European Retail Briefing - May 2018

ANALYST COMMENT – ICA PARTNERS WITH OCADO
 THIRD MAJOR DEAL
Market leader in Sweden
Figure 1: ICA group, 2017
Late in
 TIME TO PUT IT ON A SOUND FOOTING
Protecting the relationship with its store owners
Where next?
Win Win
EUROPEAN RETAIL SALES
Key points
Figure 2: Major European economies: year-on-year retail sales value growth, 2017-18
Figure 3: Major European economies: year-on-year retail sales volume growth, 2017-18
Inflation
Figure 4: Major European economies: All items CPI, 2017-18
Figure 5: Major European economies: food price inflation, 2017-18
INNOVATIONS AND LAUNCH ACTIVITY
Belgium: Ahold Delhaize creates craft beer for charity
France: Crayola and ASOS to offer makeup range
Netherlands: Albert Heijn trials app to calculate ideal in-store shopping route
Switzerland: Migros launches collaborative delivery by customers
UK: H&M to collaborate with MOSCHINO
UK: Iceland launches first online store in China on JD.com
HEADLINES FOR THE MONTH
Food and Drink
Clothing and Footwear
Home and Household Goods
Online
Other retailing
Economy
NEWS ANALYSIS – FOOD AND DRINK
Austria: Interspar introduces reusable fruit and vegetable bags
Belgium: Colruyt starts five year anti-littering campaign
Finland: S Group to install solar panels on 40 stores
France: Carrefour…
…and Systéme U enter purchasing agreement to help French agriculture
…opens ‘pedestrian drive’ outlets in Paris
…sales edge up in Q1
France: Groupe Casino sales up thanks to hypermarkets in Q1
France: Intermarché pilots delivery by customers
Germany: Metro downgrades profit expectations for the year
Germany: Penny to make frozen food packaging more sustainable
Germany: REWE Group revenue rises as profit falls by a quarter in 2017
Netherlands: Ahold Delhaize sales up 2.5% in Q1
Portugal: Continente turns end of shelf life bananas into cake
Portugal: Jerónimo Martins sales up in Q1 thanks to strong demand in Poland
Spain: Carrefour introduces insect-based food
Spain: Mercadona replaces plastic shopping bags with paper ones
Sweden: ICA Gruppen sales up 5.8% in Q1
Switzerland: Lidl starts to sell cannabis as law changes
UK: Co-op…
…launches new mobile site to help staff manage shifts online
…takeover of Nisa given green light by watchdog
…trials robot delivery in Milton Keynes
UK: Holland & Barrett sales rise as profits fall over 2017
UK: Greggs sales up but outlook remains cautious
UK: Iceland to cut palm oil from all own-brand products
UK: Majestic Wine accelerates growth plans
UK: Marks & Spencer…
…launches new in-store marketing campaign
…to close Warrington distribution centre
UK: Merchant Gourmet launches pop-up in Waitrose store
UK: Morrisons sales up 3.6% in Q1
UK: Nisa…
…former Tesco boss becomes new Nisa CEO
…sales up thanks to store acquisitions from Palmer & Harvey
UK: Sainsbury’s…
…drops project to halve household food waste
…offers ‘touch-free’ meat packaging
…sales up 9% in 2017
…trials London delivery with electric cargo bikes
…and Asda propose merger
UK: Tesco…
…launches smaller wine bottles aimed at millennials
…produces juices made from ‘wonky’ produce
…profits soar in 2017
UK: Waitrose to remove all disposable coffee cups by autumn 2018
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
France: Gucci drives strong Kering Q1 sales
Germany: Hugo Boss sales up in Q1
UK: American Apparel to relaunch in the UK
UK: app for recycling unwanted clothes in exchange for discounts launches
UK: Bench calls in administrators
UK: boohoo profit up 40% over 2017 as revenue soars
UK: Bonmarché store sales fall as online rises in 2017
UK: Burberry to examine fur policy
UK: East to cease trading in May after failing to find a buyer
UK: French Connection to sell Toast brand
UK: Jacques Vert and Precis owner set to appoint administrators
UK: JD Sports…
…opens store in airport
…sales and profits soar over 2017
UK: Mothercare sales fall as footfall suffers in Q4
UK: N Brown…
…sales edge up as profit falls in 2017
…to stock Quiz range
UK: new concept store to support emerging designers opens in London
UK: New Look sees credit insurance cut
UK: Next first quarter sales rise 6%
UK: Primark profits hold firm as like-for-likes fall in H1
UK: Quiz…
…expands into menswear
…sales grow 30% in 2017
UK: River Island to launch an online third-party brand store
UK: Select opts for CVA and says no stores will be closed
UK: Simply Be unveils customer rewards scheme
UK: Yours Clothing revenue rises 22% over 2017
NEWS ANALYSIS – HOME AND HOUSEHOLD GOODS
 CARPET RETAILING
UK: Carpetright…
…creditors approve CVA and close 81 stores
…issues profit warning and shareholders approve CVA
…to close 92 stores as part of proposed CVA
…hedge fund doubles Carpetright stake ahead of CVA vote
UK: Tapi in talks to buy Carpetright stores
 DIY RETAILING
Finland: Kesko sales down but profits up in Q1
France: Mr Bricolage sales hit by bad weather
UK: Bunnings UK sales fall 13.5% in Q3
UK: Homebase…
…former Comet owner targets Homebase
…sale advertised with gift to entice bidders
UK: Travis Perkins sales up in Q1
 ELECTRICAL RETAILING
France: Fnac Darty sales edge up in Q1
Spain: MediaMarkt rolls out 1,900 pick-up points in collaboration with Seur
UK: Alex Baldock enacts changes at the top of Dixons Carphone
UK: Jessops launches new store format
UK: Mike Ashley now GAME’s largest single shareholder
 HOMEWARES RETAILING
UK: Dunelm revenue rises in Q3
UK: House opens first three stores in the UK
NEWS ANALYSIS – ONLINE
Germany: Zalando revenue rises in Q1
UK: ASOS…
…sales up 27% as it passes one billion site visits
…to launch own-brand homewares range
UK: click-and-collect company Doddle launches Facebook chatbot for returns
UK: Kleeneze enters administration
UK: Ocado partners with Swedish grocer ICA
UK: Swoon…
…launches pop-up shop amid brand overhaul
…sales grow 83% in 2017
NEWS ANALYSIS – OTHER RETAILING
 BOOK AND STATIONERY RETAILING
UK: Card Factory profits down over 2017
UK: Waterstones sold to Elliott Advisors
UK: WH Smith sales remain flat despite strong travel performance in H1
 DEPARTMENT STORES
UK: Debenhams…
…suffers severe profit loss of 85% over first half year
…to offer a global money transfer service
UK: Harrods inaugurates its first luxury charity shop
UK: House of Fraser…
…drafts in KPMG to help with restructuring
…to close stores as part of CVA
…to launch premium Chinese brands
UK: John Lewis runs year-long start-up incubator
UK: Selfridges launches first cinema advertising campaign
 GARDEN RETAILING
UK: Carol Paris receives backing to set up new garden centre group
UK: Cherry Lane acquires David’s Nurseries
 HEALTH & BEAUTY RETAILING
UK: FeelUnique introduces pre-orders for cult beauty products
UK: The Fragrance Shop sales increase 6% over 2017
 LUXURY RETAILING
France: LVMH retailer revenue grows 9% in Q1
France: Gucci drives strong Kering Q1 sales
Italy: Richemont completes takeover of Yoox Net-A-Porter
Italy: Yoox Net-A-Porter adds jewellery platform to site ahead of Richemont takeover
 MIXED GOODS RETAILERS
UK: Tofs to close stores as part of turnaround plan
UK: Argos adds 150 new tech roles in London and Milton Keynes
UK: Poundworld considers closing up to 100 stores
 PET PRODUCT RETAILING
UK: Love My Human opens first physical store
 SHOPPING CENTRES
UK: Hammerson…
…rejects latest Klepierre takeover offer
…withdraws Intu takeover bid
 TOYS AND GAMES RETAILING
Germany: Smyths Toys acquires German Toys R Us business
NEWS ANALYSIS – ECONOMY
UK: April retail sales fall 3.1%
UK: footfall at lowest levels since end of 2010
UK: grocery regulator gives tentative green light to Sainsbury’s/Asda merger
UK: March retail sales up despite poor weather
UK: shop prices fall in April