European Retail Briefing - November 2014

ANALYST COMMENT
Are the discounters slowing in Poland?
Polish shoppers flocked to the discounters
Is the tide turning in 2014?
If so, why?
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 1: Major European economies:  Year on year retail sales value growth (%), 2013-14
Figure 2: Major European economies:  Year on year retail sales volume growth (%), 2013-14
Inflation
Figure 3: Major European economies:  All items CPI, 2013-14
Figure 4: Major European economies:  Food price inflation, 2013-14
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Department stores
DIY retailing
Electrical retailing
Home and furniture retailing
NEWS ANALYSIS: FOOD AND DRINK
 CO-OPS
UK: Co-operative
…launches campaign to reduce food waste
…recruits new regional acquisitions manager
 CONVENIENCE STORES
UK: Booker Group revenues lift 1.9%
UK: Musgrave to jettison worst-performing Londis stores
UK: Nisa own brand sales increase 53%
 GROCERS
Austria: Lidl invests in modernising Austrian stores
Belgium: Delhaize
…Group Executive Vice President resigns
…revenues grow 3.3%
France: Carrefour posts 1.8% growth in Q3
France: Casino Group sales slow in third quarter
France: Intermarché and Casino Group partner to purchase brands
France: Metro
…and Auchan partner to purchase non-food items
…revenues decline 2.6% in the fourth quarter
Luxembourg: Carrefour to open first Carrefour Express store
Portugal: Jerónimo Martins turnover increases 7.3%
Spain: Eroski sells 160 stores to Dia
UK: Aldi launches organic range
UK: Asda faces legal battle over equal pay
UK: Booths plans store openings as profits rise
UK: Lidl launches menswear range
UK: Morrisons
…increases prices on ‘I’m Cheaper’ lines
…Q3 sales fall 3.6%
…to open three test ‘lab’ stores
UK: Netto returns to Leeds
UK: Sainsbury's
…announces partnership with footballer Daniel Sturridge
…halves Nectar reward points
…to cut back on store openings
UK: Tesco
…Company Secretary Jonathon Lloyd resigns
…considers possible replacements for Chairman Richard Broadbent
…looking to spin off banking arm
…profits fall by 91.9%
…suspends three more executives
…to be investigated by the Serious Fraud Office
UK: Waitrose
…sales rise 6.8%, Kantar data shows
…to stock Anya Hindmarch-designed cereal boxes
 OTHER FOOD SPECIALISTS
UK: Thorntons Q1 sales down 11.9%
 HOME SHOPPING
UK: Ocado
…launches Scan & Shop app
…partners with Channel 4 for cookery programme
UK: Waitrose
…appoints Director of eCommerce
…Cellar now available for click and collect
…click-and-collect locker trial begins
…to launch Hiku home scanner
NEWS ANALYSIS: NON-FOOD
 CLOTHING RETAILING
Europe: Forever 21 plans to expand in Europe
Europe: Hugo Boss sales jump 9% in Q3
Germany: Adidas retail sales up 11%
Germany: Christ acquired by 3i
Netherlands: Macintosh Retail Group sales increase 4.9%
UK: All Saints halves pre-tax losses
UK: Burberry revenues reach £1.1bn
UK: Mulberry retail sales fall by 9%
UK: Next sales grow 5.4% in Q3
UK: Primark profits increase 29%
UK: SuperGroup
…appoints Euan Sutherland as chief executive
…warns on profits
UK: Topshop launches streetwear brand with Beyoncé
UK: Whistles sales up 15%
 FOOTWEAR RETAILING
UK: Foot Locker CEO Ken Hicks retires
UK: Kurt Geiger sales up 13%
UK: Moda in Pelle receives £3.5m to fund growth
UK: Office owners consider sale
UK: Schuh sales and profits drop
UK: Shoe Zone expects revenues of £172.5m
 MULTI-SECTOR RETAILING
UK: 99p stores sales grow 8.5%
UK: Argos
…launches £10m marketing campaign
…launches interactive game on station screens
UK: Home Bargains turnover increases 21%
UK: Home Retail Group posts sales growth of 3%
UK: Marks and Spencer UK sales up 1%
UK: The Original Factory Shop sees profits fall by £6m
UK: WH Smith revenues down 2%
UK: Wilko to make head office job cuts
 DEPARTMENT STORES
Germany: Karstadt owner Benko eyes buying Kaufhof
UK: Debenhams sales grow 1.7% but profits dip
UK: Harrods posts 11% rise in revenues
UK: House of Fraser to release television campaign this Christmas
UK: John Lewis opens first dedicated in-store opticians
UK: Liberty launches loyalty app with iBeacon technology
UK: Morleys Stores acquires Camp Hopson
UK: Selfridges
…announces record profits
…launches HC LuxSpa space in store
 DIY RETAILING
France: Bricorama posts a 1.5% fall in sales
Netherlands: Euretco acquires DGN Retail
UK: B&Q focuses on digital offering
UK: Homebase and UKTV Gold team up for Christmas campaign
 ELECTRICAL RETAILING
Germany: Saturn opens 24-hour collection station
 MUSIC, GAME AND PHOTOGRAPHY RETAILING
UK: Game
…appeal against rent ruling rejected
…sales surge 31%
UK: Jessops
…opens a new 'immersive experience' flagship store
…returns to profit
UK: Photobox acquires Spanish equivalent Hofmann
UK: Richer Sounds profits grow by 14%
UK: The Science Museum to open pop-up shop in Bluewater
 CARPET RETAILING
UK: Carpetright
…announce the retirement of Lord Harris
…UK sales up 5.7%
 HOME AND FURNITURE RETAILING
Netherlands: DFS to launch its first international store
UK: Ikea UK sales increase 11.3%
UK: Lords of Notting Hill buys London hardware store
UK: Pets at Home grows revenues by 10.2%
UK: Primary Capital exploring Paperchase sale
UK: Robert Dyas to launch first ever TV ad campaign
UK: Travis Perkins posts sales growth of 6.9%
UK: Wolseley considers Better Bathrooms bid
 HOME SHOPPING
Europe: Office Depot to cut 1,100 jobs
UK: Amazon
…launches same-day delivery service
…predicting a record number of Black Friday shoppers
…to recruit 13,000 workers this Christmas
UK: ASOS profits fall 14%
UK: Boohoo.com
…launches pop-up shop in New York
…sales up 31%
UK: Etsy to open pop-up store
UK: Jigsaw appoints head of online trading
UK: John Lewis opens first click and commute store
UK: Mulberry launches click-and-collect
UK: Poundshop.com merges with Hereforapound.com
UK: Rakuten launches UK website
UK: Shop Direct
…appoints Gareth Jones as Deputy Chief Executive
…bets big on Black Friday
…sales growth driven by Very
UK: Wiggle revenues increase 19%
 BEAUTY RETAILING
UK: Clinique opens interactive pop-up shop
 SPORTS AND LEISURE GOODS RETAILING
UK: Chain Reaction Cycles' profits rise to £4.8m
UK: Go Outdoors sales grow to £172m
UK: Halfords half-year sales up 6.8%
UK: Sports Direct forced to clarify ‘zero-hour’ contracts
 ECONOMY
UK: ONS say UK retail sales grow 1.3% in September
UK: Shop price deflation increases to 1.9%
UK: UK retail sales down 2.1% in September, according to BRC
LIDL/KAUFLAND (SCHWARZ GROUP)
What we think
Online
Where next
Company background
Company performance
Figure 5: Schwarz Group: Group financial performance, 2009/10-2013/14
Figure 6: Schwarz Group: Outlet data, 2009/10-2013/14
Figure 7: Schwarz Group: Outlet data, 2009/10-2013/14 (continued)
Figure 8: Schwarz Group: Outlet data, 2009/10-2013/14 (continued)
Figure 9: Schwarz Group: Outlet data, 2009/10-2013/14 (continued)
Retail offering