Table of Contents
Analyst Comment
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- The slowdown must happen soon
- The fixed rate mortgage time bomb
- Most of the news is bad
- Consumer confidence
- There must be a slowdown
- And Christmas?
The Month in UK Retailing
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- Clothing retailing
- Ann Summers profits slide
- Blackstone enters talks with New Look
- Gap plans to close 10% of UK stores
- MK One posts a £21m loss for 2006
- Monsoon disappoints with FY figures
- Moss Bros LFLs up 2.5% in H1
- Regatta acquires Hawkshead
- Topshop hit by slave labour controversy
- Mixed goods retailing
- Argos goes upmarket
- Woolworths LFLs on the rise
- Multi-sector retailing
- HMV
- …sells Japan business for £70m
- …and buys Fopp
- Department stores
- Debenhams to launch in India
- Harrods reports strong FY figures
- John Lewis increases H1 sales
- DIY retailing
- Kingfisher sales hurt by UK rainfall
- Wickes H1 LFLs surge ahead
- Carpet retailing
- Solid start to the year for Carpetright
- Furniture retailing
- Strong H1 for Dreams
- Land of Leather increases FY LFLs
- ScS LFLs still down
- Health and Beauty retailing
- Celesio increases net profit in H1
- Superdrug increases FY sales
- Book and stationery retailing
- WH Smith
- …considers bid for Borders
- …and issues upbeat trading forecast
- Sports and leisure goods retailing
- John David beats sales forecasts
- Sports Direct
- …Ashley responds to City criticism
- …before upping stake in Amer Sports
- Garden centres
- Dobbies
- …sees Tesco bid go unconditional
- …before rain forces profits warning
- Toys and games retailing
- Game Group's Gamestation bid referred to commission
- Games Workshop reports FY loss
- Hamleys mulls over stores expansion
- Miscellaneous specialist retailing
- Halfords LFLs remain strong
- Jewellers
- Signet reports sales growth in H1
Executive Appointments
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- East appoints new finance director
- Boots appoints Fagan as UK marketing director
- Focus appoints new executives
- Hobbs FD becomes COO
- Ilva director to leave
- Knight leaves JJB
- New DSG CEO to start in December 2007
- Signet loses commercial director
- Spindler to leave George
- SRG hires finance chief
- Topshop to lose another key executive
Product Development – Bakery
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- Asda
- Marks & Spencer
- Morrisons
- Sainsbury’s
- Somerfield
- Tesco
- Waitrose
Advertising News
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- New campaigns
- Adili.com to launch catalogue
- Ann Summers launches vibrating campaign
- HMV revamps logo
- Lovefilm ties with Bhs, Dorothy Perkins
- MFI ad softened to quell complaints
- Monsoon signs Helena Christensen
- Morrisons
- …revamps website
- …and postpones ads due to E.coli outbreak
- Netto gets rid of scotty dog logo
- New Look launches cash machine campaign
- Nisa-Today's to promote fresh produce
- Selfridges to launch Wonder Room push
- Sainsbury's promotes Local format
- Waterstone's to launch storytelling push
- Account gains/losses
- Body Shop hires Leagas Delaney
- Borders hires B'lowfish for BTL
- BDH wins Jessops creative
- Cunning to handle Esprit push
- HMV social network activity goes to Cake
- Hurrell and Dawson to promote Garrard
- John Lewis
- …searches for an agency for Greenbee
- …and seeks digital agency
- Magnet reviews media account
- MCBD to lose Thorntons account
- MFI shortlists agencies for its £26m account
- Morrisons seeks direct agency
- Naked loses Boots brief to MediaCom
- Ocado appoints CHI & Partners
- The Think Tank working on Fresh Express
- The White Company hire more2
- Threshers reviews ad account
Retail Advertising Review
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- Advertising expenditure
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- Figure 1: Total advertising expenditure by all advertisers (£m), June 2003-June 2007
- Figure 2: Total advertising expenditure by all retail advertisers (£m), June 2003-June 2007
- Use of media
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- Figure 3: Use of media by retail and all advertisers (%), June 2006-June 2007
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- Figure 4: Use of media by retail and all advertisers (£m), June 2006-June 2007
- Top 25 retail advertisers
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- Figure 5: Top 25 retailers by adspend (£), May 2007-June 2007
- Food
- Furniture
- DIY
- Optical retailers
- Other
- Nielsen Media Research/Definitions
Retail Sales and Inflation
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- Retail sales
- Office for National Statistics
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- Figure 6: Retail sales trends, July 2006-July 2007
- Figure 7: Non-seasonally adjusted % value change on previous year, July 2006-July 2007
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- Figure 8: Seasonally adjusted % volume change on previous year, July 2006-July 2007
- Confederation of British Industry
- British Retail Consortium/KPMG
- Retail price inflation trends
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- Figure 9: Annual percentage change in retail price index for selected product groups: July 2006-July 2007
- Figure 10: Annual percentage change in retail price index for selected product groups: July 2006-July 2007
- Retail Prices Index
- Consumer prices index
- British Retail Consortium: Shop Price Index
Sector Analysis – Food and Drink Retailing
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- Sales trends
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- Figure 11: Food and drink retailers, sales trends, 1997-Q2 2007
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- Figure 12: Food and drink retailers as % all retail sales: 1997-2007
- Retail price inflation
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- Figure 13: Indices of retail prices for product categories (food & drink), Jan 2001-Jun 2007
- Sales by sub-sector
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- Figure 14: Food and drink retailers: Breakdown of sales by sub-sector, 2000-06
- Consumer expenditure
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- Figure 15: Consumer expenditure on selected product categories (£m), 1999-2006
- Food & drink retailers: latest trends
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- Figure 16: Food and drink retailers’ sales, 2003-06
- Figure 17: Food and drink retailers’ operating profits, 2003-06
- Competition Commission
- Tesco
- Asda
- Sainsbury’s
- Morrisons
- Elsewhere
Sector News Review: Food and Drink Retailing
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- May
- Bakers (Retail)
- Greggs FY LFLs edge ahead
- Grocers
- Asda
- …launches stain free shirt
- …considers closing George stores
- …as the range comes home
- Kwik Save
- …faces court decision on future
- …before ending financial uncertainty
- Morrisons
- …reveals image overhaul
- …posts strong FY results; unveils makeover
- …and plans £1bn store sale
- Sainsbury’s
- …Lord Sainsbury strikes a blow to potential bidders
- …watchdog issues Sainsbury's bid deadline
- …CVC makes approach
- …as Tchenguiz increases holdings
- …while a Second consortium eyes a bid
- …Tchenguiz increases stake again
- …as the grocer gets cagey on eggs
- …and reveals £3bn black hole in pension scheme
- …so pension trustees look to open CVC talks
- Somerfield slides into the red
- Tesco
- …faces calls for land sale
- …raises £500m in two hours
- …faces Wal-Mart hurdle
- …and church criticism
- …as it enters joint property venture with British Land
- …and announces global Clubcard plans
- Suppliers line up to praise supermarkets
- Waitrose goes ethical on fish
- April
- Bakers (retail)
- Thorntons rebounds in Q3
- Co-ops (retail)
- Co-op profits across full-year
- Grocers
- Cooltrader expansion on the cards
- Grocers talk green but abuse workers, claims ActionAid
- Iceland CEO rewarded for turnaround
- Sainsbury's
- …reports full-year sales rise
- …gets Asda interest
- …as CVC ignores pension trustees in bid
- …then raises offer
- …before consortium breaks up
- …and bid collapses
- …as Tchenguiz calls for split
- …while plastic bags ditched for a day
- …and £750m investment is announced
- Supermarket enquiry delayed
- Tesco
- …revealed as fastest growing mobile operator
- …hits back
- …holds on to Green, improves milk deal
- …announces record FY profits
- May
- Bakers (retail)
- Greggs LFLs up 5%
- Grocers
- Asda…
- … bans additives
- … set for conflict about over-packaged goods
- … set to open 300 home stores
- Sainsbury's
- … stake snapped up by Three Delta
- … to retain property
- … FY sales surge ahead
- … accused of flouting hygiene rules
- Morrisons…
- … next buyout target?
- … but CVC denies interest
- … Q1 LFLs up 4%
- Tesco
- … faces allegations of hypocrisy on green plans
- … abandons Coles bid
- … investor forces ethics onto the agenda
- … could lose tax loophole
- June
- Grocers
- Asda
- …to fund price cuts through less packaging
- Kwik Save
- …shuts 79 stores
- …re-opens 20 stores
- …then axes 22 stores
- Musgrave to offload Budgens stores
- Sainsbury's
- …closes entertainment website
- …as Qataris up their stake
- …ahead of possible bid
- …as Q1 sales surge ahead
- Supermarket price wars are back
- Tesco
- …denies empty shelves claims
- …looks set to battle Hunter
- …then takes stock on potential Dobbies battle
- …before it heats up
- …launches book club
- …and continues to impress in Q1
- Off-licences
- Majestic toasts another successful year
- Threshers sold at cut price
- July
- Bakers (retail)
- Thorntons FY LFLs edge ahead
- Grocers
- Asda
- …to put George online
- Kwik Save enters administration
- Morrisons
- …set to sell 25 shopping centres
- …confirms Gibson as chairman
- …remains ‘on track’
- …and decides to focus on fresh food advertising
- Sainsbury’s
- …still circled by bid rumours
- …as Tchenguiz doubles stake
- …before bid speculation dampens
- …while CEO’s pay deal faces objections
- …before Delta makes approach
- …and details go public
- …with Lord Sainsbury set to oppose takeover
- Tesco
- …sees Leahy's proposed bonus scrutinised
- …as it moves into housing market
- …then loses key estate agency partner
- …expands in Hungary
- …and is threatened with lawsuit
- …before refocusing marketing on price war
- …as it battles on for Dobbies
- …then extends Dobbies offer; moves into Hollywood
- Waitrose gears up expansion plans
- August
- Bakers (retail)
- Greggs reports strong H1 results
- Grocers
- Competition Commission probes Tesco, Asda
- Morrisons stores linked to E.coli death
- Kwik Save property acquired by Original Factory Shop
- Sainsbury’s
- …asks bidder to increase equity
- …then tells Delta Two to increase offer
- …and gives it time to comply
- …before pledging £1m to Fairtrade initiative
- Somerfield
- …reveals full year-sales fall of 4%
- …and sees credit crisis hit refinancing
- Tesco
- …under fire in the US
- …as it increases Dobbies stake
- …before Hunter says he will not bid
- …before raising Dobbies stake, sparking confusion…
- …but Tesco's Dobbies bid goes unconditional anyway
- Other food specialists
- Holland & Barrett to expand with 100 stores
Sector Advertising Review – Food and Drink
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- Advertising expenditure
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- Figure 18: Total advertising expenditure by food retailers, June 2003-June 2007
- Use of media
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- Figure 19: Use of media by food retailers and all retailers (%), June 2006 and June 2007
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- Figure 20: Use of media by food retailers and all retailers (£), June 2006 and June 2007
- Top ten food retail advertisers
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- Figure 21: Top ten food retailers by adspend, June 2006 and June 2007
- Retailer focus
- Tesco
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- Figure 22: Tesco, media use by adspend and as share of total, June 2006-June 2007
- Figure 23: Tesco, top brands by adspend, June 2007
- Asda
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- Figure 24: Asda, media use by adspend and as share of total, June 2006-June 2007
- Figure 25: Asda, top brands by adspend, June 2007
- Sainsbury’s
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- Figure 26: Sainsbury’s, media use by adspend and as share of total, June 2006-June 2007
- Figure 27: Sainsbury’s, top brands by adspend, June 2007
- Wm Morrison
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- Figure 28: Wm Morrison, media use by adspend and as share of total, June 2006-June 2007
- Figure 29: Wm Morrison, top brands by adspend, June 2007
Report Focus: Book Retailing
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- Book sales growing but value diluted by discounting
- Factors influencing growth in sales
- Where people buy books
- How people are buying books
- Technology creating new opportunities for growth
- Sales grow but margins tighten
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- Figure 30: UK printed book sales and forecast, at current and constant 2007 prices, 2002-12
- Audiobook sales low but building
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- Figure 31: UK sales of audiobooks and forecast, by value, 2002-12
- Seasonal trends
- Consumers: who, where and why
- WH Smith and Waterstone’s vie for top spot
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- Figure 32: Outlets used for buying books, April 2007
- Older and AB book buyers prefer specialists
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- Figure 33: Outlets used for buying books in the last 12 months, by gender, age and socio-economic group, April 2007
- Waterstone’s and Ottakar’s share similar customer profile
- Prosperous urbanites prefer Borders
- ABC1 third agers are keen Amazon shoppers
- Supermarkets also win some
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- Figure 34: Outlets used for buying books in the last 12 months, by ABC1 third age and ABC1 retired Special Groups, April 2007
- Supermarket success damaging Woolworths
- Time-pressed family shoppers like supermarkets
- Sainsbury’s book buyers more akin to those of specialists
- Asda converts food shoppers to book buyers
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- Figure 35: Proportion of shoppers that bought books at their regular supermarket in the last 12 months, March 2005 and April 2007
- Figure 36: Outlets used for buying books in the last 12 months, by gender, age and socio-economic group, April 2007
- Second-hand sources popular among ABC1s and over-55s
- Amazon outshines other home shopping channels
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- Figure 37: Outlets used for buying books in the last 12 months, by gender, age and socio-economic group, April 2007
- Where do younger readers go for books?
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- Figure 38: Outlets used for buying books in the last 12 months, by ABC1 pre-/no family and ABC1 family Special Groups, April 2007
- Profiles of leading Book Retailers
- Waterstone’s
- Background
- Acquisition of Ottakar’s
- HMV also a potential bid target
- Financial performance
- Interims 2006/07
- Christmas sales somewhat better
- Preliminary 2007 results
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- Figure 39: Waterstone’s, financial performance, 2002-06
- Ottakar’s integration
- Current trading
- Product offer
- Greater emphasis on children’s books
- Serious but sociable image
- Lightening up
- Prices coming down
- Pressure to ‘dumb down’?
- Buying autonomy being restored
- WH Smith plc
- Background
- Financial performance
- Major structural changes skew the picture
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- Figure 40: WH Smith plc, financial performance, 2002-06
- Sales suffer as margins are strengthened
- Dismal Christmas due to High Street slump
- Interim sales down but profits up
- Product offer
- Remixing for better margins
- Range authority is a key priority
- Product mix for busy travellers
- Borders
- Background
- Financial performance
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- Figure 41: Borders UK Limited, financial performance, 2002-06
- Product offer
- Ranges tailored to local markets
- Store facilities are paramount
- Stronger focus on children’s ranges
- Industry Insights
- The sales picture
- Media coverage usually positive
- Moving promotion away from price
- The future
- More channels for book sales
- Online bookselling will develop further
- New formats and devices
- Economic and demographic prospects remain good
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