Author: Mintel Group Ltd.
Last saved by: HTTP server

UK Retail Briefing - June 2014

ANALYST COMMENT
Time to be more cautious about retail sales growth
Interest rate increases in prospect
Softly, softly approach
But any increase would hurt
And the upward trend in consumer confidence would come to an end
A happy Christmas, but a much duller new year
RETAIL SALES – BACKGROUND AND OUTLOOK
Key points
Retail sales trends
Figure 1: Retail sales trends, 2013-14
BRC data for May
Figure 2: UK retail sales y/y growth, BRC vs ONS, 2012-14
John Lewis
Figure 3: John Lewis: Year-on-year growth, 2013-14
Inflation and wages
Figure 4: The income squeeze: Wages growth vs inflation, 2008-13
Inflation
Figure 5: Annual percentage change in the consumer price index for selected product groups, 2013-14
Looking forward
RETAIL REVIEW – RETAIL SALES BY REGION
Methodology
London and south east take one-third of all retail
Figure 6: Retail sales: Estimated breakdown by region, 2013
Figure 7: Estimated retail sales by region (incl. VAT), 2009-13
Figure 8: Estimated distribution of total UK retail sales by region, 2009-13
Annual growth: London is surging ahead
Figure 9: Annual % change in retail sales by region, 2009-13
Figure 10: Retail sales per-capita, by region (incl. VAT), 2009-13
Figure 11: Estimated per-capita retail sales by region, relative to average per-capita retail sales, 2013
Sentiment by region: Mintel’s Tracker survey
How consumers describe their financial situation
Figure 12: The consumer: How respondents would describe their financial situation, by region, May 2014
Financial situation compared to a year ago
Figure 13: The consumer: Current financial situation compared to a year ago, by region, May 2014
What it means
HEADLINES FOR THE MONTH
Co-ops
Grocers
Clothing retailing
Footwear retailing
Mixed goods retailing
Multi-sector retailing
Miscellaneous specialist retailing
DIY retailing
Electrical retailing
Music, video and video games retailing
Home shopping
NEWS ANALYSIS – FOOD AND DRINK
Co-ops
Co-op corporate governance structure overhaul
Heart of England Co-op full year sales increase
Convenience stores
Bhs eyes food expansion
easyFoodstore denied permission to open
Grocers
Aldi opens new UK training academy
Asda sales rise 0.1% in Q1
Morrisons
…chairman to stand down
…launches price tracker site
…to introduce new supplier charges
…to trial loyalty cards
Sainsbury’s
…to launch clothing online
…to modify 'Brand Match'
Tesco
…and House of Fraser to partner online
…debuts first current account
…sales fall in Q1
…to remove confectionery from checkouts
…trials innovative Shop&Go in London store
Other food specialists
Farmfoods profits fall 42%
NEWS ANALYSIS – NON-FOOD
Clothing retailing
American Eagle poised to enter the UK
Arcadia Group sales rise 2.1%
Belstaff launches David Beckham collaboration
Blue Inc confirms IPO
Burberry profits increase following new CEO appointment
El Ganso to open third UK store
Fat Face cancels IPO
French Connection sales rise in Q1
Inditex to launch Stradivarius in the UK
La Perla to open first menswear store in London
LK Bennett sales drop 3%
Matalan sales and profits fall
Moss Bros sales climb in Q1
My-Wardrobe launches first store
New Look sales rise 3%
Next finance director to retire
Primark to buy Birmingham shopping centre
Scotts & Co acquire Rowlands Clothing
Ted Baker
…sales rise 17.9% in Q1
…to expand into audio products
Footwear retailing
Office makes apology over security breach
Shoe Zone confirms share price as it prepares to float this week
Mixed goods retailing
B&M Bargains
…to launch £2bn IPO
…confirms intention to float
Poundland to launch transactional website
Multi-sector retailing
Marks & Spencer sales rise 2.7%
Miscellaneous specialist retailing
Halfords acquires Boardman Bikes
Mamas and Papas owners look to sell stake
Mothercare profits jump 61%
Department stores
John Lewis opens doors of Heathrow store
Selfridges flagship to receive £300m revamp
DIY retailing
Kingfisher sales rise 6.1% in Q1
Homebase to introduce coffee shops to stores
Topps Tiles half year profits increase from £4.7m to £8m
Electrical retailing
Carphone Warehouse and Dixons confirm merger
CeX to trial Bitcoin in store
Dixons sales rise 3%
EE reassures Carphone Warehouse over partnership
Music, video and video games retailing
Game
…confirms flotation plan
…valued at £340m ahead of IPO
Carpet retailing
Carpetright in senior management shake up
Homewares retailing
Lakeland opens first Indian stores
Lewis’s Home Retail acquires seven Paul Simon stores
Home shopping
Amazon introduces dedicated dress store
AO World sales jump 40%
ASOS sales rise 25% in Q3
Findel profits jump 87%
La Redoute to open first UK store
MandM Direct announces IPO
Sir Philip Green acquires 25% of MySale ahead of UK launch
Wiggle eyes IPO
Zalando UK to implement pick up point network
Books and stationery retailing
Card Factory narrows price guidance
Health and beauty retailing
Boots UK sales rise 2.3%
Superdrug Managing Director to leave company
Walgreens poised for Alliance Boots bid
Sports and leisure goods retailing
Direct Golf diversifies into cycling retail
JD Sports’ boss Barry Bown leaves company
Mountain Warehouse sales soar by 20%
Sports Direct
…to enter the fitness market
…to open new Oxford Street flagship
Opticians
Vision Express profits rises 11%
Garden centre retailing
Klondyke sales rise 6.6%
Economy
Retail sales rise 2% in May
Shop prices fall 1.4% in May
Retail sales rise 9.6% in April
Retailers to charge 5p for plastic bags
Retail sales rise 5.7% in April
Retail sales rise 9.6% in April

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.