rise
UK: The Range to open beach-themed store
NEWS ANALYSIS – ONLINE RETAILING
Europe: Amazon Prime launched in Belgium and the Netherlands
France: Showroomprivé opens click and collect in Conforma stores
Germany: Zalando
…adds Adidas shoe personalisation tool
...revenues up as it enters the beauty market
Germany: Zooplus sales increase 22% in Q3
Ireland: Everseen trials checkout free store
Italy: Yoox Net-A-Porter Q3 revenues up 17.7%
UK: Amazon
…expands Dash button range to more than 100 brands
…introduces Amazon Prime Villages
…to open pop-up Black Friday shop
…teams up Booths
UK: Asos
…introduces try before you buy
…launches same-day delivery
…profits and sales soar thanks to weak pound
UK: Feelunique starts same-day delivery in London
UK: N Brown profits stagnate whilst revenue rises
UK: Rakuten expands European loyalty program
NEWS ANALYSIS – OTHER RETAIL
 HEALTH & BEAUTY
Germany: dm-drogerie markt reports a positive year
UK: LloydsPharmacy to close 190 stores
 BOOK AND STATIONERY RETAILING
UK: Paperchase profits fall
UK: WH Smith travel section boosts growth
 SPORTS AND LEISURE GOODS RETAILING
Germany: Adidas revenues increase by 9%
UK: Cotswold Outdoors profits fall
UK: Go Outdoors sales rise 5.8%
UK: Sports Direct prepares for triathlon store rollout
 PETS AND PET PRODUCTS RETAILING
UK: Just for Pets bought by PRS Trading Ltd
NEWS ANALYSIS – ECONOMY
UK: British Retail Consortium
…footfall drops for September
…September retail sales growth driven by clothes and food
…shop price deflation remains low
…worst performance of non-food sales since 2011
UK: inflation at highest point for five years
UK: ONS shows positive retail figures for September
UK: Unilever, Mars and and Reckitt Benckiser to sell direct to consumer