European Retail Briefing -  July  2019

ANALYST COMMENT – INFARM’S VERTICAL FARMING INITIATIVES IN EDEKA STORES, IN GERMANY
What we've seen
Infarm deploys its vertical farm units in Edeka stores, in Germany
Figure 1: Infarm displays in Edeka
Edeka
Vertical farming and its role in food production
Figure 2: Examples of vertical farms
Waitrose engaged in talks about growing vegetables in store
Ocado already invested £17 million in vertical farms in the UK
What it means
EUROPEAN RETAIL SALES
Key points
Figure 3: Major European economies:  Year-on-year retail sales value growth, 2018-19
Figure 4: Major European economies:  Year-on-year retail sales volume growth, 2018-19
Inflation
Figure 5: Major European economies:  All items CPI, 2018-19
Figure 6: Major European economies:  Food price inflation, 2018-19
LAUNCH ACTIVITY AND INNOVATIONS
Netherlands: Jumbo invests in smarter delivery
Italy: Prada launches its flagship store on JD.com
UK: Adidas and Stella McCartney launch hoodie made from 100% liquefied cotton
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Footwear retailing
Electrical retailing
Furniture retailing
Health & beauty retailing
NEWS ANALYSIS – FOOD AND DRINK
 CO-OPS
UK: Co-op
…ramps up sustainability targets to further reduce emissions by 50% by 2025
…to trial compostable packaging at Glastonbury in crackdown on plastics
 GROCERS
Germany: Aldi Nord and Aldi Süd to align sourcing of their private brands
Spain: Spanish supermarket chain Coviran posts increased sales and profits
UK: Asda
…expands partnership with Just Eat for 30 minute grocery deliveries
…pledges to scrap plastic bags from online deliveries
UK: Costco UK sales hit £2.5 billion
UK: Musgrave NI reveal expansion plans
UK: Sainsbury’s sales fall 1.2% in the first quarter
UK: Waitrose looks to differentiate through higher level training investment
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
France: High-end fashion retailer Chanel posts double-figure sales growth
Italy: Higher turnover and lower profits for Italy's Esselunga
Spain: Inditex post strong profit growth
UK: After months of speculation Monsoon Accessorize creditors approve its CVA
UK: Bonmarché seeks rescue bid after challenging quarter
UK: Dolce & Gabbana reveals plus-size women's wear range
UK: H&M leads BCI sustainable cotton sourcing ranking
UK: Jack Wills heading towards a cash crunch after trading plummeted during spring
UK: Joules launches its first ever men's formalwear collection
UK: Julian Dunkerton ‘steadies ship’ after Superdry see plunging loss in profit
UK: Mulberry posts profits loss amid challenging UK retail market
UK: Primark
…like-for-like sales rise, underpinned by new stores
…founder, chair and former chief executive, passes away at age 83
UK: The Hut Group posts sharp sales and profit growth
UK: Topshop launches beauty line on Zalando
UK: White Stuff to source sustainable cotton in Fairtrade pledge
 FOOTWEAR RETAILING
Germany: Footwear retailer Deichmann announces plans to expand its UK portfolio
NEWS ANALYSIS – MIXED GOODS
 DEPARTMENT STORES
UK: Harvey Nichols
…post strong profits growth
…overseas sales boosted by localised checkout
 MULTI-SECTOR RETAILING
UK: M&S warns of more store closures
 CARPET RETAILING
UK: Carpetright report revenue and profits loss
NEWS ANALYSIS – HOUSEHOLD GOODS
 ELECTRICAL RETAILING
France: Boulanger acquires Belgian appliances retailer Krëfel
UK: Dixons Carphone
…results dragged down by mobile division
…to axe 140 office jobs as part of turnaround
 FURNITURE RETAILING
UK: Bathstore nearing administration
UK: JYSK store opening in Bradford
 HOMEWARES RETAILING
UK: Dunelm
…sales soar for Dunelm giving way to significant opportunities
…full-year profits set to beat previous expectations
NEWS ANALYSIS – ONLINE 
UK: Amazon
…set to open second Clicks & Mortar store in Cardiff
…trials pop-up station kiosks
UK: Asos
…incorporates AR virtual catwalk into iOS app
…poised to axe 100 jobs in battle to revive its fortune
UK: Fashion app Depop grabs $62 million investment
UK: N Brown revenue slips despite digital growth
NEWS ANALYSIS – OTHER RETAIL 
 HEALTH & BEAUTY RETAILING
France: L'Oreal to provide virtual make up tech for Amazon
UK: Boots
…to axe plastic bags from 53 UK stores
…confirms plans to shut down 200 stores
UK: Superdrug profits slip as sales increase
UK: 1,000 new jobs created with VPZ plans to open 200 new stores
 SPORTS AND LEISURE GOODS RETAILING
UK: JD Sports are confident of delivering headline profits
UK: Sportswear brand Lululemon launches self-care product range
 SHOPPING CENTRES
UK: Westfield London shopping centre opens AI powered fashion pop-up
 TOYS & GAMES RETAILING
UK: Game management tell shareholders to accept Mike Ashley offer
NEWS ANALYSIS – ECONOMY
UK: Retail sales reported to be 'worst June on record'