Table of Contents
Analyst Comment
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- Hard discounters – Taking advantage of the downturn
- Germany vs UK
- Different structure of German food retailing
- What is a hard discounter?
- The British and the hard discounters
- Food retailers and the slowdown
- Lidl’s plans
- Where next?
The Month in UK Retailing
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- Bakers (retail)
- Thorntons sees FY LFLs climb
- Co-ops (retail)
- Co-op
- … poised to acquire Somerfield in £1.6bn deal
- … wraps up Somerfield for £1.56bn
- … CEO says "Times will get worse before they get better"
- Grocers
- Grocers…
- … admit to using human sewage as fertiliser
- … warned to cut plastic bags by 70%
- … compete to give the best petrol price
- … fined in cigarette price probe
- Asda
- … says: “Average family is £9 a week worse off than in 2007”
- …rolls out property website
- … cuts petrol prices again
- Lidl to ramp up UK store development programme
- Morrisons creates family meal for £4
Executive Appointments
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- Asda’s non-food chief resigns amid management re-shuffle
- Ikea replaces poached UK CEO
- Instore chief to go as LFLs drop and Seaham gains majority stake
- Jaeger boss considers takeover of Austin Reed
- Kingfisher poaches Ikea chief
- Moss Bros appointing non-executive chairman
- Otto appoints UK CEO
- Primark appoints executive to ramp up European expansion
- Tesco poaches HBOS senior director
- Thorntons appoints new retail director
Product Development – Bakery
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- Asda
- Iceland
- Marks & Spencer
- Morrisons
- Sainsbury’s
- Somerfield
- Tesco
- Waitrose
Advertising News
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- New campaigns
- Booths is the latest supermarket chain to enter 50p fresh food fray
- Co-operative calls for sustainable travel
- Co-op signs sponsorship deal with Pride of Britain
- La Senza launches bra campaign
- Major retailers back responsible drinking initiative
- N Brown to launch TV campaign
- Waitrose promotes Indian food with door-drop campaign
- Waterstone's to launch reading promotion in schools
- Account gains/losses
- Berry Bros & Rudd hire TMW for DM task
- Body Shop
- …hires TradeDoubler
- …awards ZenithOptimedia media account
- Focus hire Krow
- Homebase appoints Leo Burnett to ad account
- MbopMegastore appoint agency for pan-European task
- TK Maxx seeks digital agency
- Vision Express hires Walker Media
Retail Advertising Review
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- Advertising expenditure
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- Figure 1: Total advertising expenditure by all advertisers (£m), May 2004-May 2008
- Figure 2: Total advertising expenditure by all retail advertisers (£m), May 2004-May 2008
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- Figure 3: Use of media by retail and all advertisers (£m), May 2007-May 2008
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- Figure 4: Use of media by retail and all advertisers (%), May 2007-May 2008
- Top 25 retail advertisers
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- Figure 5: Top 25 retailers by adspend (£), Apr 2008-May 2008
- Food
- Furniture
- DIY
- Optical retailers
- Other
- Nielsen Media Research/Definitions
Retail Sales and Inflation
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- Retail sales
- Office for National Statistics
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- Figure 6: Retail sales trends: June 2007-June 2008
- Figure 7: Non seasonally adjusted % value change on previous year, June 2007-June 2008
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- Figure 8: Seasonally adjusted % volume change on previous year, June 2007-June 2008
- Significant features of June’s ONS statistics
- Confederation of British Industry
- British Retail Consortium
- Retail price inflation trends
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- Figure 9: Annual percentage change in retail price index for selected product groups: June 2007-June 2008
- Figure 10: Annual percentage change in retail price index for selected product groups: June 2007-June 2008
- Retail Prices Index
- Consumer Prices Index
- British Retail Consortium: Shop Price Index
Sector Analysis – Food and Drink
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- Sales trends
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- Figure 11: Food and drink retailers: Sales trends, 2000-08
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- Figure 12: Food and Drink retailers as % all retail sales: 1999-2008
- Retail price inflation
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- Figure 13: Indices of retail prices for product categories (food and drink), Jan 2001- Dec 2007, Index: Jan 1987=100
- Sales by sub-sector
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- Figure 14: Breakdown of food retailers’ sales by sub-sector, 1998-2008
- Consumer expenditure
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- Figure 15: Consumer expenditure on selected product categories, 2000-08 Q1
- Food & drink retailers: latest trends
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- Figure 16: UK: Food and drink retailers’ sales, 2003/04-2006/07
- Figure 17: Food and drink retailers’ operating profits, 2003/04-2006/07
- Tesco
- Sainsbury’s
- Morrisons
- Asda
- Others
Sector News Review: Food and Drink Retailing
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- February
- Asda
- …plans online expansion
- …as staff look to bonuses
- …and unveils £400m expansion plans
- …as chief gets tough with suppliers
- …before limiting alcohol sales
- CC recommends grocery ombudsman, planning changes
- Co-op
- …working on a bid for Somerfield
- …increases Fairtrade offer
- Morrisons
- …takes action against OFT
- …and is granted judicial review
- …then ramps up fight
- Netto sales up 11% in 2007
- Sainsbury's…
- … to sell 18 Bells Stores
- …considering Middle Eastern entry?
- …offers GP appointments
- …and plans to double non-food sales
- Somerfield receives first-round bids?
- Tesco
- …slammed over £1.99 chicken
- …and is accused of hypocrisy on cheap alcohol ban
- …as it considers Express format for China
- …while staff share £175 million
- …and it unveils local produce strategy
- …before Tchenguiz sells stake in joint venture
- Thorntons sweetened by H1 profits
- March
- Asda…
- …reports family income down £5 a week
- …that it will close George's standalone stores
- …and launches "bag on request"
- Brown warns supermarkets of plastic bag clamp down
- Greggs sees FY profit rise, warns of increased costs
- Majestic chief to retire
- Morrisons…
- …sees 66% profit rise upon Sir Ken's retirement
- …as Sir Ken considers share sale
- Ocado launches price war on Tesco
- Sainsbury's in £3m potato scandal
- Somerfield circled by Asda and Co-op
- Tesco
- …comes under fire over £1bn tax avoidance
- …and threatens ASA action over Ocado ads
- Waitrose mulls convenience store format
- April
- Asda:
- …George boss aims for number one clothing spot
- …opposes overseas suppliers code
- Sainsbury’s
- …launches campaign with Oliver
- …LFLs up, unveils property deal
- Somerfield
- … Tchenguiz and Apax divided over Somerfield sale
- … performs well in pre-Easter sales
- …in exclusive talks with the Co-op
- Tesco
- … takes legal action against Guardian
- … loses Guardian chief as board member over writ
- … to monitor customer shopping habits
- … delivers bumper FY results
- May
- Asda drops opposition to proposed code of conduct
- Competition Commission findings
- Co-op:
- …FY profits grow
- …clashed with Soil Association
- Greggs blames weather for slowing rise in LFLs
- Grocers accused of further price-fixing by OFT
- Morrisons:
- …receives apology from OFT over dairy fixing
- …announces plans to cut plastic bag use
- Sainsbury’s:
- …to launch Tu home brand
- …CEO to collect £6.5m bonus
- …reports FY results
- Tesco:
- …to sell property website
- …launches website for Polish immigrants
- … to be thwarted by Hunter over Dobbies plans?
- …buys South Korean Homever stores for £958m
- …objections to Ocado's price claims grow
- Thresher to close 30 Scottish stores
- Thorntons posts Q3 sales rise
- Waitrose to open 100 convenience stores
- June
- Asda's 2p sausage offer prompts Morrisons' price-slashing spree
- Morrisons:
- …considers acquiring Co-op’s Somerfield stores
- …reports Q1 sales up 8.6%, LFLs up 7%
- Sainsbury's CEO calls for better government anti-obesity regulations
- Tesco's group sales rise 13.7% in Q1
- July
- Aldi plans for one UK store opening per week
- Asda and Tesco start price war to win back consumers
- Co-op to reward customers as profits surge
- Iceland to acquire up to 30 Somerfield stores
- Julian Graves
- …to be sold off?
- …receives multiple bids
- Majestic reports 3% increase in FY profit
- Morrisons creates family meal for £4
- Sainsbury's
- …Q1 sales up
- …website goes into meltdown
- Tesco
- …sees Fearnley-Whittingstall move for better welfare for chickens
- …challenges Competition Commission
- August
- Asda…
- …non-food chief resigns amid management re-shuffle
- … says: “Average family is £9 a week worse off than in 2007”
- …rolls out property website
- … cuts petrol prices again
- Co-op…
- … poised to acquire Somerfield in £1.6bn deal
- … wraps up Somerfield for £1.56bn
- … CEO says "Times will get worse before they get better"
- Grocers…
- … admit to using human sewage as fertiliser
- … warned to cut plastic bags by 70%
- … compete to give the best petrol price
- … fined in cigarette price probe
- Lidl to ramp up UK store development programme
- Morrisons creates family meal for £4
- Oddbins sold to shareholder consortium led by ex-MD's son
- Sainsbury’s sees Tchenguiz up stake
- Tesco…
- … joins low-cost school uniform war
- … develops new own-brand range to counter 'Aldi effect'
- … launches first Argos-style shop-in-shop
- … takes full ownership of TPF financial services
- … completes Dobbies acquisition
- … poaches HBOS senior director
- Thorntons…
- … appoints new retail director
- … sees FY LFLs climb
- Whole Foods Market eyes Irish move
Sector Advertising Review – Food and Drink
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- Advertising expenditure
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- Figure 18: Total advertising expenditure by food and drink retailers, May 2004-May 2008
- Use of media
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- Figure 19: Use of media by food and drink retailers and all retailers (£), May 2007 and May 2008
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- Figure 20: Use of media by food and drink retailers and all retailers (%), May 2007 and May 2008
- Top 10 food and drink retailers
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- Figure 21: Top 10 food and drink retailers by adspend, May 2007 and May 2008
- Retailer focus
- Tesco
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- Figure 22: Tesco, media use by adspend and as share of total, May 2007-May 2008
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- Figure 23: Tesco, top five brands by adspend, May 2008
- Sainsbury’s
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- Figure 24: Sainsbury’s, media use by adspend and as share of total, May 2007-May 2008
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- Figure 25: Sainsbury’s, top brands by adspend, May 2008
- Asda
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- Figure 26: Asda, media use by adspend and as share of total, May 2007-May 2008
- Figure 27: Asda, top five brands by adspend, May 2008
- WM Morrisons
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- Figure 28: Wm Morrisons, media use by adspend and as share of total, May 2007-May 2008
- Figure 29: Wm Morrisons, top five brands by adspend, May 2008
- Nielsen Media Research/Definitions
Report Focus: Fashion Online
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- The online fashion market
- A period of boom
- Main issues
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- Figure 30: Market size and forecast of online retail sales of clothing and footwear, 2003-08
- Internal market environment
- Key points
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- Figure 31: Percentage of internet users buying clothing and footwear in the past three months, by gender, age, socio-economic group and presence of children, July 2006 and April 2008
- Figure 32: Top ten, physical goods retailers’ websites, actually purchased from in the last three months, 2003-08
- Broadband: More and faster
- The growth in mobile access
- Internet fraud worries still important
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- Figure 33: Extent to which security concerns affect purchasing on the web, April 2008
- Improving customer experience
- Consumers: where, why and who
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- Figure 34: Where they buy fashion online, for themselves and for others, May 2008
- Marks & Spencer opens up lead on high street rivals
- Debenhams attracts young audience
- John Lewis attracts upmarket gifters
- Next weak on attracting male shoppers
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- Figure 35: Where they have bought clothing online, by age, gender and socio-economic group, May 2008
- Oasis and River Island weak in buying for others
- Burton and Topman competing head on
- Austin Reed and Wallis miss out on self buyers
- New Look misses out on older groups
- Tesco a popular choice
- Catalogue operators retain their audience
- ASOS level with Topshop
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- Figure 36: Where they have bought clothing online, by age, gender and socio-economic group, May 2008
- La Redoute could attract more men
- Figleaves attracts male gifters
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- Figure 37: Where they have bought clothing online, by age, gender and socio-economic group, May 2008
- Profiles of leading online retailers
- Arcadia
- Market positioning
- Strategic evaluation
- Financial performance
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- Figure 38: Arcadia, turnover, operating profits and margin, 2002-07
- Brands/product offering
- Online product offer
- Pricing
- Advertising and marketing
- ASOS
- Market positioning
- Strategic evaluation
- Financial performance
- Current trading
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- Figure 39: ASOS, group financial performance, 2002-08
- Brands/product offering
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- Figleaves.com
- Market positioning
- Strategic evaluation
- Financial performance
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- Figure 40: Figleaves Global Trading Ltd, turnover, operating profits and margin, 2002-07
- Brands/product offer
- Brands
- Product offer
- Pricing
- Advertising and marketing
- Marks & Spencer
- Market positioning
- Strategic evaluation
- Financial performance
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- Figure 41: M&S UK, retail sales, by merchandise category, operating profits and margin, 2005-08
- Brands/retail offering
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- Next
- Market positioning
- Strategic evaluation
- Financial performance
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- Figure 42: Next, turnover, operating profits and margin, 2003-08
- Brands/retail offering
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- Industry Insights
- How is 2009 shaping up?
- What do customers expect, in terms of delivery?
- How is website navigation evolving?
- What are the most successful marketing strategies?
- The future
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- Figure 43: Market size and forecast of online retail sales of clothing and footwear, 2003-13
- Rapid growth continues
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- Figure 44: Market size and forecast of online retail sales of clothing and footwear, 2003-13
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- Figure 45: Online spending as a percentage of total spending on clothing and footwear, at current and constant 2008 prices, 2003-13
- Online spend to take up a tenth of market
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