UK Retail Briefing - September 2011

ANALYST COMMENT
Westfield, Stratford - Just another shopping Mall?
Design
John Lewis
The centre
What about the recession?
HEADLINES FOR THE MONTH
Grocers
Food specialists
Clothing retailers
Footwear retailers
Mixed goods retailers
DIY retailers
Electricals retailers
Furniture retailers
Home shopping
Books and stationery
Music and video
RETAIL SALES – BACKGROUND AND OUTLOOK
Key points
Retail sales trends
Figure 1: Retail sales trends, 2010-11
Figure 2: UK retail sales y/y growth, BRC vs ONS, 2010-11
John Lewis
Figure 3: John Lewis: Year-on-year growth, 2010-11
Inflation and wages
Figure 4: RPI vs Average weekly earnings growth, 2008-11
Inflation remains uncomfortably high
Figure 5: Annual percentage change in the Consumer Price Index for selected product groups, 2010-11
Looking forward
SECTOR FOCUS – DIY, FURNITURE, AND CARPET SPECIALISTS
Sector relatives
Figure 6: DIY, furniture and carpet specialists: sales as % of all retail sales, 2006-10
Figure 7: DIY, furniture and carpet specialists: sales as % of all retail sales, Q1 2010-Q2 2011
Retail sales data
Figure 8: DIY, furniture and carpet specialists: retail sales, 2006-11 (e)
Figure 9: DIY, furniture and carpet specialists: retail sales growth, Jan-Jul 2011
The market environment
Figure 10: Number of residential property transactions, Q1 2006-Q2 2011
Figure 11: Gross value of new mortgage approvals, Jan 2006-Jul 2011
Mintel’s tracker survey
Figure 12: Mintel Tracker Survey extracts: Agreement with statements, Sept 2010-Aug 2011
Consumer prices inflation
Figure 13: Annual average indices of retail prices for selected categories 2006-10
Figure 14: Inflation in selected categories, Sep 2010-Aug 2011
Consumer expenditure
Figure 15: Consumer expenditure on selected product categories, 2006-10
Figure 16: Growth in consumer spending on selected categories, Q1 2011
Leading retailers
Furniture specialists
Figure 17: Leading furniture specialists, 2010/11
Carpet retailers
Figure 18: Leading carpet specialists, 2010/11
DIY specialists
Figure 19: Leading DIY retailers specialists, 2010/11
NEWS ANALYSIS
 GROCERS
Asda
…aims to open 250 smaller supermarkets
…launches mobile groceries site
…like-for-likes up 0.5% in second quarter
Asda Income Tracker: Families £11 worse off
Booths refinances for store expansion
Co-op profits and sales hit by tough climate
Morrisons
…appoints Credit Suisse as it considers Iceland bid
…leads big four in market share
…profits rise 8%
North East Convenience Stores sees 4.7% sales rise
Ocado launches 'shopping wall'
Sainsbury's
…to hire 15,000 Christmas staff
…trials branded price match in Northern Ireland
Spar UK launches own label range
Tesco
…Amazon-style site to launch in January
…opens virtual store in South Korea
…revamps Direct to 'Amazon-style'
…to sell Japan business
The People's Supermarket plans second store
Waitrose
…aims to boost sales with extended hours
…appoints executive chef
 FOOD AND DRINK SPECIALISTS
Bargain Booze up for sale for £100m
Poundbakery aims to take on Greggs
Thorntons pre-tax profit falls after impairment charges
 CLOTHING RETAILING
Primark considers 300 store openings in Europe
Pull & Bear and Bershka to launch transactional sites
Rugby Ralph Lauren opens first European store
TJX Europe triples profits in second quarter
Alexon Group
…issues profit warning and sparks takeover talks
…issues profit warning
Arcadia makes redundancies in harsh trading conditions
Aurora
…to launch Asos-style international Online strategy
…trials mobile payment in stores
Austin Reed to open new concept flagship in Regent Street
Coast trials new concept in revamped concessions
Cos to open two new stores in London
Christian Louboutin loses bid to protect signature shoes
Fat Face seeks international expansion
French Connection reports as expected first half results
H&M brand Monki launches in UK
Isabella Oliver sees record growth
Jane Norman revamp
La Senza looks to exit poor stores
Matalan to create 2,300 Christmas jobs
New Look
…reviews property
…to streamline its store portfolio after review
Peacock Group takes Bonmarché off the market
Reiss plans for future with click-and-collect
Rigby & Peller majority stake sold to Van de Velde
SuperGroup sales still rising
Tommy Hilfiger to open largest UK store
Van de Velde plans Rigby & Peller global growth
Victoria's Secret expands in UK
White Stuff pushes 'community' retail
 FOOTWEAR RETAILING
Clarks sets target of 100 per year overseas store openings
 MIXED GOODS RETAILING
Argos sales fall
Ireland: 99p Stores to launch in Ireland with €uro 50
99p Stores secure £20m banking facility to double business
H&T pawnbroker sees first half profits rise
Poundworld's credit insurance pulled despite 500% profit rise
 MULTI-SECTOR RETAILING
M&S launches second phase of sustainable cotton project
 DEPARTMENT STORES
Debenhams
…claims retail world-first with smartphone innovation
…major Indian expansion plans
Harrods to launch online magazine and mobile site
John Lewis
…plans to expand own-label menswear
…sales rise despite rioters
…to use Waitrose stores to double click-and-collect network
Laura Ashley like-for-likes up 3.5%
Lewis Home Retail saves two more TJ Hughes stores
Selfridges Manchester revamps its beauty hall as it ploughs £20m into store improvements
TJ Hughes closes another 12 stores
 DIY RETAILING
Floors 2 Go collapses into administration
Homebase launches premium homewares brand
Robert Dyas boss to 'get back to basics'
Topps Tiles warns on profits
Wilkinson profits hit
 ELECTRICAL RETAILING
Best Buy
…Enfield opening not delayed by riots
…UK launches m-commerce site
Comet sale in doubts
Dixons like-for-likes fall 7%
Jessops confident on back of full-year figures
 FURNITURE RETAILING
Crate & Barrel to start brand building for UK opening
Life & Style bought out of administration
Lombok
…bought out of pre-pack administration
…looking at administration
Oka profits up 24%
Walmsley Furnishing goes into administration
 HOME SHOPPING
Amazon to launch order collection lockers in UK
Ebay reports 25% rise in million pound businesses
Findel reports rising sales
Flying Brands reports loss
Funky Pigeon trial store opens
Ideal world to launch customer rewards programme
Ocado
…to open new distribution centre in Oxford
…urged to halt second fulfilment centre plans
…launches 'shopping wall'
Simply Be opens first physical store
 BOOK AND STATIONERY RETAILING
Clintons
…hires Dixons' marketing man
…hoping to stagger September rent
Waterstone's to axe 3 for 2 offer
WH Smith
…full year to be in line with expectations
…launches £50m share buy-back programme
 MUSIC AND VIDEO GAMES
Game signs deal with Sony
HMV sales fall but retailer remains positive
 SPORTS AND LEISURE GOODS RETAILING
JD Sports closes on deal to rebrand Cecil Gee
JJB turnaround success to see directors rewarded
Snow + Rock to open tri-brand superstore
Sports Direct sees profits fall
 JEWELLERY AND ACCESSORIES
Aurum halts sale process until 2012
Claire's debuts new London concept store
Goldsmiths to debut new concept store at Westfield Stratford
Signet UK's second quarter profits fall
 GARDEN CENTRES
Countrywide
…launches own-brand value offer
…seeking acquisitions as sales rise
Garden Centre Group acquires Country Homes and Gardens
 ECONOMY
BRC
…footfall falls as vacancy is low
…retail sales steady in August despite riots
…urges business rate suspension for riot-hit retailers
Consumers more cash-strapped than ever
Ecommerce growth slows
Grocers fined for price fixing on dairy products
Inflation rises to 4.4% in July
London and Japan agree luxury retail partnership
ONS: Flat retail growth in July
Shop price inflation slows in August
Westfield Stratford 95% leased