European Retail Briefing - November 2016

ANALYST COMMENT
 M&S PULLS OUT OF EUROPE - AGAIN
Start with stores and space
To exit or not to exit
Where next?
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 1: Major European economies: Year-on-year retail sales value growth, 2015-16
Figure 2: Major European economies: Year-on-year retail sales volume growth, 2015-16
Inflation
Figure 3: Major European economies: All items CPI, 2015-16
Figure 4: Major European economies: Food price inflation, 2015-16
HEADLINES FOR THE MONTH
Grocers
Clothing retailers
Multi-sector retailing
Department stores
Electrical retailing
Furniture retailing
NEWS ANALYSIS –FOOD AND DRINK
 CONVENIENCE STORES
UK: Booker like-for-like sales flat on the year
UK: Costcutter refreshes proposition with 'Shopper First Programme'
UK: Lifestyle Express reveals new fascia
 GROCERS
Belgium: Carrefour opens first Easy format stores
Belgium: Colruyt tests electronic shelf tags for the first time
Finland: Kesko sales increase 13.9%
France: Carrefour
…and Auchan merge mobile payment apps
…launches one-hour food delivery in Paris
…tests new city format with bar and library
France: Picard trials dining areas in store
Germany: Aldi Süd to launch online in China
Germany: Break up of Kaiser’s Tengelmann begins
Germany: Lidl starts selling fresh food online
Germany: Norma withdraws from lawsuit against Kaiser’s Tengelmann
Italy: Aldi preparing for launch into Italy
Italy: Crai and Coralis sign new collaboration agreement
Netherlands: Jumbo opens pop-up bus-stop shop
Poland: Carrefour Poland begins selling groceries online
Portugal: Jerónimo Martins reports 6.5% like-for-like growth
Spain: Lidl explores a potential online launch
UK: Aldi takes on the premium retailers with luxury hamper range
UK: Asda apologises for nationwide card glitch
UK: Birds Eye and Walkers request up to 12% price increases
UK: Booths slips into a pre-tax loss
UK: Iceland to reveal new store concept
UK: Lidl scales up expansion with £55m warehouse
UK: Morrisons like-for-like sales rise 1.6%
UK: Planet Organic introduces mobile wallet
UK: Sainsbury's
…finally rolls out contactless as Tesco trials Tap&Tag
…like-for-like sales dip 1%
…opens first mini-Habitat concession
…pension deficit swells to £1bn
UK: Supermarkets to benefit from fall in business rates
UK: Tesco
…and Unilever in price dispute
…and Unilever settle dispute
…chairman warns of price rises
…faces court battle over pay changes
…joins Waitrose in launching meal kit range
 OTHER FOOD AND DRINK SPECIALISTS
UK: Conviviality Retail sales rise 2.5%
UK: Hotel Chocolat sales rise 12%
UK: Majestic Wine launches new delivery options
NEWS ANALYSIS – NON-FOOD
 CLOTHING RETAILING
Germany: Hugo Boss sales fall in challenging market
Netherlands: The Sting opens new menswear fascia
UK: Abercrombie & Fitch rebrands to become more inclusive
UK: All Saints sales rise amid global expansion
UK: American Apparel UK stores to close as it enters administration
UK: Banana Republic to close all UK stores
UK: Bhs
…owners reveal international expansion plans
…unveils new clothing range
…launches first two Christmas ranges
UK: Burberry
…reports strong UK sales
…retail revenues rise 2%
…takes over Harrods with ‘A Very British Fairy Tale’
UK: Concept store stocking Australian brands set for London launch
UK: Diesel opens its new London flagship
UK: Duke & Dexter opens first UK store
UK: Exhibit enters administration
UK: French Connection eyed by investors
UK: Kenzo collaboration results in overnight queues outside H&M
UK: Matalan revenues fall 6.2%
UK: Mothercare adds Boohoo maternity range
UK: New Look reports 8.8% decline in like-for-like sales
UK: Next Q3 sales fall 3.5%
UK: Primark full-year revenues rise 11%
UK: Retailers expected to raise prices by 5%
UK: SuperGroup reports strong first half
UK: Ted Baker
…delivers good performance across markets
…partners with Google on voice recognition campaign
UK: TK Maxx profits jump 11%
UK: Whistles reports full-year loss of £2.9m
 FOOTWEAR RETAILING
UK: Footasylum sales surge 41.6%
UK: Kurt Geiger turnover rises 10%
UK: Shoe Zone sales fall 4.1%
 MULTI-SECTOR RETAILING
UK: John Lewis
…picks JLab winners
…Retail Director moves to Moneysupermarket.com
UK: Marks & Spencer
…to scale back European operations
…to close a raft of stores in China
…announces store closures as clothing sales fall 5.3%
UK: Poundland trials Pep&Co offering
 DEPARTMENT STORES
Denmark: Magasin du Nord to open seventh department store
UK: Debenhams UK sales rise 1.2%
UK: Fenwick to relaunch transactional presence online
UK: Harrods
…profits surge 16.9%
…refits men's underwear department
UK: John Lewis
…appoints new managing director
…opens in Leeds
…unveils Christmas advert
UK: Liberty managing director moves to the Hudson Bay Company
UK: Selfridges grows sales 5%
UK: Victoria Gate shopping centre opens in Leeds
 DIY RETAILING
Germany: Praktiker brand returns online
UK: Bunnings prepares for first UK store
UK: Travis Perkins retail sales grow 9.1%
UK: Wickes introduces one hour delivery slots
 ELECTRICAL RETAILING
Europe: Redcoon websites closed in certain markets
Finland: Verkkokauppa.com sales up 11%
France: Darty Fnac comparable sales fall
Germany: Metro Group sales grow 0.2%
 CARPET RETAILING
UK: Carpetright sales fall 2.7%
 FURNITURE RETAILING
Denmark: JYSK expects strong sales in the Nordics
UK: Furniture Village grows sales as it invests for growth
 HOMEWARES RETAILING
UK: Oliver Bonas like-for-like sales rise 14%
 HOME SHOPPING
Europe: Yoox Net-a-Porter Q3 sales rise 19%
France: Vente-privee acquires Polish competitor
Germany: Zalando
…revenues jump 17.1%
…raises profit forecast
…trials independent retailer partnership
UK: Amazon
…announces twelve-day Black Friday Sale
…extends Prime to include local stores
UK: Asos full-year sales grow 26%
UK: Gear4Music growth in Europe accelerates
UK: Missguided launches referral rewards scheme
UK: N Brown profits fall in promotion-led market
UK: Shop Direct launches Whatsapp-style customer service platform
 HEALTH & BEAUTY RETAILING
UK: Walgreens Boots Alliance sales fall due to weak UK performance
 BOOK AND STATIONERY RETAILING
UK: Paperchase poised to open first US stores in 2017
UK: WH Smith operating profits rise 7%
 SPORTS AND LEISURE GOODS RETAILING
Europe: Asics Europe retail sales rise 16%
Spain: Decathlon doubles its Decathlon City business
UK: Halfords revenues rise but profits fall
UK: Jaguar Land Rover store opens in Westfield Stratford
UK: Mountain Warehouse halts IPO plans after Brexit vote
UK: Rapha Cycling sales grow 25.6%
UK: Sports Direct issues third profit warning this year
 JEWELLERS
Denmark: Pandora’s revenues increase 18%
 TOYS AND GAMES RETAILING
Cyprus: The Entertainer ties up with Debenhams in Cyprus
UK: GAME sales and profits fall
UK: Hamleys sales fall following a change in reporting period
 SHOPPING LOCATIONS
UK: Brent Cross shopping centre to receive £1.4 billion investment
UK: Carnaby Street collaborates with V&A for Christmas
UK: Centre:mk hosts Live in Style event
UK: Intu sells Bromley shopping centre
 ECONOMY
UK: BRC
…cites need for consumer-first Brexit strategy
…warns of long term retail job losses
UK: Retail footfall drops 0.9% in September
UK: Retail price deflation continues into October
UK: Retail sales grow 2.4% in October
UK: Retail sales grow 2.9% in September
UK: Retail sales rise by highest level in September
SCHWARZ GROUP (LIDL, KAUFLAND)
What we think
Chasing Aldi in key markets
Changing strategy in France
Plans to break America
Tentative moves online
The Lidl shopper
Company background
Company performance
Figure 5: Schwarz Group: Group sales performance, 2011/12-2015/16
Figure 6: Schwarz Group: Outlet data, 2011/12-2015/16
Retail offering