European Retail Briefing - July 2014

ANALYST COMMENT
Karstadt – at tipping point?
What we’ve seen
A crowded middleground
Figure 1: The consumer: Department stores bought from in the past 12 months – Karstadt and Kaufhof, February 2014
Strategy so far
Strong competition in fashion
The end of Karstadt?
What we think
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 2: Major European economies:  Year-on-year retail sales value growth, 2013-14
Figure 3: Major European economies:  Year-on-year retail sales volume growth, 2013-14
Inflation
Figure 4: Major European economies:  All items CPI, 2013-14
Figure 5: Major European economies:  Food price inflation, 2013-14
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Department Stores
DIY retailing
Electrical retailing
Home Shopping
Miscellaneous Specialist Retailing
NEWS ANALYSIS – FOOD AND DRINK
Bakers
UK: Greggs sales grow 3.1% in first half
Convenience Stores
UK: Nisa relaunches own-brand range
Grocers
Belgium: Delhaize
Czech Republic: Ahold receives preliminary approval to acquire SPAR's Czech business
Italy: Carrefour acquires Billa supermarkets in Italy
France: Carrefour to acquire Dia France
Romania: Auchan to open 12 new Romanian stores
Spain: Dia acquires El Arbol
Spain: El Corte Inglés launches click-and-collect
Spain: Lidl launch collaboration with Custo
UK: Aldi to double UK store numbers
UK: Asda announces ‘radical’ restructuring process
UK: Iceland sales grow 2.7%
UK: Lidl to open 20 new UK stores in the next nine months
UK: Morrisons
UK: Netto to return to the UK
UK: Ocado revenues rise 20.7% in the first half
UK: Sainsbury’s
UK: Tesco
UK: Waitrose to launch first in-station store
UK: Tesco and Morrisons suffer market share loss
Other food specialists
UK: Whole Foods sales rise but losses widen
Off-licences
UK: Majestic Wine sales rise 1.4%
NEWS ANALYSIS – NON-FOOD
Clothing retailing
Europe: Primark sales soar 22% in Q3
Germany: Gerry Weber sales rise 2.2% in the first half
Germany: s.Oliver sales jump 5.3%
Netherlands: C&A to open new flagship in Amsterdam
Netherlands: CoolCat sales grow 1.5%
Netherlands: Hunkemöller sales grow 7.9%
Netherlands: FNG Group sales rise 60%
Spain: Inditex sales climb 4% Q1
Sweden: H&M
Sweden: SuperGroup acquires Smac Group
UK: Blue Inc opts out of IPO
UK: Bonmarché sales jump 11.9%
UK: Burberry defends CEO bonus
UK: Fat Face sales grow 12%
UK: Jane Norman enters administration once again
UK: Lakeland Leather enters administration
UK: La Senza enters administration
UK: Michael Kors to open Regent Street flagship
UK: Mulberry like-for-like retail sales slide 3%
UK: Phase Eight
UK: SuperGroup sales grow 19.6%
UK: Ted Baker sales rise 17.9% in Q1
Footwear retailing
UK: Shoe Zone sales tumble 16.1% in first half
Mixed Goods Retailing
Netherlands: HEMA
UK: 99p Stores launch new Plus format
UK: Argos
UK: B&M Bargains valued at £2.7bn
UK: Home Retail reports an ‘encouraging start to the year’
UK: Poundland sales rocket 18% in Q1
UK: Poundworld sales grow 18%
Multi-Sector Retailing
UK: Marks and Spencer
Department Stores
Germany: Karstadt CEO leaves after six months
UK: Debenhams
UK: House of Fraser Q1 2014 like-for-like sales up 2%
UK: John Lewis brings Italian flavour to Oxford Street
DIY retailing
Germany: Hornbach first-quarter consolidated sales up 16%
UK: Homebase handing over another of its stores to The Range
UK: Topps Tiles
Electrical retailing
France: Darty like-for-likes rise 1.7%
Netherlands: Saturn brand to be axed in the Netherlands
UK: Brighthouse sales grow 12.2%
UK: Carphone Warehouse full-year total sales down
UK: Comet staff win multi-million pound settlement
UK: Dixons full-year sales and profit up
UK: Maplin
Music and Video Goods Retailing
UK: HMV
UK: Rough Trade to open first new UK store in seven years
Carpet retailing
UK: Carpetright sales fall 2.2%
Furniture retailing
UK: DFS sales jump 5.9% in Q3
UK: Dunelm sales jump 7.8%
UK: The Range to open its 89th store
Home Shopping
Belgium: Colruyt Group acquires 50% of ZEB
Italy: Prezzofelice.it enters liquidation
UK: Amazon
UK: ASOS suffers warehouse fire
UK: Boohoo.com sales soar 63%
UK: M & M Direct sold for £140m
UK: MySale suffers technical hitch on AIM debut
UK: N Brown sales rise 2.6% in Q1
UK: Net-A-Porter to unveil 'Net-A-Sporter'
UK: QVC launches new channel
UK: Shop Direct hires first fashion director
Health & Beauty retailing
Netherlands: Holland & Barrett plans further European expansion
UK: Superdrug sales drop 1%
UK: The Fragrance Shop sales rise 11.2%
Book and stationery retailing
UK: The Works like-for-like sales grow 7%
UK: WH Smith like-for-like sales fall 2% in Q3
Sports and Leisure Goods Retailing
UK: JD Sports
UK: Sports Direct
Miscellaneous Specialist Retailing
Germany: Sunglass Hut enters Germany
Spain: Spanish postal service debuts collection lockers
UK: Bathstore sold in a management buyout
UK: Doddle, a new click and collect business, announced
UK: Halfords sales accelerate 7.9% in Q1
UK: Hobbycraft's new small store format
UK: Ladbrokes unveils new store concept
UK: Mamas & Papas
UK: Mothercare
UK: Pets at Home like-for-like sales rise 2.4%
Economy
UK: Footfall declines 0.2% in May
UK: Retail sales grow 3.9% in May
UK: Retail sales rise 2% in May
UK: Shop prices hit record low
E-COMMERCE – EUROPE
Zalando
What we think
Company background
Company performance
Figure 6: Zalando: Group financial performance, 2010-13
Retail offering