European Retail Briefing - November 2015

ANALYST COMMENT
Amazon Pantry – Lidl Vorratsbox
Ambient temperature only
Lidl’s Vorratsbox
First step to online grocery?
UK a bigger challenge
Cost
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 retailers
Department stores
Electrical retailing
Furniture and homeware retailing
Home shopping
Health and beauty retailing
Shopping locations
NEWS ANALYSIS – FOOD
 CONVENIENCE STORES
UK: McColl’s to divest 100 newsagents
UK: One Stop to participate in Black Friday
UK: Rebranded My Local stores open their doors
 GROCERS
Belgium: Carrefour introduces free home delivery for pregnant women
Belgium: Delhaize
…introduces food saving project
…revenues grow 2.3%
Europe: Eataly to expand into new European countries
France: Auchan reveals plans for €1bn investment in hypermarkets
France: Carrefour
…hails ‘excellent’ third quarter
…introduces robot in store
…opens first airport store
France: Casino makes ‘significant improvement’ in France
France: Système U launches new personalised website
Germany: Lidl launches Vorratsbox
Germany: Metro AG revenues fall 1.1% in Q4
Germany: Rewe invests in expansion
Ireland: Lidl unveils new concept in Ireland
Portugal: Jerónimo Martins sales rise 9%
Russia: X5 Retail Group partners with Euroset
Spain: Dia reports strong third quarter
Sweden: Axfood drives growth of 6.7%
Switzerland: Aldi lays out expansion plans
UK: Asda
…announces Project Renewal
…hires Sainsbury’s retail and operations director
…may scale back Black Friday involvement
…unveils Halloween VR experience
UK: Booths sales decline amid competitive market
UK: Morrisons
…implements food donation programme
…sales fall 2.0% in Q3
UK: Sainsbury’s
…experiments with new formats
…outperforms the grocery market again
UK: Tesco
…changes ‘Price Promise’ to ‘Brand Guarantee’
…launches Arcadia brands in Extra stores
UK: Waitrose
…launches standalone Kitchen website
…Mark Price stands down
 OTHER FOOD AND DRINK SPECIALISTS
France: Biocoop plans forty new store openings
Italy: New French fine food store opens in Rome
UK: Greggs eyes expansion to 2,000 outlets
UK: Majestic Wine introduces simpler pricing proposition
NEWS ANALYSIS – NON-FOOD
 CLOTHING RETAILING
Germany: Hugo Boss profits down 13%
Ireland: Carraig Donn opens first UK store
UK: All Saints sales grow 6%
UK: Brantano and Jones Bootmaker sold for £12m
UK: Burberry
…moves production to Leeds
…to merge Prorsum, Brit and London labels
UK: Harris Tweed’s golfing range drives growth
UK: Hunter Boot revenues rise 17%
UK: Jack Wills founder back at the helm as losses widen
UK: M&Co hosts Yours Clothing concession
UK: Mothercare UK like-for-like sales up 6.5%
UK: New Look
…revenues rise 5.9%
…to open at least 15 menswear stores in 2016
UK: Oasis to unveil new London concept store
UK: Office doubles profits despite investments
UK: Pandora UK revenues surge 50.5%
UK: Pep&Co founder to launch a new discount variety chain
UK: Primark revenues rise 8%
UK: Reiss
…plots international expansion following record sales
…profits surge on the back of organic growth
UK: Scarlett & Jo launches e-commerce site
UK: Shoe Zone trades well in the second half
UK: Superdry retail revenues surge 30.9%
UK: Topshop hosts 3D printed jewellery pop-up
UK: Whistles hosts dedicated menswear pop-up
 MULTI-SECTOR RETAILING
Eastern Europe: Marks and Spencer scales back Eastern European operations
UK: Home Retail warns on profits as Black Friday approaches
UK: Marks and Spencer’s
…delivers ‘good’ underlying profit growth
…unveils Sparks loyalty scheme
…releases ‘mobile-first’ Christmas campaign
UK: Matalan warehousing issues hit profits
UK: Next Q3 brand sales rise 6.0%
 DEPARTMENT STORES
Ireland: Selfridges acquires Arnotts department store
UK: Bhs exploring sale of Oxford Street flagship
UK: Debenhams delivers profit in line with expectations
UK: Fenwick reports falling sales and profits
UK: Harrods luxury brand focus drives sales up 1.2%
UK: John Lewis unveils Christmas Man on the Moon advert
UK: Liberty to launch new brand collaborations
UK: Selfridges reports 4.3% rise in sales
 DIY RETAILING
UK: Travis Perkins sales grow 5.5%
 ELECTRICAL RETAILING
France: Fnac
… acquisition of Darty could generate €85m in annual synergies
…and Darty agree on offer terms
…revenues up 0.6% in France
Germany: Media-Saturn trials smaller high-tech stores
Netherlands: Relevant Holdings takes over from BAS Group
UK: Currys PC World trials collection in Carphone Warehouse stores
 FURNITURE AND HOMEWARE RETAILING
Finland:  Ikea to start leasing furniture to offices
Norway: Cafom Group acquires 8 Habitat franchise stores
UK: Carpetright sales rise 2.5%
UK: Habitat unveils redesigned flagship store
UK: Ikea creates animated films for toy launch
 HOME SHOPPING
France: Cnova Q3 net sales grow 9.1%
Germany: Zalando trials new features on mobile app
UK: Asos revenues climb 18%
UK: EBay and Argos extend partnership
UK: Missguided generates £4m from personalisation
UK: N Brown first-half revenues rise 4.2%
UK: Photobox sold for £400m
UK: Shop Direct profits surge 78%
 HEALTH AND BEAUTY RETAILING
France: Sephora unveils connected convenience store
UK: Well completes rebrand of 782 pharmacies
 TOY AND GAMES RETAILING
UK: GAME full-year revenues up 0.6%
UK: Hamleys
…owners in negotiations to sell business
…sale agreed
UK: Toys R Us reports first profit growth in five years
 SPORTS AND LEISURE GOODS RETAILING
UK: Go Outdoors benefits from the ‘glamping’ trend
UK: Mountain Warehouse sales rise as it announces China launch
UK: North Face opens new Regent Street flagship
UK: Wiggle UK sales surge 26%
 GREETINGS CARDS AND STATIONARY RETAILING
UK: Paperchase secures £50m funding
UK: WH Smith focuses on profits as high street sales slip
 PET RETAILING
UK: Pets at Home revenues grow 6.0%
 SHOPPING LOCATIONS
France: Galeries Lafayette expands outlet format
UK: Bradford Broadway opens its doors
UK: Intu boasts of improved occupancy rates
UK: Retail footfall improves as Christmas nears
 ECONOMY
UK: Government to launch price comparison consultation
UK: Retailers divided over Sunday trading debate
UK: Retail sales rise 3.4% in September
UK: Retail sales slow to 0.9% in October
UK: September retail sales boosted by bank holiday
SUPERMARKETS – ALDI
What we think
Aldi Sud still the innovator
The UK
Costs
Online
Everywhere else
Company background
Company performance
Figure 5: Aldi: Group financial performance, 2010-14
Figure 6: Aldi: Outlet data, 2010-14
Retail offering