European Retail Briefing - May 2017

ANALYST COMMENT
 DEVELOPMENTS IN FOOD RETAILING
Growth in organics
Better service
What about the discounters?
Where next?
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 1: Major European economies: Year-on-year retail sales value growth, 2016-17
Figure 2: Major European economies: Year-on-year retail sales volume growth, 2016-17
Inflation
Figure 3: Major European economies: All items CPI, 2016-17
Figure 4: Major European economies: Food price inflation, 2016-17
HEADLINES FOR THE MONTH
Grocers
Multi-sector retailing
Electrical retailing
Home shopping
Health & beauty retailing
Luxury goods retailing
NEWS ANALYSIS – FOOD AND DRINK
 CONVENIENCE STORES
UK: Simply Fresh launches new city formats
 GROCERS
France: Auchan launches health and wellbeing campaign
France: Carrefour trials urban farming
France: Casino progresses in France
France: Lidl introduces clothing range in France
Germany: Aldi Süd Opens Pop-Up Bistro In Cologne
Germany: Edeka full-year sales rise 2.5%
Italy: Despar Italia to invest €200m as sales grow
Netherlands: Ahold Delhaize
…net sales rise 65.1%
…reports pro forma historical data
Portugal: Lidl sees room for growth in Portugal
Spain: Dia and Eroski partner to create private label trading company
UK: Asda reinstates Farm Stores brand to replace Smart Price
UK: Morrisons
…cuts the price of 1,000 items
…like-for-like sales rise 3.4%
UK: Sainsbury's
…adds Asian buns and gluten-free options in food-to-go
…full-year profits slip 1%
…introduces branded apparel with Russell Athletic
…plots further growth for Argos and Habitat
UK: Tesco
…launches healthier living campaign
…sells opticians business to Vision Express
…like-for-like sales rise 0.9%
UK: The Co-op Welsh store expansion
UK: Waitrose trialling recipe box subscription
NEWS ANALYSIS – NON-FOOD
 CLOTHING RETAILING
Germany: Hugo Boss delivers 1% increase in Q1
Spain: Superdry reaches 30 stores in Spain
Spain: Zara opens largest store to date in Madrid
UK: Ann Summers turnover declines 3%
UK: Arcadia set to launch Outfit fascia on the high-street
UK: Boden to open John Lewis concessions
UK: Bombinate: New men's fashion marketplace set for launch
UK: Bonmarché sees improvement in Q4
UK: Burberry
…announces staff relocation
…retail revenues up 3% led by the UK
UK: Coast, Oasis and Warehouse receive bidder interest
UK: Honey Birdette plots UK retail roll-out
UK: Jaeger
…announces 200 job cuts amid store closures
…collapses into administration
UK: Kit and Ace closes shop in the UK, US and Australia
UK: Monsoon reports decline in profits
UK: Next total sales down 2.5%
UK: Primark
…owner seeks new chairman
…performs well in the UK and Europe
UK: Store Twenty One facing potential collapse
 FOOTWEAR RETAILING
UK: Clarks axes HQ roles
UK: Jimmy Choo business up for sale
UK: LK Bennett's founder to return as adviser
UK: Rylko prepares for UK launch
UK: Soletrader revenues broadly flat on the year
 MULTI-SECTOR RETAILING
France: Gifi owner Philippe Ginestet proposes to save Tati
Netherlands: Hema full-year sales rise 4.7%
UK: Halfords' CEO Jill McDonald to head up M&S clothing
UK: M&S aligns clothing and food in 'Spend it Well' campaign
UK: Marks & Spencer to open 36 stores in six months
UK: Marks & Spencer to trial online food offering
UK: Pep&Co suffers loss in first trading period
UK: Woolworths may make a return to UK high street
 DEPARTMENT STORES
UK: Debenhams
…to reveal store overhaul plans
…unveils new strategy amid declining profits
UK: Fenwick to close Windsor department store
UK: House of Fraser
…former chief executive joins The Range
…like-for-like sales grow 0.9%
 ELECTRICAL RETAILING
France: Fnac Darty
…continues with international expansion
…group revenues down 3.2% in Q1
…launches its own payment card
 CARPET RETAILING
UK: Carpetright like-for-likes rise 1.4%
 DIY RETAILING
UK: Bunnings reports rise in UK sales
UK: Travis Perkins like-for-likes up 2.7%
 FURNITURE RETAILING
UK: Bathstore experiments with alternative reality in-store
UK: Dunelm struggles to grow sales
 HOME SHOPPING
Belgium: Zalando trials geo-location delivery
France: Vente-privee acquires Le Petit Ballon
Germany: Amazon Fresh launches in Germany
Germany: Zalando
…continues to expand rapidly
…Q1 sales grow 23.1%
Italy: Yoox Net-a-Porter strong sales momentum continues
UK: Amazon
…launches own fashion label Find
…lures subscribers with exclusive live music events
…unveils weather-personalised shopping feature
UK: Boden to open John Lewis concessions
UK: Boohoo reports surge in sales and profits
UK: Gear4Music delivers profitable growth
UK: Eve Sleep readies first London Stock Exchange float
UK: JoJo Maman Bébé hires Jaeger trading director
UK: Lavitta closes all stores after a year in operation
UK: Missguided
…considering sale or flotation
…sales surge yet profits undisclosed
UK: N Brown profits fall amid investment
UK: The Hut sales soar 50%
UK: Watchshop.com launches sunglasses boutique
 HEALTH & BEAUTY RETAILING
Germany: Dm-drogerie reaches €5bn turnover
UK: Superdrug extends vegan cosmetics range
 BOOK AND STATIONERY RETAILING
UK: WH Smith revenues rise 2%
 SPORTS AND LEISURE GOODS RETAILING
UK: JD Sports grows 31% as fashion division outperforms
 GARDEN CENTRES
UK: Dobbies teams up with Ocado online
 LUXURY GOODS RETAILING
France: Kering unveils outstanding revenue growth in Q1
France: LVMH
…records 15% turnover rise in Q1
…to buy Christian Dior Couture
International: Coach agrees to buy Kate Spade
 OPTICIANS
UK: Tesco sells opticians business to Vision Express
 SHOPPING LOCATIONS
UK: Hammerson and Appear Here partner on pop-up initiative
UK: Oxford Street transformation project due to begin in 2018
 ECONOMY
UK: Deflation in non-food prices begins to ease
UK: Easter sees healthy rise in footfall
UK: Grocery market grows 3.7% over Easter
UK: March retail sales decline 1.0%
UK: Retail sales grow 3.3% in March
UK: Retail sales grow 5.6% in April
UK: Retailers see growth in online searches
UK: Springboard forecasts 5.4% Easter footfall boost
UK: Vacancy rate on retail parks falls to new low
UK: Visa reports slowing consumer spending
OBI
What we think
Expansion of customised home improvement and garden project solutions
Company background
Company performance
Figure 5: OBI: Estimated group sales performance, 2012-16
Figure 6: OBI: Outlet data, 2012-16
Retail offering