European Retail Briefings - August 2006

HIGHLIGHTS: AUGUST 2006
Grocers
Clothing retailing
Multi-sector retailing
Health and beauty retailing
DIY retailing
NEWS ANALYSIS
 BAKERS (RETAIL)
UK: Greggs posts profit fall
UK: Thorntons shuffles board
 CONVENIENCE STORES
UK: Nisa approves improved Costcutter offer
 GROCERS
Australia: Woolworths announces record profits
Belgium: Delhaize posts 23.1% Q2 profit rise
Finland: Tradeka purchases 37 Spar Finland stores
Ireland: Management may buy BWG
Netherlands: Ahold
…reports flat Q2 sales
…so investors look for change
…but are rebuffed
Portugal: Jerónimo Martins sales climb 14%
Russian Federation: Pyaterochka appoints new Perekryostok CEO
Sweden: ICA reports half-year success
UK: Aldi plans £200m Scottish expansion
UK: Asda
…to revamp entertainment departments
…as local produce sales thrive
…signs dairy deal
…targets Ikea
…and trials farm-to-store delivery
…while it aims to corner the 'chav' market
UK: Sainsbury's
…launches organic delivery service
…buys Somerfield stores
…and agrees mail deal with TNT
UK: Tesco
…fails to meet CC deadline
…joins organic delivery battle
…rewards carrier cutbacks
…plans Vegas stores
…aims to take on Argos
…and transfers in-store TV contract
UK: Morrisons
…posts positive like-for-likes
…and gives Delaney £37m reasons to shop there
US: Aldi eyes Florida
US: Whole Foods on the up in Q3
US: Supervalu profit dips after Albertsons’ purchases
 CO-OPS (RETAIL)
UK: Midland, Ilkeston Co-ops in merger talks
 CLOTHING RETAILING
Sweden: H&M posts July sales rise
UK: Alexon sees troubles continue
UK: Marchpole acquires luxury clothing company
UK: Matalan
…founder given six weeks to bid
…and increases offer
UK: Mexx to go online
UK: Moss Bros experience challenging first-half
US: Gap posts poor Q2
 MIXED GOODS RETAILING
UK: Instore like-for-like sales up 7.3%
UK: Woolworths launches delivery service
 MULTI-SECTOR RETAILING
Australia: Coles Myer
…gets private equity interest
…and confirms 'conditional' bid
India: Wal-Mart eyes India
Japan: Daiei president set to resign
Japan: Seiyu exacerbates Wal-Mart’s international woes
Finland: Kesko profits in first half
Finland: Stockmann’s profits boosted by Russian, Baltic openings
France: PPR reports strong Q2 revenues
Germany: Douglas Holding sees successful nine months
Germany: KarstadtQuelle halves profit forecast
Germany: Wal-Mart says Auf Wiedersehen
Germany: Metro extends upwards progress
UK: GUS expects Experian to raise £800m
UK: McLaughlin steps down at HMV
UK: M&S healthy range drives growth
US: Sears profit soars ahead, but sales slump
US: Wal-Mart
…raises wages
…sees sales rise, net income fall
US: JCPenney sees record Q2 results
US: Target report strong Q2 results
 DEPARTMENT STORES
Australia: David Jones records full year sales growth
Ireland: John Lewis plans major Irish expansion
UK: Debenhams buys nine Roches stores
UK: Christmas comes early at Harrods
UK: House of Fraser
…sees Baugur bid imminent
…and decides to recommend it
US: Saks
…sees second quarter hit six-month results
…and chairman cut stake by 85%
 DIY RETAILING
Germany: Praktiker
…joins Max Bahr hunt
…and triumphs
UK: Kingfisher report mixed results
UK: Wickes
…sees retail suffer
…as Bird flies the nest
US: Lowe's
…halts plans over Chicago ordinance
…but reports Q2 profit rise
US: Home Depot up in Q2
 ELECTRICAL RETAILING
UK: PRG decides on administration for Powerhouse
 CARPET RETAILING
UK: Carpetright sales hit by heatwave
 FURNITURE RETAILING
UK: Land of Leather continues good run
UK: MFI
…close to sale
…to MEP
 HEALTH AND BEAUTY RETAILING
Italy: Schlecker expands Italian presence
UK: Alliance Boots completes merger, updates trading
UK: Superdrug
…sees sales rise in 2005
…and sees sales success to June
 BOOK AND STATIONERY RETAILING
UK: Borders to axe 50 managers
US: Staples profits in second quarter
 SPORTS AND LEISURE GOODS RETAILING
UK: Blacks Leisure suffers like-for-likes fall
UK: JJB
…sees Ashley up stake
…as Rangers deal and World Cup boosts sales
 JEWELLERS
UK: Signet
…reveals strong results
…and may face takeover bid
…which shareholders resist
 TOYS AND GAMES RETAILING
UK: Profits soar at Early Learning Centre
 MISCELLANEOUS SPECIALIST RETAILING
UK: Sales success continues at Halfords
ECONOMIC NEWS
Australia: Retail sales up in June
China: Retail up year-on-year
Germany: Retail down year-on-year
Japan: Department store sales slip 1.5%
Ukraine: Retail sales rise 26.1%
UK: Retail sales up in July, says CBI
UK: Retail sales grow in July, says BRC
UK: Sales growth slowed in July, says ONS
MARKET ANALYSIS: FOOTWEAR RETAILING IN EUROPE
Overview of the European footwear market
Italians love their shoes
Figure 1: European footwear market: Estimated market sizes and spend per capita, 2005
Figure 2: Europe: Spending on shoes per capita, 2005
Warmer countries spend more on shoes
Figure 3: Europe: Spending on footwear as % all clothing and footwear spending, 2005
Figure 4: Europe: Growth in spending on footwear, 2000-05
Footwear fails to match retail growth
Figure 5: All footwear specialists: Sales as % all retail sales, 1994-2005
Figure 6: Europe: Specialist footwear retailers sales, 2005
Figure 7: Footwear retailers sales as % all retailers sales, 2005
Figure 8: Footwear specialists sales as % all clothing and footwear specialists’ sales, 2005
Specialists struggle to compete – especially in the UK
Figure 9: Footwear retailers sales as % all spending on footwear
Non-specialists thriving
Figure 10: Europe: Market share of Top 5 specialists by country, 2005
Deichmann leads the way
Figure 11: Europe: Leading footwear specialists, 2005
Difficult times ahead for footwear specialists
Figure 12: Europe: Footwear specialists sales, 2005-10F
COMPANY PROFILE: DEICHMANN
Bare facts
Financial performance
Figure 13: Deichmann: Sales performance, 2001-05
Products
E-commerce
Store portfolio
Figure 14: Deichmann: Outlet data, 2001-05
Retail offering – Deichmann dominates European market
Germany:
Figure 15: Deichmann: Estimated share of German footwear specialists sales, 2001-05
US:
Switzerland:
Other countries:
What does the future hold for Deichmann?