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UK Retail Briefing - December 2019

ANALYST COMMENT: THE END OF A DECADE – LOOKING FORWARD, LOOKING BACK
UK RETAIL SALES
Key points
Retail sales
Figure 1: Retail sales trends, June 2018-July 2019
BRC vs ONS
“Small retailers” versus “large retailers”
Figure 2: UK retail sales y/y growth, BRC vs ONS, July 2017-November 2019
John Lewis
Figure 3: John Lewis Department Stores: year-on-year growth, March 2018-November 2019
Inflation
Figure 4: Annual percentage change in the consumer price index for selected product groups, November 2018-November 2019
Inflation and wages
Figure 5: Real wages growth: wages growth vs inflation, Jan 2016-Nov 2019
Consumer confidence
Figure 6: Mintel financial confidence tracker, January 2017-October 2019
Looking forward
SECTOR FOCUS – GROCERY RETAILING
Retail sales value rises but growth slows down in November
Figure 7: Annual non-seasonally adjusted percentage change in the value sales of food retailers at current prices, January 2018-November 2019
Upward trend in food inflation stabilises in second half of 2019
Figure 8: Annual percentage change in the price of food and non-alcoholic beverages, Jan 2018-Nov 2019
Retail sales volume drops in November 2019
Figure 9: Annual non-seasonally adjusted percentage change in the chained volume of goods sold in food stores, January 2018-November 2019
Consumers’ concern about food waste forces grocery sector to react
Figure 10: Attitudes towards food waste at grocery retailers, August 2018
Reducing food waste by selling outdated products
What it means
LAUNCH ACTIVITY AND INNOVATIONS
UK: Asda opens bulk-buy concept store in Bristol
UK: Sainsbury’s and Coles team up
UK: Mulberry launches concept store in Leeds
HEADLINES FOR THE MONTH
Grocers
Other food and drink specialists
Clothing retailing
Footwear retailing
Mixed goods
Department stores
DIY retailing
Online
NEWS ANALYSIS – FOOD AND DRINK
 GROCERS
UK: Asda
…like-for-like sales down 0.5%
…rolls out ‘Asda Recipes’ tool to its website
UK: Lidl
…announces latest UK expansion plans
…gives 19,000 of its employees a pay rise
UK: Morrisons
…removes black plastic from own brand packaging
…to offer best before food boxes
UK: Sainsbury’s launches biggest Christmas charity in store
 OTHER FOOD AND DRINK SPECIALISTS
UK: Cake Box half year profits see 27% lift
UK: Holland & Barrett to offer products past best before dates
UK: Naked Wines losses widen to £5.7m
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
UK: Abercrombie & Fitch opens at Westfield London
UK: All Good Things launches new stores
UK: Burberry revenues rise 3% to £1,281 million
UK: Handbag Clinic launches capital-raising campaign
UK: Joules retail sales grow despite challenging trading environment
UK: Kate Spade pops up at Liverpool ONE
UK: Mulberry
…losses widen to £9.9 million
…new Portobello Tote is made from 100% eco leather
UK: New Look sales fall despite narrowing losses
UK: Oasis sees 175% increase in campaign revenue through targeted video marketing
UK: Peacocks set to buy Bonmarché out of administration
UK: Quiz results swing to loss as brand blames ‘challenging market’
UK: Seren & An Indian Summer open Christmas pop-ups
UK: Ted Baker
…issues profit warning along with the departure of its CEO and executive chairman
…reveals £25 million overstatement for inventory
UK: Timberland sustainable store on Carnaby Street
UK: Trotters report 50% growth in e-commerce sales
UK: Wood Wood opens flagship in Soho
 FOOTWEAR RETAILING
UK: Clarks calls in advisors
UK: Shoenvious launches in the UK
UK: Steve Madden opens first store after a decade
NEWS ANALYSIS – MIXED GOODS
UK: B&M posts a fall in pre-tax profits
UK: Mamas & Papas close six stores as part of pre pack deal
UK: Mothercare losses widen
UK: Poundland rolls out its simple pricing structure nationwide
UK: The Original Factory Shop posts 13% decline in revenue
 MULTI-SECTOR
UK: M&S
…grows its urban farming concept
…considers downsizing flagship stores in a review of its 20 largest shops
 DEPARTMENT STORES
UK: Fortnum & Mason sees pre-tax profit rise 26%
UK: John Lewis
…launches two DnaNudge pop-ups in London
…opens ‘experience playground’ new format store
UK: Selfridges
…teams up with Instagram for pop-up
…permanent cinema opens
UK: Watt Brothers Glasgow flagship to close mid-December
NEWS ANALYSIS – HOUSEHOLD GOODS
 DIY RETAILING
UK: Kingfisher sales up 0.4% in the third quarter
UK: Topps Tiles posts 1.6% decline in pre-tax profits
UK: Wickes to be demerged from Travis Perkins in the new year
 CARPET RETAILING
UK: Carpetright accepts Meditor takeover offer
 FURNITURE RETAILING
UK: Arlo & Jacob opens new London flagship
UK: Dunelm expects a boost in profits following success of new website
UK: ScS weathers political uncertainty despite sales fall
NEWS ANALYSIS – ONLINE 
UK: Black Friday contributes to a record performance at Angling Direct
UK: Lovehoney opens first brick and mortar pop-up
UK: Misguided teams up with Icelolly.com
UK: Ocado to open ‘mini’ customer fulfilment centre
UK: Sosandar revenues up by 53%
NEWS ANALYSIS – OTHER RETAIL
 HEALTH & BEAUTY
UK: After Beauty launches ‘beauty playground’
UK: L’Occitane launches Beauty café in London
UK: Seekology opens new Richmond store
UK: The Body Shop posts rising profits and sales
 BOOK AND STATIONERY
UK: Card Factory posts 5% rise in sales
UK: Clintons
…continues to Christmas trade as it closes pre-pack administration deal
…to close stores and cut rents
 SPORTS AND LEISURE GOODS RETAILING
UK: Adidas launches AR experiences at London flagship
UK: Sports Direct
…owner Mike Ashley to demand turnover rents across retail empire
…to rebrand into Frasers Group
 JEWELLERS
UK: LVMH
…buys Tiffany & Co
…ups its bid to £12bn for Tiffany & Co
UK: Watches of Switzerland profits from robust luxury watch market
 GARDEN CENTRES
UK: acquisitions help fuel growth at Dobbies
 SHOPPING CENTRES
UK: Hammerson offloads St Oswald’s retail park
UK: property owner of shopping centre Trinity Leeds posts a pre-tax loss of £147 million
UK: Westfield London
…brings digital beauty brands to bricks and mortars
…opens dog hotel
 TOYS AND GAMES
UK: A ‘Quiet Hour’ at the Entertainer this Christmas
 PETS AND PETS PRODUCTS
UK: Pets at Home pre-tax profit increases 10.2%
NEWS ANALYSIS – ECONOMY
UK: Black Friday distorts decline in November retail sales
UK: ONS results show 3.0% rise in all retail sales for October

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