UK Retail Briefing - Mixed Goods Focus - April 2008

Table of Contents

• Analyst Comment
• Electricals
• The slowdown we' ve all been waiting for
• The Internet
• Store closures
• Stores in the multi-channel world
• The Month in UK Retailing
• Grocers
• Asda:
• ...George boss aims for number one clothing spot
• ...opposes overseas suppliers code
• Sainsbury' s
• ...launches campaign with Oliver
• ...LFLs up, unveils property deal
• Somerfield
• ... Tchenguiz and Apax divided over Somerfield sale
• ... performs well in pre-Easter sales
• ...in exclusive talks with the Co-op
• Tesco
• ... takes legal action against Guardian
• ... loses Guardian chief as board member over writ
• ... to monitor customer shopping habits
• ... delivers bumper FY results
• Clothing retailing
• Baugur to raise £430m for retail investment
• Alexon FY LFLs slump, profit rises
• Arcadia
• ... owner Green expects record year at Topshop
• ... owner considers selling Bhs
• Ethel Austin to be rescued?
• Moss Bros
• ... stake raised by Laura Ashley, fuelling bid speculation
• ...posts FY loss
• ...sees Greenwoods boss pull out of race
• ...bid abandoned by Debenhams
• Next FY profit rise, forecasts "difficult" trading
• DIY retailing
• Kingfisher FY profits fall, restructures China arm
• Superdrug boss to run B&Q
• Topps Tiles H1 LFLs to drop
• Electrical retailing
• Kesa predicts tough trading after FY results
• DSG issues second profit warning
• Furniture retailing
• Jysk confident of UK launch
• Land of Leather suffers in H1, as chief retires
• Sleep Depot collapses into administration
• ScS LFLs plummet in H1
• Home shopping
• Findel expects to deliver record sales
• Littlewoods increases online goal to 70%
• Health and beauty retailing
• Superdrug searches for successors
• Superdrug names new boss
• Book and stationery retailing
• Clinton Cards posts strong H1 figures
• The Works on brink of sale
• WH Smith buys hospital shops
• Sports and leisure goods retailing
• JD Group reports strong FY results
• Toys and games retailing
• Toyzone
• ... enters administration
• ... rescued from administration
• Jewellers
• Signet FY profit down 17%
• Miscellaneous specialist retailing
• Halfords reports strong FY LFLs
• Garden centres
• Dobbies posts mixed results
• Executive Appointments
• Alexon chief to retire
• Arnotts appoints Kearney
• Asda
• ...Living hires marketing head
• ...appoints head of estates
• Bhs gets retail chief from M&S
• Beales puts back Brown appointment
• Superdrug boss to run B&Q
• DSGi appoints chief operating officer
• Oliver named Fragrance Shop MD
• Harrods poaches Gucci man for chief role
• Terrell appointed to John Lewis
• Matalan lures Debenhams fashion execs
• M&S
• ...attempts to alleviate Rose row
• ...design head leaves
• Monsoon hires MD
• New Look hires new Mim boss
• Superdrug
• ...searches for successors
• ...names new boss
• Tesco
• ...board keeps McCall
• ...loses Guardian' s McCall from board
• Wal-Mart
• ...eyes Russia following exec appointment
• ...China to be headed by Cissell
• Product Development -- Meals and Meal Centres
• Asda
• Marks & Spencer
• Morrison
• Sainsbury' s
• Somerfield
• Tesco
• Advertising News
• New campaigns
• Benson' s campaign to run through May 2008
• Co-op looks to reclaim fairtrade top spot
• Deichmann signs Sugababes for ads
• DV8 seeks budding models for new campaign
• George at Asda launches Hannah Montana line
• Greggs increases adspend
• John Lewis launches homewares campaign
• Matalan signs TV sponsorship
• N Brown ups adspend
• Sainsbury' s/Oliver launch £5 meal campaign
• Woolworths signs Chan for ads
• Account gains/losses
• New online bookseller to challenge Amazon
• The Body Shop hire Headstream for online task
• Waterstone' s hire CHI & Partners for £5m ad task
• Retail Advertising Review
• Advertising expenditure
  • Figure 1: Total advertising expenditure by all retail advertisers (£m), Jan 2004-Jan 2008
  • Figure 2: Total advertising expenditure by all advertisers (£m), Jan 2004-Jan 2008Figure 3: Use of media by retail and all advertisers (%), Jan 2007-Jan 2008
  • Figure 4: Use of media by retail and all advertisers (£m), Jan 2007-Jan 2008
• Top 25 retail advertisers
  • Figure 5: Top 25 retailers by adspend (£), Dec 2007-Jan 2008
• Furniture
• Food
• Optical
• DIY
• Other
• Nielsen Media Research/definitions
• Retail Sales and Inflation
• Retail sales
• Office for National Statistics
  • Figure 6: Retail sales trends: Feb 2007-Feb 2008
  • Figure 7: Non-seasonally adjusted % value change on previous year, Feb 2007-Feb 2008
  • Figure 8: Seasonally adjusted % volume change on previous year, Feb 2007-Feb 2008
• Significant features of February' s ONS statistics
• Confederation of British Industry
• British Retail Consortium
• Retail price inflation trends
  • Figure 9: Annual percentage change in retail price index for selected product groups: Feb 2007-Feb 2008Figure 10: Annual percentage change in retail price index for selected product groups: Feb 2007-Feb 2008
• Retail Prices Index
• Consumer Prices Index
• British Retail Consortium: Shop Price Index
• Sector Analysis -- Mixed Goods
• Sales trends
  • Figure 11: Mixed goods retailers, sales trends, 1998-2007
  • Figure 12: Mixed goods retailers as % of all retail sales, 1998-2007
• Retail price inflation
  • Figure 13: Indices of retail prices for product categories, Jan 2001-Jan 2008 (Jan 1987=100)
• Sales by sub-sector
  • Figure 14: Mixed goods retailers, breakdown of sales by sub-sector, 2001-07
• Consumer expenditure
  • Figure 15: Consumer expenditure on selected product categories (£m), 2001-07
• Mixed goods retailers: latest trends
  • Figure 16: Mixed goods retailers' sales, 2003/04-2006/07
  • Figure 17: Mixed goods retailers' operating profits, 2003/04-2006/07
• Argos
• Debenhams
• John Lewis
• Woolworths
• Harrods
• House of Fraser
• Sector News Review: Mixed Goods Retailing
• November
• Mixed goods retailing
• Mothercare
• ...tests the water in Germany
• ...and records rise in UK and international sales in H1
• Woolworths sees sales rise but retail struggles
• Multi-sector retailing
• Ethical retailer Adili announces flotation
• Boots ahead of expectations
• Home Retail Group reveals interim profit
• M&S H1 results, announces international expansion
• Next LFLs drop 2.9% in Q3
• Department stores
• House of Fraser profits post Baugur buyout
• John Lewis announces expansion
• December
• Mixed goods retailing
• Woolworths under pressure to renegotiate debt
• Multi-sector retailing
• Alliance Boots posts £504 million H1 profit
• HMV
• ...sees losses narrow
• ...and continues rolling out Fopp stores
• Laura Ashley reports 10.8% fall in LFLs
• M&S not ruling out return to continental Europe
• Department stores
• Debenhams
• ...renegotiates debt
• ...as MRG takes 7% stake
• ...as Landmark-owner considers joint bid
• January
• Mixed goods retailing
• 99p Stores reports excellent Christmas
• Instore Christmas sales up 0.4%
• Mothercare posts strong Q3 results
• Woolies reports ' very challenging' Christmas sales
• Multi-sector retailing
• Boots reports strong Christmas performance
• HMV posts record Christmas
• Home Retail Group warns for tougher trade
• John Lewis
• ...reports sales up 18% over Christmas
• ...and reiterates strong Christmas sales
• Next cautious on outlook for 2008
• Department stores
• Beales posts Christmas sales fall, issues warning
• Debenhams LFLs up 2.2% over Christmas
• House of Fraser posts strong Christmas trading
• Liberty reveals Christmas boost
• Selfridges LFLs grow 9% in December
• February
• Multi-sector retailing
• Alliance Boots toughens supplier terms
• M&S
• ...to take food range to India?
• ...on track with Plan A
• ...in 800,000 voucher giveaway
• Department stores
• Beales reports weak FY figures
• Debenhams
• ...quits Nectar scheme
• ...and launches Fairtrade menswear
• John Lewis
• ...looks to India
• ...and trials ban on cheques
• March
• Multi-sector retailing
• Home Retail Group suffers from slowdown
• John Lewis FY profits soar
• M&S
• ...hit by union' s cyber campaign
• ...as investors object to Sir Stuart appointment
• ...as Burns' pay-off is revealed
• Department stores
• Liberty pre-tax loss widens to £6.4m
• April
• Mixed goods retailing
• Laura Ashley FY profits surge, while LFLs drop
• Mothercare reports buoyant FY LFLs
• Woolworths reports FY profit rise, cuts dividend
• Multi-sector retailing
• Alliance Boots faces supplier boycott
• HMV to open first motorway service store
• M&S
• ... faces growing pressure over Sir Stuart' s promotion
• ...attempts to alleviate Rose row
• ... wins £3.5m teacake refund
• Department stores
• Debenhams reports H1 profit slump
• Harrods poaches Gucci man for chief role
• Sector Advertising Review -- Mixed Goods
• Advertising expenditure
  • Figure 18: Total advertising expenditure by mixed goods retailers, Jan 2004-Jan 2008
• Use of media
  • Figure 19: Use of media by mixed goods retailers and all retailers (%), Jan 2007-Jan 2008
  • Figure 20: Use of media by mixed goods retailers and all retailers (£), Jan 2007-Jan 2008
• Top ten mixed goods retail advertisers
  • Figure 21: Top ten mixed goods retailers by adspend, Jan 2007-Jan 2008
• Retailer focus
• Boots
  • Figure 22: Boots, media use by adspend and as share of total, Jan 2007-Jan 2008
  • Figure 23: Boots, top brands by adspend, Jan 2008
• Argos
  • Figure 24: Argos, media use by adspend and as share of total, Jan 2007-Jan 2008
  • Figure 25: Homebase, top brands by adspend, Jan 2008
• Debenhams
  • Figure 26: Debenhams, media use by adspend and as share of total, Jan 2007-Jan 2008
  • Figure 27: Debenhams, top brands by adspend, Jan 2008
• Harrods
  • Figure 28: Harrods, media use by adspend and as share of total, Jan 2007-Jan 2008
  • Figure 29: Harrods, top brands by adspend, Jan 2008
• Nielsen Media Research/definitions
• Report Focus: Underwear Retailing
• Underwear market has further possibilities
• Sharpening those entry points
• Own-label domination
• Drivers of growth
• Underwear is a treat
• Replacements only
• The celebrity draw
• Underwear as gifts
• Shopping patterns
• Main opportunities
• Innovation
• Future prospects
• Consumers: how much, where and why
• Amount spent on underwear retailing
  • Figure 30: How much they spend on underwear/hosiery for themselves per month, December 2007
• More temptation needed
• Young spend most
• Internet opportunity
• Where they shop
  • Figure 31: Where they buy underwear, December 2007
• M&S and Next have clear positions, but value sector is a battleground
  • Figure 32: Where they buy underwear, by gender, age and socio-economic group, December 2007
• Debenhams' younger appeal
• Bhs is challenged
• What they think of purchasing underwear
• Women more likely to buy for replacement
• Men are keen on multipacks
• Tempt women with special occasions
• Matching sets opportunity for M&S
  • Figure 33: What they think of buying underwear, by gender, age and socio-economic group, December 2007
• Men aren' t buying for women
• The well off like sales
• Men are hot for designer undies
• Profiles of leading retailers
  • Figure 34: Specialist lingerie/underwear/hosiery retailers featured, 2008
• La Senza
• Ownership and structure
• Stores
• Financial performance
  • Figure 35: La Senza, financial performance, 2002-07
• Retail offering/market positioning
• Product offer/brands
• Pricing
• Advertising and marketing
• Strategic evaluation
• Ann Summers and Knickerbox
• Ownership and structure
• Stores
  • Figure 36: Ann Summers and Knickerbox, store numbers, 2005-07
• Financial performance
• Retail offering/market positioning
• Online
• Strategic evaluation
• Agent Provocateur
• Ownership and structure
• Stores
• Financial performance
  • Figure 37: Agent Provocateur, financial performance, UK, 2003-07
• Strategic evaluation
• Industry Insights
• The market
• Strong and weak categories
• Key factors affecting the market
• Consumer demographics
• Shapewear innovations
• Fast response
• Designers and celebrities
• Price-sensitivity
• Ethical and eco issues
• Future growth sectors
• Underwear retail display
• Retailers
• Brands opening their own shops
• The growth and potential of online
• The future