European Retail Briefings - April 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: April 2008
Grocers
Multi-sector retailing
Clothing retailing
Department stores
News Analysis
Grocers
Europe: Delhaize acquires La Fourmi supermarkets
France: Auchan FY sales up 6%
France: Shareholders up Carrefour stake
France: Casino reduces Mercialys stake
Germany: Regulator threatens to block Netto/Plus merger
Germany: Metro’s Extra sale approved
Germany: Lidl accused of spying on staff
International: Tesco mulls Russian entrance
Japan: Seven & I FY profit drops
Malta: Lidl enters Malta
Netherlands: Super de Boer sees Q1 sales success
Russian Federation: Dixy to invest $200m in 2008
Russian Federation: X5 Retail Group
…buys Kama franchise stores
…and announces premium concept
…as Q1 sales leap
…and Carousel buy-out is confirmed
Switzerland: Migros FY profit falls
Thailand: Tesco takes action
UK: Asda
…George boss aims for number one clothing spot
…as Asda opposes overseas suppliers code
UK: Sainsbury’s
…launches campaign with Oliver
…LFLs up, unveils property deal
UK: Somerfield
…sees Tchenguiz and Apax divided over sale
…but performs well in pre-Easter sales
…then enters exclusive talks with the Co-op
UK: Tesco
…takes legal action against Guardian
…then loses Guardian chief as board member over writ
…and plans to monitor customer shopping habits
…then delivers bumper FY results
United States: Tesco
…halts US expansion
…and is accused of F&E results U-turn
United States: Wal-Mart to open Fresh & Easy rival
Clothing retailing
Iceland: Baugur to raise £430m for retail investment
International: Banana Republic to investigate Indian worker conditions
Spain: Inditex FY profit and LFLs jump
Sweden: H&M Q1 LFLs and profits rise
UK: Alexon
…chief to retire
…as FY LFLs slump, profit rises
UK: Arcadia
…owner expects record year at Topshop
…and considers selling Bhs
UK: Ethel Austin to be rescued?
UK: Moss Bros
…stake raised by Laura Ashley, fuelling bid speculation
…as company posts FY loss
…and sees Greenwoods boss pull out of race
…as bid is abandoned by Debenhams
UK: Next FY profit rise, forecasts “difficult” trading
United States: Talbots cuts forecast following review
Mass-Merchandisers
China: Wal-Mart China to be headed by Cissell
International: Wal-Mart March sales boosted by Asda
Mexico: Walmex Q1 profits rise
Russia: Wal-Mart eyes Russia following exec appointment
United States: PriceSmart sales jump in H1
Mixed goods retailing
Europe: M&S agrees to European joint venture
UK: Laura Ashley FY profits surge, while LFLs drop
UK: Mothercare reports buoyant FY LFLs
UK: Woolworths reports FY profit rise, cuts dividend
United States: 99 Cents Only FY sales up
United States: Family Dollar reports weak H1 results
Multi-sector retailing
Australia: Wesfarmers to hold onto Kmart
Europe: Arcandor unveils Russian expansion plan
Finland: Kesko
…sells optical business to Specsavers
…as Q1 sales rise
Finland: Stockmann Q1 sales drop
Germany: Metro looks to other markets following FY earnings slide
Japan: Aeon FY profit drops
Switzerland: Migros FY profit falls
UK: Alliance Boots faces supplier boycott
UK: HMV to open first motorway service store
UK: M&S
…faces growing pressure over Sir Stuart’s promotion
…attempts to alleviate Rose row
…and wins £3.5m teacake refund
Department stores
Australia: David Jones H1 profit jumps 25%
UK: Debenhams reports H1 profit slump
UK: Harrods poaches Gucci man for chief role
United States: Dillard’s profits drop on declining sales
United States: JC Penney warns of profit drop
DIY retailing
Germany: Hornbach FY sales buoyed by international business
Germany: Praktiker FY net profit falls
International: Kingfisher FY profits fall, restructures China arm
UK: Superdrug boss to run B&Q
UK: Topps Tiles H1 LFLs to drop
Electrical retailing
Europe: Kesa predicts tough trading after FY results
UK: DSG
…appoints chief operating officer
…then issues second profit warning
UK: Jessops H1 LFLs fall 5%, remains confident on FY
United States: Best Buy FY in line with expectations
United States: Circuit City
…reports FY loss, Q4 profit
…before Blockbuster makes a bid
Carpet retailing
Europe: Carpetright buys Carpetworld, Ben de Graaff Tapijt
Furniture retailing
Denmark: Jysk confident of UK launch
Sweden: Ikea feels strain from housing slowdown
UK: Land of Leather suffers in H1, as chief retires
UK: Sleep Depot collapses into administration
UK: ScS LFLs plummet in H1
Home shopping
Germany: Otto posts record full-year sales
UK: Findel expects to deliver record sales
UK: Littlewoods increases online goal to 70%
Health and beauty retailing
UK: Superdrug
…searches for successors
…then names new boss
United States: Walgreens
…to extend clothing range
…as H1 earnings climb
Book and stationery retailing
UK: Clinton Cards posts strong H1 figures
UK: The Works on brink of sale
UK: WH Smith buys hospital shops
United States: Borders
…agrees financing deal
…and mulls sale
United States: Staples to launch hostile bid for Dutch firm
Sports and leisure goods retailing
UK: JD Group reports strong FY results
Opticians
Finland: Specsavers gets Kesko’s Tähti Optikko Group
Toys and games retailing
India: Hamleys to enter India
UK: Toyzone
…enters administration
…before rescue
United States: GameStop sees FY LFLs jump 25%
Jewellers
International: Signet FY profit down 17%
United States: Tiffany FY income up, despite Q4 profit fall
Miscellaneous Specialist Retailing
UK: Halfords reports strong FY LFLs
Garden Centres
UK: Dobbies posts mixed results
Economic News
Czech Republic: Retail sales beat expectations
Germany: Retail sales fall in February
Spain: Retail sales drop 2.7% in February
Switzerland: February sees Swiss retail sales bounce back
UK:
…ONS: February retail sales see “positive growth”
…BRC: March sees retail sales fall for first time in two years
Market Analysis: PC Retailing
France
Outlook
Figure 1: France: Consumer spending on information processing equipment, forecast, 2001-11
Market size and performance
Market leaders
Germany
Outlook
Market size and performance
Market leaders
Figure 2: Germany: Consumer spending on information processing equipment, by value, 2001-11
Italy
Outlook
Market size and performance
Market leaders
Figure 3: Italy: Estimated consumer spending on information processing equipment, forecast (incl. sales tax), 2001-11
Spain
Outlook
Market size and performance
Consumer behaviour
Market leaders
Figure 4: Spain: Market size of information processing equipment, by value (incl. sales tax), 2001-11
UK
Price focus isn’t everything
Spending growth slowing
IT to under-perform all spend
Specialists under pressure
Verging on monopoly?
The future
Company Profile: Fnac
Background
Strategy
An institution?
Overseas ambitions?
From city centre to out of town
Financials
Figure 5: Fnac: Fnac growth in domestic vs. international sales, 2002-06
France
Figure 6: Fnac: Group financial performance, 2002-06
International
Figure 7: Fnac: Sales by country, 2006
PC retailing
Figure 8: Fnac: Estimated PC retail sales, 2002-06
Store portfolio
Figure 9: Fnac: Potential for store openings, May 2007
Figure 10: Fnac: Outlet data, 2002-06
Products on offer
Figure 11: Fnac: Sales by major product category, 2006
Figure 12: Fnac: Product breakdown by major category, 2002-06
Pricing/operational issues
e-commerce/home shopping
