European Retail Briefing - June 2015

ANALYST COMMENT
 INTERMARCHÉ AND ASDA ROLL OUT CLICK AND COLLECT LOCKERS
Why?
Convenience and speed
In-store or lockers
Where next?
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 1: Major European economies:  Year-on-year retail sales value growth, 2014/15
Figure 2: Major European economies:  Year-on-year retail sales volume growth, 2013-14
Inflation
Figure 3: Major European economies:  All items CPI, 2014/15
Figure 4: Major European economies:  Food price inflation, 2013-14
HEADLINES FOR THE MONTH
Grocers
Convenience stores
Clothing retailing
Multi-sector retailing
Department stores
Home shopping
Electricals
Health and beauty retailing
NEWS ANALYSIS – FOOD AND DRINK
 GROCERS
Belgium: Carrefour Belgium launches after work pick-up points
Belgium: Delhaize confirms discussions with Ahold
Belgium: Lidl eyes 10% market share in Belgium
Denmark: Dansk Supermarked acquires wupti.com
Europe: Ahold and Delhaize merger on the cards
Europe: Intermarché and Asda roll out 24/7 click and collect lockers
France: Auchan to target the youth market
France: Carrefour tests ‘connected’ lighting
France: E Leclerc and Rewe the latest to set up joint purchasing
France: French government outlaws the destruction of food waste
France: Hyper-U de Gap store converted to Auchan
Germany: Aldi Nord tests fresh ready meals
Ireland: Iceland expands in Ireland
Italy: Aldi confirms launch in Italy
Netherlands: Ahold Q1 sales increase 14.9%
Portugal: Auchan uses franchising to expand in Portugal
Portugal: Intermarché and Dia establish joint purchasing platform
Portugal: Intermarché and Jerónimo Martins show interest in Alisuper stores
Portugal: Sonae plans new Bom Dia stores
Spain: Dia sales grow 17.0%
Spain: El Corte Inglés trials new initiatives
Spain: Eroski plans a roll-out of the Contigo format
UK: Asda suffers a 3.9% fall in like-for-likes
UK: Campaigners petition for supermarkets to donate food waste
UK: Co-op members fail to back reformed pay plans
UK: Iceland sales fall 0.5% in 2014
UK: Morrisons
…announces next round of price cuts
…the only of the ‘big four’ to increase sales
…updates its food and wine ranges
UK: Sainsbury’s like-for-likes fall 2.1%
UK: Tesco
…appoints Deloitte as auditors
…looks to sell mobile division
…partners with FareShare to cut food waste
…raising awareness of concept stores with mobile coupons
…to close remaining HomePlus stores
UK: Waitrose
…introduces personalised loyalty scheme
…launches a delivery scheme for vulnerable customers
 CONVENIENCE AND FORECOURT RETAILERS
Ireland: Applegreen set for stock market float
Netherlands: Spar International sales grow to €31.9bn
UK: Booker Group to purchase Budgens and Londis
UK: Spar to be trialled at Roadchef motorway service areas
UK: Welcome Break awaits European consolidation
 OTHER FOOD SPECIALISTS
UK: Conviviality Retail forecasts revenue to increase 2%
UK: Farmdrop gains investment for growth
UK: Farmfoods reports record sales
UK: Thorntons chief executive steps down
NEWS ANALYSIS – NON-FOOD
 CLOTHING AND ACCESSORIES RETAILING
Europe: Michael Kors unveils plans for new distribution centre
Europe: TJX Companies revenues grow 6%
Netherlands: New boutique department store for Amsterdam
Spain: Inditex has a strong first quarter
Spain: Uniqlo to enter Spanish market
UK: Austin Reed secures three year loan
UK: Barbour posts 10% jump in sales
UK: Burberry grows revenues by 11%
UK: Cambridge Satchel Company opens first men’s store
UK: Clarks suffers a ‘challenging’ year
UK: French store Merci plots Kings Cross opening
UK: H&M reveals next designer collaboration
UK: JD Sports reopens former Bank stores
UK: Missguided opens physical store space in the UK
UK: New Look
…chairman leaves following acquisition
…drives revenues up 3.4%
UK: Moss Bros sales rise 6.4%
UK: Mothercare
…boss plots further store updates
…profits rise 37%
UK: Pandora increases revenues by 36.8%
UK: Pretty Green expands with House of Fraser
UK: Schuh pays bonus to staff
UK: Seraphina opens first UK pop-up
UK: Shoe Zone revenues fall amidst store closures
UK: Ted Baker unveils new & Moore store concept
 MULTI-SECTOR RETAILING
Europe: Expansion fuels profit growth at Tiger parent Zebra
Netherlands: Blokker Holding's household goods division suffers
Netherlands: Hema suffers 1.3% turnover decline
UK: Apple Pay to launch in the UK in July
UK: B&M profits soar 55.7%
UK: Findel decides against selling Kitbag
UK: Marks and Spencer
…reports first rise in profits for four years
…to stock branded trainers
UK: Mike Ashley launches new discount retailer Mega Value
UK: Poundworld sells majority stake to TPG
UK: Shop Direct closes Woolworths website
UK: The Original Factory Shop gains investment for growth
 DEPARTMENT STORES
Germany: Karstadt
…makes further closures
…owner vying for Kaufhof
UK: BHS
…partners with Claire’s Accessories
…sales slide 1.1% in 2014
UK: Harvey Nichols launches app based loyalty scheme
UK: John Lewis
…introduces online booking system
…makes changes to buying structure
UK: Liberty to go public within three years
 ELECTRICAL RETAILING
France: Darty revenues up 3.5% for Q4
UK: Dixons Carphone like-for-likes climb 13%
 MUSIC AND VIDEO GOODS RETAILING
UK: Gear4Music
…announces flotation plans
…eyes flagship store following IPO
UK: HMV to relaunch online service within weeks
 HOME SHOPPING
France: Cdiscount launches new site dedicated to children
Germany: Zalando optimistic for 2015 following a strong first quarter
Italy: Yoox sales grow 16.4% following merger
UK: Amazon
…to start paying corporation tax in the UK
…UK Marketplace drives £1bn exports
UK: AO sales grow 23.8% in 2014
UK: Boohoo sales grow 35% in Q1
UK: Farfetch acquires Browns to create the ‘store of the future’
UK: Google confirms 'buy button' launch
UK: HMV to relaunch online service within weeks
UK: Shop Direct announces an end to physical catalogues
 BOOK AND STATIONERY RETAILING
UK: Card Factory revenues up 7.5%
UK: Smiggle plots further expansion
UK: WH Smith group sales edge up 1%
 HEALTH AND BEAUTY RETAILING
France: Optic 2000 revenue increases 0.8%
France: Rituals enters the French market
France: Sephora initiative recycles 600,000 perfume bottles
Spain: Sephora launches 'parapharmacie' concession
UK: Bestway unveils first Well stores
UK: Boots
…reintroduces staff bonus scheme
…reveals plan to cut 700 jobs
UK: Holland & Barrett hosts vegan cafe concession
 HOME AND DIY RETAILING
UK: Ikea experiments with small-format store
UK: Kingfisher UK sales up 2.9%
UK: Loaf reveals plans for first store
UK: Mattressman seeks physical store space
UK: Pets at Home delivers 9.6% revenue growth
UK: Topps Tiles sales grow 6.4%
 SPORTS AND LEISURE GOODS RETAILING
UK: Halfords retail revenues rise 6.8%
UK: Marka acquires 65% stake in Icons Shop
UK: Mountain Warehouse sales leap 20%
UK: Sports Direct
…announces new CFO
…raises profit outlook
 ECONOMY
Denmark: Denmark looks towards a cash-free society
UK: Retail sales edge up 0.9% in April
UK: Retail sales flat in May
UK: Retail sales grow 2.4% in April, says BRC
DIY RETAILING – EUROPE: KINGFISHER
What we think
One Kingfisher
Risky
Online
Caution
Outlook for DIY
Where next
Company background
Company performance
Figure 5: Kingfisher, like-for-like sales growth by country, 2014/15
Figure 6: Kingfisher Group: Group financial performance, 2010/11-2014/15
Figure 7: Kingfisher Group: Outlet data, 2010/11-2014/15
Retail offering
Figure 8: B&Q (UK) and Castorama (France): sales breakdown, by category, 2014/15