UK Retail Briefing - January 2016

ANALYST COMMENTS
Sainsbury’s and Home Retail
Big deals – Bad news
Argos’ trading style
Misfit
Marks & Spencer – Mixed fortunes
Great performance in food
Problems in general merchandise
Figure 1: M&S – Share of spending on clothing and footwear, 2010-15
Successor
Challenges
An opportunity with younger customers
RETAIL SALES – BACKGROUND AND OUTLOOK
Key points
Retail sales
Figure 2: Retail sales trends, 2014/15
Figure 3: UK retail sales y/y growth, BRC vs ONS, 2013-15
John Lewis
Figure 4: John Lewis: Year-on-year growth, 2014-15
Inflation and wages
Figure 5: Real wages growth: Wages growth vs inflation, 2010-15
Inflation
Figure 6: Annual percentage change in the consumer price index for selected product groups, 2014-15
Looking forward
SECTOR FOCUS – FOOD RETAILING
Retail sales performance: Christmas
Figure 7: Retail sales: Annual % change in value and volume sales in all food stores, non-seasonally adjusted, Jan 2014-Dec 2015
Prices: A bargain Christmas
Figure 8: Annual percentage change in the price of food and non-alcoholic beverages and alcoholic beverages and tobacco, Jan 2014-Dec 2015
A good month for specialists
Figure 9: Retail sales: Annual % change in value and sales in food stores, by operation, Dec 2014-Dec 2015
Online
Figure 10: Online retail sales: Annual % change in the value of online sales through food stores, Jan 2015-Dec 2015
So how have the grocers performed?
Figure 11: Food retailers: Christmas performance, 2015
Where next?
HEADLINES FOR THE MONTH
Grocers
Other food and drink specialists
Clothing retailers
Multi-sector retailing
Department stores
Electricals retailing
Sports and leisure goods retailing
Economy
NEWS ANALYSIS – FOOD AND DRINK
UK: Mintel's Christmas message
And 2016?
And then?
 CONVENIENCE STORES
UK: Spar grows store estate by 8% in six months
 GROCERS
UK: Aldi to open 80 new stores in 2016
UK: Asda introduces ‘Go-Getters for Forgetters’
UK: Booth reports strong growth in Christmas orders
UK: Sainsbury's
…grows ahead of the grocery market
…makes bid for Home Retail Group
UK: Tesco
…to introduce charge for small click-and-collect orders
…to offer dog pampering in larger stores
UK: Waitrose plans 14 new supermarkets in 2016
 OTHER FOOD AND DRINK SPECIALISTS
UK: Majestic Wine sees sales grow 12.2% during the Christmas period
UK: Berry Bros & Rudd sees losses double
NEWS ANALYSIS – NON-FOOD
 CLOTHING RETAILING
UK: Arcadia continues to roll out Outfit fascia
UK: Barbour reduces core range
UK: Blue Inc to close a quarter of its shops
UK: Bonmarché announces Beth Butterwick departure
UK: Boux Avenue delivers strong growth for Theo Paphitis Retail Group
UK: Burberry
…celebrates the Lunar New Year on WeChat
…releases interactive 3D scarf advert
UK: Jaegar owner halts sale
UK: Jigsaw reports a record-breaking Christmas
UK: Joules eyes IPO
UK: Kurt Geiger bought out by Cinven
UK: Mamas & Papas returns to profit
UK: Mulberry grows revenues by 5% in the first half
UK: Next sales increase just 0.4% prior to Christmas
UK: River Island to introduce a plus-size range
UK: SuperGroup revenues surge 22.3%
UK: Ted Baker buys The Ugly Brown Building
UK: Topshop partners with Appear Here to provide pop-up concessions
 FOOTWEAR RETAILING
UK: Brantano’s new owners put the business under review
 MULTI-SECTOR RETAILING
UK: Marks and Spencer
…opens first store in Beijing
…UK like-for-like sales fall 2.5%
UK: Poundland third quarter revenues grow 29.4%
 DEPARTMENT STORES
UK: BHS appoints chief financial officer
UK: Debenhams in talks with former Kingfisher boss
UK: Harvey Nichols profits tumble 29.7%
UK: House of Fraser reports rising Q3 sales
UK: John Lewis
…has a strong week for electricals
…invests £500m in online business
…sales grow 4.1% over the Christmas period
UK: Selfridges launches Bright New Things campaign
 DIY RETAILING
UK: Topps Tiles Q1 sales rise 4.4%
 ELECTRICAL RETAILING
UK: Dixons Carphone
…first-half sales up 5%
…to launch a tech emergency service
 CARPET RETAILING
UK: Carpetright delivers “significant growth” in profits
 HOME SHOPPING
UK: Amazon to lease aircraft in a bid to launch air-delivery service
UK: Atterley stops trading as it enters administration
UK: Matalan Direct hires buying director
UK: Moonpig innovates with augmented reality
UK: Ocado reports double-digit Q4 growth
UK: PrettyLittleThing full-year sales reach £30m
 FURNITURE RETAILING
UK: Habitat adapts website for mobile shoppers
 HEALTH AND BEAUTY RETAILING
UK: Concerns raised over LloydsPharmacy’s bid for Sainsbury’s division
UK: Holland & Barrett
…eyes potential £1bn sale
…plans to double sales to £1bn
UK: The Fragrance Shop sales boosted by luxury brand demand
 SPORTS AND LEISURE GOODS RETAILING
UK: Sports Direct sales and profits up in the first half
 MUSIC, VIDEO AND GAME RETAILING
UK: Foyles reports strong Christmas trading
UK: Game’s sales fall 6.7% as demand for consoles declines
 SHOPPING LOCATIONS
UK: Birmingham Bullring owner eyes bid for Grand Central
 JEWELLERS
UK: Signet Jewelers’ UK sales rise 4.9%
 ECONOMY
UK: Retail sales rise 2.0% in November