UK Retail Briefing - April 2017

ANALYST COMMENT
Food retailers – time to take stock
Latest figures
Figure 1: Leading food retailers: Latest sales performance, 2016-17
Co-op staging a strong recovery
Tesco recovery no flash in the pan
Morrisons recovery also looks soundly based
Sainsbury’s lagging behind
Asda neglecting the basics
Where next?
Innovations
RETAIL SALES
Key points
Retail sales
Figure 2: Retail sales trends, 2016/17
Figure 3: UK retail sales y/y growth, BRC vs ONS, Jan 2015-Mar 2017
John Lewis
Inflation and wages
Figure 4: Real wages growth: Wages growth vs inflation, 2012-17
Rising inflation
Figure 5: Annual percentage change in the consumer price index for selected product groups, 2016-17
Looking forward
SECTOR FOCUS – ELECTRICALS RETAILING
Spending data- recovery in 2016
Figure 6: Spending on electricals by main product categories, 2016
Figure 7: Main electricals sub-sectors, growth 2012-2016 and 2015-2016
Figure 8: Major electricals sector, quarterly performance, 2014-2016
Black Friday
Figure 9: Final quarter spending on electricals as proportion of full year: deviation from the average, 2009-2016
Retail sales
Figure 10: Electricals retailers year on year growth, 2015-17
Online
Figure 11: Leading online retailers estimated shares of online spending on electrical goods, 2016
Inflation
Figure 12: Annual % change in the price of electricals goods categories, Mar 2016- Mar 2017
Where next?
HEADLINES FOR THE MONTH
Grocers
Clothing and footwear retailers
Department stores
DIY retailing
Book retailing
Economy
NEWS ANALYSIS – FOOD AND DRINK
 CONVENIENCE STORES
UK: Booker sales hit by new Tobacco legislation
UK: Budgens operator falls into administration
 GROCERS
UK: Booths to enter joint venture in Malaysia
UK: Brait abandons plans to list on the London Stock Exchange
UK: Morrisons
…outshines the ‘big four’, industry figures suggest
…achieves first comparable sales and profit growth since 2012
…launches in-store Indian takeaway concept
UK: Nisa Q4 sales increase 2.2%
UK: Sainsbury's
…and Argos combined like-for-like sales rise 0.3%
…launches weather-activated digital campaign
…set to axe Phone Shops
…teams up with Graduate Fashion Week on high-end range
UK: Tesco
…agrees to pay £129m fine
…CEO reiterates commitment to Booker deal
…faces pressure to close stores amid Booker takeover
…to restructure international executive team
UK: The Co-op reports "exceptional" yearly results
UK: Waitrose to host supper club in new store
NEWS ANALYSIS - NON-FOOD
 CLOTHING AND FOOTWEAR RETAILING
UK: Ann Summers turnover declines 3%
UK: Blue Inc
…CVA labelled a 'stay of execution'
…files for a CVA
UK: Brantano falls into administration
UK: Burberry licenses beauty business to Coty
UK: Canada Goose set to open first UK store
UK: Edinburgh Woollen Mill
…likely to buy Jaeger
…to roll out department store concept
UK: French Connection revenues fall 6.7%
UK: Gap launches new concept store in Bluewater
UK: H&M
…sales up 7% in Q1
…to open largest UK store
UK: Hugo Boss acts to stabilise declining sales
UK: Jaeger likely to fall into administration
UK: Jones Bootmaker
…heading for administration
…sold to private equity firm Endless
UK: Lavitta closes all stores after a year in operation
UK: Matalan launches in Eastern Europe
UK: Moss Bros
…revenue rises 5.7%
…targets young men with prom campaign
UK: Mothercare delivers solid quarterly performance
UK: Next sales level for the year
UK: Primark owner seeks new chairman
UK: Shoe Zone eyes Brantano takeover
UK: Ted Baker
…launches interactive window campaign
…sales rise 16.4%
UK: The White Company expands US presence
UK: Topshop managing director heads to The White Company
 MULTI-SECTOR RETAILING
UK: 99p Stores falls into administration
UK: The Original Factory Shop CEO steps down
 DEPARTMENT STORES
UK: Debenhams adds Preen to the Designers at Debenhams collection
UK: House of Fraser unveils new vision
UK: John Lewis
…CEO Paula Nickolds warns of further job cuts
…full-year sales rise 3.2%
…invests in Edinburgh store
…launches own denim lifestyle brand
 DIY RETAILING
UK: Bunnings plans online launch
UK: Kingfisher like-for-likes rise 2.3%
UK: ManoMano gains a foothold in the UK DIY market
UK: Topps Tiles like-for-like sale decrease 1.9%
 FURNITURE RETAILING
UK: DFS half-year revenue boosted by new stores
UK: ScS posts rise in sales and profits
UK: Sharps
…launches shopping centre presence in Intu malls
UK: Sharps
…put up for sale
UK: The Range reveals plans for new headquarters
 HOME SHOPPING
UK: AO revenues up 17% but profits fall to zero
UK: Asos revenues rise 37%
UK: Farfetch launches Middle-Eastern designer collections
UK: HelloFresh now available at Sainsbury’s
UK: Net-a-Porter develops personal services for top customers
UK: Ocado retail sales rise 13.1%
 HEALTH & BEAUTY RETAILING
UK: Feelunique acquires The Beautyist
UK: Lush ‘reviews options’ for growth outside the UK
 BOOK AND STATIONERY RETAILING
UK: Card Factory revenue up 4.3%
UK: Clintons unveils new fascia
UK: Foyles sales rise 2.7%
UK: Rebranded Staples stores to lease space in larger shops
 SPORTS AND LEISURE GOODS RETAILING
UK: Reebok launches first knitted footwear range
 MUSIC AND GAME RETAILING
UK: Game revenues fall in a challenging market
 LUXURY GOODS RETAILERS
UK: Hermés reports strong sales and profit growth
UK: Luxury marketplace for modest fashion launches
UK: Matches Fashion revenues jump 61%
 JEWELLERS
UK: Signet Jewellers reports challenging fourth quarter
 PET RETAILING
UK: Pets at Home introduces 'peternity' leave for staff
 SHOPPING LOCATIONS
UK: Intu acquires shopping centre in Madrid
UK: London's New West End to host 'smart street'
UK: Oaktree to sell three UK shopping centres
UK: White Rose shopping centre reveals major extension plans
 ECONOMY
UK: Food prices rise sharply in March
UK: Parliamentary inquiry launched to investigate business rates
UK: Retail footfall down 1% in February
UK: Retail sales rise 4.7% in February
UK: Springboard forecasts 5.4% Easter footfall boost
UK: Visa reports slowing consumer spending