UK Retail Briefing - June 2019

ANALYST COMMENT – GOODHOME BY KINGFISHER BRINGS DESIGN AND SIMPLICITY TO DIY
What we've seen
A fresh approach to DIY shopping
Figure 1: Store displays in GoodHome by B&Q, May 2019
Figure 2: Important factors in deciding where to shop, by customer profile, March 2019
Getting the balance of size and convenience right
Figure 3: Collection point in GoodHome by B&Q, May 2019
The declining role of the big-box store
Figure 4: Split of Kingfisher UK sales by brand, 2011-18
Success of the GoodHome brand likely to depend on next CEO
What it means
UK RETAIL SALES
Key points
Retail sales
Figure 11: Retail sales trends, May 2018-May 2019
BRC vs ONS
Figure 12: UK retail sales y/y growth, BRC vs ONS, May 2017-May 2019
John Lewis
Figure 13: John Lewis Department Stores: year-on-year growth, January 2018-May 2019
Inflation
Figure 14: Annual percentage change in the consumer price index for selected product groups, April 2018-April 2019
Inflation and wages
Figure 15: Real wages growth: wages growth vs inflation, Jan 2017-April 2019
Consumer confidence
Figure 16: Mintel Financial confidence tracker, January 2017-April 2019
Looking forward
SECTOR FOCUS – HOUSEHOLD GOODS
The sector – what’s included
The sector in context
Figure 17: Major household goods categories, share of sales, 2018
Figure 18: Spending on household goods products, 2014-18
Figure 19: Household goods sectors year on year growth in sales by quarter, 2015-18
Inflation
Figure 20: Inflation in household goods, % change over 12 months, April 2018-April 2019
Consumer confidence
Figure 21: Spending on the home, actions and intentions, April 2016-March 2019
Housing market
Figure 22: Number of residential housing transactions over £40,000, 2009-18
Household goods retail sectors
Figure 23: Household goods retail sectors y/y growth, 2018-19
Online
Where next?
LAUNCH ACTIVITY AND INNOVATIONS
UK: Co-op and Superdrug announce ‘meal deal’ partnership
UK: Morrisons launch ‘weigh what you need’ service in drive to combat food waste
UK: Fashion retailers join new partnership to develop a more sustainable business model
UK: M&S invests in specialist digital clothes fitting group Texel
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Footwear retailing
Multi-sector retailing
Department stores
DIY retailing
Electrical retailing
Furniture retailing
Home shopping
NEWS ANALYSIS – FOOD AND DRINK
 CO-OPS
UK: Co-op raises £300 million Fairtrade bond
UK: Nisa shakes up management team
 GROCERS
UK: Asda reports fall in first quarter like-for-like sales
UK: Government initiative could see supermarkets fined for food waste
UK: Lidl
…acquires a new site to expand warehouse operations in Greater London
…improve transparency on the method of production
UK: Sainsbury's to scrap plastic bags for fresh produce in all its stores
UK: Waitrose
…to introduce energy-saving ‘invisible door’ technology
…trials refilling station to get shoppers using less plastic packaging
…unveils plans to treble the size of its online grocery business
…new delivery depot to launch in Enfield
 OTHER FOOD SPECIALISTS
UK: Greggs hails strong sales growth
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
UK: Arcadia
…CVA decision postponed
…identifies 23 stores for closure
UK: Burberry report profit growth amid ongoing transformation plan
UK: H&M collaborates with Netflix on Stranger Things range
UK: Hunter posts record revenues
UK: Joules sales soar
UK: Karen Millen owner puts chain up for sale
UK: Matalan full-year sales and profit rise
UK: Miss Selfridge London flagship store to close in July
UK: Monsoon founder pledges £34 million to secure CVA
UK: Moss Bros reports 2.2% like-for-like increase in retail sales
UK: New Look founder announces retirement
UK: Select
…proposals for a CVA
…officially enters administration
UK: Yours Clothing profits surge
 FOOTWEAR RETAILING
UK: Shoe Zone reports flat sales and profits
 MULTI-SECTOR RETAILING
UK: Halfords posts double-digit drop in full-year profit
UK: M&S profits fall alongside store closure programme
…accelerates store closure programme
UK: Mothercare sales fall amid restructuring
UK: Poundland owner Pepkor reports sales growth
UK: Wilko posts a return to profits in the past year
 DEPARTMENT STORES
UK: House of Fraser is to turn up to seven stores into a new luxury mini-chain
UK: John Lewis
…announces partnership with Co-op on click-and-collect trial
…appoints Sharon White as Chairman
…to trial new in-store virtual reality experience
…dominates customer satisfaction awards
…invests £21 million in Peterborough store refurbishment
UK: Scandinavian brand fashion brand Iben launches in the UK
NEWS ANALYSIS – HOUSEHOLD GOODS
 DIY RETAILING
UK: Kingfisher reports mixed first quarter
 ELECTRICAL RETAILING
UK: Microsoft launching Oxford Circus flagship store in July
 CARPET RETAILING
UK: Carpetright and Furniture Village open its first joint venture store
 FURNITURE RETAILING
UK: Heal's celebrates Homes & Gardens centenary with exclusive collection
UK: Ikea launches visualisation and e-commerce app
UK: Jysk furniture group set for UK expansion
NEWS ANALYSIS – ONLINE 
UK: Amazon
…launch pop up stores to help small firms break onto the high street
…partners with Next for click-and-collect
…trials pop-up station kiosks
UK: eBay unveils first UK concept store
UK: Fashion app Depop grabs $62 million investment
UK: Findel posts strong results as it considers name change
UK: Global Fashion Group to conduct an IPO
UK: N Brown hires first-ever chief brand officer
UK: Royal Mail to roll out parcel postboxes across the UK
UK: Shop Direct launches customer closeness centre
NEWS ANALYSIS – OTHER RETAIL
 HEALTH & BEAUTY RETAILING
UK: Boots
…criticised for its use of plastic packaging
…launching digital version of its Advantage Card
UK: Superdrug launches new podcast series
 BOOK AND STATIONERY RETAILING
UK: Card Factory group sales up 6.4%
UK: Sainsbury’s launches exclusive range of greetings cards to celebrate Pride
UK: WH Smith opens new concept store at Perth airport
 SPORTS AND LEISURE GOODS RETAILING
UK: Cotswold Outdoor owner Outdoor & Cycle Concepts wins CVA approval
UK: JD Sports
…acquisition of Footasylum to be investigated by CMA
…to wholesale own-label brands
UK: Mountain Warehouse profits growth boost store expansion plans
UK: Sports Direct makes Game Digital takeover offer
 JEWELLERS
UK: Thomas Sabo considering 5 store closures as part of CVA
 TOYS & GAMES RETAILING
UK: Games Workshop says full year profit will be at least £80 million
UK: The Entertainer launches toy rehoming scheme with The Salvation Army
 PETS AND PET PRODUCTS RETAILING
UK: Pets at Homes profits fall amid restructure plan
 SHOPPING CENTRES
UK: Network Rail retail sales up 4.36% in the 2018/19 financial year
UK: retail property group Landsec losses widen despite sales increase
UK: rising CVAs increasingly threaten the big four shopping centre landlords
UK: Westminster Council gives green light to £32 million Carnaby retail scheme
 ECONOMY
UK: April retail sales up by 7.2%
UK: BRC-KPMG: May retail sales down 3.0% on a like-for-like basis
UK: Klarna launches pop-up experiential event