European Retail Briefing - July 2011

ANALYST COMMENT
Department stores go global
What we’ve seen
 SECTOR RECOVERY
Figure 1: Department store sector vs all retail and all non-food sectors, 2010-11
The challenge in building scale
Appealing to the tourist trade
Online rollout
Is online the answer?
What it means
HEADLINES FOR THE MONTH
Grocers
Clothing retailers
DIY retailing
Electricals retailing
Health and beauty retailing
Department stores
Furniture retailing
Home shopping
RETAIL SALES REVIEW
Key points
 FRANCE
Figure 2: France: Retail sales trends, 2010-11
Inflation
Figure 3: France: Inflation, 2010-11
 GERMANY
Figure 4: Germany: Retail sales trends, 2010-11
Inflation
Figure 5: Germany: Inflation, 2010-11
 ITALY
Figure 6: Italy: Retail sales trends, 2010-11
Inflation
Figure 7: Italy: Inflation, 2010-11
 NETHERLANDS
Figure 8: The Netherlands: Retail sales trends, 2010-11
Inflation
Figure 9: The Netherlands: Inflation, 2010-11
 SPAIN
Figure 10: Spain: Retail sales trends, 2010-11
Inflation
Figure 11: Spain: Inflation, 2010-11
 UK
Figure 12: Retail sales trends, 2010-11
Inflation
Figure 13: UK: Annual percentage change in Consumer Price Index for selected product groups, 2010-11
RETAILING IN EMERGING MARKETS - EUROPE
 RUSSIA
Executive summary
 SWOT
Strengths
Weaknesses
Opportunities
Threats
 BROADER MARKET ENVIRONMENT
 COMPETITIVE CONTEXT
Key points
Consumer spending
Figure 14: Russia: Proportion of household budget spend, by category, 2005-09
 RETAIL MARKET SIZE AND FORECAST
Key points
Economic outlook
Sector sales
Figure 15: Russia: Retail sales forecasts, 2006-16
Figure 16: Russia: Share of Retail sales, by commodity, 1992, 1995, 2000, 2006-09
High levels of investment in retailing
Figure 17: Russia: Retail establishments by sector, 2006-10
Figure 18: Russia: Retail employment, 1996, 2000 and 2006-09
NEWS ANALYSIS
 GROCERS
Belgium: Colruyt disappoints with full year profits
France: Carrefour
…confident on pushing Dia plans
…expects drop in income
…gives Olofsson chairman role
France: Casino ups stake in battle for Pao de Acucar
France: Systeme U reports solid sales
Germany: Tengelmann to divest stake in A&P
Italy: Coop Italia reports sale growth
Lithuania: Lidl negotiates land acquisition for new stores
Romania: Lidl opens first outlets in Romania
Slovenia: Mercator to begin merger talks with Agrokor
Spain: Carrefour acquires full control of Dia
Switzerland: Spar launches Express banner
UK: Asda
…achieves £1bn ethical and local produce sales
…COO exits
…former boss sets up investment vehicle
…reports consumers starting to ration
UK: Iceland trials Greggs foods
UK: Haldanes files for administration
UK: Iceland profits rise 20%
UK: Morrisons
…buys wholesale florist
…to open first c-store chain
UK: Sainsbury's
…reports strong sales in challenging market
…strengthens online team
UK: Tesco
…launches Back to School campaign
…reports strong group sales growth
…signs agreement that signals further expansion into Chinese market
…to add double glazing to portfolio
UK: Waitrose
…targets London for convenience store format
…to launch high street cafe
 OFF-LICENCES
UK: Majestic Wines profits up 27%
 OTHER FOOD SPECIALISTS
UK: Holland & Barrett's profits up
UK: Thorntons to cut number of stores
 CLOTHING RETAILING
Italy: Inditex sees first quarter sales rise
Sweden: H&M
…profits fall as cotton and labour prices rise
…reports like-for-likes up 2% for Q2
…signs Donatella Versace as guest designer
UK: Abercrombie bid for SuperGroup speculations
UK: Alexon like-for-likes remain flat, leading to new finance options explored
UK: Aquascutum to open stores in Milan and Rome
UK: Aurora management team vie to buy Jane Norman
UK: Ben Sherman seals suit licence deal and invites Nickleson bids
UK: Bonmarché future boss named, if sale goes through
UK: Burberry triggers potential revolt over pay
UK: East pre-tax profits up 9.5%
UK: Edinburgh Woollen Mill acquires 31 Jane Norman stores but 35 to shut
UK: Forever 21 flagship to open at Lakeside
UK: Hobbs secures £46.5m funding to accelerate expansion
UK: Jacques Vert's pre-tax profits up 3.1%
UK: Jane Norman
…enters new private equity rescue talks
…in administration
UK: Life & Style closes 22 stores, axing 300 jobs
UK: Matalan EBITDA falls due to snow in Q4
UK: Missoni to open second UK standalone store
UK: Moss Bros like-for-likes up 13.4% with disposal of Cecil Gee
UK: Mulberry full-year profits rise
UK: Next sells customer service business for £65m
UK: Phase Eight reports 42% rise in pre-tax profits
UK: Polo Ralph Lauren denim line to open franchise stores
UK: SuperGroup reports business 'on track'
UK: Ted Baker sales rise ahead of expectations
UK: Uniqlo sees 31% sales surge
UK: Vera Wang opens shop-in-shop with Browns
 FOOTWEAR RETAILING
UK: Brantano back in black
UK: Schuh sold to US retailer for £125m
 MULTI-SECTOR RETAILING
UK: 99p Stores sees profits rise amid international plans
UK: B&M Bargains reports strong year
UK: Marks & Spencer launches earlier summer Sale
 MISCELLANEOUS SPECIALISTS
Ukraine: Metro reveals plans for rapid growth
UK: Pets at Home profits rise
UK: Booker reports 9.5% rise in sales
UK: Halfords trials smaller high street bike shops
UK: Mamas & Papas aims for 30 more UK stores
UK: Carpetright profits fall in face of weak consumer demand
UK: Cath Kidston opens in St Pancras
 DEPARTMENT STORES
UK: Beales reports loss
UK: Debenhams
…reports like-for-likes rise
…tables bid for Jane Norman
UK: John Lewis to open home store in Ashford
UK: TJ Hughes
…puts administrators on standby
…in administration
…acquired by GA Europe
 DIY RETAILING
Germany: Hornbach sales rise 11.1%
Germany: Praktiker issues profit warning
Poland: Kingfisher
…targets aspirational shoppers with Polish revamp
…to double local Castorama network
UK: Focus creditors will not be paid
UK: Kingfisher gets go-ahead on Focus stores deal
 ELECTRICAL RETAILING
France: Cordelette: Saturn’s integration into the Boulanger network is ‘transforming the category’
France: Dixons subsidiary to develop Carrefour web offer
France: Saturn consumer electronics sold to HTM Group
Germany: Metro gets approval for Redcoon acquisition
Russian Federation: PPF takes control of Eldorado
Spain: Media Markt launches order & collect service
UK: Best Buy
…may halt UK expansion plans
…reportedly considering Dixons bid
…UK big boxes lose £62m in first year
UK: Comet to close 17 stores
UK: Dixons
…planning second Black store
…sees balance sheet hit
 MUSIC AND VIDEO GOODS RETAILING
UK: Game appoints new boss of UK and northern Europe
UK: HMV
…chiefs outline new vision after bad year
…profits down 61%
 FURNITURE AND FURNISHINGS RETAILING
UK: BrightHouse EBITDA rises
UK: BrightHouse to launch transactional website
UK: Conran and Radice to launch new department store concept
UK: CSL sales up as it plots South East expansion
UK: DFS posts profits rise
UK: Dreams increases market share but profits fall
UK: Home Retail
…in talks to buy Habitat
…confirms Habitat UK deal
UK: Homeform
…unites brands for Sale push
…files notice to appoint administration
…closes Moben, Dolphin and Kitchens Direct
UK: Sun European acquires parts of Homeform
UK: Homebase interested in failed Moben and Dolphin
UK: Magnet reaches out to customers of Moben and Kitchens Direct
UK: Lombok cautious on concession roll-out
UK: Dunelm sees sales and market share rise
 HOME SHOPPING
UK: Amazon to buy The Book Depository
UK: Argos launches TV shopping channel
UK: Asos marketplace to work with global sellers
UK: eBay hires Cocosa marketing director
UK: JML to focus on growth through supply division
UK: My-Wardrobe targets Middle East
UK: N Brown reports like-for-like rise
UK: Ocado posts pre-tax profit and deal with Carrefour
UK: Park Group pre-tax profits rise
UK: Shop Direct hires Very boss
UK: The Hut drafts in IPO advisers
 HEALTH AND BEAUTY RETAILING
Germany: Celesio picks Beiersdorf exec as chief
UK: Superdrug back in black in 2010
 BOOK AND STATIONERY RETAILING
UK: Foyles to open in Westfield
UK: Waterstone's sold to Mamut
UK: WH Smith sales fall
 SPORTS AND LEISURE GOODS RETAILING
UK: JD Sports acquires Cecil Gee and Sprinter
UK: Pentland Group sales and profits rise
UK: Sports Direct acquires USC and Cruise
 JEWELLERS
UK: Theo Fennell sales rise 15%
 GARDEN CENTRES
UK: Garden Centre Group is up for sale
 ECONOMY
UK: Asda Income Tracker: weekly spending power's largest decline
UK: BRC: Food inflation up 5.7%
UK: Discounters increase market share, while Asda loses out
UK: Inflation unchanged at 4.5% in May
UK: Retail sales values up, but volumes flat