European Retail Briefing - May 2021

ANALYST COMMENT – THE IMPACT OF COVID-19 ON EUROPEAN FOOTWEAR RETAILING 
Limiting time in-store could present new opportunities
Figure 1: Decathlon’s ‘scan & go’ service, 2020
Using technology to enhance service
Providing a feeling of shopping in-store from home
Brands experiment with new store formats
Figure 2: Dr Martens pop-up at German department store Breuninger, Stuttgart, 2020
Casualisation: a threat to formal and occasion driven footwear?
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 3: Major European economies: Year-on-year retail sales value growth, 2019-21
Figure 4: Major European economies: Year-on-year retail sales volume growth, 2019-21
Inflation
Figure 5: Major European economies: All items CPI, 2019-21
Figure 6: Major European economies: Food price inflation, 2019-21
LAUNCH ACTIVITY AND INNOVATIONS
Germany: Lidl launches new mobile payment in loyalty app
Italy: Action opens in Italy
Spain: L'Occitane en Provence tests refill station in Spain and Germany
HEADLINES FOR THE MONTH
Grocers
Multi-sector retailing
Department stores
Electrical retailing
Online
Health and beauty retailing
NEWS ANALYSIS – FOOD AND DRINK
 CO-OPS
UK: Co-op
...scraps plastic ‘bags for life’
...price matches own-label plant-based range against meat equivalent items
 GROCERS
Belgium: Delhaize temporarily changes name to highlight local products
France: Carrefour
...group sales up 2.2% driven by growth in Latin America and Asia
...signs deal with Coop Nordics bringing private labels to Scandinavia
France: Casino
...and Intermarché sign five-year strategic partnership
...reports weak quarterly performance
France: Cora expands partnership with Kiabi
France: Naturalia acquires stores from organic brands SALEJ/Bio & Sens
Germany: Edeka sales increase 9.5% thanks to COVID-19
Germany: Kaufland confirms launch date of new market place
Germany: Rewe
...launches bike deliveries for grocery orders
...reveals new Pick & Go format
...sales grow 20% thanks to successful integration of Lekkerland Group
Italy: Despar sees turnover grow 8.4% bolstered by new store openings
Italy: MD to open 47 supermarkets this year as net profit grows 56%
Spain: DIA net sales fall 7.3% due to closure of 400 stores
Spain: Mercadona sales grow 5.5% to €26.9 billion
Sweden: Axfood store sales up 2.4%
Sweden: ICA sales grow 2.6% in Q1
UK: Aldi trials package-free refill stations
UK: Asda
...owners agree to sell petrol stations to get approval from the CMA
...launches first sustainability report
...puts 1,200 roles into consultation
...George at Asda to sell second-hand clothing
...EG Group acquires Leon for £100m
UK: Lidl launches COVID-19 antigen tests in store
UK: Morrisons has brought back its refillable container service
UK: Sainsbury’s sees £261 million loss as COVID costs have been ‘high’
UK: Tesco
...‘well-placed to build on momentum’ as group sales grow 7%
...Yours Clothing set to open shop-in-shops in Tesco
 OTHER FOOD AND DRINK SPECIALISTS
UK: Cake Box eyes 52 new stores openings
UK: Hotel Chocolate increases full-year sales forecast following strong Easter and Mother’s Day
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
 CLOTHING RETAILING
UK: Anya Hindmarch to reveals plans for new physical retail concept The Village
UK: Aspinal of London expects to return to profitability thanks to CVA
UK: French Connection
...and Thrift+ team up
...sales drop 40% due to store closures
UK: Hobbs posts drop in profits as impact of pandemic hit
UK: Mango launches 3D-printed accessories range
UK: Monsoon set to roll out new ‘renaissance’ store concept
UK: Moss Bros launches subscription service for renting formalwear
UK: Mulberry reveals new sustainability manifesto
UK: Next
...ups profit guidance by £20 million
...opens Homebase shop-in-shops
UK: Primark revenues drop 40% due to store closures
UK: Quiz sales down 66% amid prolonged periods of store closures
UK: Superdry sees revenue fall 21% due to COVID-19 disruptions
UK: The White Company sees turnover grow 4% boosted by strong online sales
UK: Topshop's flagship on Oxford Street valued at £420 million
UK: Zara launches a new range of beauty products
NEWS ANALYSIS – MIXED GOODS
 MULTI-SECTOR RETAILING
Germany: Globus Group closes first half-year with €3.92 billion
Poland: Pepco Group is set to launch IPO in Poland
UK: Poundland launches chilled & frozen sections to a further 46 stores
UK: The Original Factory Shop unveils plans for 50 new stores
 DEPARTMENT STORES
France: Le Printemps to close four stores
UK: Debenhams
...reveals locations of 52 store closures
...to close all stores by May 15
UK: Frasers Group reveals first Frasers store
UK: Harrods
...reveals second H Beauty hall in Milton Keynes
...reveal completed food hall with new Chocolate Hall
UK: House of Fraser store in Victoria to permanently shut
UK: John Lewis reveals own-brand label AnyDay
UK: Selfridges
...teams up with SoulCycle to open first Outside Studio
...debuts new rental service
NEWS ANALYSIS – HOUSEHOLD GOODS
 DIY RETAILING
UK: Toolstation drive Q1 sales for Travis Perkins
 ELECTRICAL RETAILING
Ireland: Carphone Warehouse to permanently close all stores in Republic of Ireland
UK: Dixons Carphone to close travel business
 FURNITURE RETAILING
UK: IKEA reveals overhauled AR App that lets customers design entire rooms
UK: Jysk unveils plans to open five new stores in UK at end of the year
 HOMEWARES RETAILING
UK: ProCook ready for international expansion as sales grow 35%
NEWS ANALYSIS – ONLINE
Germany: About You set to go public
Germany: Jokr expands internationally
Germany: Zalando increases sales and profit outlook following strong growth in Q1
Netherlands: Coolblue grows sales 34% as it targets IPO
UK: Amazon reveal third Amazon Fresh store in White City
UK: AO World sees sales grow 88% for UK
UK: Asos and DPD team up to launch textile recycling scheme
UK: Bloom & Wild acquires Dutch Bloomon as part of its European expansion push
UK: Boohoo sees profits grow 35% despite ‘Covid-19 cost headwinds’
UK: Feelunique sales grows 26% to £103.5 million
UK: Gousto sales up 129% thanks to more online grocery shopping
UK: In The Style maintains ‘strong momentum’ as turnover increases 130%
UK: Naked Wines sales up 68% driven by strong performance in the US
UK: Sosandar revenues up 63%
UK: Studio Retail Group increases profit outlook
UK: The Hut Group
...buys healthy snack business in £43 million deal
...teams up with Zip to offer shoppers ‘buy now, pay later’ option
NEWS ANALYSIS – OTHER RETAIL
 HEALTH AND BEAUTY RETAILING
Germany: dm-drogerie opens 100th COVID-19 rapid test centre
 BOOK AND STATIONERY RETAILING
UK: WHSmith to open 100 travel stores worldwide
 SPORTS AND LEISURE GOODS RETAILING
UK: JD Sports
...to open Dublin warehouse to tackle Brexit trading problems
...acquires clothing retailer Oi Polloi
 JEWELLERS
UK: Pandora to stop selling mined diamonds
 SHOPPING CENTRES
UK: Hammerson to sell seven retail parks to Canadian firm
UK: Westfield
...celebrates small businesses
...to launch immersive shopping experience Situ Live
...owner sees turnover drop 30%
 ECONOMY
UK: BRC sees 8.3% increase in total retail sales for March
UK: Retail sales up 9.3% in March