European Retail Briefing - April 2017

ANALYST COMMENT
Bad business decisions
Conglomerates
“The first loss is the best loss”
Easy with hindsight
EUROPEAN RETAIL SALES
Key points
Figure 1: Major European economies: Year-on-year retail sales value growth, 2014-16
Figure 2: Major European economies: Year-on-year retail sales volume growth, 2014-16
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 and footwear retailers
DIY retailing
Health and beauty retailing
NEWS ANALYSIS – FOOD AND DRINK
 CONVENIENCE STORES
UK: Booker sales hit by new Tobacco legislation
UK: Budgens operator falls into administration
 GROCERS
Belgium: Ahold Delhaize divests property in Belgium
France: Auchan
…extends click-and-collect trial
…reports improved results of 0.7% growth
France: Carrefour unveils digital innovations
France: La Vie Claire benefits from booming organic market
Germany: Aldi Nord tests new upmarket concept
Germany: EDEKA launches "BahnhofsBox" at Stuttgart station
Germany: Kaufland set for Australian expansion
Germany: Rewe revenues boosted by German supermarkets
Italy: Aldi progresses with preparations for Italy launch
Italy: Esselunga
…launches first two click-and-collect stores
…revenues grow 3.1%
Netherlands: Jumbo installs virtual shoppable pop-up store
Portugal: Auchan opens first convenience store in Portugal
Spain: Carrefour releases new omnichannel campaign
Spain: Covirán enjoys 4% growth in sales
Spain: DIA Group announces management restructuring
UK: Booths to enter joint venture in Malaysia
UK: Brait abandons plans to list on the London Stock Exchange
UK: Morrisons
…outshines the ‘big four’, industry figures suggest
…achieves first comparable sales and profit growth since 2012
…launches in-store Indian takeaway concept
UK: Nisa Q4 sales increase 2.2%
UK: Sainsbury's
…and Argos combined like-for-like sales rise 0.3%
…launches weather-activated digital campaign
…set to axe Phone Shops
…teams up with Graduate Fashion Week on high-end range
UK: Tesco
…agrees to pay £129m fine
…CEO reiterates commitment to Booker deal
…faces pressure to close stores amid Booker takeover
…to restructure international executive team
UK: The Co-op reports "exceptional" yearly results
UK: Waitrose to host supper club in new store
NEWS ANALYSIS – NON-FOOD
 CLOTHING AND FOOTWEAR RETAILING
Belgium: McGregor and Gaastra stores put up for sale
Europe: H&M sales up 7% in Q1
France: Vivarte agrees on debt restructuring with lenders
Germany: Gerry Weber increases profits despite sales fall
Germany: Hugo Boss acts to stabilise declining sales
Germany: Hunkemöller trials first sports shop under HKMX brand
Spain: Desigual revenues down 7.8%
Spain: Inditex like-for-like sales rise 10% in 2016
Spain: OVS, Italian fashion retailer, launches into Spain
Spain: Zara opens largest store to date in Madrid
Sweden: H&M posts 1% fall in local currency sales in February
UK: Ann Summers turnover declines 3%
UK: Blue Inc
…CVA labelled a 'stay of execution'
…files for a CVA
UK: Brantano falls into administration
UK: Burberry licenses beauty business to Coty
UK: Canada Goose set to open first UK store
UK: Edinburgh Woollen Mill
…likely to buy Jaeger
…to roll out department store concept
UK: French Connection revenues fall 6.7%
UK: Gap launches new concept store in Bluewater
UK: H&M to open largest UK store
UK: Jaeger likely to fall into administration
UK: Jones Bootmaker
…heading for administration
…sold to private equity firm Endless
UK: Lavitta closes all stores after a year in operation
UK: Matalan launches in Eastern Europe
UK: Moss Bros
…revenue rises 5.7%
…targets young men with prom campaign
UK: Mothercare delivers solid quarterly performance
UK: Next sales level for the year
UK: Primark owner seeks new chairman
UK: Shoe Zone eyes Brantano takeover
UK: Ted Baker
…launches interactive window campaign
…sales rise 16.4%
UK: The White Company expands US presence
UK: Topshop managing director heads to The White Company
 MULTI-SECTOR RETAILING
Europe: Colruyt Group launch new loyalty card
Germany: Metro Group supports food technology start-ups
UK: 99p Stores falls into administration
UK: The Original Factory Shop CEO steps down
 DEPARTMENT STORES
UK: Debenhams adds Preen to the Designers at Debenhams collection
UK: House of Fraser unveils new vision
UK: John Lewis
…CEO Paula Nickolds warns of further job cuts
…full-year sales rise 3.2%
…invests in Edinburgh store
…launches own denim lifestyle brand
 DIY RETAILING
France: Mr Bricolage losses widen
Germany: Hornbach Group sales rise 4.9%
UK: Bunnings plans online launch
UK: Kingfisher like-for-likes rise 2.3%
UK: ManoMano gains a foothold in the UK DIY market
UK: Topps Tiles like-for-like sale decrease 1.9%
 FURNITURE RETAILING
UK: DFS half-year revenue boosted by new stores
UK: ScS posts rise in sales and profits
UK: Sharps
…launches shopping centre presence in Intu malls
UK: Sharps
…put up for sale
UK: The Range reveals plans for new headquarters
 HOME SHOPPING
France: Amazon
…Pantry expands into France
…Business launches in the UK
UK: AO revenues up 17% but profits fall to zero
UK: Asos revenues rise 37%
UK: Farfetch launches Middle-Eastern designer collections
UK: HelloFresh now available at Sainsbury’s
UK: Net-a-Porter develops personal services for top customers
UK: Ocado retail sales rise 13.1%
 HEALTH & BEAUTY RETAILING
France: Feelunique acquires The Beautyist
UK: Lush ‘reviews options’ for growth outside the UK
 BOOK AND STATIONERY RETAILING
Ireland: Smiggle plots expansion in Ireland
UK: Card Factory revenue up 4.3%
UK: Clintons unveils new fascia
UK: Foyles sales rise 2.7%
UK: Rebranded Staples stores to lease space in larger shops
 SPORTS AND LEISURE GOODS RETAILING
France: Intersport France ups revenue target
Netherlands: Action turnover rises 34%
Spain: JD Sports to partner with Sports Zone in Spain and Portugal
UK: Reebok launches first knitted footwear range
 MUSIC AND GAME RETAILING
UK: Game revenues fall in a challenging market
 LUXURY GOODS RETAILERS
France: Hermés reports strong sales and profit growth
UK: Luxury marketplace for modest fashion launches
UK: Matches Fashion revenues jump 61%
 JEWELLERS
UK: Signet Jewellers reports challenging fourth quarter
 PET RETAILING
UK: Pets at Home introduces 'peternity' leave for staff
 SHOPPING LOCATIONS
UK: Intu acquires shopping centre in Madrid
UK: London's New West End to host 'smart street'
UK: Oaktree to sell three UK shopping centres
UK: White Rose shopping centre reveals major extension plans
 ECONOMY
Germany: German retail sales down compared to last year
UK: Food prices rise sharply in March
UK: Parliamentary inquiry launched to investigate business rates
UK: Retail footfall down 1% in February
UK: Retail sales rise 4.7% in February
UK: Springboard forecasts 5.4% Easter footfall boost
UK: Visa reports slowing consumer spending
DEICHMANN SCHUH
What we think
Rack concept helps Deichmann stand out
Diversifying the brand portfolio
Expanding geographically
Omnichannel outlets merge shops and online
Ship2Home responds to customer disappointment
Ellie Goulding collection taps into celebrity interest
Where now?
Company background
Company performance
Figure 5: Deichmann Schuh: group financial performance, 2012-16
Figure 6: Deichmann Schuh: outlet data, 2012-16
Retail offering