European Retail Briefings - December 2008

ANALYSTS COMMENT
A challenging time for Carrefour
A tale of two retail arms
Challenges aplenty
The future?
RETAIL SALES REVIEW
 FRANCE
Figure 1: Retail sales trends: Sep 2007-Sep 2008
Inflation
Figure 2: France: Inflation 2007-08
 GERMANY
Retail sales
Figure 3: Retail sales trends, Oct 2007-Oct 2008
Inflation
Figure 4: Germany: Inflation 2007-08
 ITALY
Figure 5: Retail sales trends, Sep 2007-Sep 2008
Inflation
Figure 6: Italy: Inflation 2007-08
 NETHERLANDS
Figure 7: Retail sales trends: Oct 2007-Oct 2008
Inflation
Figure 8: The Netherlands: Inflation 2007-08
 SPAIN
Figure 9: Retail sales trends, Oct 2007-Oct 2008
Inflation
Figure 10: Spain: Inflation, 2007-08
 UK
Figure 11: Retail sales trends, Oct 2007-Oct 2008
Inflation
Figure 12: Annual percentage change in Retail Price Index for selected product groups, Aug 2007-Sep 2008
HIGHLIGHTS: DECEMBER 2008
Grocers
Multi-sector retailing
Clothing retailing
Mixed goods retailing
Department stores
Electrical stores
SECTOR FOCUS: EUROPEAN FOOD RETAILERS
Turbulent retail conditions
Spending capacity under pressure
Consolidation to protect position
The usual suspects
Figure 13: Europe: Top 10 leading food retailers, 2006-07
NEWS ANALYSIS
 GROCERS
Belgium: Colruyt reports H1 profit increase
France: Auchan plans Hungarian expansion
France: Carrefour
…announces change of chief
…to delay Indian opening by a year
…to trial new convenience stores
…to inject €43m into property division
France: Casino sells 42 stores
Germany: Rewe boosts Russian presence
Germany: Real to dispose of eight former Wal-Mart properties
Netherlands: Ahold sees Q3 profit rise
Portugal: Sonae Distribuicao reports nine-month profit slump
Russian Federation: X5
…receives RUB7 billion government funding
…posts Q3 loss
…to reduce 2009 investment
UK: Asda
…reports Q3 LFLs boost
…makes further petrol price cuts
UK: Christmas spending to reach £10.6bn
UK: NFU criticises supermarkets over price war
UK: Sainsbury's posts solid H1 results
UK: Tesco
…presses for scrapping of annual tax break
…growth slows in Q3
…trials Direct kiosks in Metro stores
…to fight 'competition test'
…chief executive calls for business rate cut
UK: Waitrose says it is not losing shoppers to Sainsbury's
 OFF-LICENCES
UK: Majestic Wine suffers profit slump
 CLOTHING RETAILING
UK: Burberry reports profit increase
UK: French Connection suffers sales drop
UK: Jaeger opens Bahrain store
UK: MK One
…acquired by Internacionale
…slides into administration for second time in 2008
UK: Mosaic boosts cash flow with rent agreement
UK: Moss Bros issues sees LFLs fall, issues profit warning
UK: Sir Philip Green
…acquires Baugur's 28% stake in Moss Bros
…abandons Moss Bros bid plans
…offloads Moss Bros stake for £7.7m
UK: Ted Baker reports Q3 sales increase
 MIXED GOODS RETAILING
Germany: Tchibo ponders UK withdrawal
UK: Mothercare reports profit boost
Woolworths
… in talks with Hilco over retail arm sale
… shareholder opposes £1 sale proposal
… lenders block Hilco rescue plan
… shareholder confident of sale
… faces risk of administration
… agrees BBC Worldwide deal
… slides into administration
… inundated with inquries from potential buyers
… suitors in talks over acquisition
… cuts prices in half as Dragon abandons bid
… joint venture 2entertain set for administration
… eyed by Buchler
… thrown lifeline by Mulcahy
 MULTI-SECTOR RETAILING
Germany: METRO chief calls for VAT rate reduction
Norway: Reitan to launch new store format
Slovenia: Mercator nine-month profit rises 1%
UK: Alliance Boots acquires Depolabo
UK: Marks and Spencer launches international delivery service
UK: Per Una chairman steps down
UK: Next
…could cut jobs to stem losses
 DEPARTMENT STORES
Germany: Arcandor
…Christmas sales to be unaffected by supplier woes
…appoints CEO
UK: Debenhams faces concerns over financial strength
UK: John Lewis poised to break online sales record
 DIY RETAILING
UK: Kingfisher suffers Q3 profit drop
UK: Home Retail Group acquires Alba, Bush trademarks
UK: Strategic Retail losses widen in H1
UK: Topps Tiles FY profits plunge 27%
 ELECTRICAL RETAILING
UK: Carphone Warehouse posts H1 results
UK: DSGi
…posts H1 loss
…insurer cuts cover amid tightening credit insurance conditions
…puts Electro World up for sale
 CARPET RETAILING
UK: The Pier slips into administration
 FURNITURE RETAILING
Land of Leather
…attracts bidders
…withdraws from takeover discussions
UK: MFI on brink of administration
…placed in administration, closes 26 stores
 HOME SHOPPING
Germany: Neckermann loses top managers
UK: Asos posts strong H1 results
UK: Findel sees H1 profit increase
UK: Hunter fails to reach agreement with Flying Brands
UK: Ideal Shopping Direct sees sales decline, to slash jobs
UK: Ocado launches budget range
UK: Shop Direct sees earnings surge
 HEALTH AND BEAUTY RETAILING
Germany: Celesio suffers Q3 income drop
 BOOK AND STATIONERY RETAILING
UK: WH Smith reports 4% sales boost
 SPORTS AND LEISURE GOODS RETAILING
UK: JJB Sports
…sells stake to JD Sports, in talks to sell fitness clubs
…sells four stores to Sports Direct
…in 'constructive' discussions with banks
UK: JD Sports Fashion
…sees LFLs slip 1%
…ponders JJB bid
UK: OFT investigates Sports Direct's JJB stake
 TOYS AND GAMES RETAILING
UK: Game Group records 1.5% LFL increase
 MISCELLANEOUS SPECIALIST RETAILING
UK: Halfords records H1 profit increase
 ECONOMIC NEWS
Baltic States: Retail sales grow in Lithuania, fall in Latvia
China: Retail sales soar in October
Ireland: Retail sales plunge 6.2%
Russian Federation: Retail sales climb 15%