European Retail Briefing - August 2012

ANALYST COMMENT
 WILL AMAZON TAKE OVER THE WORLD (OR AT LEAST THE EUROPEAN HOME SHOPPING RETAIL SECTOR)?
Amazon soaring
Figure 1: Estimated Amazon revenues, major European markets, 2010-11
Figure 2: Annual revenue/gross merchandise volume growth, Amazon Inc and eBay Inc., 2007-11
Shop Direct and Otto: a tale of contrasts
Figure 3: Otto Group Germany and Shop Direct Group: Annual percentage change in revenues, 2009-10
Mobile a further opportunity
Figure 4: Percentage of internet users shopping via smartphones and tablets in the three months to January 2012
What this means
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Mixed goods retailing
Miscellaneous specialists
Department stores
DIY retailing
Music and Video Goods retailing
Home Shopping
Sports and Leisure Goods retailing
Jewellers
Economy
RETAIL SALES REVIEW
Key points
 FRANCE
Figure 5: France:  Retail sales, 2011-12
Inflation
Figure 6: France:  Inflation, 2011-12
 GERMANY
Figure 7: Germany: Retail sales trends, 2011-12
Inflation
Figure 8: Germany:  Inflation, 2011-12
 ITALY
Figure 9: Italy:  Retail sales trends, 2011-12
Inflation
Figure 10: Italy:  Inflation, 2011-12
 NETHERLANDS
Figure 11: The Netherlands: Retail sales trends, 2011-12
Inflation
Figure 12: The Netherlands:  Inflation, 2011-12
 SPAIN
Figure 13: Spain:  Retail sales trends, 2011-12
Inflation
Figure 14: Spain:  Inflation 2011-12
 UK
Figure 15: UK:  Retail sales trends, 2011-12
Inflation
Figure 16: UK: Inflation, 2011-12
NEWS ANALYSIS
 GROCERS
Belgium: Colruyt reports strong Q1
Belgium: Colruyt sales rise
France: Carrefour reports poor sales in Q2 and H1
France: Casino continues strong results and confirms Monoprix deal
Germany: Metro
…reports unexpected strong Q2, with growth in Europe
…wins ruling over Media-Saturn voting decisions
Russian Federation: Magnit and O'Key report rising sales
Russian Federation: X5 Retail chief executive leaves after weak Q2
Spain: Dia reports turnover up 6.9% in H1
UK: Aldi to create 3,000 new jobs
UK: Asda
…and Lidl increase pay to farmers after milk price protests
…George opens first Guernsey store
…Income Tracker: Disposable income stabilises in June
…to launch financial services
UK: Iceland
…and Farmfoods face milk price protests
…plans to launch online grocery site
…to roll-out Bonus Card and coupon initiative
UK: Morrisons
…and Asda in milk price war
…launches pop-up play parks
UK: Nisa sees record sales growth
UK: Sainsbury’s to introduce renewable energy solution to 100 stores
UK: Tesco
…Bank adds mortgages to its offering
…invests in premium coffee shop
…launched virtual shopping wall at Gatwick Airport
…opens Olympic pop-up shop
…superstore managing director to head Extra division
UK: The Co-operative
…Group’s CEO to step down
…looks set for further acquisitions
…secures £950m refinancing deal
 OTHER FOOD SPECIALISTS
UK: Greggs' like-for-likes drop due to wet weather and store growth
UK: Thorntons reports like-for-like rise in Q4
 OFF-LICENCES
UK: Bargain Booze to appoint new chief executive
UK: Oddbins launches campaign to oppose 'perverse' Olympic rules
 CLOTHING RETAILING
Europe: Benetton to launch EU e-commerce site
France: LVMH reports revenues up 26%
Germany: Primark sees most successful store opening yet in Germany
Latvia: H&M opens in Riga
Sweden: H&M reports 3% increase in like-for-like sales in June
UK: All Saints returns to profit and considers expansion trail
UK: Ann Summers sales up 78%
UK: Burberry
…reports 11% revenue boost
…to end fragrance licence agreement with InterParfums
UK: Ethel Austin
…bought out of administration by Liric
…falls into administration
UK: Evans to open new store on Oxford Street
UK: French Connection
…kidswear set for international expansion
…reports falling revenues and issues profit warning
UK: Hugo Boss reports 23% growth in Q2
UK: Jigsaw parent reports £10m loss
UK: Next reports strong online growth and ups profit target
UK: Prada’s first-half sales driven by Asia Pacific and Europe
UK: Primark
…plans Milton Keynes flagship
…sales rise despite bad weather
UK: Rag & Bone opens first London store
UK: Republic
…attracts premium menswear brands in upmarket repositioning move
…launches three new womenswear brands amid major growth strategy
UK: Stella McCartney to launch new childrenswear range
UK: SuperGroup
…reports falling underlying profits
…to expand categories
UK: Tom Ford to open first UK standalone store
UK: Urban Outfitters to open in Trinity Leeds
UK: Victoria's Secret delays UK launch
UK: Vivienne Westwood
…returns to profit
…to open store in Wales
 MIXED GOODS RETAILING
UK: 99p Stores
…reports profit surge, but slowing growth
…to extend food offering
UK: Wilkinson reveals new store format
UK: Poundland appoints Tesco director as chairman
 MULTI-SECTOR RETAILING
UK: Argos launches Habitat range
UK: Marks & Spencer
…announces new Per Una head
…confirms Bostock's departure and reports sales down in Q1
…first bank to offer fee-only service
…introduces contactless payment in London stores
…shares rise amid speculation of a takeover bid
UK: The Original Factory Shop reports rising EBITDA
UK: Wellchester to close down
 MISCELLANEOUS SPECIALISTS
UK: Halfords
…chief executive resigns
…to offer practical driving tests in Government tie up
UK: Hobbycraft looks to improve multichannel offer
UK: Mothercare UK like-for-like sales fall 6.7% in Q1
 DEPARTMENT STORES
Germany: Karstadt
…lures UK retailer to Germany
…to cut 2,000 jobs
UK: Allders purchase considered by former owner
UK: Debenhams expands footwear range
UK: Harrods
…opens revamped toy department
…reports profits up 15%
UK: John Lewis
…director departs
…launches its biggest own brand yet
…to open first ever pop-up shop
…reports strong first half revenues
 DIY RETAILING
UK: Kingfisher reports flat like-for-like sales
UK: Robert Dyas
…back to growth
…sold to Paphitis
UK: Travis Perkins’ retail division reports 8.8% fall in like-for-like sales
 ELECTRICAL RETAILING
France: Darty chairman to leave earlier than expected
UK: Carphone Warehouse
…may takeover European venture after Best Buy bid
…reports 2% decline in like-for-likes
UK: Comet on track to return to black with new owners
UK: Dixons increases Pixmania stake
UK: Maplin managing director exits
 MUSIC AND VIDEO GOODS RETAILING
France: HMV’s finance director set to depart
Ireland: Xtra-vision looks to digital as pre-tax losses narrow
UK: Games Workshop reports rise in profits
UK: HMV
…boss Simon Fox departs and Jessops' boss takes over
…Hammersmith Apollo deal complete
…reports full-year loss
…sales rise on back of Olympic ceremony
UK: Musicroom reports 2.3% growth
 CARPET AND FURNITURE RETAILING
UK: BrightHouse looks to boost online offer
UK: Carpetright receives boost from wet weather
UK: Dreams' owner plans restructuring
 HOME SHOPPING
Europe: PPR and Yoox in joint ecommerce venture
Germany: Neckermann dispute continues
UK: Achica to launch own brands
UK: Amazon
…retains top market share spot
…to open new digital media development centre in London
UK: Asos
…denies director to exit
…sales up 31% in Q1
UK: Brand Alley reports sales up 20% in H1
UK: eBay partners with the British Fashion Council
UK: Farepak customers to receive half their money back
UK: Findel reports 8% increase in sales
UK: Ocado launches pop up virtual wall
UK: Shop Direct reports 36% boost in EBITDA
UK: The Hut considers Sir Terry Leahy as new chairman
 HEALTH & BEAUTY RETAILING
UK: Chanel to open pop-up fragrance and beauty store
UK: Lloydspharmacy set to make redundancies
UK: The Perfume Shop to launch private-label collection
 BOOK AND STATIONERY RETAILING
UK: American Greetings' Clinton Cards acquisition to be investigated by OFT
UK: Clintons unveils its rebrand
 SPORTS AND LEISURE GOODS RETAILING
Ireland: JD Sports opens first Bank store in Ireland
UK: JJB Sports
…appoints La Senza director as new CEO
…chief executive to step down
…investors consider turnaround strategy
…looks for further funding after sales fall
UK: Sports Direct
…acquires stake in Flannels
…reports rising profits in "record" year
 JEWELLERS
France: LV opens first watch and jewellery store
Switzerland: Richemont's solid quarter looks good for half-year
UK: Boodles reports profit boost
UK: Pandora profits fall due to stock swap plan
UK: Signet Jewellers to cut 99 jobs
 ECONOMY
Europe: Boxpark to open in Amsterdam
Europe: Euro retail sales fall
UK: Bluewater to become UK's largest shopping centre
UK: BRC
…July retail sales up 0.1%
…June retail sales boosted by Jubilee
…reports 0.5% fall in number of retail outlets
UK: Capital Shopping Centres shows resilience
UK: Consumer confidence still low
UK: Food inflation for July reaches two-year low
UK: Food is fastest growing sector for mobile searches
UK: Kantar: Discount grocers report strong growth in market share
UK: London sees increase in footfall despite concerns
UK: London Waterloo station opens new balcony
UK: ONS
…Inflation falls to 2.4% in June
…Retail sales volumes and values up in June
UK: Portas pilots round two revealed
UK: Sales soar at convenience stores
UK: Scottish retail sales poor in June
UK: Shop vacancy levels rise to record
UK: West End suffers during Olympics, but etail grows
HOME SHOPPING – EUROPE: AMAZON EUROPE
Figure 17: Amazon.co.uk: Sales as share of All non-store retailers sales in UK, 2007-2011
Figure 18: Amazon.Europe: Sales as share of All non-store retailers sales in Europe, 2007-2011
Strategic evaluation
Background
Company performance
Figure 19: Amazon Europe: Estimated financial performance, 2007-11
Retail offering
Consumer profile
Figure 20: Amazon: Socio demographic customer profile, May 2012
Figure 21: Amazon: Regional profile, May 2012
Figure 22: Amazon: Customers’ financial situation, May 2012
Product mix
Social networks, m-commerce and apps