European Retail Briefing - September  2019

ANALYST COMMENT – ZALANDO INCREASES ITS ENGAGEMENT IN CIRCULAR FASHION
What we've seen
The current challenges of the clothing industry
Sustainability through circular fashion
Figure 1: Flowchart example for production and reuse in circular fashion
Leading players sign the ‘G7 Fashion Pact’
German online retailer Zalando contributes to circular fashion
What it means
EUROPEAN RETAIL SALES
Key points
Figure 2: Major European economies:  Year-on-year retail sales value growth, 2018-19
Figure 3: Major European economies:  Year-on-year retail sales volume growth, 2018-19
Inflation
Figure 4: Major European economies:  All items CPI, 2018-19
Figure 5: Major European economies:  Food price inflation, 2018-19
LAUNCH ACTIVITY AND INNOVATIONS
France: Carrefour
…reopens Evere hypermarket with new bio zone and cafe concepts
…unveils its new Next Concept at the hypermarket Toison d'Or in Dijon
France: Casino trials IKEA’s click and collect service at hypermarkets
Belgium: IKEA opens pop-up store in Leuven
HEADLINES FOR THE MONTH
Convenience stores
Grocers
Clothing retailing
Mixed goods retailing
Department stores
Electrical retailing
Furniture retailing
Online retailing
Health & beauty retailing
NEWS ANALYSIS – FOOD AND DRINK
 CONVENIENCE STORES
Austria: Spar Express to expand in Austria
UK: McColl Q3 sales fall 2.2%
UK: Nisa rolls out self-service checkouts
 GROCERS
France:  Organic farming specialist, Comptoirs de la Bio to open 34 new stores by the end of 2019
France: Carrefour
…opens two Supeco stores in the north of France
…to launch Supeco in France
France:  Casino
…raises offer price to buy Exito’s 50% stake in GPA
…to launch self-service checkout tills for hypermarket visitors on Sundays
France: Colruyt expansion plans in France aims for 7 store openings per year
France: French supermarket group Cora sees sales fall 1.5%
Germany: Aldi Nord launches sustainable cotton buds in its stores
Hungary: 210 jobs at risk under Match and Smatch restructuring plan
Luxembourg: Lidl trial to reduce food waste
Netherlands: Albert Heijn trials automated shop
Netherlands: Jumbo Foodmarkt trials meal delivery service
Netherlands: Lidl opens first energy circular store
Norway: NorgesGruppen posts 2.5% rise in sales in H1 results
Sweden: Coop Sverige rolls out same-day delivery service in greater Stockholm
Sweden: ICA sees sales rise 3.9% in H1
UK: Aldi
…loses court battle over look-a-like make-up line
…to be the first to scrap plastic on tinned tuna
UK: Asda
…launches second-hand pop-up shop
…sales benefit from late falling Easter
UK: Lidl reminds its suppliers to cover no-deal Brexit costs
UK: Morrison plans closure of four branches risking 400 jobs
UK: Sainsbury’s launches Hero themed collector cards promo with Disney
UK: Tesco to ban brands from its shelves that use excessive plastic packaging
 OFF-LICENCES
UK: Former boss John Colley to return to Majestic Wine
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
Austria: Austria’s largest H&M store to be opened
Netherlands: Miller & Monroe no more and parent company leaves a debt of €43 million
Spain: Mango sales edge up in 2018
UK: Ann Summers secures rent deals on 95 shops
UK: Arcadia
…posts huge losses in latest full-year results
…US landlords drop CVA challenges against Arcadia
UK: Flannels opens first London store
UK: Guess second-quarter net revenue reaches £557.69 million
UK: H&M
…teams up with brand Richard Allan
…demands turnover-rents from landlords to cut costs
…launches music partnership as part of new loyalty scheme
UK: Monsoon Accessorize faces legal challenge to its CVA
UK: New Look launches vegan collection
UK: Primark
…full-year results rise 3%
…plans to roll out food and drink formats
…to train 160,000 farmers as part of its Sustainable Cotton Programme
UK: Pull & Bear opens new larger store in Liverpool ONE
UK: Reiss H1 sales rise 23.7%
UK: River Island seeks to cut rents by 40%
UK: Superdry appoints IMG as new licensing partner
UK: Ted Baker
…appoints Next as new childrenswear licensing partner
…signs licensing deal with Japanese partner Sojitz Infinity
UK: Trading update from Quiz expects the retailer to return to profits despite tough trading
 FOOTWEAR RETAILING
UK: Clarks seeks 30% rent reductions
UK: Dr Martens profits and sales soar
UK: Office considers 15 store closures
UK: Puma launches Endorphin Store in Shoreditch London
UK: Schuh calls in KPMG
UK: Shoe Zone issues profit warning
 SHOPPING CENTRES
UK: Unibail-Rodamco-Westfield sees footfall grow over the summer
NEWS ANALYSIS – MIXED GOODS 
Europe: Poundland owner considers €4bn sale or flotation
UK: Poundland
…releases positive results with revenue growing 3%
…to trial prices below £1
 MULTI-SECTOR RETAILING
UK: Halford sales fall 3.2%
 DEPARTMENT STORES
Germany: Karstadt Kaufhof scraps plastic bags
Netherlands: De Bijenkorf posts revenue growth of 15%
UK: Debenhams seeks counsel from Deloitte as its CVA is challenged by one of its landlords
NEWS ANALYSIS – HOUSEHOLD GOODS
 DIY RETAILING
Sweden: Clas Ohlson posts 4% increase in sales
 ELECTRICAL RETAILING
Germany: Mediamarkt and Saturn post small turnover growth
UK: Currys PC to sell Amazon Fire TV’s in UK
UK: Dixons Carphone posts a rise in like-for-like sales of 2%
 MUSIC AND VIDEO GOODS RETAILING
UK: HMV to open giant concept store in Birmingham
 FURNITURE RETAILING
France: Steinhoff to cut jobs at Conforama in France to reduce $10bn debt
Ireland:  Danish household retailer JYSK confirms plans to open 40 stores in Ireland
UK: Dunhelm celebrates 40 years of trading and sees 10.7% rise in sales
UK: Emma Mattress reveals partnership with John Lewis
UK: Giorgetti, Italian furniture retailer opens first UK store
UK:  Laura Ashley posts a pre-tax loss of £14.3 million
NEWS ANALYSIS – ONLINE
Belgium: Electrical specialist Coolblue to open new store in Belgium
Belgium: Made.com furniture retailer, sets up a logistics centre in Antwerp
France: Zalando to deliver orders from Adidas website
Germany: Deliveroo exits Germany
Germany:  Zalando
…trials robots for customer orders
…trials a second-hand store in Berlin
Germany: Zooplus sees sales increase by 13%
Spain: Alibaba opens its first AliExpress store in Spain
UK: Amazon
…opens its first Clicks & Mortar store in Scotland
…under fire for non-recyclable packaging
UK: Angling Direct sees sales grow 21%
UK: ASOS
…asks its suppliers for discounts
…criticised for labelling women's size 14 as XL
UK: Boohoo raises full-year outlook
UK: Shop Direct to sell Topshop lines for the first time
UK: MySale seeks £10m funding from share placing
NEWS ANALYSIS – OTHER RETAIL
 HEALTH & BEAUTY RETAILING
Germany: Perfumery chain Douglas sees 5.1% revenue growth
UK: Superdrug bucks high street trend of store closures with 13 new stores
 BOOK AND STATIONERY RETAILING
UK: Card Factory see sales rise
UK: Totally Wicked products available at WHSmith stores
UK: WHSmith
…opens first UK InMotion store
…releases a positive pre-close trading update
 SPORTS AND LEISURE GOODS RETAILING
UK: JD Sports posts 46.9% increase in group sales
UK: Sports Direct closes eight Jack Wills stores and warns of more closures
 JEWELLERS
UK: Links London in the race to find a buyer
UK: Watches of Switzerland surpasses £200m mark in Q1 results
 TOYS AND GAMES RETAILING
UK: Toy specialist Hawkin’s Bazaar up for sale
NEWS ANALYSIS – ECONOMY
UK: BRC figures for August flatlines
UK: Prominent retailers come together demanding kinder business rates
UK: Retail sales climb 3.7% in July