European Retail Briefing - June 2012

ANALYST COMMENT
Assessing consumer confidence and retail sales amid the Eurozone crisis
Consumer confidence
Figure 1: Europe: Consumer confidence: Leading countries (ranked by May 2012), April-May 2012
Figure 2: Europe: Consumer confidence: Lagging countries (ranked by May 2012), April-May 2012
Retail sales
Figure 3: Europe: Year-on-year total retail sales growth: Leading countries (ranked by March 2012), March-April 2012
Figure 4: Europe: Year-on-year total retail sales growth: Lagging countries (ranked by March 2012), March-April 2012
Bringing confidence and growth together
Figure 5: Europe: Year-on-year retail sales growth versus consumer confidence levels, March 2012
Retail trade confidence
Figure 6: Europe: Retail trade confidence: Leading countries (ranked by May 2012), April-May 2012
Figure 7: Europe: Retail trade confidence: Lagging countries (ranked by May 2012), April-May 2012
What does this mean?
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Footwear retailing
Multi-sector retailing
Miscellaneous specialists
Department stores
DIY retailing
Electrical goods retailing
Music retailing
Furniture retailing
Home shopping
Health and beauty retailing
Books and stationery retailing
Sports and leisure goods retailing
Jewellers
Economy
RETAIL SALES REVIEW
Key points
 FRANCE
Figure 8: France: Retail sales, 2011-12
Inflation
Figure 9: France: Inflation, 2011-12
 GERMANY
Figure 10: Germany: Retail sales trends, 2011-12
Inflation
Figure 11: Germany: Inflation, 2011-12
 ITALY
Figure 12: Italy: Retail sales trends, 2011-12
Inflation
Figure 13: Italy: Inflation, 2011-12
 NETHERLANDS
Figure 14: The Netherlands: Retail sales trends, 2011-12
Inflation
Figure 15: The Netherlands: Inflation, 2011-12
 SPAIN
Figure 16: Spain: Retail sales trends, 2011-12
Inflation
Figure 17: Spain: Inflation, 2011-12
 UK
Figure 18: UK: Retail sales trends, 2011-12
Inflation
Figure 19: UK: Inflation, 2011-12
NEWS ANALYSIS
 GROCERS
Europe: Musgrave Group
…reports falling profits
…seeks click-and-collect partnership
France: Carrefour
…bid for Guyenne approved
…chief exits early
France: Intermarché reports a 3.1% increase in turnover
France: Systeme U acquires Schlecker
Germany: Aldi Nord looks to modernize in two years
Germany: Rewe Group reports increased turnover in Q1
Iceland: Iceland set to open stores in Iceland
Netherlands: Ahold reports 1.9% increase in sales
Spain: Eroski reports another full year loss
UK: Asda
…aims to double mobile sales
…like-for-likes rose 2.2% in Q1
…George trials new store format
…targets online growth and acquires supply chain GAAT
UK: Co-op to close two distribution centres within the next year
UK: Discounters grow while Tesco and Morrisons lose
UK: Morrisons
…expansion south begins
…has completed in-store bakery revamp
…may target South East with online grocery site
UK: Sainsbury's launches mobile grocery site
UK: Tesco
…launch new online portal for suppliers
…launches online delivery system
…plans to bring back Clubcard Exchange promotion
…revamps ready meal range
…to expect a fall in Q1 UK sales
…to launch F&F pop-up shop
UK: Whole Foods Market opens a new store in Piccadilly Circus
 FOOD SPECIALISTS
UK: Greggs sales fall in wet weather
 CLOTHING RETAILING
France: Levi's opens new flagship store in Paris
Spain: Michael Kors opens in Madrid
UK: Aquascutum
…acquired by YGM Trading for £15 million
…design director to leave role
UK: Aurora partner with PayPal to launch inStore payment app
UK: Base aims to become ‘first-class kidswear store’
UK: Bonmarché to launch collect-from-store service
UK: Bosideng to open first UK store
UK: Burberry
…consider phased opening of new London flagship
…full-year profits rise
UK: French Connection reports falling profits
UK: H&M to launch pop-up sports shops for summer 2012
UK: Hobbs reports strong full year results
UK: Irisa staff in consultation after relocation to Jacques Vert offices is considered
UK: Jaeger hires Better Capital to focus on the customer experience
UK: JD looks to buy One True Saxon
UK: McArthurGlen beats the high street with a 16% increase in sales
UK: McCartney opens first Adidas by Stella McCartney store
UK: Mini Velvet hopes to triple standalone store count
UK: Monsoon Accessorize on lookout for new chief
UK: Montique to debut in the UK
UK: Moss Bros sees boosted like-for-likes
UK: New Look close to deal on debt terms
UK: Phase Eight enjoys boost in pre-tax profit and turnover
UK: Reiss introduces iPads to drive sales
UK: SuperGroup
…considers overseas flagship
…sales boosted, but like-for-likes are disappointing
UK: Topshop to launch eco-friendly capsule collection
UK: Victoria's Secret set to debut in the UK with 2 store openings
 FOOTWEAR RETAILING
France: Schuh launches French website
Italy: Salvatore Ferragamo reports boost in profits
UK: Clarks reports a fall in pre-tax profit
UK: Kurt Geiger enters exclusive distribution deal with Vince Camuto
UK: LK Bennett secures funding for expansion in US
UK: Tod's first quarter revenues rise
 MULTI-SECTOR RETAILING
UK: Booker to acquire Metro's Makro UK
UK: Marks and Spencer
…launches Simply M&S food range
…reports falling profits and store revamp strategy
…to open its own bank
 MIXED GOODS RETAILING
UK: Poundland
…launches mobile app
…launches wholesale website
 MISCELLANEOUS SPECIALISTS
UK: Mothercare new boss says it will take 3 years to turn business around
UK: Robert Dyas attracts interest from three parties
UK: Wilkinson’s chief executive to leave
 DEPARTMENT STORES
UK: Debenhams begins summer discounting
UK: House of Fraser
…receives interest in stake share
…reports growth in profits, but decline in EBITDA
…to introduce 11 upmarket brands
…to launch World of Shoes at Oxford Street store
UK: John Lewis reports strong first quarter
 DIY RETAILING
Germany: Hornbach meets growth targets again
Germany: Praktiker stores to be renamed Max Bahr
UK: B&Q investing £69 million on product range improvements
UK: Kingfisher reports fall in Q1 profits
UK: Topps Tiles reports fall in pre-tax profits in first half
UK: Wickes sees sales slow due to wet weather conditions
 ELECTRICAL RETAILING
UK: Cecil Jacobs falls into administration
UK: Dixons
…extends £300 million credit facility
…receives £10 million investment from Canon
…reports boost in sales and EBITDA
UK: Kesa reports falling profits in Q4
 MUSIC RETAILING
UK: AEG is favourite to acquire HMV Live
UK: Digital music downloads overtake physical sales
UK: HMV
…partners Ticketmaster
…receives £32 million for Hammersmith Apollo
 CARPET RETAILING
UK: Carpetright appoints new chief executive
 FURNITURE RETAILING
UK: Bathstore bought for £15 million
UK: CSL Sofas launches augmented reality iPhone app
UK: DFS opens first high-street store on Tottenham Court Road
UK: Dwell seeks to expand store count by 100
UK: Multiyork widens offer with entry-level range
UK: Oak Furniture Land plans to expand store numbers
 HOME SHOPPING
The Netherlands: Aurora Fashions to replace concessions with e-commerce site
UK Asos
…reports "strong" full year
UK: Brand Alley launches new Outlet channel
UK: Ebay Fashion launches colour matching app
UK: Feelunique.com to revamp website
UK: Flying Brands sales fall as it continues to look for buyer
UK: Kiddicare's focus on loyal customers boosts online sales by 20%
UK: Mamas & Papas to expand online presence through Amazon and Tesco
UK: Moonpig founder acquires stake in menswear etailer
UK: Ocado
…introduces own label webshop
…introduces video-game software to increase efficiency
UK: Occa receives investment from Asos backer
UK: Shop Direct
…outsources customer service operations
…sign a further 10 year warehousing contract with Norbert Dentressangle
Germany: Celesio reports rise in Q1 profits
Russian Federation: Pharmacy chain 36.6 reports strong full year growth
UK: Alliance Boots reports rising trading profit
UK: Boots to launch new food range
UK: Superdrug considers localising its product offering
UK: The Fragrance Shop reports 24% boost in EBITDA
 BOOK AND STATIONERY RETAILING
UK: Clinton Cards
…reveals 44 store to close
…to close 350 stores as Birthdays exits high street
…to have up to 400 stores acquired by American Greetings
UK: Waterstones signs deal to sell Amazon Kindle
Iceland: Sports Direct to open in Iceland
UK: Halfords reports declining pre-tax profit in last fiscal year
UK: JD looks to buy One True Saxon
UK: JJB new store format has Nike's support
UK: Snow + Rock report decline in profits
 JEWELLERS
Switzerland: Richemont reports full year sales rise
UK: Pixmania launches jewellery range
UK: Signet UK sees moderate sales rise
 TOYS AND GAMES RETAILING
UK: The Entertainer wins sales as sector rivals close down
 ECONOMY
Germany: German retail sales down 3.8% in April
UK: April Scottish retail sales affected by wet weather
UK: Footfall falls 2% in Q1
UK: Government makes changes to pasty tax
…retail sales values slow in April
…RPI stands at 3.5% in April
UK: Shop inflation increases to 1.5%, but food inflation stabilises
UK: Warm weather boosts like-for-like sales in May
UK: Westfield London sales up 2.2% in Q1
ELECTRICAL RETAILING IN EUROPE – FNAC
Figure 20: Fnac Europe: Sales as share of electrical specialists’ sales in Europe, 2007-11
Strategic evaluation
Background
Company performance
Figure 21: Fnac: Group financial performance, 2007-11
Figure 22: Fnac: Sales by product category, 2011
Figure 23: Fnac: Outlet data, 2006-11*
Retail offering
e-commerce and home shopping