European Retail Briefings - June 2008

HIGHLIGHTS: MAY 2008
Grocers
Multi-sector retailing
Clothing retailing
Department stores
NEWS ANALYSIS
 BAKERS (RETAIL)
UK: Thorntons seeks new agency for £3.3 million account
 GROCERS
Belgium: Colruyt to stop organic growth in Netherlands
Belgium: Delhaize predicts 5.5% sales growth for H2
France: Auchan to open more stores in Russia
France: Carrefour CEO rules out "rationalisation" of Italian business
Germany: Lidl plans 1,000 new store openings in Germany
Germany: Rewe:
…hit by EU delays on Plus Discount acquisition
…reports 3.7% rise in FY sales
Netherlands: Ahold reports 7.3% Q1 profit rise
Russian Federation: X5 Retail Group sees Q1 profits triple
UK: Asda's 2p sausage offer prompts Morrisons' price-slashing spree
UK: Morrissons:
…considers acquiring Co-op’s Somerfield stores
…reports Q1 sales up 8.6%, LFLs up 7%
UK: Sainsbury’s:
…CEO calls for better government anti-obesity regulations
…Tu poaches George at Asda's buying director
…promotes seasonal food
UK: Spar to launch its biggest ad campaign
UK: Tesco's group sales rise 13.7% in Q1
UK: Waitrose to roll out "perfect picnic" campaign
United States: Winn-Dixie allows shoppers to use health savings cards
 MASS MERCHANDISERS
United States: Wal-Mart to sell Gazeley Group
United States: Target reports sluggish Q1 results
 CLOTHING RETAILING
Spain: Inditex FY profit and LFLs jump
UK: New Alexon chief to start in June
UK: Ann Summers:
…takes it down a notch
…to launch viral push
UK: Burberry posts 23% FY profit rise
UK: Fat Face signs for eight new stores
UK: French Connection 's Q1 LFLs "broadly flat"
UK: FrostFrench MD and design head resign
UK: Hugo Boss names new chief
UK: Laura Ashley posts 7.6% drop in 17-week LFLs
UK: MK One:
…goes into administration
…bought by Brafman
UK: Moss Bros:
…has £40million offer withdrawn by Baugur
…subject of stake increase by Laura Ashley
…in talks with Berwin&Berwin
…close to appointing new chairman
UK: Peacocks appoints Equator to raise brand profile
UK: Primark prepares to take on Europe
UK: Ted Baker reports 8.4% rise in sales
UK: TJX opens 5 HomeSense stores in UK
United States: Gap announces 4% rise in Q1 profit
United States: Talbots trims corporate headcount by 9%
 FOOTWEAR RETAILING
UK: Stylo reports £7.8 million FY pre-tax loss
UK: JJB Sports buys Qube Footwear for £1
 MIXED GOODS RETAILING
UK: Mothercare posts strong FY sales and profit growth
UK: Woolworths to grab slice of Indian toy market
 MULTI-SECTOR RETAILING
Finland: Kesko seeks acquisitions after raising cash through disposals
France: PPR's Conforama appoints new chief
Germany: Merger with Kaufhof would make sense, says Arcandor
Japan: Aeon announces completion of CFS tender offer
UK: Boots:
…opts to re-invest options
…HQ moves from UK to Switzerland
…FY profits up 20.1%
…to receive investment from Pessina and KKR
…to sponsor NatMag's beauty event
UK: M&S:
…FY profits reach £1bn
…chief: Government "in denial" about downturn
…lowers target for Rose to secure bonus
…to open Olympian store in East London
United States: Sears reports $56 million Q1 loss
 DEPARTMENT STORES
UK: Debenhams to expand in Russia and India
UK: House of Fraser:
…implements data synchronisation service
…puts review on hold
United States: Dillard’s:
… posts Q1 results
… to shut stores and cut expenses
United States: Saks's Q1 sales increase 8.8%
 DIY RETAILING
France: Leroy Merlin receives go-ahead to acquire Conforama
Germany: Hornbach posts 2.9% rise in FY sales
UK: Kingfisher reports LFL drop but profit rise in Q1
UK: Focus:
…to downsize 40 outlets in turnaround plan
…finance director resigns
UK: Redwood wins Homebase's in-store magazine
UK: Topps Tiles sees H1 profits decline 16%
United States: Home Depot posts 66% fall in Q1 profits
 CARPET RETAILING
UK: Bill Gates invests in Carpetright
 FURNITURE RETAILING
UK: Habitat CEO resigns
UK: Land of Leather asks KPMG to renegotiate banking facilities
UK: ScS Upholstery's credit insurer withdraws supplier coverage
 ELECTRICAL RETAILING
UK: New DSGi COO to join only part-time
United States: Best Buy tests recycling initiative
 HOME SHOPPING
UK: Net-a-Porter appoints new CEO
UK: Otto CEO steps down following strategic review
 HEALTH AND BEAUTY RETAILING
Germany: Celesio refrains from commenting on Polish expansion rumours
 BOOK AND STATIONERY RETAILING
Netherlands: Corporate Express bids for France's Lyreco
UK: WH Smith posts 2% drop in Q1 LFLs
United States: Barnes & Noble reports Q1 $2.2 million loss
United States: Staples takes 12.3% stake in Corporate Express
 SPORTS AND LEISURE GOODS RETAILING
UK: OFT scolds Sports Direct over purported store closures
UK: JJB posts 5.3% drop in Q1 LFLs
UK: JD Sports posts LFL rise
 JEWELLERS
UK: Signet posts 24% fall in Q1 profits
United States: Tiffany reports 20% increase in Q1 profits
 MISCELLANEOUS SPECIALIST RETAILING
UK: Halfords reports 8% rise in FY profit
 DOLLAR STORES
United States: Dollar Tree's Q1 profits up
ECONOMIC NEWS
Australia: Retail sales inch lower in April
Germany: Retail sales suffer in April
Japan: Retail sales barely rise in April
Scotland: Retail sales up 5.3% in April
Sweden: Retail sales up 0.4% in April
UK:
…CBI reports falling high street sales, rising prices
…ONS: April retail sales volume up 1.9%
…BRC: May retail sales rise 1.9%
MARKET ANALYSIS: AIRPORT RETAILING
 EUROPEAN AIRPORT RETAIL MARKET
The market
Figure 1: European airport retail sales at current prices, 2003-07
Relative growth
Figure 2: European airport retail sales compared to all retail sales, 2003-07
Segment performance
Duty-free
Figure 3: Europe duty-free market by segment, 2002-06
Figure 4: European duty-free market segments, 2002-06
Figure 5: Growth in European duty-free market segments, 2002-06
Forecasts
Duty-free
Figure 6: Global airport duty-free market, 2002-12
 LEADING AIRPORT OPERATORS
Figure 7: Leading European airport operators, total turnover, 2007
Figure 8: Leading European airport operators’ commercial sales, 2007
Figure 9: Leading European airport operators’ retail & catering sales, 2007
 LEADING AIRPORT RETAILERS
Figure 10: Leading European airport retail specialists’ total sales, 2007
Figure 11: Leading European airport retail specialists’ European sales, 2007
Figure 12: Leading European airport retail specialists’ European versus ROW sales, 2007
COMPANY PROFILE: AELIA (LAGARDèRE SERVICES)
Strategic evaluation
Background
Financials
Figure 13: Aelia: Sales by activity, 2007
Store portfolio
Figure 14: Aelia: European airport locations, 2008
Products
Figure 15: Aelia: Sales by activity, 2004 and 2007