European Retail Briefing - July 2015

ANALYST COMMENT
 WHAT’S THE VALUE OF PROMOTIONS THESE DAYS?
Prime Day
And what about everyone else
Who gains?
Perfect information
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 1: Major European economies:  Year-on-year retail sales value growth, 2014-15
Figure 2: Major European economies:  Year-on-year retail sales volume growth, 2014-15
Inflation
Figure 3: Major European economies:  All items CPI, 2014-15
Figure 4: Major European economies:  Food price inflation, 2014-15
HEADLINES
Grocers
Clothing and footwear retailing
Department stores
DIY retailing
Furniture and homeware retailing
Home shopping
Electrical retailing
NEWS ANALYSIS: FOOD AND DRINK
 CONVENIENCE STORES
UK: Booker Group
…appoints new chairman
…makes ‘good progress’ in the first quarter
UK: Convenience stores invest £177m over last three months, shows report
UK: Nisa
…posts £3m operating loss
…Store of the Future 2 concept proves popular
UK: Spar kicks off summer campaign
 GROCERS
Belgium: Colruyt updates its offering
Europe: Lidl uses public development funding for expansion across Europe
France: Auchan to create first Simply Market Gourmand store
Germany: Netto unveils loyalty scheme
Germany: Schwarz Group reveals ambitious growth plans
Greece: Delhaize has no plans to exit Greece
Italy: Coop Italia sales dip 2.3% in 2014
Italy: Coop Nordest trials new in-store app
Italy: Eately plans European expansion
Italy: Italmark acquires 70% stake in Family Market
Italy: Lillo plans store openings in Italy
Italy: Simply opens environmentally friendly store
Spain: Eroski
…affected by ‘unfavourable market conditions’
…and Dia reach purchasing agreement
UK: Asda poised to win back customers at Christmas
UK: Iceland sales fall 0.5% in 2014
UK: Lidl
…launches £20m marketing drive
…mulls online wine store
UK: Mid-counties Co-operative enlists first non-food concessions
UK: Morrisons sees the largest sales increase again
UK: Ocado
…announces humanlike robots
…closing in on international deal
…half year revenue increases 18.2%
UK: Sainsbury’s
…like-for-likes fall 2.1%
…makes board changes
UK: Tesco Q1 like-for-like sales improvement
UK: The Co-operative Group
…appoints new board members
…focuses on London expansion
…invests £125m in price cuts
 OTHER FOOD AND DRINK SPECIALISTS
UK: Conviviality Retail in talks to buy drinks supplier
UK: Ferrero makes offer for Thorntons
UK: Holland & Barrett
…enjoys 5.5% sales increase
…hosts vegan cafe concession
UK: Majestic Wine sales grow but profits fall
NEWS ANALYSIS - NON-FOOD
 CLOTHING AND FOOTWEAR RETAILING
Europe: Primark announces expansion into Italy
France: French childrenswear brand makes scalable clothing
Spain: Inditex has a strong first quarter
Sweden: H&M half year sales up 23%
UK: Asos posts 20% sales rise
UK: Bon Marché like-for-like sales increase 4.0%
UK: Clarks
…installs Wifi to all stores
…suffers a ‘challenging’ year
UK: East embarks on store closures
UK: Fat Face plans US expansion
UK: H&M experiments with East London pop-up
UK: Joules secures £11m of funding
UK: Mulberry’s trading improves in the second half
UK: N Brown transformation is “on track”
UK: New Look acquisition is completed
UK: New men’s concept store: The Dandy Lab
UK: Reiss founder explores minority stake sale
UK: Shoe Zone revenues fall amidst store closures
UK: SuperGroup maintains sales momentum in Q1
UK: Ted Baker
…launches virtual version of its ‘& Moore’ store
…revenues grow by 24.2%
UK: TM Lewin in talks over management buyout
 MULTI-SECTOR RETAILING
Netherlands: Hema’s sales up but profits down
UK: Argos sales suffer but Homebase sees an improvement in Q1
UK: Marks & Spencer
…loses market share
…restates online figures to account for returns
…Q1 sales rise 1.8%
UK: Wilko suffers from fall in earnings
 DEPARTMENT STORES
France: Monoprix to continue French expansion
Germany: Metro agrees to sell Kaufhof to Hudson’s Bay
Ireland: Clerys closes its doors following sale
UK: Debenhams like-for-like sales flat
UK: House of Fraser
…restructures to become more customer-centric
…sales boosted by online shoppers
…to open its first full scale bricks and mortar store in the UK since 2008
UK: John Lewis
…announces JLAB finalists
…ends free click-and-collect for orders under £30
…enters the smartphone market
…sales buoyed by Father’s Day purchases
…teams up with Bruce Oldfield
…to roll out more restaurant concessions
UK: Liberty plans international expansion
 DIY RETAILING
Denmark: DT Group increases sales in Q3
Germany: Hornbach sales rise in Q1
Netherlands: Gamma hosts energy supplier Essent in store
Sweden: Clas Ohlson sales up 8%
UK: Clas Ohlson signs contract for second compact store
UK: Kingfisher hires Coop Denmark boss as new chief
UK: Topps Tiles has an encouraging Q3
 FURNITURE AND HOMEWARE RETAILING
France: Conforama ups expansion in Spain and Portugal
UK: Carpetright sales and profits up
UK: Dunelm
…appoints John Browett as chief executive
…like-for-like sales up 5.8%
UK: Sofaworks may have to change name following DFS court battle
 GARDEN CENTRE RETAILING
UK: Wyevale Garden Centres profits surge 55%
 HOME SHOPPING
Europe: Amazon
…e-book business to be investigated
…to offer loans
Germany: Made.com expands into Germany
Germany: Zalando opens gallery-style pop-up
Europe: AO World considers expansion into European markets
UK: Amazon
…brings one-hour delivery to London
…Prime Day to offer more discounts than Black Friday
UK: Arcadia backed online shopping site to launch in the UK
UK: Boohoo sales grow 35% in Q1
UK: Net-a-Porter makes first profit in five years
UK: Royal Mail to send direct mail based on online shopping history
UK: The Book Depository makes £4m loss
 ELECTRICAL RETAILING
France: Darty Group returns to profit
Ireland: HMV reveals deal with Tesco Ireland
UK: Brighthouse
…revenues up 12.2%
…to roll out smaller “satellite” store format
UK: Dixons Carphone partners with Sprint Corp in the US
UK: Maplin reports flat full-year profits
 HEALTH AND BEAUTY RETAILING
Ireland: Lloyds Pharmacy to open 60 Irish stores
UK: Superdrug full-year pre-tax profits and sales up
 GREETINGS CARD AND STATIONERY RETAILING
UK: Card Factory management selling off shares
UK: Paperchase nears a takeover deal
 SPORTS AND LEISURE GOODS RETAILING
UK: Direct Golf reveals full-year sales decline
 ENTERTAINMENT RETAILING
UK: Hamleys eyed by House of Fraser owners
UK: HMV relaunches online
UK: Halfords appoints new CFO
UK: JD Sports continues strong start to the year
UK: Sports Direct announces first Scottish retail and gym hybrid
 TRAVEL RETAILING
UK: Moto suffers £37m turnover drop
 SHOPPING LOCATIONS
UK: Longines sets record for Oxford Street rent
UK: Westfield announces expansion to luxury shopping village
 ECONOMY
UK: Government to relax Sunday trading laws
UK: Shop prices fall as consumer confidence rises
UK: The BRC warns on business rates
ONLINE RETAILING – EUROPE: ZALANDO
What we think
Successful IPO
Technology at its heart
Underwhelming expansion in the UK
Company background
Company performance
Figure 88: Zalando: Group financial performance, 2010-14