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UK Retail Briefing - Food Focus - February 2010
UK Retail Briefing Price: £295 / $454 / €353
Contents
Analyst Comment
Headlines of the Month
Retail Sales – Background and Outlook
Sector Focus – Food Retailers
News Analysis
Latest news updates to this report
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  Electrical Retailing - UK - May 2010
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About this report

UK Retail Briefing is a monthly briefing providing news and analysis that includes company results, store openings, cross-border moves, M & A activities, executive changes and property developments. Additionally each month, UK Retail Briefing focuses on a key issue or specific UK retail sector. The month's retail news is then analysed sector by sector, making this an invaluable resource for all with an interest in the UK retail industry.

If you want more details about this particular report, please contact the Mintel information team on  +1 312-932-0400 in the U.S.,  +44 028-90-241-849 in Northern Ireland,  +353 048-90-241-849 in the Republic of Ireland or  +44 (0)20-7606-6000 in the UK and the rest of the world, or email info@mintel.com.
Key words and phrases within this report

Christmas; Asda; Tesco; Food retailers; John Lewis; HMV; BRC; ONS; New Look; Mothercare; Office; VAT; Sainsbury; Boots; Debenhams; Morrisons; Home; Argos; Ethel Austin; Grocers; Halfords; Matalan; MCR; Ocado; Alexon; CBI; Figleaves; Homebase; IPO; John Lewis at home; Our; Primark; Sales trends; Adili; Arcadia; Croydon; Game; Habitat; Home shopping; Jessops; Liberty; Majestic; Pets; Poundland; Rob Templeman; Shoe Zone; Stead & Simpson; Stephen Robertson; The White Company; TJ Hughes; EDLP; Wal-Mart; Adams; Advent International; Alliance Boots; Although; Andy Street; Asos; Aurum; Baird Group; Ben Gordon; Best Buy Europe; Bhs; Blacks; Blacks Leisure; British Retail Consortium.; Burberry; Card Factory; Cinven; CVA; David Wild; Designer; DFS; DFS.; Flying Brands; Flying Flowers; Goldsmiths; High & Mighty; High Street; Hilco; Hobbycraft; Home Retail Group; House of Fraser; John Lovering; KKR; KPMG; Looking; Mama; Mama Group; Mamas & Papas; Mappin & Webb; Marc Bolland; Marks & Spencer; Mike Davies; Olympic; Peacocks; Permira; Poole; Sale; Shop Direct
Contents

Analyst Comment

Repositioning at Asda?

Weak margins
The problem with price
Time for a rethink

Headlines of the Month

Retail Sales – Background and Outlook

Retail sales trends

A strong Christmas
But a weak January
Figure 1: Retail sales trends, 2009-10
January hard to interpret
Figure 2: UK retail sales y/y growth, BRC vs ONS, Dec 2007-Jan 2010
John Lewis
Figure 3: John Lewis: Year-on-year growth, 2008-10

Inflation and wages

Figure 4: RPI vs Wage rate growth, 2007-10
The RPI up again
Figure 5: Annual percentage change in Retail Price Index for selected product groups, 2009-10

Looking forward

Sector Focus – Food Retailers

Sales trends

Figure 6: Food retailers, sales trends, 2001-09
Figure 7: Food retailers sales as % of all retail sales, 1998-2009
Sub-sectors
Figure 8: Breakdown of food retailers’ sales, by sub-sector, 2005-09

Retail price inflation

Figure 9: Indices of retail prices for key product categories, 2005-09

Consumer expenditure

Figure 10: Consumer expenditure on selected product categories, 2004-09 (Q3)
Figure 11: Food retailers sales relative to all spending on food and drink, 2000-08

Food retailers

Figure 12: Food retailers: Leading retailers’ share of food retailers’ sales, 2008/09

News Analysis

Bakers (retail)

Thorntons sales down 4.4%

Co-ops (retail)

Co-operative sales soar 66% over Christmas

Grocers

Asda

...trials vending machines to reduce waste

Morrisons

...names Philips as new chief
...sees LFLs rise 6.5% over Christmas

Sainsbury's

...to double non-food business

Tesco

...enjoys strong Christmas results
… launches Buy One, Get One Free Later deals
… opens first carbon neutral store

Off-licences

Majestic

...appoints Wrigely as new chairman

Clothing retailing

Adams

...falls back into administration

Adili

...suspends shares

Alexon

...LFLs plunge 14.3%

Baird Group

...ponders CVA

Bhs

...hands ten stores to Primark

Burberry

...LFLs up 10%

Ethel Austin

… falls into administration
… closes 129 stores

Figleaves

...attracts suitors

M&Co.

...reports 11% uplift in Christmas LFLs

Matalan

… hails "impressive" Christmas sales
… sale pulled

New Look

… confirms IPO
… board mulls IPO withdrawal

Peacocks

...reports robust Christmas sales

Primark

...sales rise 19%

Footwear retailing

Office

...hopes up after 19% hike in Christmas LFLs

Shoe Zone

...Christmas LFLs soar 27%

Mixed goods retailing

Alliance Boots

…enjoys strong festive period
… and Mothercare team up for kids' range

Mamas & Papas

...secures funding for expansion

Mothercare

...posts strong Christmas results

Poundland

...festive sales rise by one third

Multi-sector retailing

M&S

...Bolland pay deal revealed

HMV

… acquires Mama Group
… sales hit dented by Waterstone's

Department stores

Beales

...losses narrow after Christmas sales boost

Debenhams

… names Northridge as new chairman
… chief linked to DFS bid
… LFLs up 0.1%

House of Fraser

...enjoys record Christmas sales

John Lewis

… appoints new retail operations director
… becomes official Olympics sponsor
… opens second homewares shop in Croydon

Liberty of London

...creative director leaves

TJ Hughes

...unveils 4% Christmas sales increase

DIY retailing

Focus DIY

...asks landlords for rent holiday

Home Retail Group

...LFLs up marginally

Homebase

...introduces re-usable packaging

Topps Tiles

...posts 5.5% sales rise

Electrical retailing

Best Buy Europe

...LFLs up 6.3%

DSGi

...sales trump expectations

Carpet retailing

Carpetright

...sales up 7%

DFS

...circled by Lovering and Permira

Habitat

...owner plans debt write-off

Homewares retailing

Home Bargains

...in £25m expansion drive

Dunelm

...posts strong H1 results

The White Company

...posts strong Christmas results

Home shopping

Asos

...Christmas sales up 30%

Findel

...LFLs down 3%

Flying Brands

...sees sales slump

Ideal Shopping Direct

...reveals solid FY results

N Brown

...sales rise 5% over festive period

Ocado

...appoints advisers ahead of flotation

Shop Direct

...axes 1,500 staff

Book and stationery retailing

WH Smith

...LFLs down 2%

Greetings card retailing

Card Factory

...up for sale

Photographic retailing

Jessops

...liquidation plan approved

Sports and leisure goods retailing

Blacks Leisure

… looks to raise £20.3m for recovery
… Blacks Leisure sees strong Christmas trading

JJB

...confirms Jones departure

Sports Direct

...retails sales rise 9%

Jewellers

Aurum

...sees glittering sales

Diamonds & Pearls

...bought out of pre-pack administration

Theo Fennell

...enjoys festive sales boost

Garden centres

Garden Centre Group

...has "terrific" Christmas

Toys and games retailing

Game

Suffers disappointing Christmas

Miscellaneous specialist retailing

Halfords

… mulls bid for HobbyCraft
… sees LFLs increase 1.2%

Hobbycraft

...posts sales rise

Pets at Home

… LFLs up 6.7%
… sold to KKR for £955m

Economics

BRC: 15-year low in January sales

BRC: Christmas retail sales beat expectations

CBI: Retail sales down in January

London retail sales up 12% in December

ONS: Retail sales up 0.3% in December

Scottish retail sales lack behind in December