European Retail Briefing - June 2010

ANALYST COMMENT
Supermarkets stage a come back
Bargain hunters
Changing perceptions
Store environment
HEADLINES OF THE MONTH
Food retailers
RETAIL SALES REVIEW
Key points
 FRANCE
Figure 1: France: Retail sales trends, 2009-10
Inflation
Figure 2: France: Inflation, 2009-10
 GERMANY
Figure 3: Germany: Retail sales trends, 2009-10
Inflation
Figure 4: Germany: Inflation, 2009-10
 ITALY
Figure 5: Italy: Retail sales trends, 2009-10
Inflation
Figure 6: Italy: Inflation, 2009-10
 NETHERLANDS
Figure 7: The Netherlands: Retail sales trends, 2009-10
Inflation
Figure 8: The Netherlands: Inflation, 2009-10
 SPAIN
Figure 9: Spain: Retail sales trends, 2009-10
Inflation
Figure 10: Spain: Inflation, 2009-10
 UK
Figure 11: Retail sales trends, 2009-10
Inflation
Figure 12: UK: Annual percentage change in Retail Price Index for selected product groups, 2009-10
NEWS ANALYSIS
 BAKERS (RETAIL)
UK: Hotel Chocolat looks to raise £5 million via 'chocolate bond'
UK: Thorntons issues another profit warning
 CO-OPS (RETAIL)
UK: Co-op trials electricals
 CONVENIENCE STORES
UK: Henderson reports solid results
 GROCERS
France: Carrefour in acquisition talks with Chinese company
Germany: Rewe reports record sales
Greece: Jumbo profit down 5.4%
Netherlands: Ahold profit rises in Q1
Russian Federation: Magnit enjoys Q1 sales boost
Russian Federation: Seventh Continent sales increase
Russian Federation: X5 records Q1 profit
Russian Federation: X5 Retail acquires 20% stake in Express Retail
Spain: Eroski profits climb 8%
Sweden: ICA sales improve
UK: Asda
…appoints Clarke as new chief
…purchases Netto for £778 million
…staff to receive £47 million
…struggles in Q1
UK: Sainsbury's
…profits rise 17.5%
…invests in new technology to beat the weather
…aims for larger share of clothing market
UK: Spar International sales climb 5.5%
UK: Tesco
…quarterly sales up 6.9%
…employees receive record share payout
…chief set to retire
UK: Waitrose
…LFLs up 3.4%
…to enter Bahrain
…and Ocado sign new 10-year deal
 OFF-LICENCES
UK: Majestic enjoys sales fizz
 CLOTHING RETAILING
Europe: TJX Europe posts 1% LFLs increase
Spain: Inditex Q1 net profit soars 63%
Spain: Zara opens first Indian store
Sweden: H&M suffers 6% LFLs drop
UK: Bhs launches electricals website
UK: East Clothing returns to profits
UK: Ethel Austin relaunched as Life & Style
UK: French Connection LFLs fall
UK: Green confident on Bhs future despite loss
UK: Jaeger reports solid FY results
UK: Laura Ashley reports revenue increase
UK: Monsoon plans large China expansion
UK: Moss Bros LFLs up 12.6%
UK: Mulberry signs new London flagship store lease
UK: New Look posts impressive FY results
UK: Peacocks
…mulling over sale
…sale process set to begin
UK: Phase Eight in MBO
UK: SuperGroup to signs franchise agreement in UAE
UK: Ted Baker posts 20% sales increase
UK: Topshop eyes Chicago opening
 MIXED GOODS RETAILING
UK: Argos, Homebase sales fall
UK: B&M Bargains benefits from downturn
UK: Mothercare sales pass the £1 billion mark
UK: The Original Factory Shop up for sale
 HEALTH AND BEAUTY RETAILING
Germany: Celesio sales and profits rise
UK: Alliance Boots
…sees profits surge
…to open Advantage Card to other retailers
 MULTI-SECTOR RETAILING
Netherlands: Maxeda results hit by weak demand
Slovenia: Mercator posts steady Q1 results
UK: M&S
…posts "satisfactory" results
…reports on Plan A performance
 DEPARTMENT STORES
Germany: Karstadt rescued by consortium
UK: Beales buys Robbs of Hexham
John Lewis
…reports ‘buoyant sales’
…reveals new 'At Home' stores
UK: Liberty sales rise 40%
UK: TJ Hughes abandons sale process
 DIY RETAILING
Germany: Hornbach reveals strong FY results
UK: Kingfisher posts mixed results
UK: Robert Dyas invests £3 million in repositioning and new ad campaign
UK: Topps Tiles posts poor profits
UK: Travis Perkins LFLs down 1.7%
 FURNITURE RETAILING
UK: Habitat appoints executive chairman
 HOME SHOPPING
UK: Asos profits soar 44%
UK: Flying Brands buys Flowers Direct out of administration
UK: Ideal Shopping enjoys sales boost
UK: N Brown Group buys Figleaves
UK: Net-a-Porter to launch men's site
UK: Ocado hires five banks
 BOOKS AND STATIONERY RETAILING
UK: Clinton Cards suffers sales drop
UK: WH Smith sales dented by ash cloud
 SPORTS AND LEISURE GOODS RETAILING
UK: JD Sports acquires Sonetti
UK: JD Sports Fashion sales increase
UK: JJB suffers £68.8 million loss
 ELECTRICALS RETAILING
Germany: Media Saturn outlines Turkish expansion plans
Russian Federation: M.Video suffers profit drop
UK: DSGi LFLs up 6%
UK: Kesa blames weak sales on 'extremely poor weather'
 JEWELLERS
UK: Aurum posts strong FY results
UK: Signet Q1 revenue up 6.2%
 MISCELLANEOUS SPECIALIST RETAILING
UK: Halfords profits up 26.7%
 LUXURY GOODS RETAILING
UK: Burberry reports strong results
 MISCELLANEOUS
UK: Delivery process ‘frustrating’ online shoppers
UK: Football reduces footfall, study claims
 ECONOMY
UK: London retail sales growth slows in April
UK: London retail sales rise in May, says BRC
UK: ONS: Retail sales rise 1.1% in April
UK retail sales down in May, says CBI
UK retail sales rebound in May, says BRC
ELECTRICALS RETAILING IN EUROPE
 MARKET IN BRIEF
Retail sales forecasts
Outlook for electricals retailing
Market size and performance
The European competitive landscape
 MEDIA MARKT/SATURN
Figure 13: Media-Saturn group: Sales as share of electrical retailers’ sales in Europe, 2005-09
Figure 14: Media-Saturn Germany: Sales as share of electrical retailers’* sales in Germany, 2005-09
Strategic evaluation
e-commerce
Recent history
Financial performance
Figure 15: Media Markt/Saturn: Financial performance, 2005-09
Figure 16: Media Markt/Saturn: Germany, Western Europe & Eastern Europe – share of sales, 2005-09
Store portfolio
Figure 17: Media Markt/Saturn: Outlet data, by country, 2005-09
Figure 18: Media Markt/Saturn: Description of outlets, 2009
Retail offering
e-commerce and home shopping
Figure 19: Media Markt/Saturn: Websites, by country, 2009