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UK Retail Briefing - August 2016

ANALYST COMMENT
 THE FUTURE OF THE HIGH STREET
A little perspective
Short term – a poor year
Online
Structural changes
Discounters
Not all good news
Free market economics in action
Where next for high streets?
RETAIL SALES – BACKGROUND AND OUTLOOK
Key points
Retail sales
Figure 1: Retail sales trends, 2015/16
Figure 2: UK retail sales y/y growth, BRC vs ONS, July 2014- July 2016
John Lewis
Figure 3: John Lewis: Year-on-Year Growth, 2015-16
Inflation and wages
Figure 4: Real wages growth:  Wages growth vs inflation, 2010-2016
Inflation
Figure 5: Annual percentage change in the consumer price index for selected product groups, 2015-16
Looking forward
SECTOR FOCUS – ELECTRICALS RETAILING 
Consumer spending on electrical goods
Figure 6: Annual % change in consumer spending on all electrical products (inc. VAT), Q1 2014 – Q1 2016
Figure 7: Annual % change in consumer spending on core electrical goods categories (Incl. VAT), Q1 2014 – Q1 2016.
Specialist sector sales
Figure 8: Annual % change in the value of retail sales in core electricals categories, non-seasonally adjusted, Jan 2014-Jan 2016
Consumer price inflation
Figure 9: Annual % change in the price of electrical goods categories, July 2015- July 2016
Black Friday: Why Buy?
Figure 10: Reasons for buying electrical items during Black Friday 2015, December 2015
HEADLINES FOR THE MONTH
Grocers
Other food and drink specialists
Clothing retailers
Department stores
Multi-sector retailers
Home shopping
DIY retailing
Sports and leisure goods retailing
Shopping Locations
Economy
NEWS ANALYSIS – FOOD AND DRINK
 CONVENIENCE STORES
UK: McColl's
…like-for-like sales fall 2.2%
…to purchase 298 stores from The Co-op
UK: Spar takes on a handful of My Local stores
UK: The Co-op faces investigation by CMA over My Local deal
 GROCERS
UK: Grocery sales remain stable following Brexit vote
UK: Lidl to trial baby range
UK: Morrisons
…agrees new terms in Ocado warehouse deal
…beats rivals with 200-day school uniform guarantee
…launches new round of price cuts
UK: Sainsbury's
…ends multi-buy promotions ahead of schedule
..expands athleisure range
…expands offering on Tmall
…and Home Retail merger gains CMA approval
…extends same day delivery following trial
…thought to be planning new food-to-go range
…trials new taste-test technology
UK: Sicilian supermarket opens first shop in London
UK: Tesco
…launches free fruit initiative for kids
…opens first Holland & Barrett shop-in-shop
…to roll out 900 in-store food demonstration areas
 OTHER FOOD AND DRINK SPECIALISTS
UK: Conviviality Retail reports strong sales and profits
UK: Greggs sales rise 6.0%
UK: Holland & Barrett extends click-and-collect nationwide
UK: Hotel Chocolat
…reports 12% growth
…to open cafe retail concept in Worcester
UK: Majestic Wine
…boss offers up bonus to staff
…teams up with Deliveroo for on-demand wine service
NEWS ANALYSIS - NON-FOOD
 CLOTHING RETAILING
UK: Arcadia may object to second Bhs administrator
UK: Bhs store estate to close down next month
UK: Bonmarché suffers 3.6% fall in sales
UK: Burberry
…announces new leadership roles
…like-for-like sales decline 3%
UK: H&M to anchor new shopping centre in Barnet
UK: Hobbs returns to a full year profit
UK: Lipsy sees sales and profits slide
UK: Lululemon
…to open Regent Street flagship
…to open shop in Harrods
UK: New Look sales fall 4.2% in Q1
UK: Next full price sales return to growth in Q2
UK: Mothercare UK like-for-likes up by 1.2%
UK: River Island appoints new head of buying
UK: Seasalt campaign celebrates similarities with Brittany
UK: Store Twenty One announces store closures as CVA gains approval
UK: Supergroup ends full year with revenues up 21.3%
UK: The Idle Man secures £1.4m investment
UK: Victoria Gate shopping centre confirms opening date
UK: White Stuff delivers strong international growth
 MULTI-SECTOR RETAILING
UK: B&M delivers continued strong growth
UK: M&S boss warns of potential pay cuts
UK: Sainsbury’s and Home Retail merger gains CMA approval
UK: Poundland board recommends Steinhoff takeover
UK: Steinhoff could face pressure to up Poundland offer
 DEPARTMENT STORES
UK: Debenhams Ireland to come out of Examinership
UK: Harrods' boss Michael Ward to remain in his role
UK: House of Fraser launches its own premium label
UK: John Lewis
…expands into Australia through Myers deal
…extends third-party click-and-collect network
…targets £1bn Home own brand revenues
UK: Lululemon to open shop in Harrods
UK: Selfridges
…completes third floor overhaul with new Designer Studio
…launches social media friendly shopping app
 DIY RETAILING
UK: Travis Perkins revenues grow despite Brexit “uncertainty”
 ELECTRICAL RETAILING
UK: Currys PC World launches campaign to improve customer experience
UK: Dixons Carphone launches super sale to compete with Prime Day
 FURNITURE RETAILING
UK: ScS like-for-like sales rise 14.8%
 HOMEWARES RETAILING
UK: Cath Kidston
…partners with Box Technologies
…prepares for launch into India
 HOME SHOPPING
UK: Amazon
…expands Dash ordering across London
…pushes ahead with UK drone testing
…trials FLEX delivery scheme in the UK
UK: AO World growth driven by improved brand recognition
UK: Asos retail sales soar 30%
UK: Boohoo increases sales guidance as momentum continues
UK: eBay targets home buyers with Advance Targeting advertising technology
UK: Figleaves upgrades website to meet mobile demand
UK: Gear4Music sales climb 66%
UK: Ocado and Marie Claire open physical store
UK: Online searches for British brands remain strong
 HEALTH & BEAUTY RETAILING
UK: LloydsPharmacy gains approval for Sainsbury's pharmacy takeover
UK: Superdrug's budget skincare lines drive sales
 BOOK, STATIONERY AND GAMES RETAILING
UK: Game GTV falls 5.0%
UK: Paperchase to launch concessions in Next shops
UK: WH Smith
…debuts in Spain
…promises to pass on airport VAT savings to travellers
 SPORTS AND LEISURE GOODS RETAILING
UK: Decathlon extends click & collect service
UK: Evans Cycles profits slump 69.4%
UK: JD Sports continues strong performance
UK: Halfords group revenues rise 2.1%
 JEWELLERS
Denmark: Pandora revenues grow 20%
 PET GOODS RETAILING
UK: Pets at Home first quarter revenue up 8.9%
 SHOPPING LOCATIONS
UK: Boxpark to launch click & collect service
UK: Oxford Street to be pedestrianised by 2020
UK: SaveTheHighStreet.org launches to 'revive' the high street
UK: Victoria Gate shopping centre confirms opening date
 ECONOMY
UK: Retail jobs fall as industry undergoes structural change
UK: Retail sales fall 0.5% in June
UK: Retail sales rise 1.1% in June
UK: Retail sales rise 1.8% in July
UK: Retail store planning applications slip 9%

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