European Retail Briefing - August 2010

ANALYST COMMENT
 DEICHMANN – ROLE MODEL FOR THE RECOVERY
Robust sector
Thrifty consumers
Deichmann leads the way
HEADLINES FOR THE MONTH
Food retailers
Clothing retailers
Multi-sector
Department stores
DIY
Electricals
Health and beauty
Luxury goods
RETAIL SALES REVIEW
Key points
 FRANCE
Figure 1: France: Retail sales trends, 2009-10
Inflation
Figure 2: France: Inflation, 2009-10
 GERMANY
Figure 3: Germany: Retail sales trends, 2009-10
Inflation
Figure 4: Germany: Inflation, 2009-10
 ITALY
Figure 5: Italy: Retail sales trends, 2009-10
Inflation
Figure 6: Italy: Inflation, 2009-10
 NETHERLANDS
Figure 7: The Netherlands: Retail sales trends, 2009-10
Inflation
Figure 8: The Netherlands: Inflation, 2009-10
 SPAIN
Figure 9: Spain: Retail sales trends, 2009-10
Inflation
Figure 10: Spain: Inflation, 2009-10
 UK
Figure 11: Retail sales trends, 2009-10
Inflation
Figure 12: UK: Annual percentage change in Retail Price Index for selected product groups, 2009-10
NEWS ANALYSIS
 BAKERS (RETAIL)
UK: Hotel Chocolat raises £3.7 million in chocolate bonds
UK: Thorntons suffers further sales woe
 GROCERS
Belgium: Colruyt enjoys strong start to 2010
Estonia: Maxima continues to struggle
France: Carrefour sales up in Q2
France: Casino Q2 sales up 8.5%
Germany: Aldi
…exits Greece
…founder Theo Albrecht dies
Latvia: Lenta announces expansion plans
Netherlands: Jumbo Supermarkets enjoys positive Q1
Portugal: Jeronimo Martins Q2 profit improves
Russian Federation: Magnit reports Q2 sales boost
Russian Federation: Seventh Continent sales up 15%
Sweden: Axfood Q2 results show improvement
UK: Fidelity buys Ocado stake
UK: Ocado hits out at funding claims
UK: Government creates new supermarket adjudicator
UK: Sainsbury's
…to roll out 'eco-friendly' milk bags
…trials prescription vending machines
UK: Tesco launches £140m Clubcard promotion
 CLOTHING RETAILING
Italy: Benetton H1 profit rises
Spain: Mango announces bullish expansion plans
Sweden: H&M reports June sales improvement
UK: Alexon appoints commercial director
UK: Arcadia relaunches all of its fashion sites
UK: Aurora
…appoints new MDs at Coast and Oasis
…posts £23 million profit
UK: Fly53 to open 26 stores
UK: Matalan LFLs up 3%
UK: Primark
…appoints Lyttle as new COO
…to open second Oxford Street store
UK: Select looking to expand
UK: SuperGroup posts strong results
UK: Topshop to open Tokyo flagship store
UK: USC uses website to sell overseas
UK: Zara returns to profit
UK: LK Bennett to launch in the US
 FOOTWEAR RETAILING
UK: Jones Bootmaker up for sale
 MIXED GOODS RETAILING
UK: Argos trials same day delivery
UK: Mothercare
…buys 25% stake in franchisee
…UK sales down 2.6%
UK: Wilkinson profits soar 120%
 MULTI-SECTOR RETAILING
Germany: Metro Group posts solid H1 results
Italy: Gruppo Coin buys 54 stores
UK: Alliance Boots takes stake in Turkish company
UK: Fopp to open store in Waterstone's outlet
UK: HMV launches digital music service
UK: M&S
…appoints new CFO
…sells school uniforms for overweight kids
…starts student initiative
UK: Next
…brand Lipsy to broaden offer
…sales rise 1.3%
 DEPARTMENT STORES
Finland: Stockmann posts soild Q2 results
UK: Beales buys new department store
UK: Debenhams
…completes refinancing
…mulls sale and leaseback deals
UK: Harvey Nichols profit increases
 DIY RETAILING
Germany: Praktiker sales down 5.8%
UK: Kingfisher cost cuts aid results
UK: Robert Dyas back in black
UK: Topps Tiles sales decline slows
UK: Travis Perkins profits up 18.6%
 ELECTRICAL RETAILING
Russian Federation: M.Video enjoys strong Q2
UK: BrightHouse LFLs up 10.7%
UK: Carphone Warehouse posts sales rise
UK: Dixons
…scraps some own brands to streamline offer
…and Phones 4U form partnership
 CARPET RETAILING
UK: Carpetright Q1 sales drop
UK: United Carpets FY profits soar
 FURNITURE RETAILING
UK: DFS appoints new chief
UK: Habitat hires Waldron as retail director
UK: Mark Elliot rescued from administration
 HOMEWARES RETAILING
UK: Dunelm FY revenue climbs 18.2%
 HOME SHOPPING
UK: Asos sales surge 54%
UK: Findel
…losses widen
…sells CWIO division
UK: Flying Brands profit down
UK: Shop Direct losses narrow
 HEALTH AND BEAUTY RETAILING
Belgium: Omega Pharma Q2 results disappoint
Russian Federation: 36.6 sees revenue fall
UK: Superdrug plots new TV ad campaign
UK: The Body Shop posts steady results
UK: The Fragrance Shop posts LFLs increase
UK: The Perfume Shop trials Superdrug link-up
 BOOKS AND STATIONERY RETAILING
UK: Borders sells Paperchase for $31 million
UK: The Works to be sold for £80 million
 SPORTS AND LEISURE GOODS RETAILING
UK: Blacks LFLs down 7.5%
UK: JJB shareholder ups stake
UK: Sports Direct posts strong results
UK: Trespass plans major expansion
 LUXURY GOODS RETAILING
France: Hermes sales improve
UK: Burberry
…buys 50 stores for £70 million
…sales up 24%
 GARDEN CENTRES
UK: Dobbies posts FY profit increase
 MISCELLANEOUS SPECIALIST RETAILING
UK: Halfords posts mixed results
UK: Jessops targets return to profit
 ECONOMY
UK: BRC: July retail sales hit by economic uncertainty
UK: CBI: Retail sales up in July
UK: London retail sales climb 14.4% in June
UK: Retail sales improve in June, says ONS
FOOTWEAR RETAILING
Retail sales forecasts
Outlook for footwear retailing
Market size and performance
The European competitive landscape
Figure 13: Europe: Leading footwear specialists’ market shares, 2008-09
 DEICHMANN
Figure 14: Deichmann: Estimated share of German footwear specialists sales, 2005-09
Strategic evaluation
Recent history
Financial performance
Figure 15: Deichmann: Sales performance, 2005-09
Store portfolio
Figure 16: Deichmann: Outlet data, 2010
Retail offering
e-commerce and home shopping