UK Retail Briefing - October 2010

ANALYST COMMENT
 WHAT MAKES A GREAT RETAILER?
1. Management
2. Strategy and planning
HEADLINES OF THE MONTH
Food retailers
Clothing retailers
Footwear
Multi-sector
Department stores
Electricals
DIY retailing
Furniture
Home shopping
Sports and leisure
Toys and games
Economy
RETAIL SALES – BACKGROUND AND OUTLOOK
Key points
Retail sales trends
Figure 1: Retail sales trends, 2009-10
BRC and ONS back into line
Figure 2: UK retail sales y/y growth, BRC vs ONS, 2009-10
John Lewis
Figure 3: John Lewis: Year-on-year growth, 2009-10
Inflation and wages
Figure 4: RPI vs Average weekly earnings growth, 2008-10
Inflation remains uncomfortably high
Figure 5: Annual percentage change in the Consumer Price Index for selected product groups, 2009-10
Looking forward
SECTOR FOCUS – MIXED GOODS
 SALES TRENDS
Figure 6: Mixed goods retailers relative to all retail sales, 1999-2009
Figure 7: Mixed goods retail sales index: Percentage change on the same month a year earlier, 2010
Figure 8: Mixed goods retailers, sales trends, 2000-09
 RETAIL PRICE INFLATION
 CONSUMER EXPENDITURE
Figure 9: Consumer expenditure on selected product categories (£m), 2005-09
Leading retailers
Figure 10: Mixed goods retailers – Leading operators, 2009/10
NEWS ANALYSIS
 GROCERS
Aldi posts £54 million loss
Asda
… invests £100 million in own-brand
… loses grocery share
… in the clear for takeover of Netto
Grocers fight for Netto stores
Iceland founder offers £1 billion to regain company
Sainsbury’s
… plans Chinese expansion
… like-for-likes up 2.9%
… expands Taste the Difference
… opens largest UK store
Tesco
… advances in Carrefour auction
… chief makes China vow
… profits climb 12.5%
… targets online expansion
… targets record Halloween
… to launch Baby World
Waitrose
… introduces eco-friendly packaging
… to match Tesco
 CLOTHING RETAILING
Sales grow for Inditex
Alexon posts profit rise
Confetti finds a buyer
Evans launches Style369
Fashion retailers face cotton price pressure
Forever 21 to make UK debut
French Connection ‘back on track’
GIVe exits Regent Street
H&M
… delays growth
… opens online shop
Jaeger expands to Italy
Kate Spade to make UK retail debut
Laura Ashley plans standalone fashion
Matalan chief exec to stand down
Moss Bros sees losses soar
New Look delays public offering
Next
… agrees Sears deal
… meets profit forecasts
Peacocks calls off sale
Primark raises sales forecast
Ralph Lauren to open its first Rugby store in the UK
River Island
… family trust pays out £611 million dividend
… sees profits fall
Supergroup posts strong sales
Ted Baker sees profits rise
To Let – London Designer Outlet
Uniqlo expects profit fall
White Stuff records sales rise
 FOOTWEAR RETAILING
Brantano unveils growth plans
Kurt Geiger sees profits soar
Office attracts potential buyers
 MIXED GOODS RETAILING
Home Bargains warns of tough times ahead
 MULTI-SECTOR RETAILING
Boots
… begins loyalty venture
… to axe 900 jobs
M&S reports like-for-like sales rise
Whitbread head given Kesa role
 DEPARTMENT STORES
Beales posts like-for-like sales decline
Debenhams forecasts higher profits
Harrods boosts profits
House of Fraser
… considers new openings
… posts sales rise
John Lewis
… extends price-matching policy
… posts strong sales and earnings
… sees sales rise
… to launch mobile phone website
 DIY RETAILING
Kingfisher
… aims for overseas growth
… sees 23% profit rise
Topps Tiles forecasts sales rise
Wickes like-for-likes grow 0.6%
 ELECTRICAL RETAILING
Best Buy plans new stores
Comet posts sales surge
Phones4U attracts interest
Blockbuster UK profits up
Game posts £18 million loss
 FURNITURE RETAILING
IKEA posts sales rise
 HOMEWARES RETAILING
Dunelm
… posts sales growth
… reports profit rise
 HOME SHOPPING
Amazon bids for Lovefilm
Findel appoints new chief executive
Ideal Shopping returns to black
JP Boden reports sales rise
Park Group reports strong sales
 BOOK AND STATIONERY RETAILING
Card Factory appoints development director
 SPORTS AND LEISURE GOODS RETAILING
JD Sports Fashion posts profit rise
JJB Sports cuts losses
LGV Capital buys Snow & Rock
 TOYS AND GAMES RETAILING
Toy retailers sweep up
 SPECIALIST RETAILING
Halfords profits to rise 12%
 ECONOMY
Consumer confidence down
Food inflation hits 15-month high
High street sales rise in September
Retail sales decline in August
Retailers plan VAT rise
Retailers warn against business rate rises