UK Retail Briefing - March 2015

ANALYST COMMENT
 CLICK AND COLLECT – GETTING IT ALL IN PERSPECTIVE
Why use it at all?
Figure 1: Top 3 factors that shoppers like most about Click and Collect, May 2014
Where do they use it?
Figure 2: Where do Click and Collect users, collect their purchases from, May 2014
So what?
Why are retailers investing in Click and Collect?
Service
In-store customers spend more
Dedicated Click and Collect outlets
Going forward
RETAIL SALES – BACKGROUND AND OUTLOOK
Key points
Retail sales trends
Figure 3: Retail sales trends, 2014/15
Figure 4: UK retail sales y/y growth, BRC versus ONS, 2013-15
John Lewis
Figure 5: John Lewis: Year-on-year growth, 2014-15
Inflation and wages
Figure 6: The income squeeze: Wages growth versus inflation, 2009-15
Inflation
Figure 7: Annual percentage change in the consumer price index for selected product groups, 2014
Looking forward
SECTOR FOCUS – E-COMMERCE
Summary
Composition of online sales in 2014
Figure 8: Online sales by sector, 2014
Online sales as a percentage of all retail sales
Figure 9: All online sales as % all retail sales, 2010-14
Figure 10: Key sectors online sales as % all online sales, 2009-14
2014: Month-by-month
Figure 11: All online sales, non-seasonally adjusted year-on-year growth by month, 2014-15
Figure 12: Online share of all retail sales, monthly, 2010-15
Focus: The online grocery market
Figure 13: Online food sales, non-seasonally adjusted year-on-year growth by month, 2014-15
Figure 14: Online grocery sales as a % of all grocery retailers’ sector sales, 2009-19
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Department stores
DIY retailing
Health and beauty retailing
Furniture and homeware retailing
Home shopping
Shopping locations
Economy
NEWS ANALYSIS – FOOD AND DRINK
 CO-OPS
UK: Co-operative Group
…appoints chairman
…appoints new chief financial officer
 CONVENIENCE STORES
UK: Bestway Group reveal full-year results
UK: Budgens to phase out SuperValu range
UK: McColl’s sales and profits rise in 2014
UK: Simply Fresh announces expansion plans
 GROCERS
UK: Aldi eyeing two new distribution centres
UK: Asda
…acquires standalone petrol stations
…Q4 like-for-like sales fall 2.6%
UK: Lidl teams up with Michelin-starred chef
UK: Morrisons CEO
…to stand down early
…CEO to receive bumper pay off
…close to appointing new chief executive
…appoints new CEO
…lowers price on 130 items
…to sell three stores for £100m
UK: Sainsbury’s
…to launch its first click-and-collect service
…trials electronic price tags
UK: Tesco
…announces one-to-one online beauty consultation service
…appoints new chairman
…chief of new food experiences departs
…makes further board changes
…to cut up to 10,000 jobs
…to pay £20,000 to towns affected by store cutbacks
 OTHER FOOD AND DRINK SPECIALISTS
UK: Greggs sales up 5.5%
UK: Majestic Wine chief executive steps down
UK: Oddbins opens first beer-only shop
UK: Thorntons half-year sales decline 9.0%
UK: Whole Food sales top £100m in the UK
NEWS ANALYSIS – NON-FOOD
 CLOTHING RETAILING
UK: Bank confirms 20 stores facing closure
UK: BHS managing director leaving for senior role at Tesco
UK: Edinburgh Woollen Mill Group sales increase 6.2%
UK: La Martina opens its first UK flagship outlet
UK: Monsoon chief executive departs company
UK: New Look
…appoints advisors as it considers IPO
…signs for east Oxford Street flagship
…like-for-like sales fall 1.7%
UK: New retailer FG4 to launch in the UK
UK: Nike to launch first women’s only store in the UK
UK: Oasis opens refurbished London flagship store
UK: SuperGroup chief financial officer to leave company
UK: Valentino to open West End flagship
 MULTI-SECTOR RETAILING
UK: M&S
…announces first film partnership
…to offer discounted gift cards as dividend payments
UK: Poundland can no longer claim everything is £1
 DEPARTMENT STORES
UK: Bhs gains interest from former director
UK: House of Fraser
…chief executive John King to step down
…to ask for discount from suppliers through new scheme
 DIY RETAILING
UK: Wickes revenues increase 8.8%
 ELECTRICAL RETAILING
UK: BrightHouse revenues up 4.4%
 MUSIC, VIDEO AND BOOK RETAILING
UK: Foyles makes full year loss
UK: Game acquires Multiplay
 FURNITURE AND HOMEWARE RETAILING
UK: Carpetright founder’s son to launch flooring retailer
UK: DFS
…announces small city store format
…sets share price
UK: Dreams returns to profit in 2014
UK: Dunelm
…founder buys stake in Morrisons
…half-year revenues up 14%
UK: Ikea to launch wireless charging furniture
UK: MFI founder Noel Lister passes away
UK: The Range opens its 100th store
UK: PerfectHome fined for ‘aggressive and misleading trading practices’
 HOME SHOPPING
UK: Amazon
…Prime advert banned
…suffers website outages
UK: Ao.com issues profit warning
UK: Ocado Group
…sales rise 19.2%
…lines up £26m potential bonuses
UK: Shop Direct’s new brand Very Exclusive launches
UK: WorldStores receives investment from Goldman Sachs
 HEALTH AND BEAUTY RETAILING
UK: Bestway to rebrand Co-operative Pharmacies
UK: Boots director of stores to step down
UK: Lush posts 8% rise in sales
 SPORTS AND LEISURE GOODS RETAILING
UK: Rolling Luggage acquired by Samsonite
UK: Sports Direct
…sales rise 2.6%
…to offer vouchers to offset click-and-collect cost
UK: Wiggle launches new brand identity
 SHOPPING LOCATIONS
UK: Hammerson almost doubles profits
UK: Intu profits rise 64.8%
UK: London Luton Airport to double retail space
UK: PayPal partners with Shell for mobile fuel payment
 ECONOMY
France: French Sunday trading laws to be relaxed
UK: Grocery market grows by 1.1%
UK: Retail footfall declines 1.2% in January
UK: Retail sales rise 2.6% in January
UK: Retail sales up 1.7% in February
UK: Shop prices continue to fall in February
UK: UK retail sales edge up 0.2% in January