European Retail Briefing - January 2005

HIGHLIGHTS: DECEMBER 2004
Clothing retailers
Department stores
DIY retailers
Health and beauty retailers
Food retailers
Furniture retailers
Mass merchandisers
Multi-sector retailers
NEWS ANALYSIS
 CONVENIENCE STORES
UK: Sainsbury’s appoints trading chief
 GROCERS
Belgium: Delhaize
…looking to buy Cash & Fresh?
…new chairman named
…as weak dollar hits sales
France: Auchan brings in discount zone
France: Carrefour
…Dunand leaves French operation
…while the group begins to deliver
…as it is linked with Sainsbury takeover
France: Casino opens financial outlet
France: Cora launches music download service
Germany: Lidl European expansion continues
Germany: Schwarz acquires Karstadt stores
Germany: ITM to pull out of Germany in 2005
Iceland: MK One heads to European grocers
Ireland: Superquinn
…Burke buys into Superquinn
…as its expansion plans get green light
Netherlands: Ahold
…Disco sale in doubt
…as it fights for its Royal title
…reduces its US retail portfolio
…pulls out of Brazil
…and sees sales dip as nine face trial
Spain: Alcampo to sell insurance
Spain: Caprabo offloads wholesale division
Sweden: ICA expands non-food offering
UK: Asda
…opens biggest George store
…before reporting a record Christmas
…and launching a health offensive
UK: Tesco
…named as cheapest supermarket
…as it unveils £80m price cuts
…and undercuts CD prices
UK: Amazon launches DVD rental service
UK: Sainsbury
…cuts clothing prices
…as sales are saved by petrol
UK: Troubled times at Morrisons
UK: Somerfield set to deliver
UK: Waitrose serves up cause to celebrate
US: Winn-Dixie axes CEO
 CLOTHING
Italy: Gruppo Coin results boosted by disposals
Spain: Inditex plans global expansion
Sweden: RnB sales on the up
Sweden: H&M back on track
UK: Burberry reports solid Q3
UK: Acquisition hampers Jacques Vert
UK: Matalan enjoys strong trading
UK: Growth stalls at Mothercare
UK: New Look
… results boosted by denim and fake fur
…as Marchant joins from Debenhams
UK: Bonmarché taints Peacock performance
UK: Pilot in administration
UK: Reiss plans global expansion
US: Carhartt to open European stores
US: Hilfiger moves upmarket
 FOOTWEAR
UK: Faith
…acquired by Bridgepoint
…and delivers on strategy
UK: LK Bennett attracts suitors
UK: Office marches on after takeover
 MASS MERCHANDISERS
UK: New MD for Costco UK
US: Strong trading at Kmart
US: Bumper Christmas for Target
US: Wal-Mart
… launches non-food push
…“sets the record straight”
…and reports festive growth
…meanwhile, the retailer appoints new COO
…as its VP retires
 MULTI-SECTOR RETAILING
Germany: KarstadtQuelle
…considers sports stores sale
…and sells department stores to Schwarz
…as the group suffers sales slump
Germany: Metro struggles in December
Italy: Rewe strengthens Italian presence
Japan: Aeon posts interim profit
Japan: Daiei
…attracts interest from Wal-Mart
…which advances in sponsorship contest
…meanwhile, Daiei posts nine month revenues
…as its board steps down
Japan: Ito-Yokado unveils strong profits
UK: GUS
…consortium to launch a bid?
…while Argos delivers
UK: BFG
…agrees sale to Baugur
…but recovery hopes are dashed
UK: Co-op hires home stores chief
UK: Slow festive trading hurts M&S
UK: Next clearance sale disappoints
UK: Christmas sales flat at Woolworths
 DEPARTMENT STORES
France: Lafayette hostile over circling CM-CIC
Italy: Gruppo Coin results boosted by disposals
Italy: Rinascente
…suitors team up for bid
…as bidding battle hots up
UK: Allders
…up for sale
…Primark considers a bid
…as Green pulls out
UK: Fortnum & Mason
…gets new MD
…but reveals flat sales
UK: House of Fraser
…secures leaseback deal
…as sales take a hit
UK: John Lewis
…holds its ground
…is boosted by Waitrose sales
…and finally reports tough December
…but shoppers flock to John Lewis
…and the retailer reports solid growth
UK: Liberty reports festive success
 DIY RETAILING
Europe: Kingfisher ploughs through tough markets
Germany: Strong growth at Hornbach
UK: Topps Tiles gest sales boost
UK: Wickes
…Wolseley and declares interest
…but Wickes is acquired by Travis Perkins
US: Home Depot set for UK assault
 ELECTRICAL RETAILING
UK: Dixons records festive growth
UK: Christmas cracker at Carphone Warehouse
UK: Digital demand boosts Jessops
 CARPET RETAILING
UK: Carpetright bullish on strong first half
UK: Floors 2 Go receives bid approach
 FURNITURE RETAILING
Finland: Kesko's Indoor deal postponed
Ireland: Government opens door for giant stores
UK: Courts
…management mulls bid
…with a break-up looking likely
…but a lack of interest puts future in doubt
UK: Dreams claims top spot
 HOMEWARES RETAILING
Sweden: Profits soar at Hemtex
 HOME SHOPPING
UK: Amazon
…launches DVD rental service
… and reassures on Christmas orders
UK: Ideal Shopping receives sales boost
UK: EeZee money for Kleeneze
UK: JD Williams stepping out
Record sales at Amazon
 HEALTH AND BEAUTY RETAILING
France: Marionnaud
…swings to net loss
…and faces accounts probe
…as AS Watson steps in
Meanwhile…
Netherlands: AS Watson seals Dutch acquisition
UK: Sephora checks out
UK: Body Shop tastes festive success
 BOOK AND STATIONERY RETAILING
UK: Birthdays takeover gets green light
UK: Ottakar’s issues profit warning
UK: Founder eyes Waterstone's takeover
UK: WH Smith allays City concerns
 SPORTS AND LEISURE GOODS RETAILING
UK: JJB feels the chill
UK: JD boosts fashion offering
 JEWELLERS
UK: Signet unveils sparkling figures
UK: Goldsmiths boosted by last minute rush
UK: Theo Fennell
…reports strong first half
…but disappoints at Christmas
 GARDEN CENTRES
UK: Blooms fails to blossom over Christmas
UK: Wyevale clips back portfolio
 TOYS AND GAMES RETAILING
Europe: Permira moves for Toys R Us
UK: PS2 shortage hits Game
UK: Entertainer shelves expansion plans
US: Disney to keep European retail operations
 MISCELLANEOUS SPECIALIST RETAILING
Ireland: Halfords rolls into Dublin
UK: Interflora rebels fight on
ECONOMIC NEWS
 CHINA
…November sales top expectations
…soar 13% in 2004
…and are strong in December
Germany
Festive cheer boosted by retail returns
Ireland
November sales show steady growth
Italy
…retail sales continue to fall in October
…then offer mixed message in November
Japan
Retail sales take a tumble in December
Spain
Retailers predict Christmas boost
UK
Retail sales slow in December
US
Retail sales rise in November
FOCUS: KARSTADTQUELLE
Market shares
Figure 1: Karstadt department store division: Share of German mixed goods retailers’ sales, 1999-2003
Background
Recent history
Karstadt division
Corporate structure and planned changes
Figure 2: KarstadtQuelle: Sales by division, 2002 and 2003
Figure 3: KarstadtQuelle: Profits (a) by division, 2003
Financial data
Figure 4: Karstadt department stores division: Financial performance, 1999-2003
Outlets
Figure 5: Karstadt department stores: Outlet data, 1999-2003
Products
Own brand
Discounts and promotions
Product mix
Figure 6: Karstadt: Department stores division, sales by product, 2002 and 2003
Loyalty card
E-commerce
Prospects