European Retail Briefing - May 2015

ANALYST COMMENT
Ahold and Delhaize
How do they compare?
Figure 1: Delhaize and Ahold, sales and outlets, 2014
And the fit?
Where are the benefits?
And the risks?
Who benefits?
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 2: Major European economies: Year-on-year retail sales value growth, 2013-14
Figure 3: Major European economies: Year-on-year retail sales volume growth, 2013-14
Inflation
Figure 4: Major European economies: All items CPI, 2013-14
Figure 5: Major European economies: Food price inflation, 2013-14
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
DIY retailing
Electrical retailing
Home shopping
Sports and leisure goods retailing
NEWS ANALYSIS – FOOD AND DRINK
 CO-OPS (RETAIL)
UK: Co-operative Food
…members press for election overhaul
…says it cannot enhance commitment to Fairtrade
 CONVENIENCE STORES
UK: One Stop opens two in-store Subway concessions
 GROCERS
Belgium: Delhaize revenues rise 15.8%
Denmark: Dansk Supermarked sales rise 3.8%
France: Carrefour sales increase 6.2%
France: Casino’s sales up 5.3% in its first quarter
Ireland: SuperValu becomes the biggest supermarket in Ireland
Italy: Coop’s acquisition of Superconti approved
Italy: Esselunga sales edge up 0.8%
Italy: Lidl plots Italian expansion
Netherlands: PLUS launches new food ranges
Portugal: Jerónimo Martins posts 9.4% growth
Slovenia: Mercator sales and profits fall in 2014
Spain: DIA’s acquisition of Eroski stores approved
UK: Morrisons
…former boss receives £1m bonus
…Q1 sales down 1.1%
…to cut head office staff by a third
UK: Sainsbury’s
…converting space to non-food
…gains Next’s former CFO
…reports first loss in ten years
…to cut 800 in-store jobs
UK: Supermarkets could face pricing probe
UK: Tesco
…appoints Master of Wine
…appoints new group brand director
…expected to reveal new investment into pension scheme
…rejects a bid for its South Korean assets
…reports £6.4bn loss
…takes over full ownership of the Euphorium bakery chain
 OTHER FOOD SPECIALISTS
UK: Community Store announces plans to expand in the UK
UK: Greggs sales grow 5.0% in Q1
UK: Holland & Barrett
…to open its first US stores
…opens first Free From store
UK: Majestic Wine acquires Naked Wines
UK: Thorntons reports ‘mixed’ performance for Q3
NEWS ANALYSIS – NON-FOOD
 CLOTHING AND FOOTWEAR RETAILING
Europe: Primark revenues rise 12%
France: Auchan launches new-concept personalised tailors shop, Bouton Noir
France: Vivarte announces a major restructuring programme
Germany: Hugo Boss sales rise 9% in Q1
Netherlands: Macintosh Group grows market share in Benelux
Spain: Mango turnover rises 9.3%
UK: Bonmarché has challenging fourth quarter
UK: Burberry revenues rise 9% in the second half of the year.
UK: Charles Tyrwhitt sales jump 20%
UK: Cuplé opens its first London store
UK: French Connection warns on sales and financial performance
UK: LK Bennett sales rise 4.4%
UK: Monsoon Accessorize suffers sales and profit decline
UK: N Brown sales flat on the year
UK: New Look
…in takeover talks
…eyed by investors
UK: Next
…chief executive pledges to raise shopfloor wages
…sales up 4.1% in Q1
UK: Shoe Zone fails to meet market expectations
UK: Shoon
…bought out
…enters Company Voluntary Arrangement
UK: SuperGroup posts 16.7% retail growth
 MULTI-SECTOR RETAILING
UK: Laura Ashely sales and profits rise in 2014
UK: Mothercare beginning to benefit from turnaround plan
UK: Poundland
…sales reach £1bn
…proposed purchase of 99p Store under scrutiny
…purchase of 99p stores faces full investigation
…brings forward review of 99p Stores deal
UK: Poundworld unveils new ecommerce website
UK: Tiger to open new store in Milton Keynes
UK: Woolworths staff lose compensation battle
 DEPARTMENT STORES
UK: BHS to expand its food offering
UK: Debenhams
…like-for-like sales rise 1.3%
…losses widen in Ireland
UK: Harrods taken over by Samsung
UK: House of Fraser
…achieves ‘record sales’
…appoints Colin Elliot as new Financial Director
UK: Liberty owner shows interest in Ben Sherman
UK: John Lewis launches recruitment drive for 850 new roles
 DIY RETAILING
France: Bricorama suffers sales decline
France: Leroy Merlin launches second-hand tool sale
France: Mr Bricolage launches DIY rental site
UK: Travis Perkins consumer division reports sales growth of 8.7%
 ELECTRICAL RETAILING
France: Fnac sales grow by 0.5% in Q1
Germany: Dixons Carphone offloads The Phone House
Germany: Media-Saturn acquires live shopping platform
Germany: Metro Group reports strongest like-for-like growth in 7 years
Netherlands: Dixons Carphone exits the Netherlands
UK: Apple revenues grow 27.2% in Q2
UK: BrightHouse
…reveals new business practises
…unveils ambitious growth plans
UK: Carphone Warehouse to launch new mobile network iD next week
UK: Maplin reports strongest sales growth in seven years
UK: Phones4U creditors to receive 0.4p per pound owed
 FURNITURE AND HOMEWARE RETAILING
UK: Carpetright sales grow 5.4% in Q4
UK: Dunelm Chairman to stand down
UK: Ikea UK sees profits fall
UK: ScS reports mixed Q3 results
 HOME SHOPPING
France: Cnova widens losses in Q1
France: Sephora launches click-and-collect
France: Vente-privee opens wine and food distribution centre
Germany: Zalando posts best ever first quarter results
Germany: Rewe launches online wine store
Germany: Rocket Internet posts €20.2m loss
Ireland: Zalando opens new technology hub in Dublin
UK: Boden announces shoppable digital catalogue
UK: Boohoo sales soar 27% in 2014
UK: Farfetch to use investment to drive growth
UK: Home Retail Group full-year sales edge up 1%
UK: Hut Group announces 39% rise in sales
UK: Made.com in funding talks
UK: Mr Porter develops sportswear offering
UK: Net-a-Porter announces new shoppable social network
UK: Ocado
…launches Apple Watch grocery app
…patents robots for picking and packing
 BOOK AND STATIONERY RETAILING
UK: WH Smith high street sales suffer again
 TOY RETAILING
UK: Hornby expects to post first profit in three years
 SPORTS AND LEISURE GOODS RETAILING
France: Intersport turnover up 6%
UK: Evans Cycles
…close to purchase
…acquired by ECI
UK: JD Sports revenues climb 25%
 PET GOODS RETAILING
UK: Pets at Home sales grow 9.6% in 2014
 ECONOMY
UK: Like-for-like retail sales rise 3.2% in March
UK: Retail sales rise 4.1% in March
CONVENIENCE STORES – SPAR UK LTD
What we think
Services to fulfil a variety of shopper missions
Franchise partners and local suppliers
New foodservice counter concept
Forecourt expansion
Own brand drive success
Increased online activity to engage with consumers
Company background
Company performance
Figure 6: Spar UK Ltd: Group financial performance, 2010/11-2014/15
Figure 7: Spar UK Ltd: Outlet data, 2010/11-2014/15
Retail offering