European Retail Briefing - August 2015

ANALYST COMMENT
 TIME FOR A MORE SOPHISTICATED ATTITUDE TO PRICING
Moving on from the BOGOF
Not alone
iBeacon
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, 2014-15
Inflation
Figure 3: Major European economies – All items CPI, 2014-15
Figure 4: Major European economies – Food price inflation, 2014-15
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Multi-sector retailing
Department stores
Electrical retailing
Home shopping
NEWS ANALYSIS – FOOD AND DRINK
 CONVENIENCE STORES
UK: Graze to launch food-to-go range
UK: McColl's revenues rise 3.4%
UK: Musgrave GB appoints new managing director
UK: Spar kicks off summer campaign
 GROCERS
Belgium: Carrefour introduces pharmacy concessions
Belgium: Delhaize revenues grow 18.1%
France: Auchan’s A2PAS chain expands with store acquisitions
France: Carrefour
…sales accelerate in Spain
…growth decelerates
France: Casino
…price cuts impact profits
…performance in France improves
France: Système U plans to double convenience estate
Germany: Edeka’s acquisition of Kaiser’s Tengelmann blocked
Germany: Metro Group returns to profit
Germany: Migros considers bid for Kaiser’s Tengelmann
Germany: Tengelmann sales grow 5.8%
Netherlands: Albert Heijn to open first organic store
Netherlands: Jumbo launches BBQ help via WhatsApp
Netherlands: Plus and Spar reduce emissions through logistics partnership
Spain: DIA sales grow 15.3%
Spain: Eroski expands through franchising
UK: Aldi plots 130 new UK stores
UK: Asda poised to win back customers at Christmas
UK: Booths ‘Fair Milk’ sales outperform the market
UK: CMA finds supermarkets’ misleading prices are not widespread
UK: Farming unions to meet following growing protests
UK: Increasing number of food suppliers struggling financially
UK: Lidl’s sales reach record high
UK: Morrisons
…announces an end to ‘unexpected item in the bagging area’
…facing probe by supermarket watchdog
UK: Sainsbury's
…introduces ready-meals for children
…Entertainment on Demand launches digital magazines
…forms pharmacy partnership
…plans to reinvent its supermarkets
UK: Tesco
…announces a friendlier self-service machine
…abandoning more developments than any other
…increases minimum online spend
UK: The Co-operative…
…boasts of ‘attracting the best talent in Britain’
…grows ahead of grocery market
UK: Waitrose signs for South Bank store
 OTHER FOOD AND DRINK SPECIALISTS
UK: Conviviality Retail
…in talks to buy drinks supplier
…revenues rise following acquisitions
UK: Greggs like-for-like sales increase 5.9%
UK: Majestic Wine
…to offer free click-and-collect to Naked Wines' customers
…names new CFO
NEWS ANALYSIS – NON-FOOD
 CLOTHING RETAILING
Ireland: Best Menswear Group enters examinership
UK: Ben Sherman sold to Marquee Brands
UK: Bonmarché suffers like-for-like decline
UK: Burberry posts 8% sales growth
UK: Crew Clothing makes a full year loss
UK: H&M launches National Fashion Recycling Week
UK: Hobbs sales stall as losses widen
UK: Mothercare suffers slowdown in sales
UK: Reiss founder explores minority stake sale
UK: River Island
…looks to grow menswear share with updated range
…launches Swedish website
UK: Supertrash fashion brand to open second UK store
UK: White Stuff growth driven by online
UK: Wolf & Badger acquires online marketplace Boticca
 MULTI-SECTOR RETAILING
France: Monoprix to continue French expansion
Netherlands: Hema opens third discount format
UK: Argos
…backs Governmental plans to reinvigorate the high street
…launches electrical trade-in service
…mobile sales hit £1bn mark
UK: B&M reports slowing like-for-like growth
UK: Findel sales grow 1.9% in Q1
UK: Matalan
…enters the bathroom market
…hires second Tesco director
…scraps Sporting Pro fascia
UK: M&S director of general merchandise exits
UK: Next raises profit guidance after stronger first half
UK: Poundworld eyes expansion
 DEPARTMENT STORES
Spain: El Corte Inglés sells stake to Qatari investor
UK: Brown Thomas flagship undergoes €1.5m revamp
UK: Harrods hosts A Pea in the Pod concession
UK: John Lewis
…announces in-store spa concept
…launches FOUND womenswear concept
…Liverpool store to receive updated fashion and beauty offer
…overhauls homeware division
UK: Selfridges first to launch 2015 Christmas shop
 ELECTRICAL RETAILING
France: Fnac’s sales fall in promotionally-driven market
Germany: Media-Saturn opens 1,000th European store
Portugal: Dixons Carphone sell The Phone House Portugal
UK: Carphone Warehouse suffers a cyber-attack
UK: Dixons Carphone hails 'excellent' year
UK: HMV eyes Middle Eastern expansion
 FURNITURE AND DIY RETAILING
UK: Bensons for Beds rolls out mattress-testing technology
UK: Carpetright begins new concept roll-out
UK: DFS in a strong position to deliver growth
UK: Dreams ramps up the marketing
UK: Ikea becomes first retailer to pay the living wage
UK: Kingfisher performs well against soft comparatives
UK: Primrose launches social network for gardeners
UK: Travis Perkins sales grow 7.8% in first half
UK: Victoria Plumb rebrands ready for bedroom launch
 HOME SHOPPING
Germany: Zalando triples revenues
Germany: HelloFresh prepares for IPO
UK: AmazonFresh rumoured for September launch
UK: Amazon Prime Now arrives in Birmingham
UK: AO World’s sales growth is dented in Q1
UK: Asos unveils weekly podcast
UK: Boohoo extends its plus-size range
UK: Doddle
…‘runners’ will help with customer returns
…halves the number of planned new outlets
UK: Net-a-Porter and Yoox merger to be investigated
UK: Royal Mail invests in tinder-style shopping app
UK: Secretsales.com sales jump 37%
UK: Very launches entirely shoppable new advert
 HEALTH AND BEAUTY RETAILING
UK: LloydsPharmacy owner drives 25% increase in profits
UK: Well appoints new commercial director
 BOOK AND STATIONERY RETAILING
UK: Kikki.K gears up for UK launch
UK: Paperchase not for sale after turning down offers
 SPORTS AND LEISURE GOODS RETAILING
UK: Halfords
…opens online marketplace
…premium bikes sales drive up revenues
UK: JD Sports raises profit guidance following sales surge
UK: Sports Direct revenues rise 4.7%
 PET RETAILING
UK: Pets at Home revenues rise 6.4%
 SHOPPING LOCATIONS
Italy: Pop-up initiative for Etsy sellers launches in Italy
UK: App connects retailers in London’s West End
UK: Government launches consultation on Sunday trading
UK: Intu rental income rises 10%
UK: Leeds shopping centre's innovative customer loyalty programme
UK: Regent Street hosts new drop-off shopping bag service
 ECONOMY
UK: Retail sales grow 2.9% in June
UK: Retail sales rise 1.9% in June
UK: Shop prices fall 1.4% in July
LUXURY GOODS RETAILING – INTERNATIONAL – TIFFANY
What we think
New couture jewellery collection aimed at the ultra-wealthy
Re-establishing itself in the luxury watch market
Targeting the self-gifting financially independent female consumer
Same-sex campaign broadens appeal of its engagement rings
European store expansion on back of sales growth in the region
Authentic shopping experience
Company background
Company performance
Figure 5: Tiffany & Co. – Group financial performance, 2010/11-2014/15
Figure 6: Tiffany & Co: Sales growth, by region, 2014/15
Figure 7: Tiffany & Co.: Outlet data, 2010/11-2014/15
E-commerce