European Retail Briefing -  November  2019

ANALYST COMMENT – HOW GROCERS ARE PARTNERING WITH DELIVERY APPS TO DELIVER TAKEAWAYS AND TOP-UPS
What we've seen
Increasing numbers of UK retailers partner with third party delivery companies
Portuguese supermarket Pingo Doce extends into takeaway market
Just Eat leads takeaway sector
Figure 1: Third party ordering/delivery services used to buy takeaway services, November 2018
Consumers want more cuisines and favour loyalty schemes
What it means
EUROPEAN RETAIL SALES
Key points
Figure 2: Major European economies:  Year-on-year retail sales value growth, 2018-19
Figure 3: Major European economies:  Year-on-year retail sales volume growth, 2018-19
Inflation
Figure 4: Major European economies:  All items CPI, 2018-19
Figure 5: Major European economies:  Food price inflation, 2018-19
LAUNCH ACTIVITY AND INNOVATIONS
Belgium: Lidl trials food click & collection service in Belgium
Germany: Edeka rolls out organic format called Naturkind
Netherlands: Ahold Delhaize to open supermarket accessible by boat
France: Jules opens concept store in Bordeaux
HEADLINES FOR THE MONTH
Grocers
Clothing
Electrical
Online
Toys and games
NEWS ANALYSIS – FOOD AND DRINK
 CONVENIENCE STORES
UK: Costcutter and Uber Eats partner for grocery delivery deal
UK: Tesco trials cashier-less shopping
 GROCERS
Belgium: Jumbo opens in Belgium
France: Carrefour
…and Danone team up for health and wellness initiative
…experiments with the sale of ‘expired’ products
…releases AR toy catalogue
…to expand into Uzbekistan
Netherlands:  Albert Heijn to open Albert Heijn Café and Albert Heijn Keuken
Netherlands: Ahold Delhaize
…rolls out contactless payment
…posts €16.7 billion in sales for Q3
Netherlands: Sligro presents disappointing results
Spain: Auchan announces investment plans
Spain: Eroski rolls out sustainable bakery packaging
Sweden: ICA net sales increase 3.4% in Q3
Switzerland: Migros introducing dedicated Italian section
UK: Aldi launches online toy shop
UK: Lidl
…to invest £15bn over the next five years in UK supply chain
…to roll out electric vehicle chargers to all new store
UK: Sainsbury’s
…grocery sales fall 0.1%
…to stop selling fireworks
UK: Tesco rumoured to be considering launching Finest pop-ups in the lead up to Christmas
UK: Waitrose to stop selling plastic toys in Christmas crackers from 2020
 OTHER FOOD SPECIALISTS
UK: Cake Box posts 6% rise in half-year sales
NEWS ANALYSIS – CLOTHING & FOOTWEAR
Belgium: Ted Baker opens first Belgian store
Germany: H&M opens experiential store in Berlin
Netherlands: Dutch fashion brand Scotch & Soda see a net loss of €12.9 million
Sweden: H&M
…collaborates with Italian couturier Giambattista Valli
…trials rental service in Stockholm
…buys majority stake in resale company Sellpy
UK: All Saints sees topline growth thanks to product-focused strategy
UK: Bonmarché tumbles into administration placing thousands of jobs at risk
UK: Burberry launches its first video game
UK: Forever 21 to liquidate three remaining stores in £30m clearance sale
UK: Gap Global sees sales fall 7% year on year
UK: Khaadi to close stores in pre-pack deal
UK: Matalan sees profits rise 11.3% but profits fall 28.5%
UK: Next retail sales down 6.3% in Q3 results
UK: Oasis launches third-party brands online
UK: Primark sees profits jump by 8%
UK: Quiz revenues fall 11% in H1 results
UK: Radley sees £92.9 million in turnover for full year results
UK: Seasalt posts 29% rise in turnover
UK: Superdry revenues drop 11.3%
UK: Thomas Pink sees operating losses widen to £23.5 million
UK: Zara UK full year profits halved despite sales rise
 FOOTWEAR RETAILING
UK: Clarks group sales fall 4% to £1.46 billion
UK: Dune operating profits fall 21%
UK: Kurt Geiger revenues increase to £334.7 million
UK: LK Bennett to close founding store
UK: Schuh
…posts pre-tax loss of £6.1 million
…rolls out footwear recycling scheme
UK: Shoe Zone reports 0.8% rise in revenues despite profit warning
NEWS ANALYSIS – MIXED GOODS
UK: Home Bargain posts rising pre-tax profit to £233.3 million
UK: Mothercare to appoint administrators
UK: Poundland
…opens five Pep&Co shop-in-shops
…rolls out ‘simple’ pricing to all stores
UK: TK Maxx reports increased sales and profits
 MULTI-SECTOR
UK: M&S
…sales fall 2.1%
…launches new online payment service
…launches own brand halal range
…makes vegan wine pledge
 DEPARTMENT STORES
UK: Debenhams secures £50 million in funding to trade over Christmas
UK: Fenwick posts a loss of £17.3 million
UK: Harrods opens standalone beauty store at Intu Lakeside
UK: John Lewis
…opens click and collect network to third parties
…trials plastic bag-free stores
UK: Selfridges to open 45,000 sq ft of commercial space
NEWS ANALYSIS – HOUSEHOLD GOODS
 DIY RETAILING
UK: Wickes results climb 8.3% in Q3
 ELECTRICAL RETAILING
Belgium: Samsung opens experience store in Antwerp
France: Fnac Darty benefits from online growth
France: Medi-Market expands into France
France: Nespresso inaugurates 45th store in France
UK: Richer Sounds posts 8.7% rise in sales to £171.2 million
 MUSIC AND VIDEO GOODS
UK: HMV launches experiential store Vault
 FURNITURE
UK: IKEA sees 8% year on year sales growth
 HOMEWARES
UK: Dunelm sales rise 5.8%
UK: H&M Home opens in Bullring centre
NEWS ANALYSIS – ONLINE
 ONLINE SHOPPING
France: Cdiscount posts 5.1% rise in revenue for third quarter
UK: Amazon rolls out AI-powered fashion search for UK app users
UK: Boohoo collaborate with Coppafeel! in new lingerie collection
UK: Deliveroo expands its on-demand grocery service to over 200 convenience stores
UK: Feelunique launches new technology to improve product ingredient transparency
UK: Luxury etailer Xupes opens first retail store in City of London
UK: N Brown returns to profit but sales down 5.4%
UK: Notonthehighstreet posts a marginal decline in revenues but operating profit nearly doubles
UK: Shop Direct
…moves Littlewoods campaign spend to digital-only
…posts a pre-tax loss of £185.5 million
UK: Sosandar expects revenues to hit £2.82 million in H1 trading update
UK: Vente-Privee closes UK business
UK: Yoox launches enhanced styling tool Yoox Mirror
NEWS ANALYSIS – OTHER RETAIL
 HEALTH & BEAUTY
UK: Lush launches conveyor belt for new in-store gifting service
UK: Superdrug launches 30-minute delivery service
 BOOK AND STATIONERY
UK: The Works record 5.4% rise in total revenue
UK: WHSmith reveals $400m acquisition of Marshall Retail
 JEWELLERS
UK: Links of London goes into administration
 SHOPPING CENTRES
UK: Intu remains confident in latest trade update
 TOYS AND GAMES
Netherlands: Lego opens flagship in Amsterdam
UK: FAO Schwarz opens at Selfridges
UK: The Entertainer defies high street gloom as sales and profits soar
 MISCELLANEOUS SPECIALIST
UK: Gear4Music posts 16% rise in sales
UK: Halfords registers a 2.5% fall in pre-tax profits
UK: Jessops puts jobs at risk as it looks for a rescue deal
NEWS ANALYSIS – ECONOMY
UK: BRC posts 0.1% increase in sales for October
UK: ONS September retail sales rise 3.6%