European Retail Briefing - October 2016

ANALYST COMMENT
 ORGANICS ARE A GROWTH BUSINESS FOR FRENCH FOOD RETAILERS
What we’ve seen
Organic is growing
Figure 1: France: Grocery shopping habits, Q4 2015 and Q3 2016
Retailers of organic products
Biocoop the leading specialist
Grocers cashing in with own-labels
And developing stand-alone organic subsidiaries
Where next?
EUROPEAN RETAIL SALES
Key points
Retail sales
Figure 2: Major European economies: Year-on-year retail sales value growth, 2014-16
Figure 3: Major European economies: Year-on-year retail sales volume growth, 2014-16
Inflation
Figure 4: Major European economies: All items CPI, 2015-16
Figure 5: Major European economies: Food price inflation, 2015-16
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Department stores
Furniture retailing
Home shopping
NEWS ANALYSIS – FOOD AND DRINK 
 CONVENIENCE STORES
UK: Booker like-for-like sales fall 0.4%
UK: Nisa sales rise 1.1%
Spain: El Corte Inglés extends Stop & Go store network
 GROCERS
Belgium: Lidl Belgium launches premium sportswear collection
France: Auchan opens second dedicated organic store
France: Casino and Conforama to make joint central purchasing agency
France: Eately expands into France
Germany: Aldi Nord and Süd launch first joint campaign
Germany: Edeka launches YouTube cooking channel
Germany: Kaufland launches online delivery service
Italy: Crai and Coralis sign new collaboration agreement
Netherlands: Jumbo continues store renovations
Spain: Eroski first half profits amount to £2.8m
Switzerland: Coop Switzerland aims to reduce plastic bag usage by 80%
UK: Aldi
…sales rise 12% to £7.7bn
UK: Aldi
…takes on the high street with womenswear range
UK: Iceland to reveal new store concept
UK: John Lewis Partnership profits plunge 58%
UK: Morrisons
…forges locker deal with Amazon
…sees like-for-likes grow 1.4% in the first half
…trials in-store student discount
UK: Sainsbury's
…channels investment into online fulfilment
…extends one-hour bicycle delivery trial
…like-for-like sales dip 1.1%
UK: Supermarkets expected to decrease package sizes as costs rise
UK: Supermarkets to benefit from fall in business rates
UK: Tesco UK like-for-like sales increase 0.6%
UK: The Co-operative
…convenience business drives growth
…unveils premium own-label plans
…refreshes loyalty scheme
UK: Waitrose adds 500 new items to premium line
 OTHER FOOD AND DRINK SPECIALISTS
UK: Greggs sales rise 5.6%
UK: Majestic Wine profits fall below expectations
NEWS ANALYSIS – NON-FOOD
 CLOTHING RETAILING
Belgium: MS Mode finds a buyer
Europe: H&M sales up 6% in Q3
Europe: Inditex like-for-like sales grow 11%
France: Rimowa joins the LVMH Group
France: Vivarte may sell 100 La Halle stores
Germany: Gerry Weber's realignment programme hits profits
Germany: Sinn Leffers files for bankruptcy
Germany: Topshop and Topman to launch in Germany
Poland: Inditex-owned Uterque to enter Poland
Slovenia: Mercator extends homemade product range
Sweden: H&M's profit hit by increased markdowns
Switzerland: Coop Switzerland aims to reduce plastic bag usage by 80%
Switzerland: Sempione Retail AG makes cash offer for Charles Vögele
UK: Arcadia introduces interest-free credit payment online
UK: Bhs
…to relaunch online this week
…launches first two Christmas ranges
UK: Bonmarché issues profit warning after poor September trading
UK: Fat Face pledges full price promise
UK: Fat Face profits hit by unseasonal weather
UK: French Connection retail revenue down 2.3%
UK: Jack Wills bought out by BlueGem
UK: Matalan opens first standalone home store
UK: Moss Bros continues to perform positively
UK: Mothercare launches 'Welcome to the Club'
UK: Next
…half year sales up 2.6%
…to open in former Bhs store
UK: Phase Eight report strong international growth
UK: Primark like-for-like sales dip 2%
UK: River Island sales remain flat
 FOOTWEAR RETAILING
UK: Schuh reports strong profit growth
 MULTI-SECTOR RETAILING
UK: Poundland and Pep&Co may swap some stores
UK: The Original Factory Shop sales rise 6%
 DEPARTMENT STORES
Netherlands: Hudson's Bay reaches thirteen leases in the Netherlands
UK: House of Fraser EBITDA tumbles to £1.1m
UK: John Lewis
…Andy Street stands down
…launches single financial services brand
…profits plunge 58%
 DIY RETAILING
Germany: Hornbach sales rise 6.4%
UK: Kingfisher like-for-likes grow 3.3% in first half
UK: Topps Tiles expects revenues to reach £215m
 ELECTRICAL RETAILING
Belgium: Makro and Media-Markt form concession partnership
France: Fnac to equip stores with virtual reality demos
UK: Brighthouse's credit checks are hitting profits
UK: BT unveils new concept store to inspire retailers
 MUSIC AND VIDEO GOODS RETAILING
UK: HMV suffers an £8.8m pre-tax loss
UK: GAME divests UK property
UK: The Entertainer pre-tax profits reach £8.1 million
 FURNITURE RETAILING
Belgium: Ikea plans online site and smaller stores
France: Casino and Conforama to make joint central purchasing agency
Sweden: Ikea global sales rise 7.1%
UK: DFS revenues rise 7.1%
UK: OKA Direct posts 12% sales rise
UK: ScS delivers 14.8% rise in like-for-like orders
 HOMEWARES RETAILING
UK: Cath Kidston taken over by Baring Asia
UK: Dunelm
…delivers modest like-for-like growth
…sales fall amid weak out-of-town footfall
UK: KitchenAid opens experience-led first UK shop
UK: Lakeland profits fall despite sales rise
 HOME SHOPPING
Europe: Amazon
…launches 'Handmade at Amazon' in Europe
…launches Amazon Echo
Germany: Hello Fresh revenues double
UK: Amazon
…Fashion launches first UK television campaign
…opens new distribution centre
UK: AO World signs for new London warehouse
UK: Boden profits slip in a "challenging" year
UK: Boohoo revenues surge 40%
UK: Made.com full-year sales surge 44%
UK: Majestic Wine profits fall below expectations
UK: Missguided
…launches beauty range
…unveils new maternity range
UK: Mr Porter launches shoppable Apple TV app
UK: Ocado gross sales grow 15.4%
 HEALTH & BEAUTY RETAILING
Spain: Sephora launches loyalty scheme in Spain
UK: The Fragrance Shop sales up 9.4%
 BOOK AND STATIONERY RETAILING
UK: Card Factory delivers 'solid set of results'
UK: Paperchase prepares for £150m flotation
UK: Ryman acquires London Graphic Centre
UK: The Works full-year sales rise 9%
UK: Typo debuts in the UK, as Smiggle expands
 SPORTS AND LEISURE GOODS RETAILING
UK: JD Sports revenues surge as international expansion continues
UK: Sports Direct issues third profit warning this year
 FLORISTS
UK: Interflora extends delivery options
 PET PRODUCTS RETAILING
UK: Pets at Home appoints new CFO
 SHOPPING LOCATIONS
UK: Network Rail retail sales rise 4.1% like-for-like
UK: New West End Company reports boost in overseas spending
UK: Westfield set for successful 'Golden Week'
 ECONOMY
UK: BRC warns of need for consumer-first Brexit strategy
UK: Cash payments fall 5% in 2015
UK: Food prices fall by record 1.3%
UK: MasterCard launches 'selfie' payment verification
UK: Planned investment in the convenience sector falls to lowest level
UK: Retail footfall rises 0.1%
UK: Retail sales grow by 3.8% in August
CLOTHING RETAILING – EUROPE – OCTOBER 2016
 ZALANDO
What we think
Complementing the high street leaders
Brand focus
Company background
Company performance
Figure 6: Zalando: Group financial performance, 2011-15
Retail offering