European Retail Briefing - February 2016

ANALYST COMMENT
 THE IMPACT OF HOME OWNERSHIP LEVELS ON RETAIL
UK
The decline in home ownership
Figure 1: Annual rate in decline in owner occupancy since the peak level, 2014
But over half of households still own their home
Figure 2: Europe: Leading economies owner occupation rate, 2014
Implications
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 3: Major European economies: Year-on-year retail sales value growth, 2014-16
Figure 4: Major European economies: Year-on-year retail sales volume growth, 2014-16
Inflation
Figure 5: Major European economies: All items CPI, 2015-16
Figure 6: Major European economies: Food price inflation, 2015-16
HEADLINES FOR THE MONTH
Grocers
Clothing
Electrical retailing
Home shopping
Economy
NEWS ANALYSIS – FOOD AND DRINK
 CONVENIENCE STORES
Ireland: Musgrave acquires foodservice supplier
Spain: Coviran claims to employ more staff per sales than rivals
UK: Booker sales rise 10.5% following acquisitions
UK: McColl’s like-for-like sales fall 0.7%
UK: Nisa returns to profit during Christmas trading
UK: The Co-op expands presence with Budgens acquisitions
 GROCERS
Belgium: Delhaize revenues grow 14.2% in Q4
Belgium: Lidl invests millions in Genk distribution centre
France: Auchan introduces customer rating feature online
France: Carrefour and Intermarché launch at-home scanners
France: Carrefour posts a 5.3% rise in sales
France: E Leclerc sales increase 3.4% in 2015
Germany: Kaufland extends EMD buying alliance partnership
Germany: Metro Group hails ‘good Christmas business in Germany’
Germany: Rewe trials first click-and-collect service
Netherlands: Jumbo given the green light for La Place acquisition
Portugal: Dia rolls out Minipreço Family concept
Spain: Dia scraps El Árbol fascia
UK: Aldi's online wine offering launches in the UK
UK: Asda
…announces ‘hundreds’ of job cuts
…announces further investment in price
…to sell 'wonky' vegetable boxes
UK: easyFoodstore opens its doors
UK: Grocery market contracts by 0.2%
UK: Grocery market grows 0.2% in January
UK: Morrisons
…launches ‘Price Crunch’ campaign
…returns to like-for-like growth
…reveals 7 stores planned for closure
UK: Ocado full-year sales rise 14.7%
UK: Sainsbury’s
…bids £1.1bn for Home Retail
…expected to gain Qatari support for second bid
…sales rise 0.8% in Q3
…to increase Netto store count
UK: Tesco
…sees sales grow 2.1% over the Christmas period
…to close its two food-to-go only stores
…to end 24-hour opening in select stores
…found to have “seriously” breached industry code
UK: Waitrose pledges to reduce sugar levels
 OTHER FOOD AND DRINK SPECIALISTS
UK: Conviviality retail sales edge up 0.8%
UK: Greggs reports ‘good finish to an excellent year’
UK: Hotel Chocolat eyes international expansion with new site launch
UK: Virgin Wines' like-for-like sales grow 12%
UK: Westmorland grows turnover following Gloucestershire investment
NEWS ANALYSIS – NON-FOOD
 CLOTHING RETAILING
Belgium: Forever 21 files notice of collective dismissal
Europe: H&M
…launches sustainable beauty range
…Q4 profits hit by higher purchasing costs
Spain: Primark Madrid provides 360-degree audio-visual experience
UK: Blue Inc shuts 74 stores
UK: Bonmarché like-for-like sales fall 2.7% in December
UK: Fat Face benefits from full-price strategy
UK: Joules sales jump 11.3%
UK: LPP to lease BHS’s Oxford Street flagship
UK: Matalan sales slip in ‘challenging’ market
UK: Moss Bros sales rise 4.8%
UK: Mothercare performs in line with expectations
UK: New Look revenues rise 5.6%
UK: Pretty Green delivers strong online growth
UK: Primark sales rise 7% as global expansion continues
UK: Reiss eyed by Dr Martens owner
UK: SuperGroup like-for-like growth slows to 1.2%
UK: Ted Baker sales increase 10.1%
UK: The White Company doubles profits
UK: White Stuff pleased with ‘robust’ Christmas performance
 FOOTWEAR RETAILING
UK: Brantano falls into administration
UK: Clarks cuts head office roles
UK: Dr Martens posts a 13% increase in sales
UK: Jimmy Choo net revenues rise 6%
UK: Shoe Zone reports decline in full-year revenue
 JEWELLERY AND OPTICAL GOODS RETAILING
Denmark: Pandora UK sales rise 36.4%
Netherlands: Specsavers allocates €5m for Dutch expansion
UK: Monica Vinader seeks investment for growth
 LUXURY RETAILING
France: LVMH revenues rise 16%
UK: Burberry
…announces 1% growth in ‘challenging environment’
…shifts to “seasonless” runway shows
UK: Paul Smith profits tumble 94.1%
 MULTI-SECTOR RETAILING
UK: Home Retail Group
…in ‘advanced discussions’ to sell Homebase
…reaches agreement for sale of Homebase
…major shareholder wants £1.4bn bid from Sainsbury’s
UK: Marks and Spencer
…launches first non-European websites
…ups style credentials with Alexa Chung collaboration
UK: Poundland launches Charlie Dimmock DIY range
UK: The Range reveals plans for new distribution centre
 DEPARTMENT STORES
UK: Bhs
…hires KPMG to offload stores
…leases Oxford Street flagship to Polish retailer LPP
UK: Debenhams
…confirms Sir Ian Cheshire appointment
…like-for-like sales up 3.5%
UK: House of Fraser
…employs new technology for online merchandising
…'customer-centric' approach delivers growth
UK: John Lewis
…announces entry into the Middle East
…introduces new image recognition technology
…weekly sales rise 0.6%
 ELECTRICAL RETAILING
France: FNAC
…acquires online comic strip platform
…adds large appliances to its expanding online offer
…extends reach with new sports category
UK: BrightHouse revenues climb 6.7%
UK: Dixons Carphone sales grow 5% over the Christmas period
UK: Game sees sales fall 0.4% over the Christmas period
UK: Maplin sees Christmas sales grow 2.3%
UK: O2 unveils new store concept
 CARPET RETAILING
UK: Carpetright sales ’soften’ over Christmas
 FURNITURE RETAILING
UK: B&Q the latest to change pay rates
UK: DFS investments deliver 7% growth
UK: Furniture Village invests in digital marketing
UK: ScS raises profit expectations following strong trading
 HOMEWARES RETAILING
UK: Dunelm
…announces 8.8% year-on-year growth
…grows sales by 10.3% in the first half
 HOME SHOPPING
France: Boohoo to open pop-up in Paris
Germany: Zalando ‘finishes year on a high note’
Europe: Zalando relaunches mobile app for enhanced browsing
Italy: Yoox Net-a-Porter Group reports 31% growth
Netherlands: Made.com launches showroom in Amsterdam
UK: Amazon considers Ocado buyout
UK: AO sees sales grow 35% in Q3
UK: Asos delivers 23% growth
UK: Boohoo sales surge 45%
UK: CollectPlus hails ‘most successful peak to date’
UK: Missguided prepares for store-rollout
UK: N Brown sales grow 4.1% in Q3
UK: Ocado appoints Dixons’ deputy CEO to board
UK: Shop Direct’s Very delivers 17% growth
 HEALTH & BEAUTY RETAILING
Germany: Douglas AG seeks new CEO
UK: Boots cuts store roles but increases No.7 expertise
UK: LloydsPharmacy retail sales grow 4.4%
UK: Lush like-for-like sales surge 36.9%
UK: Superdrug
…like-for-like sales up 6.8%
…joins Boots in reviewing ‘sexist’ pricing
UK: The Body Shop unveils new ethical pledges
 BOOK, GREETINGS CARD AND STATIONERY RETAILING
UK: Card Factory sales grow 8.1%
UK: Paperchase delivers 11.2% rise in sales
UK: Waterstones sales grow 1%
UK: WH Smith sales grow 4%
 SPORTS AND LEISURE GOODS RETAILING
UK: Findel sells Kitbag to US-based Fanatics
UK: Halfords retail like-for-likes remain flat over Christmas
UK: JD Sports delivers double-digit growth against 'strong comparatives'
UK: Mountain Warehouse gears up for £200m IPO
UK: Sports Direct to miss profit target
 PET GOODS RETAILING
UK: Pets at Home’s like-for-like sales grow 2.2%
 ECONOMY
Poland: Poland to introduce a new supermarket tax
UK: Food prices edge up 0.1%
UK: Footfall figures confirm the migration online over Christmas
UK: January retail sales driven by big-ticket items
UK: Retail sales edge up 1.0% in December
UK: Retail sales slip by 0.3% in December
ELECTRICALS RETAILING – EUROPE – FEBRUARY 2016: MEDIA-SATURN
What we think
Increasing the channels to market
Adding new store concepts
Market-leading delivery services
Encouraging innovation
Company background
Company performance
Figure 7: Media Markt/Saturn: Group financial performance, 2010/11-2014/15
Figure 8: Media Markt/Saturn: Outlet data, 2010/11-2014/15
Retail offering