European Retail Briefing - June 2016

ANALYST COMMENT
 ITALIAN FOOD DISCOUNTERS
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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 retailers
Multi-sector retailing
Department stores
Electrical retailing
Furniture and homewares retailing
Home shopping
Jewellers
NEWS ANALYSIS – FOOD AND DRINK
 CONVENIENCE STORES
UK: Convenience store investment reaches £600m
UK: My Local looking to divest 10% of store estate
 GROCERS
Denmark: Dansk Supermarked to convert døgnNetto stores
France: Carrefour opens new market format in Paris
France: Géant Casino overhauls hypermarket format
Germany: Netto trials loyalty programme
Germany: Schwarz Group reveals €6.5bn investment plans
Italy: Coop Italia aims to drive private label share
Netherlands: Ahold grows sales by 4.3%
Portugal: Intermarché plans 63 new Portuguese stores
Portugal: Lidl Portugal earmarks €50m investment
Spain: Dia Group sales reach €2.4bn in Q1
Spain: Eroski's new strategy focuses on competitiveness
Spain: Tesco partners with El Corte Inglés
UK: Aldi to open Shoreditch pop-up wine shop
UK: Asda
…reveals Clarke's future successor
…sales decline by 5.7%
UK: ‘Big four’ retain shoppers in flat grocery market
UK: Guess How Much! discount store opens its doors
UK: Iceland
…partners with mum vloggers for new campaign
…sees like-for-likes slide but profits remain flat
UK: Morrisons
…in nationwide tie-up with Timpson
…relaunches loyalty card as Morrisons More
UK: Sainsbury's
…Argos deal facing watchdog probe
…equips shoppers with smart fridges to tackle food waste
…finance chief John Rogers to take the reins at Home Retail
…like-for-like sales dip 0.8%
UK: Tesco
…F&F clothing to be subject to Direct delivery charges
…confirms sale of Giraffe and Kipa
UK: The Co-op rebrands thousands of stores with revived logo
UK: Whole Foods offer two-hour delivery in London
 OTHER FOOD AND DRINK SPECIALISTS
UK: Conviviality sales surge 137%
UK: Costco reports 7.1% growth
UK: Greggs relaunches mobile app integrating loyalty scheme
UK: Thorntons to offload Oxford Street flagship
NEWS ANALYSIS – NON-FOOD
 CLOTHING RETAILING
Europe: Mango turnover grows 15.3% in 2015
Europe: TK Maxx owner delivers 7% sales growth
Europe: Uniqlo names Christophe Lemaire as artistic director
Europe: Zara plans to extend plus-size offer
Switzerland: Charles Vögele announces withdrawal from Belgium
UK: Austin Reed
…estate to be broken up for sale
…stores to shutter after no viable offers were received
UK: Bhs
…asks bidders to up their offers
…rescue fails putting 11,000 jobs in question
UK: Bonmarché revenue up 5.3%
UK: Burberry sales fall 1%
UK: Charles Tyrwhitt relaunches websites to drive international growth
UK: Edinburgh Woollen Mill owner joins bidding for Dobbies
UK: H&M to collaborate with KENZO
UK: Jack Wills to open at intu Milton Keynes
UK: Joules
…eyes a number of Austin Reed stores
…share price soars on stock market debut
UK: Matalan profits tumble 62.5% due to warehouse issues
UK: Monsoon profits tumble 59%
UK: Moss Bros shows further improvement
UK: Mothercare full-year profits up 51%
UK: New Look
…profits increase 7%
…to open largest men’s store to date
UK: Supergroup ends the year with robust trading
UK: Two Bhs suppliers fall into administration
UK: Wolf & Badger launches into beauty and childrenswear
 FOOTWEAR RETAILING
UK: Hush launches ‘pop-in’ concept
UK: Shoe Zone sales fall amid store closures
 MULTI-SECTOR RETAILING
Germany: Metro Group like-for-likes up 0.6%
Netherlands: Marks & Spencer backtracks on Amsterdam flagship plans
Spain: El Corte Inglés
…opens dedicated women's fashion store
…partners with Tesco
UK: Argos first quarter revenue up 2.6%
UK: B&M sales rise 23.6% as expansion ramps up
UK: Guess How Much! discount store opens its doors
UK: Marks & Spencer
…breaks tradition to stock early Autumn lines
…reports declining profits in ‘mixed’ results
…restructures management team for customer focus
 DEPARTMENT STORES
Ireland: Debenhams announces restructuring of Irish business
Netherlands: Hudson’s Bay Company expands into the Netherlands
UK: Harrods introduces personal shopping for men
UK: John Lewis teams up with style guru Jim Chapman
UK: Selfridges launches first shoppable app
 DIY RETAILING
Germany: Hornbach sales rise but earnings fall
UK: Kingfisher sales grow 5.1%
UK: Topps Tiles revenues rise 3.8%
UK: Wesfarmers ends Homebase's partnership with Nectar
 ELECTRICAL RETAILING
France: Darty sales surge ahead by 12.8%
UK: Dixons Carphone ends the year up 5% like-for-like
 FURNITURE AND HOMEWARES RETAILING
Europe: Ikea announces HAY and Tom Dixon collaborations
France: Cafom sales fall 2.8%
France: Maisons du Monde prepares for stock market float
UK: Dyson personally designs Oxford Street store
UK: Ikea to open in Westfield Stratford
UK: Lakeland unveils refitted flagship store
UK: Loaf to open second London store
UK: Tiger rebrands to Flying Tiger Copenhagen
UK: West Elm extends partnership with John Lewis
 HOME SHOPPING
France: La Redoute prioritises personalisation in mobile app
Germany: Zalando
…profits fall despite revenue growth
…teams with Adidas to offer same-day delivery
Italy: Yoox Net-a-Porter Group revenues rise 14.5%
UK: Amazon
…begins sale of fresh food through Morrisons tie-up
…launches full fresh food offering
UK: AO World reports 25.7% growth in revenues
UK: Boohoo
…launches first advertising campaign for men
…revenues surge 41%
UK: Debenhams appoints new chief executive
UK: DPD innovates with geo-location technology in app
UK: Gear4Music full year revenues surge 46%
UK: Shop Direct working with TH_NK to update Very site
 HEALTH AND BEAUTY RETAILING
Germany: Douglas reports 5.2% rise in sales
Spain: Sephora expands in Spain with El Corte Inglés deal
UK: Boots campaign highlights healthcare expertise
UK: Estée Lauder launches male grooming station
 BOOK, GREETINGS CARDS AND STATIONERY RETAILING
UK: Card Factory offsets falling footfall with a rise in average spend
UK: Smiggle hires UK property head for store rollout
UK: WH Smith high street sales fall 4% in line with expectations
 SPORTS AND LEISURE GOODS RETAILING
Europe: ASICS net sales climb 7%
UK: Go Outdoors explores potential sale
UK: Halfords
…acquires online bikes and accessories specialists
…retail sales rise 1.3%
UK: Mountain Warehouse profits rise 36%
UK: Tesla opens experience-led store in shopping centre
 JEWELLERS
Denmark: Pandora Q1 revenues rise 34%
Europe: Claire’s European sales drop 6.4%
 GARDEN CENTRES
UK: Edinburgh Woollen Mill owner joins bidding for Dobbies
 TOYS AND GAMES RETAILING
UK: Lego Group to open Leicester Square flagship
 PET SPECIALISTS
UK: Pets at Home like-for-like sales rise 2.1%
 LUXURY GOODS RETAILING
Europe: Richemont sales grow 6%
 SHOPPING LOCATIONS
UK: Birmingham Bullring launches new pop-up space
UK: Footfall down 2.4% in April
UK: Intu Lakeside ‘re-imagined’ with Nickelodeon theme park
 ECONOMY
UK: One in five payments contactless says Visa
UK: ONS announce 4.3% rise in retail sales
UK: Retail sales fall 0.9% as clothing demand weakens
UK: Retail sales in May lift 1.4%
DIY RETAILING – EUROPE, MAY 2016 – HORNBACH
What we think
International expansion
Hornbach Compact
Expanding range of services
Continued online focus
Where next
Company background
Company performance
Figure 5: Hornbach Holding: Group financial performance, 2010/11-2015/16
Figure 6: Hornbach Holding: Outlet data, 2010/11-2015/16
Retail offering