European Retail Briefing - August 2011

Analyst Comment

2011: the year of uncertainty

What we’ve seen

The end of Europe as we know it?

A mixed bag

The good

The bad

The retailer response

What it means

Headlines for the Month

Grocers

Clothing retailing

Multi-sector retailing

Department stores

Mixed goods retailers

Electricals retailing

Home shopping

Health and beauty

Jewellery

Retail Sales Review

Key points

France

Inflation

Germany

Inflation

Italy

Inflation

Netherlands

Inflation

Spain

Inflation

UK

Inflation

News Analysis

Grocers

Austria: Spar to launch convenience store

France: Carrefour profits fall

France: Casino

…plans to take full control of Brazil's CBD

…reports rising sales

Germany: Rewe Group

…to sell Billa Italia

…Penny to focus on own brand

Latvia: Maxima Latvija sees dip in profits

Latvia: Rimi Latvia 2010 consolidated turnover down

Netherlands: C1000 to split up units after modest full year growth

Romania: Rewe to invest in Penny Chain

Russian Federation: O'Key reports strong second quarter

Russian Federation: X5 Retail and Magnit report strong growth

UK: Co-operative Food launches new Free From and Wholefoods ranges

UK: Iceland founder hires Rothschild

UK: Morrisons

…hopes to acquire Iceland stores

…is fastest growing of the big four retailers

UK: Nisa-Today to pay £5m to members following record performance

UK: Sainsbury's

…and Jamie Oliver split after 11 years

…launches non-food app

Ireland: Superquinn sold to the Musgrave group

UK: Tesco

…struggling to find partners in online venture

…superstore & retail park approved

…to offer customers free WiFi internet service

UK: Waitrose

…plots clothing launch

…sales grow in first half

UK: Whole Foods Market to expand north of the UK border

Food specialists

UK: Greggs reports profits fall but sales rise

UK: Thorntons’ like-for-like sales fall

Clothing retailing

France: Etam Group benefit from earlier sales period

Germany: Hugo Boss predicts positive second half of 2011

Italy: Benetton Group interim profits down

Spain: Inditex chairman steps down

Sweden: H&M

…like-for-likes fall 4%

…team up with David Beckham

UK: Aquascutum receives £8m loan

UK: Arcadia expects profits fall

UK: Bond Street Association campaign to smarten area up

UK: Burberry like-for-like up 15%

UK: Forever 21 opens in Oxford Street

UK: French Connection reports as expected first half results

UK: Hobbs aims to expand stores as range grows

UK: Jack Wills eyes sale or float next year

UK: Lipsy to open 40 international stores

UK: Matalan reports quarterly sales drop

UK: Next reports solid first half sales

UK: Nicole Farhi relocates London flagship store

UK: Primark sees strong sales growth but margins down

UK: River Island return to print ads

UK: SuperGroup more than doubles full-year profits

UK: Zara UK sees increase in sales and profits

Footwear retailing

Italy: Tod's Group reports 30% growth

Spain: Coolway to open UK store in Oxford Street

Multi-sector retailing

Czech Republic: Makro launches group discount site

Estonia: Tallinna Kaubamaja Group increases revenue by 4.6% in first half of 2011

Germany: Metro Group

…could sell Kaufhof to El Corte Ingles

…posts stable sales development

…Media-Saturn report loss

Europe: LVMH profits up as demand for luxury goods show no signs of slowing

France: PPR

…considering buying Brioni

…increases stake in Puma

…preparing to sell Redcats

UK: Marks & Spencer sales rise and group increases market share

Department stores

Finland: Stockmann issues profit warning

UK: Allders launches transactional website

UK: Debenhams

…completes £650m refinancing

UK: House of Fraser

…opening click-and-collect store

…sales up

UK: John Lewis to open 10 smaller stores

UK: Liberty to launch kidswear

UK: TJ Hughes

…begins store closures

…stores bought by Lewis's Home Retail

Mixed goods retailers

UK: Original Factory Shop posts fall in profits

Ireland: Poundland expands into Ireland

DIY retailing

Germany: Praktiker

…CEO resigns and share price in free fall

…posts a loss for the first half of 2011

UK: B&Q plans to lease products

UK: Kingfisher sales harmed by Focus collapse

UK: Robert Dyas could be sold

UK: Topps Tiles sees Q3 sales fall

UK: Travis Perkins reports 54% revenue increase

Miscellaneous specialists

UK: United Carpets reports level profits

UK: Carpetright reports 1.5% drop in group sales

UK: Mothercare UK sales hit by tough conditions

UK: Halfords like-for-like sales drop by 1.1%

Electricals retailing

Denmark: Skousen sold off to rival

France: Fnac five-year plan to lift flagging sales

UK: Best Buy to launch customer magazine

UK: Carphone Warehouse sees mixed quarter one results

UK: Comet

…bidders exit battle for store

…sets first-round bids deadline

UK: Dixons to open in Harrods

UK: Jessops post sales growth in first half of 2011

Furniture retailing

UK: Dreams' supplier cover cut by credit insurer

UK: Lombok closes half its estate

Homewares retailing

UK: Achica receives investment from Balderton Capital

UK: Cath Kidston hires Claire's Stores boss as CEO

UK: Garden Centre Group

…acquires Country Homes & Gardens

…sales up 8%

UK: The White Company

…EBITDA rises as boss plans exit

…opens second lifestyle store

Home shopping

France: Damartex reports slight growth

France: RueduCommerce sees sharp growth from La Galerie

UK: Amazon to open new UK fulfilment centre

UK: Asos sales rise 69%

UK: BrandAlley launches TV channel

UK: Findel group reports sales up 1.1%

UK: Flying Brands enters personalised cards market

UK: N Brown signs Flintoff as new face of Jacamo

UK: Ocado to open new distribution centre in Oxford

UK: Photobox buys Moonpig for £120m

UK: Wiggle sees increase in performances and expands into Holland

Health and beauty retailing

Poland: PGF seeks one more deal this year

UK: Superdrug's Beautycard sees 4m sign up

UK: The Fragrance Shop reports rising profits

Book and stationery retailing

UK: Card Factory acquires online rival

UK: Clintons gets new CEO from October 2011

UK: HobbyCraft reports 13% sales increase

UK: Paperchase profits hit by Borders fall

UK: The Works targets online

Sports and leisure goods retailing

Europe: Go Sport Group reduces its net loss

Germany: Intersport Deutschland first-half sales down

UK: Blacks

…potentially taken over by Mike Ashley

…sales fall

UK: JJB Sports

…makes "good progress" in turnaround plan

…saves itself from administration

UK: Sports Direct profits rise

Jewellers

Switzerland: Swatch first-half earnings up

UK: Aurum continues sales growth

UK: Pandora sales fall and CEO exits

Toys and games retailing

UK: Game to sell digital games in-store

UK: Games Workshop sees revenues and profits slip

UK: Hamleys reports operating profit increase of over 40%

Economy

Ireland: Irish retail sales fall by 6%

UK: BAA increases net retail income per passenger

UK: BRC: June retail sales better than expected

UK: BRC: Retail growth is modest in July

UK: Capital Shopping Centres reports rising retail sales

UK: CSL and Mamas & Papas sign up to Lakeside extension

UK: Ecommerce growth slows

UK: Fewer trips made to non-food stores in June

UK: Food inflation slows in July

UK: Government to cut red tape for retailers

UK: Grocers fined for price fixing on dairy products

UK: June inflation falls back to 4.2%

UK: London to home world's first pop-up mall

UK: Mobile retail searches rise 216% in second quarter

UK: OFT call for return of RRP on electrical items

UK: Retail administrations increase 8% year-on-year

UK: Retail employment falls by 0.4%

UK: Sales volumes rise 0.8% month-on-month

UK: Shop vacancy rates fall

UK: Shoppers spent £5.3bn online in June 2011

UK: Shopping centres in Wales and Scotland purchased

Luxury Goods Sector – Global

The market

Strong performance in 2010

Possible faltering in later 2011

Variable outlook

Forecast

Market factors

Potential problems

Tipping point?

HNWIs are key

Market breakdown: where and what

Asia to overtake Europe

Prospects for the Americas

Bounce back for hard luxury

Perfumes and cosmetics outpaced

Soft luxury buoyant

Market developments

Focusing on boutiques

Flagship openings

Online investments