European Retail Briefing - January 2016

ANALYST COMMENT
 EDEKA FINALLY HAS ITS WAY WITH KAISER'S
A long time coming
What does Edeka want with Kaiser’s?
Figure 1: Germany: Where consumers spend most in a typical month for groceries, by age and affluence, September 2015
What will Edeka do with the stores?
What happens now?
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 2: Major European economies: Year-on-year retail sales value growth, 2014-15
Figure 3: Major European economies: Year-on-year retail sales volume growth, 2014-15
Inflation
Figure 4: Major European economies: All items CPI, 2014-15
Figure 5: Major European economies: Food price inflation, 2014-15
HEADLINES FOR THE MONTH
Grocers
Clothing retailers
Multi-sector retailing
Department stores
Furniture retailing
DIY retailing
Electricals retailing
NEWS ANALYSIS – FOOD & DRINK
UK: Mintel's Christmas message
And 2016?
And then?
 CONVENIENCE STORES
UK: Spar grows store estate by 8% in six months
 GROCERS
Belgium: Delhaize Group launches consent solicitation
Croatia: Konzum invests in a new flagship store
Denmark: Dansk Supermarked ups convenience with 24-hour opening
France: Carrefour
…expands within Belgium and Romania
…completes acquisition of Rue de Commerce
France: Cdiscount launches food offering in France
Germany: Aldi expands branded offering
Germany: Media-Markt and Makro enter joint purchasing
Germany: Metro Group like-for-like sales rise 1.5%
Italy: Conad earmarks €8m for e-commerce development
Italy: VéGé Group expands and introduces Beacon technology
Netherlands: Albert Heijn introduces real-time order tracking
Netherlands: Boni introduces adaptive website
Poland: Carrefour goes online in Poland
Portugal: Jumbo launches beacon-enabled app
UK: Aldi to open 80 new stores in 2016
UK: Asda introduces ‘Go-Getters for Forgetters’
UK: Booth reports strong growth in Christmas orders
UK: Sainsbury's
…grows ahead of the grocery market
…makes bid for Home Retail Group
UK: Tesco
…to introduce charge for small click-and-collect orders
…to offer dog pampering in larger stores
UK: Waitrose plans 14 new supermarkets in 2016
 OTHER FOOD AND DRINK SPECIALISTS
UK: Majestic Wine sees sales grow 12.2% during the Christmas period
UK: Berry Bros & Rudd sees losses double
NEWS ANALYSIS – NON-FOOD
 CLOTHING RETAILING
Europe: Inditex sales rise 16% as expansion continues
Europe: Prada profits fall amid weak sales in Asia
Netherlands: Macintosh Retail Group files for bankruptcy
Sweden: H&M sales growth slows to 4% in November
UK: Arcadia continues to roll out Outfit fascia
UK: Barbour reduces core range
UK: Blue Inc to close a quarter of its shops
UK: Bonmarché announces Beth Butterwick departure
UK: Boux Avenue delivers strong growth for Theo Paphitis Retail Group
UK: Burberry
…celebrates the Lunar New Year on WeChat
…releases interactive 3D scarf advert
UK: Jaegar owner halts sale
UK: Jigsaw reports a record-breaking Christmas
UK: Joules eyes IPO
UK: Kurt Geiger bought out by Cinven
UK: Mamas & Papas returns to profit
UK: Mulberry grows revenues by 5% in the first half
UK: Next sales increase just 0.4% prior to Christmas
UK: River Island to introduce a plus-size range
UK: SuperGroup revenues surge 22.3%
UK: Ted Baker buys The Ugly Brown Building
UK: Topshop partners with Appear Here to provide pop-up concessions
 FOOTWEAR RETAILING
UK: Brantano’s new owners put the business under review
 MULTI-SECTOR RETAILING
Germany: Metro Group like-for-like sales rise 1.5%
UK: Marks and Spencer
…opens first store in Beijing
…UK like-for-like sales fall 2.5%
UK: Poundland third quarter revenues grow 29.4%
 DEPARTMENT STORES
France: Monoprix introduces in-store iBeacons
Ireland: Arnotts reports modest growth in sales
UK: BHS appoints chief financial officer
UK: Debenhams in talks with former Kingfisher boss
UK: Harvey Nichols profits tumble 29.7%
UK: House of Fraser reports rising Q3 sales
UK: John Lewis
…has a strong week for electricals
…invests £500m in online business
…sales grow 4.1% over the Christmas period
UK: Selfridges launches Bright New Things campaign
 DIY RETAILING
Germany: Hornbach Group reduces earnings target
UK: Topps Tiles Q1 sales rise 4.4%
 ELECTRICAL RETAILING
France: Darty retail profits surge 36%
Germany: Media Markt implements new loyalty program
UK: Dixons Carphone
…first-half sales up 5%
…to launch a tech emergency service
 CARPET RETAILING
UK: Carpetright delivers “significant growth” in profits
 HOME SHOPPING
Switzerland: LeShop.ch delivers 6.6% growth
UK: Amazon to lease aircraft in a bid to launch air-delivery service
UK: Atterley stops trading as it enters administration
UK: Matalan Direct hires buying director
UK: Moonpig innovates with augmented reality
UK: Ocado reports double-digit Q4 growth
UK: PrettyLittleThing full-year sales reach £30m
 FURNITURE RETAILING
Sweden: Ikea group sales rise 11.2%
UK: Habitat adapts website for mobile shoppers
 HEALTH AND BEAUTY RETAILING
UK: Concerns raised over LloydsPharmacy’s bid for Sainsbury’s division
UK: Holland & Barrett
…eyes potential £1bn sale
…plans to double sales to £1bn
UK: The Fragrance Shop sales boosted by luxury brand demand
 SPORTS AND LEISURE GOODS RETAILING
UK: Sports Direct sales and profits up in the first half
 MUSIC, VIDEO AND GAME RETAILING
UK: Foyles reports strong Christmas trading
UK: Game’s sales fall 6.7% as demand for consoles declines
 SHOPPING LOCATIONS
UK: Birmingham Bullring owner eyes bid for Grand Central
 JEWELLERS
UK: Signet Jewellers’ UK sales rise 4.9%
 ECONOMY
UK: Retail sales rise 2.0% in November
A. S. WATSON HEALTH & BEAUTY EUROPE
What we think
Company background
Marionnaud
Company performance
Figure 6: A. S. Watson Health & Beauty Europe: Group financial performance, 2010-14
Figure 7: A. S. Watson Health & Beauty Europe: Outlet data, 2010-14
Retail offering
Continental Europe
UK
Superdrug
The Perfume Shop
Savers