European Retail Briefing - February 2011

Analyst Comment

Inflation looms over European food retail

Inflation: The return

Price rises will be passed on

The grocers will lead the way

Headlines for the Month

Food retailers

Clothing retailers

Multi-sector retailing

DIY

Health and beauty

Furniture retailing

Sports and leisure goods

Jewellers

Economy

Retail Sales Review

Key points

France

Inflation

Germany

Inflation

Italy

Inflation

Netherlands

Inflation

Spain

Inflation

UK

Inflation

DIY Retailing in Europe

Market size and performance

Specialists’ retail sales

National attitudes to DIY

The European competitive landscape

Market shares

Outlook for DIY retailing

Groupe Adeo

Strategic evaluation

Continuing on the growth trend

Multi-format increases expansion potential

Eastern Europe, the key for future growth?

Recent history

Financial performance

Store portfolio

Retail offering

e-commerce and home shopping

News Analysis

Grocers

Belgium: Ahold to enter Belgium market in March

Belgium: Colruyt meets Q3 targets

Belgium: Delhaize reports modest fourth quarter growth

France: Auchan to launch convenience store

France: Carrefour

…emerging markets improves end of year results

…shares rise in split speculation

…ends year well with domestic resurgence

…nears full control of Cdiscount

France: Leclerc's sales increase 5.1% in 2010

Latvia: Maxima Grupe sees fall in turnover

Netherlands: Ahold sees solid fourth quarter

Portugal: Jerónimo Martins sees yearly growth

Russian Federation: Dixy Group sees profits increase

Russian Federation: Magnit 2010 sales up

Russian Federation: O'Key sees strong fourth quarter and full year results

Russian Federation: Seventh Continent acquires Mosmart

Russian Federation: Vester reports strong full-year sales

Russian Federation: X5 reports strong sales

Sweden: Axfood reports strong full-year results

Sweden: ICA Group net sales fall

Switzerland: Coop Schweiz reveals strong 2010 results

Switzerland: Migros turnover down

UK: Asda Income Tracker: average family's spending power falls

UK: Asda sells 39 Netto stores as part of OFT disposal deal

UK: M&S appoints Tesco's Laura Wade-Gery

UK: Morrisons

…in talks with George Davies

…retail boss to step down

…sees like-for-likes up 1%

…to complain about Asda's ads

UK: Nisa Today’s Group

…reports strong Christmas trading figures

…reports double digit growth

UK: Sainsbury's

…abandons plans to move headquarters to King's Cross

…appoints non-exec from Google

…market share up, but Morrisons' falls

…opens Fresh Kitchen

…reports Christmas high

…to source all Fairtrade cotton from supplier in India

UK: Tesco

…completes sale and leaseback of 21 shops

…launches 20% off sale

…launches daily dozen price campaign

…reports slight Christmas growth

…to open new DC for dotcom and Express

UK: The Co-op

…appoints Gill Bar as marketing director

…sales fall due to bad weather

…to create 1,700 store management jobs

UK: Waitrose

…reaches £5bn sales

…to introduce 'Little' stores

Clothing retailing

Croatia: H&M launches new store in Zagreb

Denmark: Bestseller increases its share in ASOS

France: Camaïeu sees like-for-likes decline 10%

France: LVMH predicts strong year ahead

France: Mim to develop via partnerships

France: Vente-privee UK sales rise 114%

Italy: Benetton warns raw material costs may hurt margins

Romania: H&M opens first Romanian store

Spain: Inditex chairman Amancio Ortega steps down

Sweden: H&M profits rise 13% for the year

UK: Alexon sales up but issues profit warning

UK: Aquascutum narrows losses

UK: Aurora to outsource distribution and IT functions

UK: Bestseller increases Asos stake to over 20%

UK: Burberry

…launches evolving spring ad campaign

…to move into Regent Street Habitat store

UK: French Connection

…opens Facebook store

…pre-tax profits expected to rise

UK: H&M to launch sustainable clothing range

UK: Hermes increases forecast for 2010

UK: Hobbs secures £14m investment

UK: Jack Wills to expand further overseas

UK: Jacques Vert festive sales rise

UK: Matalan Christmas like-for-likes decline 4.5%

UK: Moss Bros sells Hugo Boss franchise for £16.5m

UK: Mulberry Christmas like-for-likes up 70%

UK: New Look sales fall over Christmas

UK: Peacocks Group sales and profits rise

UK: Phase Eight potentially bought out by private equity firm

UK: Primark Christmas sales up

UK: Reiss on track for 40% sales rise

UK: Republic gain Andy Bond as new chairman

UK: SuperGroup

…buys European franchisee to push international growth

…Christmas sales rise

…sees strong third quarter sales

UK: Ted Baker sales rise 7.6%

UK: Topshop plans to 'double' sales

Footwear retailing

UK: Barratts Priceless posts £6.1m profit

UK: Dune creates IT platform for expansion plans

UK: Jimmy Choo backers opt for sale

UK: Jones Bootmaker in £40m sale

Multi-sector retailing

France: Marks & Spencer to open store in Champs-Elysees

UK: Halfords' retail sales drop over Christmas

UK: Home Retail reports better than expected Christmas

UK: Kiddicare plans to repeat business

UK: Marks & Spencer

…appoints Tesco's Laura Wade-Gery

…posts 2.8% Christmas like-for-like rise

…to focus on clothing arm

…top mCommerce league

UK: Pets Corner profits up as it plans expansion

UK: Poundworld to roll out multi-price store format

UK: Thorntons' sales fall in cold weather

Department stores

UK: Beales narrows losses by third

UK: Debenhams like-for-likes slow

UK: Fortnum & Mason reports record Christmas

UK: Harrods break £1bn sales mark

UK: House of Fraser

…appoints director of ecommerce

…lose Landsbanki stake

…sees strong Christmas trading

UK: John Lewis

…appoints new buying director

…sees continuing strong trade

…sees weekly sales fall

…to open in-store spas

UK: Laura Ashley FY profits to be "significantly higher" than expected

UK: Selfridges finalises de Bijenkorf deal

UK: The Original Factory Shop reports Christmas like-for-likes up 5%

DIY retailing

Finland: Kesko reports poor fourth quarter

Germany: Praktiker ends year with weak Q4

Sweden: Clas Ohlson sees December sales rise

UK: Kingfisher's trade chain Screwfix opens to public

UK: Topps Tiles' Christmas sales up

Electrical retailing

Europe: Best Buy Europe sees two more senior departures

Germany: Metro Group sees successful 2010

UK: Best Buy UK online boss to leave

UK: Carphone Warehouse sees like-for-likes rise over Christmas

UK: Comet

…begins redundancy consultations as it consolidates service centres

…directors leave after dire trading

…like-for-likes down 7.3%

UK: Dixons sees sales suffer from snow

UK: Everything Everywhere to test stores under own name

UK: Jessops Christmas like-for-likes up 3%

UK: O2 Retail to close 40 stores in 2011

Music and video goods retailing

UK: HMV

…appoints KPMG amid bank concerns

…begins to close stores

…sees buyers circling

…suppliers hit by credit insurance cut

UK: Music Sales: 98% of singles now purchased online

Furniture retailing

UK: Bathstore receive bids from Change Capital

UK: Carpetright sales fall and it warns on profits

UK: Cath Kidston sales rise 52%

UK: Dunelm Christmas like-for-likes fall

UK: Habitat to exit Regent Street

UK: Homestyle profits down but Reid acquisition boosts turnover

UK: The Conran Shop sales rise over pre-VAT period

Home shopping

UK: Amazon

…acquires LoveFilm

…boosts fashion offer with lingerie launch

UK: Argos to partner with PayPal

UK: Asos sales up 59%

UK: Ebay reports strong Christmas due to fashion division

UK: Figleaves.com expands delivery options and drop boxes

UK: Flying Brands warns on profits

UK: Ideal Shopping Direct improves 2010 sales

UK: M and M Direct sees sales rise

UK: N Brown

…acquires Slimma and Splendour

…sees Christmas sales up

UK: Ocado

…ends year with strong Christmas trading sales

…reports profit and reduces full year losses

…shares rise as bid speculation increases

UK: Shop Direct Christmas sales up 5%

UK: The Hut sales up 70% in 2010

Health and beauty retailing

Belgium: Omega confident about 2011 after strong 2010 results

UK: Boots UK like-for-likes up in December

UK: Feelunique.com sales up 50% over Christmas

UK: Holland & Barrett like-for-likes up 2.3% in December

UK: Superdrug like-for-likes up 1.7% over Christmas

UK: The Perfume Shop Christmas like-for-likes up 2%

Book and stationery retailing

UK: British Bookshops & Stationers

…axes 40 staff

…becomes first retail casualty of 2011

UK: Foyles to open first shop outside London in 70 years

UK: Office Depot ties up with Dixons for PC World shop-in-shops

UK: The Book Depository sees strong first half

UK: Waterstone's to close 11 shops on Sunday

UK: WH Smith

…like-for-likes fall 5%

…buys 22 British Bookshops & Stationers shops

Sports and leisure goods retailing

Ireland: JD Sports acquires Champion Sports

UK: Blacks

…sale talks break down

…sees two bidders remain

UK: Go Outdoors reveals record year

UK: JD Sports

…considers buying JJB

…invests £1m in Kukri purchase

UK: Kitbag sales rise to record over Christmas

UK: Snow + Rock appoints Neil McCausland as non-exec chairman

Jewellers

Switzerland: Richemont sees third quarter sales rise

UK: Aurum reports 'outstanding' Christmas

UK: HPJ Jewellers bought out of administration

UK: Signet UK sales fall over Christmas

Toys and games retailing

UK: Game

…like-for-likes improve over Christmas

…signs deal with Microsoft to sell downloads in store

UK: Games Workshop sees sales fall

UK: Hamleys

…potentially bought by Qataris

…up for sale

Economy

Europe: Retail sales: Estonia, Lithuania and Latvia

Germany: German retail sales fall

UK: BRC

…reports retail like-for-likes up 2.3% in January

…reports retail sector like-for-likes fell 0.3% in December

UK: Consumer confidence rises in fourth quarter

UK: Consumer price inflation rises to 3.7% in December

UK: ONS show strong retail sales for December 2010

UK: Scottish Q4 retail sales outgrow rest of Europe

UK: Shop price inflation rises to 2.5%