European Retail Briefing -  February 2019

ANALYST COMMENT – FRENCH RETAILERS ARE INVESTING AGAIN IN CITY CENTRES
What we've seen
Urban stores are flourishing
IKEA to open in Paris in May
What about food?
New solutions for new consumer behaviour
What it means
EUROPEAN RETAIL SALES
Key points
Figure 1: Major European economies:  Year-on-year retail sales value growth, 2017-18
Figure 2: Major European economies:  Year-on-year retail sales volume growth, 2017-18
Inflation
Figure 3: Major European economies:  All items CPI, 2018-19
Figure 4: Major European economies:  Food price inflation, 2018-19
LAUNCH ACTIVITY AND INNOVATIONS
France: Carrefour using AI to optimize supply chain
Italy: Lidl launches same-day online delivery service
France: IKEA to open first city centre store in Paris
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Department stores
Electrical retailing
Home shopping
Toys and games retailing
NEWS ANALYSIS – FOOD & DRINK
 GROCERS
Belgium: Ahold Delhaize announces update on brand strategy in Belgium
France: Carrefour hatches to plan to save hypermarkets
France: Groupe Casino total sales up 1.4% in home market
France: Système U posts 2.3% increase in turnover in full-year 2018
Germany: Rewe to trial selling loose organic fruit and vegetables
Italy: Despar
… posts 5.4% growth in private-label sales
…opens two Eurospar stores
…responds to the rise in obesity
Italy: Esselunga sales rise 2.1%
Italy: Selex investing in private labels
Spain: investment group launches €300 million takeover bid for DIA
UK: Asda
…expanding tower lockers for click & collect
…wins landmark ruling in legal battle over equal pay
UK: Booths posts 3% increase in Christmas sales
UK: Lidl Christmas sales increase 8% year-on-year
UK: Lidl’s new warehouse creates 400 new jobs
UK: Morrisons and Waitrose launch fresh plastic crackdowns
UK: Sainsbury’s
…Asda merger delayed by 2 months
…extending to trial to help customers with hidden disabilities
…piloting a meat-alternative section in its meat and fish aisle
UK: Tesco
…confirms 9,000 jobs at risk as it axes fresh food counters
…launches new training programme with Jamie Oliver
…may cut up to 15,000 jobs
…reports strong Christmas sales
UK: Waitrose introduces same day sushi delivery
 SPECIALIST FOOD & DRINK RETAILING
UK: Hotel Chocolat group revenue up by 15%
UK: Oddbins
…owner files intention to appoint administrators
…officially enters administration
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
Belgium: New Look files for insolvency
Europe: Primark sales up 4% over the festive period
Europe: River Island closing all stores in Belgium and the Netherlands
Germany: Monsoon Accessorize files for insolvency
UK: Bonmarché Christmas sales in line with previous revised guidance
UK: Burberry warns of potential cost hits if no-deal Brexit happens
UK: Cambridge Satchel Company opening flagship store in Seven Dials
UK: discounting at Matalan helped draw in Christmas shoppers
UK: FatFace sales improve following tough start to Christmas trading
UK: H&M rolling out new retail store concepts
UK: Jack Wills calls in advisers to assess financial position
UK: Levi’s report 9% increase in net revenue for its fourth quarter
UK: Monsoon asks landlords for rent reductions
UK: Moss Bros reports improved sales in fourth quarter
UK: New Look strikes a deal to cut £1.3 billion debt pile
UK: Quiz Christmas sales below expectations
UK: Radley partnering with Ascot Racecourse for exclusive collection
UK: Ralph Lauren opening new store at Liverpool One
UK: Seasalt enjoys a record breaking Christmas
UK: Sir Philip Green to conduct a review of Arcadia store estate
UK: Swarovski opening new Peterborough store
UK: Whistles ending its menswear range
UK: Wild & Gorgeous enters administration
UK: Clarks staff to teach children literacy skills as they fit their shoes
NEWS ANALYSIS – MIXED GOODS 
UK: B&M posts 1.6% fall in like-for-like revenues in its third quarter
 MULTI-SECTOR RETAILING
UK: M&S
…launches AI-powered photo search on mobile site
…launches loose fruit and veg trial
…poaches new head of food online from Tesco
…new take-back scheme recycles plastic into playground equipment
…reportedly in talks with Ocado to launch online grocery service
…sales down 2.2%
…to close more stores affecting 1,045 staff
 DEPARTMENT STORES
Germany: Karstadt-Kaufhof merger has already cost 2,600 jobs
UK: Debenhams
…chair Ian Cheshire and chief executive Sergio Bucher voted off the board
…like-for-like sales tumble 3.4% over Christmas
UK: Fortnum & Mason posts double-digit growth over Christmas
UK: House of Fraser Intu stores saved from closure
UK: John Lewis
…closing down Knight & Lee store in Southsea
…Qubist partnership allows for staff to take part in social media marketing
UK: Morleys posts one of its best-ever Christmas trading periods
UK: Selfridges to sell bug bars in food hall
NEWS ANALYSIS – HOUSEHOLD GOODS
 DIY RETAILING
UK: Robert Dyas swings to loss
 ELECTRICAL RETAILING
Europe: Ceconomy putting its alliance with Fnac Darty on hold
UK: Samsung to replace plastic packaging with sustainable alternatives
UK: Superfi ceases trading
 MUSIC AND VIDEO GOODS RETAILING
UK: HMV
…rescued by Sunrise Records
…flagship Oxford Street store to shut down
…Mike Ashley in rescue bid for HMV
…potential buyer emerges for HMV
 FURNITURE RETAILING
UK: DFS reported a 10% rise in gross sales
UK: Heal’s warehouse suffers huge fire
UK: IKEA
…opens new store in Greenwich
…to trial furniture rental scheme
UK: ScS
…faces battle with Mike Ashley over bid for sofa.com
…pulls out of running to buy furniture specialist Sofa.com
 HOMEWARES RETAILING
UK: Dunelm to sponsor ITV’s This Morning
NEWS ANALYSIS – OTHER RETAIL
 HEALTH & BEAUTY RETAILING
Europe: Douglas and Indie Beauty Media Group announce new partnership
UK: Lush opening high-tech concept store in Manchester
UK: The Fragrance Shop Christmas trading boosted by online
 BOOK AND STATIONERY RETAILING
UK: Paperchase considering a CVA
UK: Smiggle plans to negotiate rent costs with landlords
UK: The Works reports first half loss
UK: WHSmith Christmas sales boosted by travel sales
 SPORTS AND LEISURE GOODS RETAILING
UK: JD Sports on track to hit the higher end of market expectations
 GARDEN CENTRES
UK: Wyevale confirms sale of another six stores
NEWS ANALYSIS – ONLINE SHOPPING
Europe: Vente-Unique reports seventh consecutive year of double-digit growth
UK: Air & Grace sales soar
UK: AO.com posts record November
UK: ASOS
…to launch own-brand homeware collection
…partners with dance company Candoco
UK: Boohoo raises profit guidance following strong Christmas quarter
UK: Emma Mattress Q4 sales surge 170% after Boxing Day success
UK: Farfetch to prohibit the sale of fur
UK: Findel posts record-breaking sales over the Christmas period
UK: Made.com full year revenue hits £100 million mark
UK: Missguided
…closing London store just over two years since it opened
…introduces pay later product to its app
UK: MySale warns of first half loss as revenues drop
UK: N Brown Group sales fall
UK: Ocado
…losses widen but sales grow
…to trial one-hour delivery service
…high-tech robotic distribution centre left severely damaged after fire
UK: Shop Direct
…records 3.7% upturn in revenue in the run-up to Christmas
…reviewing 225 HQ staff roles
NEWS ANALYSIS – MISCELLANEOUS SPECIALISTS
UK: Halfords warns on profits as Christmas sales fall
UK: Pets at Home retail like-for-likes up 4.7%
 TOYS AND GAMES RETAILING
Europe: Blokker sells Maxi Toys to Portuguese investment fund
UK: Game Digital UK like-for-likes down 0.3% during Christmas trading
UK: Games Workshop reports increase in both its half year sales and profits
UK: The Entertainer records Christmas sales boost
NEWS ANALYSIS – ECONOMY
UK: December retail sales up by 2.1%
UK: Network Rail posts 2.3% growth in total retail sales
UK: retail sales down 0.7% on a like-for-like basis in December
UK: shop price inflation edges up to highest rate since 2013