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European Retail Briefing - November 2018

ANALYST COMMENT – DISCOUNTING – NOT AS EASY AS IT LOOKS
The winning UK models
Hard discounting for non-foods
So if it works in the UK…
Next step France
Figure 1: Babou: outlet numbers and sales per outlet, 2008/09-2017/18
Underlying problems
What it means
EUROPEAN RETAIL SALES
Key points
Figure 2: Major European economies: year-on-year retail sales value growth, 2017-18
Figure 3: Major European economies: year-on-year retail sales volume growth, 2017-18
Inflation
Figure 4: Major European economies: all items CPI, 2017-18
Figure 5: Major European economies: food price inflation, 2017-18
LAUNCH ACTIVITY AND INNOVATIONS
Belgium: Delhaize unveils convenience concept Fresh Atelier
France: Leclerc opens first organic store
France: Organic retailer Biocoop invests in a new sector
Zalando introduces a virtual stylist
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Mixed goods retailing
Electrical retailing
Home shopping
Sports and leisure goods retailing
Toys and games retailing
NEWS ANALYSIS – FOOD AND DRINK
 CO-OPS
UK: Co-op
…acquiring former Waitrose stores
…new £45 million distribution centre to create 1,200 jobs
 GROCERS
France: Intermarché lowers prices to encourage healthier eating
Netherlands: Ahold Delhaize
…expanding into robotics
…reports strong sales and earnings growth for Q3
…Albert Heijn and bol.com launching new joint initiatives
Netherlands: Sligro showing signs of growth
Spain: DIA Group undergoing organisational changes as part of transformation process
Spain: Eroski posts profits of €14.8 million in first half
Sweden: ICA posts 2.8% growth in like-for-like sales
UK: Asda staff shake-up could lead to 2,500 job cuts
UK: M&S appoints new leadership team for food business
UK: Morrisons third quarter sales up but retail growth slows
UK: Percol unveils UK’s first plastic-free coffee packaging
UK: Sainsbury’s
…and Oasis planning concession partnership
…half year results boosted by Argos takeover
…CMA investigation into Sainsbury’s-Asda merger to factor in Aldi and Lidl’s impact
UK: Waitrose & Partners Food & Drink Report reveals latest trends
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
France: Camaïeu seeks protection from creditors
Germany: Gerry Weber to discontinue Talkabout brand
UK: Burberry profits surge 36% despite sales drop
UK: Coach the latest luxury house to ban the use of real fur
UK: Coast bought out of administration by Karen Millen
UK: End opens first London store in Soho
UK: French Connection begins sale talks
UK: Jaeger to triple store network by end of 2019
UK: Karen Millen puts 100 jobs at risk
UK: Mulberry sales hit by House of Fraser administration
UK: New Look
…could lose more UK stores
…exiting the Chinese market
…half year results show a return to profitability
UK: Next sales up 2% in Q3
UK: Primark achieves strong full year performance in the UK
UK: Reiss profits drop 26%
UK: Sandro opening a menswear flagship store on Regent Street
UK: Seasalt reports 23% increase in full-year sales
UK: Superdry
…first half sales affected by summer heatwave
…issues profit warning
UK: TK Maxx FY sales increase 11%
UK: Zara UK reports soaring profits
UK: Footasylum
…experiences difficulty in second half trading
…credit insurance cut by numerous companies
UK: Schuh profits fall 9.6%
UK: Shoe Zone reports strong second half performance
NEWS ANALYSIS – MIXED GOODS
France: B&M has acquired French retail chain Babou
Netherlands: HEMA to be acquired by Marcel Boekhoorn
UK: Home Bargains sales surpass £2 billion
UK: The Range posts falling profits
UK: Wilko swings to red
NEWS ANALYSIS – MULTI-SECTOR
UK: Halfords profits drop but sales rise in interim results
UK: M&S
…appoints new leadership team for food business
…expected to report a double digit drop in profits in interim results
…interim results reveal a sales decline across both divisions
…launches interactive sea map
…launches new Social Plastic reusable bag
UK: Mothercare cuts 200 jobs
 DEPARTMENT STORES
UK: Debenhams
…to close up to 50 stores over the next three to five years
…to potentially close one third of its stores
…retail and digital managing director resigns
UK: House of Fraser
…buys Glasgow store to create ‘Harrods of the North’
…closing iconic Manchester store
UK: John Lewis
…JLAB innovation programmes launches retail experience challenge
…introducing after-hours private shopping service
…announces ambitious plan for reducing HGV emissions
…begins search for new Chairman
…Cheltenham store opens today
UK: Selfridges unveils new innovative menswear floor
NEWS ANALYSIS – HOUSEHOLD GOODS
 DIY RETAILING
UK: B&Q pulling out of Black Friday
UK: Homebase announces further store closures
UK: Travis Perkins report solid trading for Q3 2018
 ELECTRICAL RETAILING
Germany: MediaMarkt lowers profit forecast
 MUSIC AND VIDEO GOODS RETAILING
UK: HMV overtakes Amazon as UK’s biggest seller of physical music
 CARPET RETAILING
UK: Carpetright sales dented by CVA store closures
 FURNITURE RETAILING
UK: Bensons for Beds partners with sleep expert
UK: IKEA
…launches first inner-city store in London
…UK sales boosted by store openings and digital growth
UK: ScS Group to pull out of House of Fraser concessions
 HOMEWARES RETAILING
UK: Dunelm posts flat quarterly revenue
NEW ANALYSIS – ONLINE 
Germany: Zalando
…expanding beauty offer to men’s cosmetics
…third quarter results impacted by summer heatwave
UK: Amazon
…launches Prime Wardrobe in the UK
…to create 1,000 technology jobs in three UK cities
…to open fashion pop-up on Baker Street
UK: AO World to acquire Mobile Phones Direct
UK: Moonpig to open Manchester tech hub
UK: Musclefood undergoes major rebrand
UK: N Brown reports first-half losses
UK: Shop Direct planning to shut outlet arm
UK: Sosandar expects to report 407% increase in half year revenue
NEWS ANALYSIS – OTHER RETAIL
 HEALTH AND BEAUTY RETAILING
UK: Boots fourth quarter sales fall
 BOOK AND STATIONERY RETAILING
UK: Paperchase reports falling profits
UK: The Works reports 15% sales rise in first update since IPO
UK: Waterstones unveils new store concept
UK: WHSmith
…acquires InMotion for £155 million
…announce store closures following detailed review
 SPORTS AND LEISURE GOODS RETAILING
France: Decathlon launches second hand platform
UK: Sports Direct acquires Evans Cycles
 JEWELLERS
UK: Claire’s stores under threat of closure
 SHOPPING CENTRES
UK: Bond Street completes £10 million transformation
UK: 02 Icon Outlet opens its doors
 TOYS AND GAMES RETAILING
France: Toys ‘R’ Us France taken over by Jellej Jouets
UK: GAME narrows annual losses
UK: Hamleys
…appoint new finance chief
…profits dive to £12 million loss
NEWS ANALYSIS – ECONOMY
UK: October retail sales growth up just 0.1%
UK: September retail sales up by 4.2%

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