UK Retail Briefing - January 2015

ANALYST COMMENT
Christmas 2014 – An interim report
Interim conclusions
Retail sales growth
Food retailers
Figure 1: Leading food retailers Christmas trading performance, 2014
Clothing retailers and department stores
Figure 2: Leading non-food retailers Christmas trading performance, 2014
Online
Winners and losers
Pleasant surprises:
Disappointments
RETAIL SALES – BACKGROUND AND OUTLOOK
Key points
Retail sales trends
Figure 3: Retail sales trends, 2013-14
Figure 4: UK retail sales y/y growth, BRC vs ONS, 2013-14
John Lewis
Figure 5: John Lewis: Year-on-Year Growth, 2014
Inflation and wages
Figure 6: The income squeeze:  Wages growth vs inflation, 2009-14
Inflation
Figure 7: Annual percentage change in the consumer price index for selected product groups, 2014
Looking forward
SECTOR FOCUS – CLOTHING RETAILING
Executive summary
Warm autumn hits sales
Figure 8: Consumer spending on clothing and accessories (including VAT), 2009-15
Figure 9: Clothing specialists’ retail sales: year-on-year growth, January – November 2014
Figure 10: Consumer prices index: year-on-year inflation in clothing prices (including accessories), January – December 2014
Figure 11: Global cotton prices: year-on-year % change, January – December 2014
Marks & Spencer’s Christmas slump
Prospects for 2015
HEADLINES FOR THE MONTH
Grocers
Other food specialists
Clothing retailers
Multi-sector retailing
Department stores
Electrical retailing
Home Shopping
Book and toy retailers
Economy
NEWS ANALYSIS - FOOD AND DRINK
 CONVENIENCE STORES
UK: Nisa
…appoints new chief executive
…rolls out ‘Store of the Future 2’ format
UK: Tesco-owned One Stop trials discount format
 GROCERS
UK: Aldi’s price comparison campaign banned in the UK
UK: Asda pledges £300m on price cuts
UK: Booths like-for-likes dip over the festive period
UK: Sainsbury’s like-for-like sales drop 1.7% in Q3
UK: Social supermarket opens in South London
UK: Tesco
…facing investigation from the FRC
…instructs auditor to scrutinise stock levels
…like-for-like sales down 2.9%
…staffs up in preparation for Christmas rush
…suppliers to be interviewed as part of fraud investigation
UK: Waitrose enjoys pre-Christmas boost
 OTHER FOOD SPECIALISTS
UK: Greggs like-for-likes rise 5.2% in the second half
UK: Majestic Wine reports positive Christmas trading
UK: Thorntons issues pre-Christmas profit warning
 HOME SHOPPING
UK: Ocado posts sales growth of 18.6%
 ECONOMY
UK: Grocery market sees marginal growth of 0.1%
UK: Retail sales up 5.5% in November
UK: Retailers are optimistic for 2015
UK: Shop prices fell 1.7% in December
NEWS ANALYSIS - NON-FOOD
 CLOTHING RETAILING
UK: Bank falls into administration
UK: Barbour deliveries could be affected by strikes
UK: Boux Avenue like-for-likes up 31.7%
UK: Burberry offers Christmas gift advice on Twitter
UK: Jaeger
…bid approach
…celebrates successful Christmas
UK: Jigsaw
…like-for-like sales up 9.5%
…achieves ‘record’ Christmas trading
UK: Joules grows sales by 8.2%
UK: Karen Millen boss steps down from Aurora Fashions board
UK: McArthurGlen outlet sales climb 20%
UK: Monsoon introduces eReceipts
UK: Moss Bros like-for-like sales up 7.8%
UK: Mothercare appoints new chief finance officer
UK: New Look and Matalan launch activewear
UK: Reiss doubles full year profits
UK: Sports Direct
…given £40m loan from owner Mike Ashley
…sales grow 6.5% in first half
…to close USC stores
UK: Ted Baker posts strong Christmas sales
UK: The White Company appoints clothing director
UK: Wolford announces new chief executive
 FOOTWEAR AND ACCESSORIES RETAILING
UK: Office unveils new social media game
UK: Radley like-for-likes jump 11% over the Christmas period
UK: Russell & Bromley sales rose 9.5% in 2013
 MULTI-SECTOR RETAILING
UK: Marks and Spencer reports mixed Christmas period
UK: Next posts 2.9% sales increase in run-up to Christmas 2014
UK: Poundstretcher festive sales up 14.8%
 DEPARTMENT STORES
UK: Fortnum & Mason reports Christmas sales surge
UK: House of Fraser
…like-for-like sales up 5.5%
…Christmas like-for-likes up 8%
UK: John Lewis
…reports pre-Christmas sales decline
…sales up 5.8%
 ELECTRICAL RETAILING
UK: Dixons Carphone like-for-like revenues up 5%
UK: Maplin reports strong Christmas trading
 FURNITURE RETAILING
Denmark: JYSK turnover grows 10%
UK: DFS sales grow 15.3% in first quarter
UK: Oak Furniture Land posts growth in sales period
UK: Oak Furniture Land to launch SofaStore showrooms
 HOMEWARE AND DIY RETAILING
UK: Carpetright UK sales increase 5%
UK: Dunelm like-for-like sales jump 6.2% in first half
UK: Tiger sales up 6.5%
UK: Topps Tiles like-for-likes up 6%
UK: United Carpets revenues down 11.7%
 HOME SHOPPING
UK: Boohoo posts profit warning
UK: Ebuyer launches first major TV campaign
UK: Major supermarkets hit by online glitches
UK: N Brown
…chief financial officer steps down
…Q3 sales down 2.3%
UK: N Brown to discontinue Gray & Osbourn
UK: Net-a-Porter buys My-Wardrobe.com
 SPORTS GOODS RETAILERS
UK: Decathlon ramps up UK expansion
 BOOK AND TOY RETAILERS
UK: Foyles and Waterstones report strong book sales
UK: The Entertainer sales up 5.5%
UK: The Works Christmas sales up 6%
UK: Waterstones launches campaign to promote click-and-collect
 JEWELLERS
UK: Signet UK sales up 9.7%
 ECONOMY
UK: Mintel's Christmas message
UK: Oxford Street West rents to soar