UK Retail Briefing - December 2011

ANALYST COMMENT
Sound and fury signifying nothing
No price war
Astute use of the marketing budget
Inflation
It’s a marketing war
HEADLINES FOR THE MONTH
Grocers
Clothing retailers
Footwear retailing
Multi-sector retailing
Mixed goods retailing
Department stores
DIY retailing
Electricals retailing
Music and video goods retailing
Homewares retailing
Home shopping
Books and stationery retailing
Sports and leisure goods retailing
Jewellers
RETAIL SALES – BACKGROUND AND OUTLOOK
Key points
Retail sales trends
Figure 1: Retail sales trends, 2010-11
The BRC data for November
Figure 2: UK retail sales y/y growth, BRC vs ONS, 2010-11
John Lewis
Figure 3: John Lewis: Year-on-year growth, 2010-11
The timing of Christmas
Inflation and wages
Figure 4: RPI vs Average weekly earnings growth, 2008-11
Inflation remains uncomfortably high
Figure 5: Annual percentage change in the Consumer Price Index for selected product groups, 2010-11
Looking forward
SECTOR FOCUS – HEALTH AND BEAUTY SPECIALISTS
Mintel’s Tracker Survey
Figure 6: Mintel Tracker Survey extracts: Agreement with statements, Nov 2010-Oct 2011
Figure 7: Mintel Tracker Survey: Consumers agreeing that they spend extra money on beauty products as a percentage of consumers agreeing that they spend extra money on beauty services, Nov 2009-Oct 2011
Sector relatives
Figure 8: Health and beauty specialists’ retail sales as percentage of total retail sales, 2006-11
Figure 9: Health and beauty specialists’ retail sales as percentage of consumer spending on health and beauty products, 2006-11
Retail sales data
Figure 10: Retail sales, current prices, 2006-11
Consumer prices inflation
Figure 11: Consumer prices inflation in selected categories, Nov 2010-Oct 2011
Consumer expenditure
Figure 12: UK: Consumer spending on health and beauty, 2006-11
Leading H&B specialists
Figure 13: UK: Leading health and beauty retailers, 2009-10
NEWS ANALYSIS
 GROCERS
Asda directors exit
Asda launches mobile app
Asda like-for-likes rise 1.3%
Co-op continues expansion but closes more Somerfield stores
Co-op revamps electrical offering
Co-op re-vamps its electricals site
Costcutter bought by Bibby Line Group
Costcutter seeks acquisitions
East of England Co-operative Society's profits suffer
Iceland founder lines up Blackstone for bid
Iceland to potentially expand into non-food
Morrison's £100m Christmas campaign
Morrison's like-for-likes rise 2.4%
Musgrave to launch SuperValu own brand products in UK
Sainsbury's ‘Christmas will come late… but shoppers will still be keen to buy’
Sainsbury’s plans first standalone pharmacy
Sainsbury’s targets local communities with bespoke air and online panto campaign
Sainsbury’s to create 800 jobs in Scotland
Sainsbury’s to launch Million Meal appeal
Kantar reports Tesco loses market share
Tesco announces new chairman
Tesco Big Price Drop drives volume growth
Tesco in House of Fraser deal
Tesco offering shoppers free online movie service
Tesco shareholder to increase his stake
Tesco to launch Big Christmas Price Drop
Tesco trials web and store augmented technology
Waitrose and Travelodge in hotel-and-retail co-development programme
Waitrose sales rise in Q3
 OFF-LICENCES
Majestic Wine launches first TV ad
Majestic Wine reports increased profits
 CLOTHING RETAILING
Aquascutum targets overseas expansion via licensing deal
Arcadia profits fall and mass store closures confirmed
Blue Inc gets backing from Sir Stuart Rose
Bonmarché launches TV and iPad initiatives
Bonmarché targets television shopping channel
Burberry half year profits up 26%
French Connection like-for-like fall
H&M announces March 2012 launch of Marni collection
Irisa to close nearly a third of standalone stores
Jack & Jones and Swarovski open first UK out-of-town stores
Jaeger launches transactional mobile site
Mulberry reports soaring profits
Peacocks 'considering 200 store closures'
Peacocks sees interest from Goldman Sachs
Primark to increase menswear after early Selfridges success
Pringle owners inject £10.9m
Reiss posts 44% rised in EBITDA
River Island launches accessories shop
SockShop launches mobile site
Superdry to open new flagship
Ted Baker opens 'Tedbury Village' in Bluewater
Ted Baker’s sales up
TM Lewin CEO: ‘If the past was frenetic, the future will be even more so’ posts rising profits
Versace launches H&M collection
 FOOTWEAR RETAILING
Barratts 'near administration for second time'
Boxpark plans a second site
Dr Martens to open Scottish store
Dune Group posts fall in profits
Foot Locker to launch new fascia
Jones plans click and collect service
Kurt Geiger reports rising EBITDA
 MIXED GOODS RETAILING
Halford targets Scotland for £1m autocentre investment
Halford profits fall 20%
Hotel Chocolat reports rising pre-tax profits
Mothercare sees poor first half and begins review
National Geographic to relocate flagship
Poundland to open first Dealz store in UK
Poundworld to launch wholesale site
QD plans pop-up stores
 MULTI-SECTOR RETAILING
Lakeside proposes £180m extension
M&S fashion boss considers rivals
M&S Plan A is on course
Westfield Group plans third London shopping centre
 DEPARTMENT STORES
Debenhams to launch 'Christmas Spectacular' Sale
Debenhams trials mobile payments
John Lewis and Waitrose to pilot virtual window
John Lewis four-day sales up 10.5% year-on-year
John Lewis reports mid-week sales up 3.7%
John Lewis sales flat this week
John Lewis sees 'Christmas momentum building'
John Lewis to give customers energy-saving advice
John Lewis weekly sales exceed £113m
Liberty sees pay off from revamped beauty department
 DIY RETAILING
B&Q profits rise in third quarter
Topps Tiles posts 36% fall in FY pre-tax profits
Wickes appoints former Asda COO to position of MD
Wickes to open smaller store formats
 ELECTRICAL RETAILING
Comet and Amazon launch 'mega sales'
Comet launches £17m advertising pitch
Comet to expand into eBay
Dixons group losses widen
Everything Everywhere to launch transactional site
Kesa reports like-for-likes in its half year down 7.9%
Phones 4U introduces wi-fi to all stores
Phones 4U suffer from insurance payouts
 MUSIC AND VIDEO GOODS RETAILING
Game downgrades sales forecast
HMV launches film on-demand service
HMV opens new standalone techshop
Twentieth Century Fox Home Entertainment launches Blu-ray/DVD virtual store
 FURNITURE RETAILING
BrightHouse refinances
Dwell reports EBITDA profit
Ikea price cuts boost market share
MFI to re-emerge as a pureplay e-tailer
MFI to relaunch online
 HOMEWARES RETAILING
Cath Kidston sales helped by overseas expansion
 HOME SHOPPING
Abel & Cole reports rise in profits
Amazon set to launch smartphone
Chain Reaction seeks out-of-town locations in UK
eBay acquires data firm
eBay launches first pop-up store today
Findel’s losses widen in 6 months to end of September 2011
M&M Direct posts 2% FY growth
Ocado launches Blackberry app
Ocado struggles with late deliveries
Park Group sees loss but remains optimistic
The Hut to retain Channel Islands base
Very.com launches in 48 countries
Wiggle bought by Bridgepoint in £180m deal
 HEALTH AND BEAUTY RETAILING
Boots introduces personalised messages at the till
Boots to roll out in-store spas
Lloyds Pharmacy to open second Health Village
 BOOK AND STATIONERY RETAILING
Clintons launches first TV ad in seven years
Clintons posts 2.4% drop in like-for-likes
WH Smith like-for-like fall
WH Smith expands Irish offering with Arnotts opening
WH Smith launches social networking e-reader
 SPORTS AND LEISURE GOODS RETAILING
Blacks considers sale
Blacks warns on profit
JD Sports prepares for "tough" Christmas
 JEWELLERS
HPJ Jewellers files to appoint administrators
Signet UK reports weak like-for-likes
 ECONOMY
10% online sales through click and collect
BRC and OE: British retail prices better than in Eurozone
CBI: High street retailers shed staff in light of steeply falling sales
Chancellor: Retailers will be able to defer 60% of business rate increase in 2012-13
Footfall this year experiences sharpest decline
Government implements Competition Commission’s call to strengthen controls over store cards
Inflation at 5% in October
Mega Monday starts competition for festive spend
November retail like-for-like sales down
Retail sales rise in October
Scottish retail sales weak in October
Shop chiefs disagree with VAT cuts
Shop price inflation in November falls to 2%