European Retail Briefings - August 2008

HIGHLIGHTS: AUGUST 2008
Grocers
Multi-sector retailing
Clothing retailing
Department stores
Electrical stores
NEWS ANALYSIS
 BAKERS (RETAIL)
UK: Thorntons sees FY LFLs climb
 CO-OPS (RETAIL)
UK: Co-op
… poised to acquire Somerfield in £1.6bn deal
… wraps up Somerfield for £1.56bn
… CEO says "Times will get worse before they get better"
 GROCERS
Belgium: Delhaize
… considers Eastern European acquisitions
… slashes outlook for 2008
… sees H1 sales up 4.1%
… receives approval for La Fourmi acquisition
Europe: Auchan's Spanish unit acquires Galerias Primero
France: Auchan signs JV agreement with Dubai World's Nakheel
France: Carrefour
… sales rise in H1, LFLs drop at hypermarkets
… sees Arnault up stake
… shareholders to vote on management structure
… shareholders criticise chiefs
… dispels rumours of search for new CEO
Italy: Esselunga to join AMS Sourcing from 2009
Netherlands: Ahold posts Q2 results
Netherlands: Schuitema
… posts 15.2% H1 profit rise
… posts H1 rise in sales
Netherlands: Spar continues expansion despite tightening market conditions
Russian Federation: X5
… H1 sales up
… to retain Karusel brand for its hypermarkets
Sweden: Axfood
… posts H1 results
… sees seven-month sales rise
UK: Grocers
… admit to using human sewage as fertiliser
… warned to cut plastic bags by 70%
… compete to give the best petrol price
… fined in cigarette price probe
UK: Asda
… says: “Average family is £9 a week worse off than in 2007”
…rolls out property website
… cuts petrol prices again
UK: Lidl to ramp up UK store development programme
UK: Morrisons creates family meal for £4
UK: Sainsbury’s sees Tchenguiz up stake
UK: Tesco
… joins low-cost school uniform war
… develops new own-brand range to counter 'Aldi effect'
… launches first Argos-style shop-in-shop
… takes full ownership of TPF financial services
… completes Dobbies acquisition
US: Whole Foods Market eyes Irish move
 OFF-LICENCES
UK: Oddbins sold to shareholder consortium led by ex-MD's son
 CLOTHING RETAILING
UK: Fat Face sees sales rise
UK: Jacques Vert sees FY profit fall
UK: Jaeger boss considers takeover of Austin Reed
UK: New Look and Debenhams to enter Egyptian market
UK: Primark drives ABF growth in Q3
UK: River Island
… sees FY profits drop
… to break into Russian market
 FOOTWEAR RETAILING
UK: Phoenix acquires LK Bennett
 MIXED GOODS RETAILING
UK: Instore rejects Seaham's £11.4m takeover bid
UK: Mothercare posts Q1 results
UK: Woolworths warns H1 results will be lower than expected
 MULTI-SECTOR RETAILING
Austria: Tengelmann to convert Plus stores to Zielpunkt name
Finland: Kesko
… sees H1 sales rise
… sees Q2 profits fall
Finland: Stockmann sees Q2 profits more than double
Germany: Douglas Holding reports Q3 losses
Germany: Metro
… denies rumours of Haniel’s plans to increase stake
… H1 profit to be hurt by Adler writedown
… reports 7.1% rise in H1 sales
UK: Marks & Spencer
… mystery stake builder emerges
… pulls out of Taiwan
… bag-charging scheme deemed a success
… slashes schoolwear prices
 DEPARTMENT STORES
France: Printemps embarks on 4-year revamp project
UK: Beales rejects tender offer
UK: Debenhams
… and New Look to enter Egyptian market
… rumoured to be object of Baugur takeover bid
UK: John Lewis’ sales edge ahead
 DIY RETAILING
Finland: Kesko
… reports H1 sales rise
… sees Q2 profits fall
UK: Homebase gets the go-ahead for purchase of 27 Focus stores
UK: Kingfisher
… reports Q2 results
… to sell off Castorama Italy
UK: Topps Tiles sees 17-week sales decline
UK: Travis Perkins sees H1 profits fall
 ELECTRICAL RETAILING
Europe: DSGi plans strategic review of Italian and Spanish stores
UK: Best Buy plans aggressive UK store roll-out
UK: Carphone reports Q1 results, chiefs resign & Best Buy deal finalised
 CARPET RETAILING
France: Allied Carpets posts FY loss for 2007
UK: Carpetright posts fall in Q1 LFLs
UK: Floors-2-Go
… looks for new investors
… enters into administration
 FURNITURE RETAILING
UK: Ikea
… replaces poached UK CEO
… launches mobile phone service to shoppers
UK: Ilva furniture stores close
UK: Land of Leather investors give £15m refinancing the go-ahead
UK: MFI brings in KTH for restructuring
 HOME SHOPPING
UK: Ocado to expand after sales reach £1bn
UK: WCC considers investing in Flying Brands
 HEALTH AND BEAUTY RETAILING
Germany: Celesio posts worse-than-expected Q2 profits, issues profit warning
UK: Boots close to finalised deal with Reliance Retail
 SPORTS AND LEISURE GOODS RETAILING
UK: Blacks sales fall
UK: JJB reports fall in Q2 LFLs
UK: Sports Direct profits plummet
 JEWELLERS
UK: Signet to de-list in UK and move to Bermuda
 TOYS AND GAMES RETAILING
UK: Games Workshop posts FY pre-tax profits up
 MISCELLANEOUS SPECIALIST RETAILING
France: LVMH's H1 profits rise 7%
France: PPR sees Q2 sales rise
UK: Halfords reports Q1 results
ECONOMIC NEWS
Australia: Retail sales drop in June
China: H1 sales surge 21.4%
Hungary: Retail sales fall in May
Ireland: Retail sales hit 21-year low in May
Poland: Retail sales rise in June
Spain: Retail sales in June drop 7.9% month-on-month
Sweden: Retail sales up 3.3% in June
UK:
…BRC reports July retail sales up 1.7%, LFLs down 0.9%
…CBI: July retail sales fall, August outlook bleak
…ONS: June sales growth slows
MARKET ANALYSIS: LUXURY GOODS RETAILING
 THE EUROPEAN LUXURY GOODS MARKET
Market size
Regions
Products
Channels of distribution
The competitive landscape
Leading players
Fashion and Leather Goods
Figure 1: Global luxury fashion and leather goods market: Estimated market shares of leading brands, 2004 and 2007
Perfumes and cosmetics
Figure 2: Global luxury cosmetics and perfumes market: Estimated market shares of leading brands, 2004 and 2007
Jewellery and Watches
Figure 3: Global luxury jewellery and watches market: Estimated market shares of leading brands, 2004 and 2007
 THE FUTURE
What’s next?
 FORECASTS
Figure 4: Global luxury goods: Estimated market sizes, 2004-10
Outlook
COMPANY PROFILE: CHRISTIAN DIOR COUTURE
Figure 5: Christian Dior couture: Share of global luxury goods market, 2004-07
Strategic evaluation
Background
Ownership
Financial performance
Figure 6: Christian Dior Couture: Financial performance, 2003-07
Figure 7: Christian Dior Couture: Revenue by business sector, 2003-07
Figure 8: Christian Dior Couture: Retail revenue by geographic region, 2003-07
Distribution
Figure 9: Christian Dior Couture: Outlet numbers, 2003-07
Figure 10: Christian Dior Couture: Store coverage by geographic region, 2008
Brand offering
Market positioning and values
Product offer
Marketing