European Retail Briefings - March 2008
About this report
European Retail Briefing is a monthly briefing providing news and analysis that includes company results, store openings, cross-border moves, M & A activities, executive changes and property developments. Additionally each month, European Retail Briefing focuses on a key issue or specific European retail sector. The month's retail news is then analysed sector by sector, making this an invaluable resource for all with an interest in the European retail industry.
Contents
Highlights: March 2008
Grocers
Multi-sector retailing
Clothing retailing
Department stores
News Analysis
Bakers (retail)
UK: Greggs sees FY profit rise, warns of increased costs
Convenience stores
Ireland: Musgrave hires Home Retail exec as FD
United States: Casey’s sees Q3 profit rise
Grocers
Austria: Spar Austria 2007 sales up 11%
Czech Republic: Rewe acquires Plus’ Czech outlets
France: Carrefour reports FY profit rise
France: Casino FY profit rises 36%
France: Leclerc announces price hikes
Hungary: Spar acquires Hungarian Plus operations
Japan: Tesco sends Fleming to Japan, fuelling expansion speculation
Netherlands: Ahold FY profit up on Dutch boost
Netherlands: Schuitema to transfer supermarkets to Ahold, cut jobs
Netherlands: Super de Boer swings back to profit for 2007
Norway: Lidl sells Norwegian stores to Rema 1000
Russian Federation: Kopeyka to leaseback its own stores?
Russian Federation: X5 sees profits surge 32% in Q4
Spain: Mercadona FY profits soar 39%
UK: Asda
…reports family income down £5 a week
…that it will close George’s standalone stores
…and launches “bag on request”
UK: Brown warns supermarkets of plastic bag clamp down
UK: Morrisons
…sees 66% profit rise upon Sir Ken’s retirement
…as Sir Ken considers share sale
UK: Ocado launches price war on Tesco
UK: Sainsbury’s in £3m potato scandal
UK: Somerfield circled by Asda and Co-op
UK: Tesco
…comes under fire over £1bn tax avoidance
…and threatens ASA action over Ocado ads
UK: Waitrose mulls convenience store format
United States: Kroger LFLs jump 5.3% in Q4
United States: Publix reveals FY sales rise
United States: Tesco
…takes Fresh & Easy to northern California
…and denies it is struggling
United States: Whole Foods shareholders oppose CEO/chairman split
Off-licences
UK: Majestic chief to retire
Clothing retailing
International: Debenhams/French Connection hit by Chinese inflation
International: Hot Tuna chairman resigns in midst of company turmoil
International: SRG sold to Egyptian investor
Sweden: H&M acquires stake in Swedish outfit
UK: Base Menswear rescued from administration
UK: French Connection profits slump
UK: Moss Bros
…sees shareholder move to scupper Baugur’s plans
…as Gee makes shares move
UK: Select collapses into administration
UK: Ted Baker FY profits rise 10%
United States: Talbots reports Q4 loss, plans more store closures
United States: Urban Outfitters profits up 50% in Q4
Footwear retailing
International: Stylo sells Shelly’s
Mass merchandisers
Japan: Wal-Mart to acquire 100% of Seiyu
United States: Costco Q2 profits grow 31%
United States: Target falls short of expectations in Q4
Multi-sector retailing
Australia: Wesfarmers open to Kmart sale
Europe: M&S signs eastern European expansion deal
France: PPR reports strong FY results
Germany: Metro to boost Real, mulls Kaufhof sale
Germany: Rewe buys Otto’s 50% stake in joint venture
UK: Home Retail Group suffers from slowdown
UK: John Lewis FY profits soar
UK: M&S
…hit by union’s cyber campaign
…as Sir Stuart Rose named M&S chairman until 2011
…before investors object
…as Burns’ pay-off is revealed
UK: Next homewares manager to join Sainsbury’s
United States: Sears reports lower Q4 results
Home shopping
UK: Flying Brands FY LFLs slump
UK: Ideal Shopping Direct FY pre-tax profits down
UK: Littlewoods reports £24m loss
Department stores
Australia: David Jones announces revamp operation
Germany: Arcandor aims to boost Karstadt sales by 50%
Germany: Metro to boost Real, mulls Kaufhof sale
UK: Liberty pre-tax loss widens to £6.4m
United States: Kohl’s FY LFLs slip after tough Q4
United States: Macy’s improves in Q4
United States: Saks posts Q4 profit, but FY loss
Sports and leisure goods retailing
UK: Blacks hit by accounting probe, suspends director
UK: Sports Direct “in-line” to meet expectations
United States: Dick’s sees FY LFLs rise 2.4%
Health and beauty retailing
Japan: Aeon to double stake in pharmacy chain
United States: Walgreens branches into wellness sector
Toys and games retailing
UK: Game increases FY profit forecast
DIY retailing
UK: Wickes sees FY LFLs rise 7.5%
Furniture retailing
UK: Dreams
…looks overseas following 88% profit rise
…as £200m deal looms
…before Exponent makes purchase
UK: MFI at centre of £57m lawsuit
Electrical retailing
Europe: Fnac to arrive in the UK?
Books and stationery retailing
United States: Office Depot launches tech support service
United States: Office Depot sees Q4 profit drop
United States: Staples reports FY sales growth
Miscellaneous specialists
United States: PetSmart Q4 profit falls
Economic News
China: retail sales surge 20.2% in January and February
Germany: Retail sales rise 1.6% in January
Spain: January retail sales fall 2.4%
Sweden: Retail sales up 3.5% in January
UK:
…BRC: London retail sales increase in January
…February retail sales below average, says CBI
…February retail sales hit by belt tightening, says BRC
Market Analysis: Health and Beauty retailing
Sources
‘Beauty’ market
Figure 1: Europe: Consumer spending on cosmetics, fragrances and toiletries, 2002, 2004 and 2006
‘Health’ market
Definitions
Bulk of pharmacy sales come from prescription drugs
Prescription volumes growing
France struggling to contain ballooning costs
Generics being pushed in the Mediterranean markets
Figure 2: Europe: Pharmaceutical products market size, by country, 2002-06
Per capita spending highest in France
Figure 3: Europe: Consumer spending on Health and beauty by country, 2002, 2004 and 2006
Figure 4: Europe: Spend per capita on health and beauty, by country, 2006
Retail sales of non-OTC drugs
Sector value and performance
Figure 5: European health and beauty retailing: Sector value by country, 2002 and 2006
Sector relative performance
Figure 6: European health and beauty retailing: Sector share of all retail sales by country, 2002-06
Outlet provision
Figure 7: European health and beauty retailing: Specialist stores relative importance and provision
European sales performance
Figure 8: Leading European health and beauty specialists – European sales trends, 2005 and 2006
Company evaluation
Alliance Boots in pole position
German drugstores dominate
AS Watson - a mixed bag
Solid progress from Celesio and Douglas
Mass market beauty players – The Body Shop and Yves Rocher
Outlet trends
Figure 9: Leading European health and beauty specialists – Outlet trends, 2005-07
Figure 10: Leading European health and beauty specialists – Sales and outlet trends, 2002-06
Company Profile: Celesio
Figure 11: Celesio (UK): Share of UK health and beauty specialists’ sales, 2002-06
Figure 12: Celesio: Share of European health and beauty specialists’ sales, 2002-06
Strategic evaluation
Background
Financial performance
Figure 13: Celesio Retail: Financial performance, 2002-06
Figure 14: Celesio Retail: Sales by country, 2002-06
Figure 15: Celesio Retail: Sales and outlet growth by country, 2005-06
Figure 16: Celesio Retail: Q1-Q3 sales by country, 2006 and 2007
Store portfolio
Figure 17: Celesio Retail: Outlet data, 2002-Q3 2007
Retail offering
Market positioning
Product offer
Brands
Pricing
Customer services
Advertising and marketing
e-commerce
