RoundUpofWeeklyRetailNews(ROAR)20/08/2017
WelcometothethirdeditionofBrightDisposition’sROAR,helpingyoucatchuponthemainretailnewswhichwillyoubediscussinginyourtrademeetingsonaMonday.Tryingtofocusonthepositivethisweek,somuchgoingonretailandbeyond…timesaretoughoutthere,let’shopethenextfewweeksintherunuptoBacktoSchoolprovefruitfulforretailers.WeatherMoreuncertaintythisweek,someglimpsesofsunshine,betterthanthelastfewweeks.I’veevenseentheshortsout!AlotofretailerswillberampinguptheirtradingactivityoverthenextfewweeksbecauseofBacktoSchool/AugustBankholiday–oneofthebiggestweeksformanyretailersoutthere,andagoodstablewarmweatherfrontwillbeimportant.Lookingaheadnextweek(London)-Cloudybutstablewhichisgoodnews!
SalesandTradereporting“TheUKconsumerisextraordinarilyresilient”,HardgreavesLansdown’ssenioreconomistBenBettrellhassaidthisweek.ThiscomesoffthebackofJulyUKretailsalesbeatinganalyst’expectations,howevertheslowdownisstillcontinuing.ONS(OfficeofNationalStatistics)showedthatretailsalesgrew0.3%monthonmonth.SalesgrowthisstillbehindJune,whereitgrew1.5%inthe3monthstoJune,butthe3monthstoJulyitfellto0.6%.Deloittehavereportedthatconsumerconfidenceisatitslowestlevelin2years,fallingfrom-7%to-10%inthesecondquarter.Theystatethatrisinginflation,andthefirstdecreaseinrealwagesin3yearsaretoblame.Shoppersarewatchingwhattheyspendduetothepressureontheirdisposableincome.Sohowhasthattranslatedintotradingstatementsthisweek?InthethreemonthstoJuly,Asdahavereporteda1.8%increaseinsales(excludingpetrol).Alsoshowinga0.7%LFLperformance,statingthattheyhadastrongEasterperformancewhichhelped.Theyalsoattracted275,000newcustomersinthatperiod.Strategychanges,whichincludetargetedpricereductionsandreducingthenumberofoptionsonshelvesby25%,havebeenattributedtohelpingtheincrease.TJX,theparentcompanyofTKMaxx,hasreportedstrongsalesforthe2ndquarterofthefiscalyear.Itsstoresakesgrewby3%(lastyearthiswas4%).ComparablestoresinEuropegrewby1%.Westfield,themajorshoppingcentreoperator,reportedaprofitincreaseof20%forthefirsthalfofthisyear.Theyalsotooktheopportunitytosharethattheir£600millionexpansionofWhiteCity,Stratford,willopen6monthsaheadofschedule.Lastweek,whilsttheIAAFWorldChampionshipswereheld,WestfieldStratfordattracted1.2millionvisitors,markingitshighestfootfallweeksince2012LondonOlympics.Watchthevideohereabouttheexpansion:http://westfieldlondon-plans.co.uk
Alibaba,theonlineChinesegianthavereporteda56%increaseinrevenuesforitsfirstquarter,showingthatitsecommercearmhadincreasedits%from73%to83%.GaphavereportedasalesgrowthofonepercentinLFLstoresforthethreemonthstoJuly29,markingthethirdconsecutiveperiodofgrowth.SharesintheUSretailerjumpedasmuchassixpercentfollowingtheresults,encouragedbyGapraisingitsexpectationsforthefullyeartobetween$2.01and$2.10pershare,abovepreviousprojectionsof$1.95and$2.05ashare.B&Qhavereportedasalesdeclineof7.7%,andLFLsalesdropby4.7%inthe3monthstoJuly31.Kingsfisher,thegroupwhichownsB&QandScrewfixsawLFLsalesdropby1.9%.However,therewassomegoodnews,asScrewfixcontinuestooutperformexpectationswithsalesincreasingby17.2%andLFLsalesincreasingby10.8%.Themainfactorswhichhaveattributedtothelossofsalesarepoorweather,anunstableanddeclininghousingmarketandtoughcomparables.Theyaregoingaheadstillwiththeirturnaroundstrategywhichhasseen65storesshutsofarand3000jobsaxedinthelast2years.BunningsWarehouse,whichacquiredHomebase,hasreportedaprofitlossof£89millioninitsfirstyearmanagingthestores.Criticsandanalystshavesaidthatthemodelofsellingatlowprices,asopposedtopromotionalactivityislargelytoblamefortheloss.Westfarmersfinancedirectorhassaidthattheconcessionbasedmodelandsellingmoreandmorepartsofthestorewas
unsustainableandtherewasalwaysgoingtobeadropinsaleswhilsttheytradedoutofthatstrategy.Definitelysomethingtowatchinthecomingyear.
LauraAshleyissuedtheirsecondprofitwarningthisweek,anditssharestumbledby18%followingtheannouncement.Fullyearearningswillbehitbya£2.8millionloss,onthebackoftherevaluationofoneofitsfreeholdproperties.Itcomesas22outof25ofitsconcessionswillbeclosedbytheendofthisyearduetotheBunningsacquisitionofHomebase.UrbanOutfittershasreporteda4.9%dropinLFLsalesinthe3monthstoJuly31.Thisisthesteepestdeclineinthelast7years.SalesatAnthropologiefell4pcinthequarterandweredown7.9pcattheUrbanOutfitterschain.However,itsEuropeanbrandbusiness,wherecomparablesaleswereupyear-on-yearandnewcustomersgrewalmost30pc.TrishDonnelly,whoheadsupUrbanOutfittersGroup,saidEuropehadmadegoodprogressinspeed-to-consumer,meaningitsbuyingteamwasableto"makeproductdecisionsasquicklyasfourweeksbeforethein-storedelivery".(SourceTelegraph)Jones,thefootwearbrandhasannouncedtheywillbeclosinganother9stores,whichaddstothe25thathavealreadyclosed.Draperscitedresourcesalsostatetherecouldbeanother10.ItwasrescuedfromnearlycollapsingbackinMarchandthisispartofthestrategytoensuresustainabilitygoingforward. Storelaunchesannouncedthisweek
Forthosebabyclothesaddicts(yesIdocountmyselfasoneofthem),ZarahasopeneditsfirstdedicatedbabystoreinCoventGardenthisweek.IforonewillbetakingalookassoonasIcan!
PolishbrandReservedwillbeopeningtheirfirstUKstoreonOxfordStreetnextmonth.KateMossisheadingtheirbrandcampaign,whichwilladdmassiveweighttothelaunch,asshewillalsobeattendingthestorelaunch.Thisisaddingtotheiralready450storesoperatingin18countries,buttheydoseetheUKasakeymarketforthemtotradein.
Importanttotakenoteof…Sainsbury’saretrialinga30minclickandcollectservice,fornofeeinitsPimlicostore.Youwillbeabletopickup25items.Anotherdrivetobethequickesttomarket!H&Mhasopened16storesin20monthsinIndiaandhasreportedprofitgrowthforthelast6months.Itsdriveinopeningstoresquickly,comparedtoZarawhohavetakenover7yearstoopen21storeshasreallystimulatedtheIndianmarketwheretherecontinuestobemassivegrowthpotentialforinternationalcompanies.
Matchesfashion.comlookstobeintalksofatakeoverbidwhichcouldbeworth£600million.Thisisoffthebackofrecentasalesincreaseshowing61%growthandanEBIDTAriseof£19million.TheworldofonlineOnlineLuxuryretailer,Avenue32hasceasedtradingthisweek,despitetryingtosellthebusiness.OurpickofthearticlesthisweekAsoshavelaunchedtheirvisualsearchontheirappthatallowsyoutotakeapictureofadressoranaccessorythatyoulikeandtouploaditonthesitewhereAsoswillcompareproductsforyou!80%oftheirsalescomefrommobilesitessothisistheprefectaccessoryforthebrand
(Sourceengadget.com)Didanystationerynewstickleourfancy?WearegoingtobeabitbiasedhereasBrightDispositionisfeaturedinStationerymattersthisweek,promotingtheBacktoSchoolMarketResearchreportwhichprovidesawelldetailedcompetitivemarketreviewofBacktoSchoolandalsoindepthpiecesonAmazonandSmiggle.http://www.stationerymatters.news/home/bright-disposition-to-launch-third-back-to-school-report-51975AndtomakesureyouknowtheGossintheoffice!ItsbeenaslowweekthisweekforgossipIhavetosay,SarahHardingonBigBrotherseemedtodominatetheDailyMailgossipheadlines,sorry!http://www.dailymail.co.uk/tvshowbiz/article-4800940/CBB-fans-think-Brandi-Glanville-s-JEALOUS-Sarah-Harding.htmlSeeyounextweek!Thisweek’sROARwascollatedbyFaikaKhurram,RetailAnalystandConsultantatBrightDispositionLtd.Emailroar@brightdisposition.com.
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Sourceshttps://www.retail-week.comhttps://www.retailappointment.co.uk/newshttp://www.retailgazette.co.ukhttp://www.telegraph.co.uk/business/2017/08/15/urban-outfitters-disappointed-sales-decline-continues/http://www.heraldsun.com.au/business/companies/bunnings-uk-posts-89-million-loss/news-story/54477303562b67c4c1888db16bc090c5https://www.standard.co.uk/fashion/news/kate-moss-fronts-reserved-campaign-ahead-of-the-polish-highstreet-brands-debut-uk-store-launch-a3612371.htmlhttps://www2.deloitte.com/uk/en/pages/consumer-business/articles/consumer-tracker.html
