European Retail Briefing - May 2014

ANALYST COMMENT
 DUTCH MALAISE MAY BE DRAWING TO A CLOSE
What we’ve seen
2013 was weak
Figure 1: The Netherlands: Year-on-year growth in retail sales, selected major sectors, current prices, 2013
2014 should be better
Figure 2: The Netherlands: Consumer confidence levels, May 2013-May 2014
Looking ahead
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 3: Major European economies: Year on year retail sales value growth, 2013-14
Figure 4: Major European economies: Year on year retail sales volume growth, 2013-14
Inflation
Figure 5: Major European economies: All items CPI, 2013-14
Figure 6: Major European economies: Food price inflation, 2013-14
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Footwear retailing
Multi-sector retailing
Department stores
DIY retailing
Electrical retailing
Home shopping
NEWS ANALYSIS – FOOD AND DRINK
 CO-OPS
UK: Co-op
…reveal results of a ‘disastrous’ year
…to lower prices on essential items
…to sell its British Farms
 CONVENIENCE STORES
UK: Nisa to trial new franchise strategy
 GROCERS
Belgium: Delhaize Group report 2.8% rise in sales in Q1
Denmark: Dansk Supermarked to launch e-receipts
France: Auchan to face legal action over the Rana Plaza collapse
France: Carrefour
…Q1 sales
…to raise CEO age barrier
France: Dia could sell French operations
Germany: Edeka sales up 3.1% in 2013
Germany: Kaiser’s Tengelmann to close stores
Germany: Kaufland to invest in East German operations
Germany: Schwarz Group revenue up 10% in 2013
Portugal: Jerónimo Martins sales rise 5.6% in Q1
Russian Federation: Dixy sales up 4% in Q1
Russian Federation: Magnit sales up 25% in Q1
Spain: DIA introduce share incentive plan
Spain: Eroski open new fresh produce logistics centre
Spain: Profits rise 4% for El Corte Inglés’ supermarkets
UK: Asda begins same day click and collect
UK: Grocery market growth hits 11 year low
UK: Morrisons
…sales fall 4.2% in first quarter
…reduces prices across the board as it seeks to regain momentum
…to extend online service to London
UK: Sainsbury’s sales rise 2.8%
UK: Tesco
…full year profits down
…to expand its non-core offering
…slashes prices
…to launch own-brand smartphone
UK: Waitrose
…sales up 6.5% in Q1
…to launch Saturday morning cookery show
 SPECIALIST FOOD SHOPS
UK: Greggs sales up 4% in Q1
UK: Thorntons sales fall 7.6% in Q3
 OFF-LICENCES
UK: Conviviality to acquire rival
UK: Oddbins plans rapid expansion under new ownership
NEWS ANALYSIS – NON-FOOD
 CLOTHING RETAILING
France: Hermès sales rise 14.7% in Q1
France: Primark opens second store in Paris
Germany: Strenesse files for insolvency
Italy: Benetton sales fall 10%
Italy: Prada warns growth in 2014 will be ‘single-digit’
Sweden: H&M announce Alexander Wang collaboration
UK: Bershka looks to offload flagship
UK: Blue Inc chairman stands down
UK: Bonmarché sales up 10.4%
UK: Burberry revenue up 19%
UK: Fat Face confirms London listing
UK: French Connection sales up 11%
UK: Lord Wolfson giving away his £4m bonus
UK: Whistles to launch debut menswear collection
 FOOTWEAR RETAILING
Netherlands: Macintosh Retail Group sales up 3.8% in Q1
UK: Kurt Geiger completes management buyout
UK: Shoe Zone to float within the next month
 MIXED GOODS RETAILING
Netherlands: Action to expand in German and French markets
UK: B&M Bargains to refinance £585m of loans
UK: Poundland sales up 13.3%
 MULTI-SECTOR RETAILING
Finland: Stockman Group sales fall 7.6% in Q1
UK: Argos to launch new ‘digital’ store in Manchester
UK: Home Retail sales climb 3% to £5.66 billion
UK: M&S Q4 results
 DEPARTMENT STORES
Ireland: The Weston Group await decision on Arnotts bid
Latvia: Debenhams enters Latvian market
UK: Debenhams sales up 1.5%
UK: House of Fraser
…chairman to step down
…sales up 3.6%
…Sanpower confirms House of Fraser deal
UK: John Lewis to launch first range of smart TVs
UK: Selfridges Birmingham to be redeveloped
 DIY RETAILING
Austria: bauMax to reduce store numbers
Sweden: Clas Ohlson to open first store outside Europe
UK: Travis Perkins sales up 15.6% in Q1
 ELECTRICAL RETAILING
Europe: Samsung opens first stand-alone stores
Germany: Media-Saturn
…CEO resigns
…to refocus around online channel
UK: BrightHouse chairman to step down
UK: Carphone Warehouse sales increase 2.3% in the fourth quarter
 HOMEWARES RETAILING
UK: Fast Retailing considering Cath Kidston bid
 HOME SHOPPING
Finland: Verkkokauppa.com sales up 6% in Q1
France: QVC to expand into France
Germany: Zalando revenue up 35% in Q1
Germany: Further strikes at Amazon Germany
UK: Ao.com announces 40% growth in sales
UK: Amazon and Twitter launch digital shopping partnership
UK: Barratts re-launches with new website
UK: Marks and Spencer targeting improved online profitability
UK: N Brown reports operating profits up 4.7%
UK: Sit-Up falls into administration
 BOOKS AND STATIONERY RETAILING
UK: WHSmith
…to open further retail franchises
…first half pre-tax profit up, like-for-like sales down
 SPORTS AND LEISURE GOODS RETAILING
UK: JD Sports reports 5.7% rise in sales
UK: Sports Direct
…sales up 10.3% in Q4
…to launch selling on credit
 MISCELLANEOUS SPECIALIST RETAILING
UK: Bids for Kiddicare expected by the end of April
UK: Mothercare Q4 sales dip
 ECONOMY
UK: Retail sales fall in March
DEPARTMENT STORES EUROPE
 MARKS & SPENCER
What we think
Where next?
Company background
Company performance
Figure 7: Marks & Spencer, UK like-for-like growth, 2012/13, 2013/14
Figure 8: Marks & Spencer: Group financial performance, 2008/09-2013/14
Figure 9: Marks & Spencer store portfolio, September 2013
Figure 10: Marks & Spencer: Estimated sales area breakdown, September 2013
Figure 11: Marks & Spencer: Outlet data, 2008/09-2013/14
Retail offering