European Retail Briefing - February 2017

ANALYST COMMENT
Online beauty retailer to open bricks and mortar store in Paris
Stores and online are complementary
What can stores do?
What can online retailers do?
France is a key beauty market
Figure 1: France: attitudes to shopping for beauty products, by age, November 2016
Stores can offer subscription box companies new revenue streams
RETAIL SALES
Key points
The UK is the only country to have reported figures for January 2017
France and Italy are yet to report numbers for December.
Figure 2: Major European economies: year-on-year retail sales value growth, 2014-16
Figure 3: Major European economies: year-on-year retail sales volume growth, 2014-16
Inflation
Figure 4: Major European economies: all items CPI, 2015-16
Figure 5: Major European economies: food price inflation, 2015-16
HEADLINES FOR THE MONTH
Grocers
Clothing retailers
Electrical retailing
Home shopping
Health and beauty retailing
NEWS ANALYSIS – FOOD AND DRINK
 CONVENIENCE STORES
UK: Spar warns of slowdown in the convenience sector
 GROCERS
France: Auchan hypermarket sales fall marginally in 2016
France: Carrefour reports 3.3% full year growth
France: Casino resumes like-for-like growth in France
France: E.Leclerc
…growth driven by hypermarkets
…full-year sales up 2.7%
Germany: Metro Group gives a weak Christmas performance
Ireland: Centra announces investment plan after sales rise
Italy: Conad reports growth in private label range
Netherlands: Albert Heijn launches cooking channel
Netherlands: Ahold Delhaize reports strong sales growth in the fourth quarter
Portugal: Jerónimo Martins performance boosted by Biedronka
Sweden: ICA replaces food labels with laser marking
Switzerland: Lidl Switzerland aims to set an example in sustainability
UK: Aldi steps up to fifth in the UK grocery market
UK: Iceland reports strong Christmas trading period
UK: Lidl boasts “most successful” Christmas ever
UK: Morrisons
…like-for-likes rise 2.9%
…partners with food sharing app
UK: Sainsbury’s and Argos like-for-likes up 1.0%
UK: Sir Ken Morrison passes away
UK: Supermarkets criticised for wasteful food deals online
UK: Supermarkets partake in project encouraging people to eat less meat
UK: Tesco
…Christmas results lifted by fresh food sales
…introduces PayQwiq payment to entire estate
…launches one-hour delivery in London
….to purchase Booker Group for £3.7bn
UK: The Co-op's Richard Pennycook to stand down
UK: Waitrose reportedly closing up to six stores
 OTHER FOOD AND DRINK SPECIALISTS
UK: Conviviality Retail returns to profit in the second half
UK: Greggs ends the year ahead of expectations
UK: Hotel Chocolat shoppers trade up to higher-priced gifts
UK: Majestic Wine sales up but profits dip
NEWS ANALYSIS –NON-FOOD
 CLOTHING RETAILING
Europe: H&M
…profits fall amid increased markdown
…sales slow over Christmas
Europe: Stradivarius to launch menswear this week
France: Vivarte to sell André and Naf Naf footwear chains
Germany: Hugo Boss Q4 revenues decline 3%
Germany: Upim to expand into Germany
Spain: C&A plans Spanish store closures
Switzerland: Charles Vögele strikes a deal to sell German stores
UK: Abercrombie & Fitch creates new store format
UK: Agent Provocateur receives high level of bidder interest
UK: Ann Summers reports surging sales over Christmas
UK: Bhs investigation could last until 2019
UK: Bonmarché sales rise 3.3%
UK: Burberry's UK retail sales surge 40%
UK: Fat Face delivers 7.9% growth in full-price sales
UK: H&M expands Weekday fascia
UK: Hobbs sales rise 3.9%
UK: Jack Wills reports modest like-for-like growth
UK: Jaeger seeks investors amid strategic turnaround
UK: Jimmy Choo boosted by strong growth in Asia
UK: Joules
…delivers strong Christmas trading results
…performs well over the first half
UK: Matalan full-price sales rise 29.1%, but total sales fall
UK: Moss Bros like-for-likes rise 6.1%
UK: Mothercare UK sales return to growth
UK: New Look
…hires new digital director
…sales and profits drop in Q3
UK: Pep&Co to raise retail prices
UK: Primark sales up driven by increased selling space
UK: Radley delivers rise 9% over Christmas
UK: Reiss turnaround leads to 19.7% sales rise
UK: Snapchat extends retailers' advertising limit
UK: SuperGroup report strong trading result in H1
UK: Ted Baker's retail sales surge 17.9%
UK: Topshop sales fall by around 11% over Christmas
UK: Under Armour looking to purchase French Connection store
 FOOTWEAR RETAILING
Belgium: Eram to exit Belgium
UK: Office profits hit by sale to Truworths
UK: Shoe Zone profits rise 1.1%
 MULTI-SECTOR RETAILING
Belgium: Blokker announces 69 store closures
Germany: Metro Group reports 'stable' sales
Netherlands: HEMA to roll out international store format
UK: GHM discount stores will become Poundland shops
UK: John Lewis sales rise 4.9% during Christmas trading period
UK: Marks and Spencer clothing sales return to growth
UK: Poundland to cease trading online
 DEPARTMENT STORES
UK: Debenhams
…Christmas performance boosted by beauty and gifting
…to stock modest fashion brand
UK: Fortnum & Mason December results boosted by online
UK: House of Fraser
…reports strong online performance
…to anchor £300m Chester project
UK: John Lewis sales rise 4.9% during Christmas trading period
 DIY RETAILING
UK: Bunnings
…ends zero-hour contracts
…first UK store opens its doors
UK: Screwfix opens 500th store
UK: Topps Tiles reports soft results
 ELECTRICAL RETAILING
France: Fnac gains approval to open on Sundays
Germany: Media-Markt launches technology rental service
Germany: Metro Group
…gives a weak Christmas performance
…reports 'stable' sales
UK: BrightHouse to close 28 stores following tough trading
UK: Dixons Carphone reports 8% growth
UK: GAME suffers a decline amid lack of new launches
 CARPET RETAILING
UK: Carpetright returns to quarterly UK growth
 FURNITURE RETAILING
Germany: Upim to expand into Germany
UK: DFS on track with 7% sales growth
UK: Dreams prepares for £400m sale
UK: Habitat trials new standalone format in Leeds
UK: Ikea
…acquires stake in recycling plant
…plans most sustainable store in Greenwich
UK: ScS like-for-like orders rise 2.7%
 HOMEWARES RETAILING
UK: Dunelm
…like-for-like store sales fall 3.1%
…Q2 sales rise 6.6%
UK: Wyevale Gardens launches new website
 HOME SHOPPING
Europe: Yoox Net-a-Porter sales advance 12.4%
France: 3 Suisses to be bought out by Domoti
Germany: Zalando
…prioritises deliveries to drive repeat custom
…sales top €1bn
UK: Amazon Go reportedly looking for London store space
UK: AO sales grow in Q3 but warn on future uncertainty
UK: Asos sales surge 36%
UK: Boohoo
…gains approval for Nasty Gal acquisition
…revenues surge 55%
UK: Findel strengthens in the second half
UK: N Brown revenues rise 4.1%
UK: Ocado
…retail sales rise 13.6%
…sells salad from underground London farm
UK: Overseas online interest in British brands on the rise
UK: Shop Direct
…owners reportedly mulling sale or flotation
…9% sales growth driven by Very
UK: Sofa.com sales jump 28% following showroom openings
UK: Visits to UK retail websites reach 4.6 billion in December
 HEALTH AND BEAUTY RETAILING
France: Birchbox to open second physical store
Germany: Douglas enjoys strong performances in Germany and France
Germany: Sephora to return to German market through Kaufhof
UK: L'Oreal considering selling The Body Shop
UK: Superdrug sales boosted by make-up trends
 LUXURY GOODS RETAILING
Europe: Louis Vuitton global revenues rise by 5%
Europe: Vestaire Collective secures funding for growth
UK: MatchesFashion boosted my mobile app sales
UK: New West End Company reports strong Chinese New Year sales
 BOOK AND STATIONERY RETAILING
UK: Card Factory ends the year up 0.4% like-for-like
UK: Waterstones generates first pre-tax profit for seven years
UK: WH Smith travel revenues offset declines in high street
 SPORTS AND LEISURE GOODS RETAILING
UK: JD reports a strong Christmas period
 JEWELLERS
UK/Europe: Pandora
…revenues rise 21% in 2016
…rolls out digital receipts
UK: Signet
…UK division falls into a like-for-like decline
…restructures to focus on omnichannel
 TOYS AND GAMES RETAILING
UK: Hornby's turnaround plan progresses
UK: The Entertainer
…develops new franchise partner
….Christmas sales climb 13.5%
UK: Toy prices set to rise around 15%
 AUTOMOTIVE RETAILING
UK: Halfords retail sales accelerate in Q3
 PET RETAILING
UK: Pets at Home merchandise sales softer than anticipated
 SHOPPING LOCATIONS
UK: Centre:mk announces £60m investment
UK: High street footfall rises for first time in five years
UK: Intu reports increase in festive footfall
UK: Outlet village operator reports 6.7% sales rise
 ECONOMY
UK: Retail sales growth slows to 0.1% in January
UK: Retail sales rise by 7.1% in December
UK: Retail sales up 1.0% in December
A. S. WATSON (EUROPE)
What we think
Solid performance
Service
New outlets
Marionnaud
Company background
Marionnaud
Company performance
Figure 6: A. S. Watson (Europe): group financial performance, 2011-15
Figure 7: A. S. Watson (Europe): outlet data, 2011-15
Retail offering
Continental Europe
UK