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UK Retail Briefing - September 2013

ANALYST COMMENT
 STORES OF THE FUTURE – BUT THE FUTURE CATCHES UP
Preparing stores for the future
Growing online sales impact on stores
Stores of the future - a growing trend
Figure 1: Currys-PC World, Bluewater shopping centre (England), September 2013
The cost to retailers
Prompting fewer, better stores?
SECTOR FOCUS – DIY, FURNITURE AND FLOORCOVERINGS RETAIL
Executive summary
Mintel’s consumer research: steady demand for home spend
Figure 2: The consumer: Trends in activities done and consider to do: Spend money on my home (new kitchen, redecorate, new furniture etc.), July 2012- July 2013
Figure 3: The consumer: Trends in activities done and consider to do: Spend money on my home (new kitchen, redecorate, new furniture etc.), by average age and affluence, July 2013
Figure 4: The consumer: Trends in what extra money is spent on: furniture, home improvements, décor, November 2009- July 2013
Specialists’ sector sales: a strong 2013 so far
DIY
Furniture/furnishings:
Floorcoverings:
Figure 5: Retail sales (incl. VAT), 2008-13
Consumer spending: homewares demand is strong
Figure 6: Consumer spending: Year-on-year growth, Q1 2013
Figure 7: Consumer spending (incl. VAT), 2008-13
RETAIL SALES – BACKGROUND AND OUTLOOK
Key points
Retail sales trends
Figure 8: Retail sales trends, 2012-13
BRC data for July
Figure 9: UK retail sales y/y growth, BRC vs ONS, 2012-13
John Lewis
Figure 10: John Lewis: Year-on-year growth, 2012-13
Inflation and wages
Figure 11: RPI vs Average weekly earnings growth, 2008-13
Inflation
Figure 12: Annual percentage change in the consumer price index for selected product groups, 2012-13
Looking forward
HEADLINES FOR THE MONTH
Co-ops
Grocers
Other food specialists
Off-licences
Clothing retailing
Footwear retailing
Multi-sector retailing
Department Stores
Electrical retailing
Furniture retailing
Homewares retailing
Home shopping
Book and stationery retailing
Economy
NEWS ANALYSIS
 CO-OPS
Co-op
…sees fall in first half profits
…to launch online grocery website
 CONVENIENCE STORES
Waitrose adds 10 convenience stores to London portfolio
 GROCERS
Asda
…drops Saatchi & Saatchi
…funds a retail degree for staff
…hires VCCP for its advertising
…offers online delivery pass to challenge rivals
…records slow sales growth
…store vision to rival Tesco Watford
Morrisons
…and Argos sign up to personal marketing service
…unveils Nutmeg TV ad
Sainsbury’s outpaces big four rivals
Tesco
…and Next hit back at claims made about their labour sources
…criticised by ASA over advert
…ditches store as it listens to locals
…to introduce till cash monitoring system
… to launch iPad-style tablet
Waitrose
…buys The Good Food Guide
…proposes using GPS tracking for click-and-collect
…to help young offenders
 OTHER FOOD SPECIALISTS
Harris + Hoole takes former Jessops sites
Countrywide eyes AIM listing as profits rise
 OFF-LICENCES
Conviviality Retail acquires Wine Rack
 CLOTHING RETAILING
Abercrombie & Fitch sales fall
Government demands use of plus size mannequins
Hanro signs for first UK store
Jane Norman to close Oxford Street store
Matalan to launch new sports fascia
McQueen sales high after royal dress success
New Look sees profits surge as like-for-like sales edge up
Peacocks to sell kids clothing in garden centres
Primark
…owner raises profit expectations
…to end online trial
River Island returns to Singapore
Six retailers to open stores in Canary Wharf’s Jubilee palace
SuperGroup's positive sales reflect “enduring appeal”
Taking Shape to enter UK market
TK Maxx to open new store in Covent Garden
Topshop to expand U.S. presence
Uniqlo launches children’s clothing range
Victoria’s Secret set to open Bluewater store
 FOOTWEAR RETAILING
LK Bennett owners consider sale
 MIXED GOODS RETAILING
B&M rewards buyers’ faith
 MULTI-SECTOR RETAILING
Home Retail sees departure of Terry Duddy
Marks & Spencer
…hires store environment chief
…hit by glitches at distribution centre
…increases its efforts to solve IT glitches
…loses customer insight boss
…trials new accessories department
…launches new ‘leading ladies’ campaign
 DEPARTMENT STORES
Debenhams
…adds two new designers to roster
…ups marketing activity with use of augmented reality
House of Fraser trials virtual queue system
John Lewis
…insurance business part of new advertising campaign
…to pay out £40 million to underpaid staff
…labels electricity costs
…sales up by 6.6%
…to launch upmarket in-store restaurant
John Lewis
…views an opening in Westfield London
 DIY RETAILING
B&Q makes 180 redundancies
Homebase launches first co-buying initiative
Kingfisher hires Marks & Spencer’s Plan A director to lead Net Positive Plan
 ELECTRICAL RETAILING
Carphone Warehouse and Harvey Norman in partnership
BrightHouse launches new payment model
Comet
…to be re-launched under new name
…Clive Coombes backtracks on Comet re-launch
…former owner recoups £54 million
…new Comet brand investigated by Deloitte
Dixons to sell off French and Turkish business arms
 FURNITURE RETAILING
Dreams hires new chief executive
Dwell’s creditors to receive no payout
Furniture retailers investigated by OFT
Jysk takes three former Dreams stores
The Range to open 5 new stores by 2016
 HOMEWARES RETAILING
Brissi hires big names to its board
Cath Kidston sees rise in full year profits of 13%
 HOME SHOPPING
Amazon increases mobile app presence
Asos
…hires new sourcing director
…signs contract for management of distribution centre
Boohoo.com eyes float
Damartex aquires Coopers of Stortford
DRL steps up flotation plans
Figleaves.com to launch erotic boutique
Game eyes growth in online video game market
Girl Meets Dress receives venture capital funding
Richard Desmond moves into contract publishing with Very magazine
 HEALTH AND BEAUTY RETAILING
Boots boss Alex Gourlay to move to Walgreens
 BOOK AND STATIONERY RETAILING
Card Factory to refinance following attempted sale
Staples launches back to school advertising campaign
WHSmith full-year profits “in line with expectations"
 MUSIC RETAILING
HMV
…creditors to lose £250 million
…hires new director for its Pure loyalty programme
 SPORTS AND LEISURE GOODS RETAILING
JD Sports looking to expand its Pro performance fascia
Sports Direct to enter FTSE 100
 JEWELLERS
Pandora to open largest global store in Oxford Street
 TOYS AND GAMES RETAILING
ModelZone to leave the high street
 MISCELLANEOUS SPECIALIST RETAILING
Go Outdoors sees rise in sales
 ECONOMY
BRC releases retail sales figures
Retailers could face business rates increases of £300 million
Scottish sporting successes boost retail sales in July
Shop prices fall 0.5% due to discounting in stores.
UK retail sales jump 1.1% in July

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