European Retail Briefing - January 2011

ANALYST COMMENT
 ROMANIA CONTINUING TO PROVE ATTRACTIVE
Poor – but with potential
Recent entrants
2011 developments
Opportunities are long-term
HEADLINES FOR THE MONTH
Grocers
Clothing
Department stores
Multi-sector
DIY
Electricals
Furniture
Home shopping
Economy
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: iInflation, 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
FOOD RETAILING EUROPE
Light at the end of some tunnels
Food retailers hard hit
Leading players
Rationalisation
Hard discounters
Expansion
Leading players
Figure 13: Europe: Leading food retailers, 2009
Market shares
Figure 14: Europe: Leading retailers market shares, 2009
AUCHAN
Figure 15: Auchan: Sales as share of all food retailers’ sales in Europe, 2005-09
Figure 16: Auchan: Sales as share of all food retailers’ sales in France, 2005-09
Figure 17: Auchan: Sales as share of all food retailers’ sales in Spain, 2005-09
Strategic evaluation
Margins under pressure from deflation
Russian market shows promise
Wider format experimentation has dangers
Recent history
Financial performance
Figure 18: Auchan: Group financial performance, 2005-09
Results for the first half of 2010
Figure 19: Auchan: Estimated European sales, by country, 2005-09
Figure 20: Auchan: Share of group sales, by region, 2005-09
Store portfolio
Figure 21: Auchan: Outlet data, 2005-09
Retail offering
Brands
e-commerce and home shopping
NEWS ANALYSIS
 GROCERS
Belgium: Delhaize injects €38m in Mega Image stores
France: Casino nears full control of Cdiscount
Netherlands: Ahold appoints new head for Albert Heijn
Poland: Tesco among last bidders for Zabka chain
Romania: Delhaize acquires Primavera stores
Romania: Tesco in talks to take over Real
Russian Federation: Dixy sales up 18.8%
Russian Federation: Walmart closes its Russia branch
Switzerland: Coop Schweiz reveals strong 2010 results
UK: Asda
…chairman steps down
…reports "good" Christmas performance
…vows to be 10% cheaper than its rivals
UK: Co-op raises store opening drive
UK: Iceland Foods could be target for Middle East consortium
UK: Morrisons sees like-for-likes up 1%
UK: Nisa reports strong Christmas trading figures
UK: Tesco
…launches online 'Boxing Day' sale
…names new UK board
…fascia One Stop acquires 77 stores from Mills
UK: Tesco, Morrisons and Sainsbury's kick off price cuts
UK: Waitrose
…sees most successful Christmas on record
…to open 39 new stores
…weekly sales rise 8.7%
 OFF-LICENCES
UK: Majestic Wine reports strong Christmas performance
 CLOTHING RETAILING
Estonia: Baltika increases sales by 7% in fourth quarter
Lithuania: Apranga turnover down by 6.5% in December
Netherlands: Maxeda sell M&S Mode to ERB
Spain: Inditex chairman Amancio Ortega steps down
UK: Agent Provocateur to report profit growth
UK: Alexon sales fall won't affect long-term plans
UK: H&M sees sales rise after Lanvin success
UK: LVMH increases Hermes stake to 20%
UK: Next sees £22m in lost sales due to bad weather
UK: Paul Smith sees profits rise
UK: PPR ends Burberry speculation
UK: Reiss' recession initiative increases EBITDA
UK: Republic gain Andy Bond as new chairman
UK: SuperGroup
…first half pre-tax profit up 86%
…shares dive
UK: Topshop plans to 'double' sales
UK: Zara owner sees sales grow by 14%
 FOOTWEAR RETAILING
UK: Barratts Priceless posts £6.1m profit
UK: Office bought by Silverfleet
 MULTI-SECTOR RETAILING
UK: Mothercare issues profit warning
UK: M&S
…chairman Sir Stuart Rose steps down
…considers bank opening in 55 stores
…posts 2.8% Christmas like-for-like rise
…to open first store in Egypt and third in China
 DEPARTMENT STORES
Ireland: Arnotts reverses sales and EBITDA declines
UK: Debenhams like-for-likes slow
UK: Harvey Nichols reports record Sale
UK: House of Fraser sees strong Christmas trading
UK: John Lewis
…clearance is sales record
…invests record £250m
…mid-week sales up 12%
…Partnership sees record week of sales
…sales exceed £120m
…sees continuing strong trade
…total sales up 8.9%
UK: Laura Ashley store streamlining improves profitability
 DIY RETAILING
Germany: Hornbach sees further growth
Germany: Praktiker ends year with weak Q4
UK: Topps Tiles' Christmas sales up
UK: Travis Perkins sees sales improve
UK: Wickes
…sees sales growth as shoppers buy ahead of VAT rise
…signs POS finance deal
 ELECTRICAL RETAILING
France: Metro agrees deal to sell Saturn stores
UK: Best Buy sales up 2% in third quarter
UK: Dixons launches new Black format
UK: Jessops on track to make EBITDA profit
UK: Phones4U sale falls through
 FURNITURE RETAILING
France: Steinhoff seals deal to buy Conforama
Sweden: Ikea Sweden sees further profit loss
UK: Carpetright profits fall
UK: Dunelm Christmas like-for-likes fall
UK: United Carpets posts "solid" performance
 HOME SHOPPING
Germany: EBay acquires Brands4Friends
UK: Ocado ends year with strong Christmas trading sales
UK: Shop Direct
…Christmas sales up 5%
…to launch new brand targeting mature market
 HEALTH AND BEAUTY RETAILING
UK: Boots to expand drive-through pharmacy
UK: Lush Christmas sales up 6.8%
UK: The Body Shop seeks growth in India
 BOOK AND STATIONERY RETAILING
UK: Clinton Cards warns on profits
UK: HMV to shut 60 stores
UK: WH Smith lose group marketing director Richard Cristofoli to Debenhams
 SPORTS AND LEISURE GOODS RETAILING
Europe: Nike sales in Western Europe drop 7%
UK: Blacks Leisure Group sees good December
UK: JD Sports reports strong Christmas
UK: Sports Direct sees profits rise
 JEWELLERS
UK: Theo Fennell warns on profits
 TOYS AND GAMES RETAILING
UK: Games Workshop warns on conditions
 ECONOMY
Europe: European consumer confidence relapses as trade deficit grows
Europe: VAT rise lowers consumer confidence
2011 VAT rise by country:
UK: BRC
…reports retail sector like-for-likes fell 0.3% in December
…warns on Boxing Day tube strike disruption
UK: John Lewis, M&S and Tesco among those holding off VAT rise
UK: Localism Bill is "body blow" for retailers
UK: UK retail sales up 0.3% in November
UK: West End Christmas sales up on last year