European Retail Briefing - April 2016

ANALYST COMMENTS
 METRO
 LUXURY GOODS – INTO 2016
Burberry
LVMH
Kering (Gucci etc)
Prada
Consistency
Where next?
EUROPEAN RETAIL SALES
Key points
Figure 1: Major European economies: Year-on-year retail sales value growth, 2015-16
Figure 2: Major European economies: Year-on-year retail sales volume growth, 2015-16
Inflation
Figure 3: Major European economies: All items CPI, 2015-16
Figure 4: Major European economies: Food price inflation, 2015-16
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Electrical retailing
Sports goods retailing
NEWS ANALYSIS – FOOD AND DRINK
 CONVENIENCE STORES
UK: Budgens and Londis deliver growth for Booker
UK: Simply Fresh partners with NHS Scotland with new health-focused c-store
 GROCERS
Belgium: Lidl launches online offering in Belgium
France: Carrefour launches its first dedicated Bio campaign
France: Casino outlines 90 minute delivery plans
France: Intermarché and Netto Europe sales edge up 0.7%
Germany: Metro
…looks to foreign buyers for sale of Real
…to demerge into two independent groups
Germany: Rewe Group enjoys 12% increase in profits
Netherlands: Albert Heijn cuts down non-food range
Netherlands: Plus eyes online expansion
Poland: Carrefour reveals Polish expansion plans
Spain: Bio c' Bon plots expansion in Madrid
Spain: Aldi opens new stores in Spain
UK: Lidl launches My Lidl members club
UK: Morrisons
…profits tumble 30%
UK: Ocado gross retail sales up in Q1
UK: Sainsbury’s
…announces restructuring of store training teams
…considers upping bid for Argos
…highlights personalised offers in new campaign
…like-for-like sales edge up 0.1%
…makes £1.4bn bid for Home Retail
…puts an end to Brand Match
UK: Tesco
…calls time on Nutricentre business
…eyes remaining stake of Tesco Mobile
…introduces value-led Farm ranges
…launches wonky veg box
…mulls sale of Giraffe business
…to launch own mobile payment service
UK: The Co-operative Food
…sales grow 1.6%
…mulls sales of Somerfield stores
…partners with ParcelShop
…pledges £11m investment in Wales
…reveals ambitious UK expansion plans
UK: Waitrose
…launches first ever gardening magazine
…reveals new premium own-label brand
…set to open UK’s first cashless store
…trials self-scanning in store
 OTHER FOOD AND DRINK SPECIALISTS
UK: Naked Wines hits record £100m sales
NEWS ANALYSIS – NON-FOOD
 CLOTHING, FOOTWEAR AND ACCESSORIES RETAILING
Europe: H&M sales increase 9% in first quarter
Netherlands: Hans Anders expands and shakes off discount image
Spain: Bimba y Lola delivers 17.4% rise in sales
Spain: Inditex like-for-like sales jump 8.5%
UK: Bonmarché
…appoints Asda buying director as CEO
…lowers profit expectations
UK: Clarks Village attracts seven new retailers
UK: Ernest Jones sales rise 8.7%
UK: French Connection’s losses widen as sales fall
UK: Jack Wills eyes UK and Asian expansion
UK: Jimmy Choo boosted by new store openings and strong growth in Asia
UK: Mamas & Papas unveils new concept
UK: Mango introduces discount line to attract young shoppers
UK: Michael Kors unveils wearable tech range
UK: Next full-year group sales rise 3.0%
UK: Oliver Bonas launches catalogue to drive online sales
UK: Ted Baker’s profits surge 20.3%
UK: Timberland opens new London store with in-house cobbler
UK: Whistles acquired by Phase Eight owner
 MULTI-SECTOR RETAILING
Europe: Mercator invests €50m in Montenegro
France: Orchestra Prémaman drives 16.3% increase in sales
UK: Home Retail Group
…board recommends Sainsbury's offer
…reports mixed results for “eventful” 2015
UK: Marks and Spencer UK like-for-like sales slip 1.1%
 DEPARTMENT STORES
UK: Bhs
…confident CVA will go ahead despite landlord resistance
…creditors approve rent cuts
…sells Oxford Street flagship lease
…..pension deficit bill may be given to Sir Philip Green
UK: Harrods managing director to stand down
UK: John Lewis
…JLAB launches with a focus on health and convenience
…opens Birmingham tech hub
…sales grow 2.5%
…unveils smart home department
 DIY RETAILING
France: Intermarché and Netto Europe sales edge up 0.7%
Germany: Hornbach Group sales increase 5.1%
UK: Clas Ohlson to close seven stores
UK: Kingfisher profits fall 20.5%
UK: Screwfix trialling two-hour delivery service
UK: Topps Tiles first half sales rise 4.7%
 ELECTRICAL RETAILING
Belgium: Fnac and Darty merger approved in Belgium
Belgium: Media Markt rolls out ‘Solutions Corner’
UK: Bang & Olufsen reveals UK expansion plans
UK: Dixons Carphone acquires TV and telecoms switching platform
UK: Maplin invests £3m reducing prices
UK: Steinhoff shuns Argos for Darty
 FURNITURE RETAILING
UK: DFS reports 12.3% rise in profits
UK: IKEA launches virtual reality kitchen
UK: Lombok
…plans £15m sale
…reports strong like-for-like growth
UK: VictoriaPlum relaunches MFI brand with new collection
 HOMEWARES RETAILING
UK: Dunelm enjoys growth on the back of its Winter Sale
UK: Hillarys launches first carpet range and new campaign
UK: Laura Ashley to launch as a department store concession as sales fall 4.6%
UK: Steamer Trading acquires Divertimenti
 HOME SHOPPING
UK: AO World trades ahead of expectations in Q4
UK: Boohoo launches standalone menswear site
UK: Notonthehighstreet in talks to raise £25m
UK: Shop Direct rolls out size comparison tool
UK: Wiggle trials cycle service and repair offer
 HEALTH & BEAUTY RETAILING
France: L'Oréal Luxe launches beauty box site
UK: Boots UK reveals rise in second quarter sales
 BOOK, GREETING CARD AND STATIONERY RETAILING
UK: Card Factory delivers another record year
UK: Foyles delivers 4.3% sales growth
UK: WH Smith introduces digital displays into store windows
 GAME AND VIDEO RETAILING
UK: Game revenues tumble in "challenging" UK market
 SPORTS GOODS RETAILING
Netherlands: JD Sports
…acquires Aktiesport and Perry Sport
…confirms €26.5m Dutch acquisitions
UK: Go Outdoors takes advantage of surging bicycle demand
 SHOPPING LOCATIONS
UK: Bank holiday footfall declines as storms hit
 ECONOMY
UK: February retail sales rise 3.8%
UK: MP's vote against changes to Sunday trading laws
UK: Retail footfall declines 1.1% in February
UK: The Budget: Changes in business rates designed to help retailers
DEPARTMENT STORES – EUROPE, APRIL 2016: EL CORTE INGLÉS (DEPARTMENT STORES)
What we think
Upward turn in operating profits
Change at the top hails a new era
Possibilities abroad, priorities at home
Positive improvements made
Online offering
Company background
Company performance
Figure 5: El Corte Inglés (Department Stores): Group financial performance, 2010/11-2015/16
Figure 6: El Corte Inglés (Department Stores): Outlet data, 2011/12-2015/16
Retail offering