European Retail Briefings - October 2004

HIGHLIGHTS: SEPTEMBER 2004
Food retailers
Clothing and footwear retailers
Multi-sector retailers
Department stores
DIY retailers
Furniture and household goods retailers
COMMENTARY: KARSTADTQUELLE – THE CRISIS DEEPENS
Figure 1: KarstadtQuelle: A clarification of plans for Over-the-counter retailing
FOCUS: H&M HENNES & MAURITZ
Background
History
Ownership
Expansion in Europe and beyond
Figure 2: H&M Hennes & Mauritz: International expansion record
Plans to step up international expansion
Marketing and the offer
Concept stores
Long standing home shopping arm
Financial data
Figure 3: H&M Hennes & Mauritz: Financial performance, 1998/99-2002/03
Figure 4: H&M Hennes & Mauritz: % change in local currency sales by country, 2001/02-2002/03
Figure 5: Hennes & Mauritz: Relative sales importance by country, 1999/2000 and 2002/03
Interim results 2004/05
Outlets
Figure 6: H&M Hennes & Mauritz: Outlet data, 1998/99-2002/03
Figure 7: Hennes & Mauritz: Sales versus outlet growth by country, 1999/2000-2002/03
Concept stores
Future expansion
Figure 8: H&M Hennes & Mauritz: New store openings, December 2003-May 2004
Products
Sourcing and lead times
Buying functions split
Customer loyalty card
Home shopping
SWOT
 ECONOMIC DATA
Figure 9: Economic updates, October 2004
NEWS ANALYSIS
 GENERAL MARKET DEVELOPMENTS
Germany: Retail market continues to look fragile
Germany: Further liberalisation of the retail market increasingly likely
Italy: Freeze on grocery prices
Spain: Retail sales ease in August
Figure 10: Spain: Retail sales growth adjusted for impact of inflation, January 2004-August 2004
UK: Retail sales growth still solid, ONS data shows
Austria: Billa to expand domestic network
Belgium: Delhaize grabs Victory
Denmark: Dagrofa posts robust growth
Figure 11: Dagrofa: Sales development 1998/99-2003/04*
France: Firm progress at Carrefour…
…advances into the Nordics…
…profits down at franchisees G&G…
…and Hyparlo
France: Casino playing its cards right
Figure 12: Casino: Domestic sales performance by format, H1 2004
Germany: Lidl to add Lithuania to the pack?...
…late September opening in Norway…
…launches in Slovakia…
…sister business Kaufland also eyeing new market
Germany: Aldi steps up Irish presence
Germany: Plus to multiply in Romania?
Netherlands: Sperwer posts H1 results
Netherlands: Ahold sheds Spanish operation...
...and puts another unit up for sale
…Albert Heijn intensifies price war…
Portugal: Brazilian unit lifts Modelo Continente
Spain: Suma jostles for market share
Sweden: Axfood’s August sales
Switzerland: Bon appétit sees sales fall…
…Pick Pay to pick a new General Manager
UK: No stopping the Tesco juggernaut…
…strengthens presence with Safeway store package
Figure 13: Tesco: Key developments in 2004 to date
UK: Sainsbury’s subject of more takeover talk…
...King given deadline?...
…as it launches eagerly-awaited Tu…
…reaches settlement with Sir Peter Davis
UK: Somerfield lifts l-f-l sales
UK: Morrisons sells Safeway stores to ASDA
…and Tesco and Netto…
UK: Whittard performing well
UK: Sweet success at Thorntons
Figure 14: Thorntons: Sales development, 1997/98-2003/04*
UK: Deal looming for Big Food Group?
UK: Eight suitors emerge for Unwins
UK: Profits plunge at Co-op Group
 CLOTHING AND FOOTWEAR RETAILERS
Austria: Palmers to be sold?
Denmark: IC Companys in the red
Figure 15: IC Companys: Financial performance, 1999/2000-2003/04*
France: Camaïeu reveals strong H1 results
Germany: NKD buys h+e markt
Germany: Garant files for insolvency…
Germany: Mixed results at Gerry Weber
Germany: Willy Bogner skis into Poland
Hong Kong: Esprit upbeat full-year results
Italy: Benetton results…
Figure 16: Benetton: Net sales by brand, H1 2003 and H1 2004
…opens flagship store in Paris
Italy: New Tosca Blu stores
Netherlands: Sales flat at McGregor
Poland: Trading update at Redan
Spain: Inditex sees sales soar…
…accelerating store roll-out programme
Spain: Springfield expands to China
Spain: Mango pushes ahead with expansion
Sweden: Wedins issues profit warning
Sweden: H&M continues to impress…
…to enter Hungary…
…new Spanish stores…
…but denies eyeing Macmoda
Sweden: JC to exit Germany
Sweden: Lindex full year results…
Figure 17: Lindex: Store network development by market, 1999-2004*
…Chairman stepping down
Switzerland: C&A to re-launch Swiss Oviesse stores…
…also growing in Spain
Switzerland: Alprausch snow longer just a manufacturer
UK: Hobbs enjoys upbeat summer
UK: Adrian Wright lining up takeover bids?
UK: Next half-year profits surge
Figure 18: Next: Financial performance, H1 2000/01-H1 2004/05*
UK: French Connection sales hit by “difficult market”
UK: Mixed results at Alexon
 MIXED GOODS
Germany: Tchibo wakes up to Dutch market
Sweden: Store-based sales drive growth at Clas Ohlson
UK: Good results at Matalan
UK: Woolworths steeped in losses
UK: Troubled Summer at Marks and Spencer…
Figure 19: Marks & Spencer: Recent sales performance on a like-for-like basis by core product
…to outsource e-commerce division?...
…FSA closes share trading case
 MULTI-SECTOR RETAILERS
Belgium: Colruyt sales ahead
Finland: Kesko appoints new CEO
France: Encouraging retail results for PPR
Figure 20: New PPR: Financial performance, H1 2003 and H1 2004
France: Groupe Rallye trading statement
Germany: Shake-up at KQ as management outlines rescues plans…
…fills Financial Director post
Germany: Metro expands into Serbia
Germany: Douglas to enter Greece and Turkey
Slovenia: Mercator swoops in on Maximarket…
…inaugurates discount chain…
…gets green light for C-Market bid
Switzerland: Jelmoli issues trading statement
Switzerland: Loeb’s losses widen
UK: GUS launches IPO for Lewis Group
UK: JLP reports upbeat H1 results
UK: Expansion plans at Arcadia
 DEPARTMENT STORES
France: GGL enjoys strong H1
Figure 21: Groupe Galeries Lafayette: Sales growth by division, H1 2004
Italy: Four bidders vie for Coin stake
UK: HoF narrows losses…
…as Tom Hunter decides to sell stake in company
UK: James Beattie in the red
UK: Minerva posts Allders results
 DIY AND GARDEN CENTRE RETAILERS
France: Sales surge, profits dip at Mr Bricolage
Germany: Profits jump at Hornbach
Germany: OBI expansion plans
Germany: Bauhaus exits France
UK: Soggy sales for Wyevale
UK: Kingfisher nails double digit sales growth…
…eyeing Howdens?
 ELECTRICALS RETAILERS
Switzerland: mobilezone outlines share buyback details
UK: Dixons on form…
…makes offer for remaining Kotsovolos stake…
…subsidiary El-Giganten unveils expansion plans
UK: Retail profits edge up at Kesa
 HOUSEHOLD GOODS AND FURNITURE RETAILERS
Italy: Profits climb at Natuzzi
Italy: Bellora expanding
Sweden: Hemtex sees profits jump
Sweden: IKEA makes solid progress
…2005 plans for France unveiled
UK: MFI issues profits warning…
…Directors resign…
…is Permira going to make a move?
UK: DFS shareholders accept Lord Kirkham bid
UK: AFG cooks up strong sales and profits
UK: Fashion sales drag down Laura Ashley
Figure 22: Laura Ashley: Financial performance H1 2003 and H1 2004
UK: Hurricane Ivan sinks Courts profits
 HOME SHOPPING AND ONLINE RETAIL
Italy: Postalmarket brings catalogue to Bulgaria
UK: ASOS sales surge
 HEALTH AND BEAUTY
Sweden: Kicks set to expand
UK: Boots exits healthcare services…
…issues trading update
 BOOKSELLERS AND STATIONERS
Germany: Thalia Group acquires Kober-Löffler
Switzerland: Orell Füssli completes Rösslitor deal
K: Steady growth at Ottakar’s
UK: WH Smith completes sale of Hodder
UK: Profits jump at Clinton Cards
 MUSIC RETAILERS
UK: Apple’s iTunes faces investigation
UK: Solid trading at HMV
 SPORTS RETAILERS
Germany: Adidas sporting new Swiss store...
 JEWELLERS
UK: Signet impresses in first half
UK: Ratner returns to high street?
 LUXURY GOODS
France: Golden quarter at Gucci Group
Switzerland: Richemont reports strong trading
 HOT PROPERTY
 EXECUTIVE APPOINTMENTS
 THE FOOTFALL INDEX
UK
Figure 23: FootFall Shopping Centre Index (UK), September 2004
Spain
Figure 24: FootFall shopping centre index (Spain), September 2004
RESULTS AT A GLANCE
Figure 25: Results: September 2004