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European Retail Briefing: Inc Impact of COVID-19 - June 2020

ANALYST COMMENT – THE IMPACT OF COVID-19 ON SHOPPING BEHAVIOUR
Overview
Consumers are still concerned about the risk of contagion
Figure 1: Those worried about the risk of being exposed to the coronavirus, March-June 2020
Figure 2: Those worried about the risk of being exposed to the coronavirus, by age group, 3rd-9th June 2020
Online shopping still on the rise
Figure 3: Those claiming to have increased the amount of shopping they do online, March-June 2020
Figure 4: Those claiming to have increased the amount of shopping they do online, 3rd-9th June 2020
Figure 5: Those claiming to limit the time they spend in-store, April-June 2020
Opportunities for non-cash payments
Figure 6: Those claiming to be trying to avoid using cash where possible, 3rd-9th June 2020
Figure 7: Those claiming to be trying to avoid using cash where possible, by age group, 3rd-9th June 2020
Figure 8: Those claiming to be using click-and-collect more often, April-June 2020
Opportunities to enhance the experience of shopping online
Figure 9: Live-streaming initiative by Space NK in the UK, June 2020
Many shoppers remain pessimistic about the future
Figure 10: Those claiming to have an extremely negative outlook on the following factors, 3rd-9th June 2020
EUROPEAN RETAIL SALES
Key points
Figure 11: Major European economies: Year-on-year retail sales value growth, 2019-20
Figure 12: Major European economies: Year-on-year retail sales volume growth, 2019-20
The short, medium and long-term impact on retail
Figure 13: Expected impact of COVID-19 on retail, short, medium and long-term, 22 May 2020
Inflation
Figure 14: Major European economies: All items CPI, 2019-20
Figure 15: Major European economies: Food price inflation, 2019-20
LAUNCH ACTIVITY AND INNOVATIONS
France: Monoprix launches delivery service using Ocado technology
Germany: Aldi Süd reveals new Line of Climate Neutral Sneakers
Germany: Mediamarkt launches car rental service in Germany
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Multi-sector retailing
Department stores
Electrical retailing
Furniture retailing
Online shopping
Health and beauty retailing
NEWS ANALYSIS – FOOD AND DRINK
 BAKERS
UK: Greggs reveals UK expansion plans and aims to reopen 800 stores this month
UK: Pret to renegotiate rents to reflect ‘new retail environment’ post COVID-19
 CO-OPS
UK: Co-op
…expands robot delivery service as demand doubles
…teams up with personalised same-day delivery service Buymie
 CONVENIENCE STORES
Belgium: Spar launches automated external defibrillators at outlets
UK: Costcutter reports on ‘one of its best-ever years’
 GROCERS
Germany: Infarm and Aldi team up in vertical farming initiative
Germany: Aldi Nord and Aldi Süd replaces wooden pallets with fully recyclable ones
Netherlands: Jumbo cuts 300 jobs from its headquarters
Netherlands: Albert Heijn to launch digital savings feature for loyalty members
Spain: Esselunga beauty online sales up 75%
Sweden: ICA sees sales increase 7.9% in May
UK: Aldi
…rolls out ‘automated traffic light system’ across UK store estate
…offers customers ‘greater flexibility’ in new tie-up with Deliveroo
UK: Asda sales increase 2.3% but is partially offset by reduced demand for George clothing
UK: Lidl
…launches chatbox to inform customers when it is safest to shop
…launches online collection lockers
UK: Morrisons
…Q1 results up despite ‘volatile’ trading conditions
…extends its faster payment scheme to its suppliers
…introduces ‘speedy’ shopping queues for small basket shoppers
…opens first standalone clothing and homewares stores
…reopens pizza counters for customers
UK: Tesco to use 3D imaging technology to manage customer numbers in stores
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
 CLOTHING RETAILING
France: Kering issues £1bn bond as sales decreased 15.4%
Italy: Gucci cuts back on number of fashion shows a year and goes ‘seasonless’
Spain: Inditex reports a 44% drop in Q1 sales and reveals €2.7bn plan for its ecommerce business
UK: British fashion designers collaborate to launch sustainable face masks
UK: Moss Bros resumes online trading after implementing ‘necessary operational changes’
UK: Mulberry to cut down global workforce by 25%
UK: Next to redevelop former Debenhams stores into first standalone beauty hall
UK: New Look urges landlords to make a ‘radical’ switch to turnover-based rents
UK: Online homeware and casualwear ‘overperforming’ at Urban Outfitters
UK: Owner buys Monsoon Accessorize out of administration
UK: Primark aims to reopen majority of UK stores by June 15
UK: Quiz appoints administrators to subsidiary Kast Retail in a bid to negotiate rent terms
UK: Reiss to reopen store estate in two waves
UK: ‘Significant’ job cuts expected at White Stuff amid COVID-19 crisis
UK: Ted Baker to launch fundraising effort to ‘navigate’ COVID-19 challenges
UK: UK arm of Victoria Secret falls into administration
 FOOTWEAR RETAILING
UK: Clarks to cut 900 jobs as part of its ‘Made To Last’ turnaround plan
UK: UK arm of Aldo falls into administration
NEWS ANALYSIS – MIXED GOODS
 MULTI-SECTOR RETAILING
Finland: Kesko reports grocery sales up by 7.8% in Q1
Netherlands: Hema delays full-year results for a second time as it assesses its viability
UK: B&M posts ‘exceptionally strong’ sales in grocery, DIY and gardening categories
UK: M&S
…reopens 49 of its in-store cafés
…withholds bonuses for a second year
…reports a slump in profits and reveals its ‘never the same again’ agenda
 DEPARTMENT STORES
France: Galeries Lafayette reopens flagship store on Boulevard Haussmann
France: Printemps reopens its Paris flagship store
UK: Debenhams
…reveals more store closures in shopping centres after talks with Intu fail
…to reopen 50 stores across England from June 15
UK: Fortnum and Mason to begin phased reopening of food hall
UK: Harrods opens outlet at Westfield to help shift excess stock
UK: John Lewis
…announces plans for phased reopenings
…John Lewis Partnership donates £1.4m to local charities
…launches virtual wellbeing workshops
NEWS ANALYSIS – HOUSEHOLD GOODS
 DIY RETAILING
UK: Kingfisher reports fourfold growth in ecommerce since mid-March
UK: Topps Tiles slides to a loss amid a ‘complex and extremely challenging trading environment’
 ELECTRICAL RETAILING
Germany: Mediamarkt owner posts 7.7% loss in the first quarter
 FURNITURE RETAILING
Belgium: IKEA sees more targeted shopping behaviours from customers in first week of reopening
Sweden: IKEA reopens cautiously with protective measures in place
UK: Furniture Village and DFS to reopen ahead of bank holiday weekend
UK: IKEA teams up with sustainability charity to drive circular economy goals
UK: ScS ‘well positioned’ to survive COVID-19 as it emerges from lockdown
UK: Wren Kitchen to open 100th showroom this year as it recommences expansion plans
 HOMEWARES RETAILING
UK: Dunhelm launch click and collect car delivery service to reduce COVID-19 exposure
NEWS ANALYSIS – ONLINE
France: Cdiscount opens online platform for struggling booksellers
Germany: Zalando to cut unsustainable brands from platform
UK: Boohoo
…looks to future mergers and acquisitions after raising nearly £200m
…acquires remaining minority stake in PrettyLittleThing
…to sell DIY COVID-19 testing kits
UK: Businesses allowed to set-up shop on Instagram and Facebook with no fee
UK: Cox & Cox sees 64% increase in quarterly sales thanks to lockdown
UK: Ebay helps retailers shift excess stock in new initiative
UK: Eve Sleep sees ‘strong demand’ for its premium mattress and bedframe ranges during lockdown
UK: Instagram launches ‘Fashion Week 2020 Playbook’ to help retailers create digital catwalks
UK: Morrisons and Pret expand Amazon presence with new partnerships
UK: N Brown sales down 25% as it fights ‘very uncertain environment’
UK: Sainsbury’s launches bike delivery service for stores outside London
UK: Snapchat teams up with adidas and Topshop in new ecommerce initiative
UK: Sosandar will start selling its clothing through the John Lewis and Next websites
UK: The Hut Group sales jump 24% driven by brand acquisitions and technology investments
NEWS ANALYSIS – OTHER RETAIL
 HEALTH AND BEAUTY RETAILING
Germany: COVID-19 crisis ‘halts growth momentum’ at Douglas
Spain: Spanish beauty company buys majority stake in Charlotte Tilbury
UK: Boots to focus on digital launch for new No7 product as it reopens beauty counters
 BOOK AND STATIONERY RETAILING
UK: Card Factory profits down as it prepares for store reopenings
UK: Waterstones to reopen stores next week with ‘extensive’ store health and safety measures
UK: WHSmith revenues drop 85% year-on-year in April
 SPORTS AND LEISURE GOODS RETAILING
France: Decathlon launches rental bike service
Germany: Decathlon launches mobile self-checkout service
UK: Angling Direct reports losses blaming store acquisitions and ‘exceptional winter flooding’
UK: JD Sports creates a ‘mock-up’ store for managers to visualise new layout
 PETS AND PET PRODUCTS RETAILING
UK: Pets at Home warns profits to be materially ‘below the prior year’
 SHOPPING CENTRES
UK: Intu
…announces safety plans for its reopened shopping centres
…asks lenders to ‘freeze’ its debt during the ongoing COVID-19 crisis
…to draft in KPMG as part of its contingency plan if talks with lenders fail
UK: Property owner Landsec cuts portfolio value by £1.2bn
UK: Westfield
…reveals safety measures as it plans to reopen shopping centres
…reveals new campaign ‘Working Together’ to remind visitors how to stay safe
NEWS ANALYSIS – ECONOMY
UK: BRC
…reports a 19.1% decrease in sales for April
…shop prices in May fell at their fastest rate since 2006
…UK footfall decreased by 84.7% in April
UK: Shops may open in June according to new COVID-19 roadmap announced by the Prime Minister
UK: All non-essential stores to reopen from June 15 as lockdown restrictions ease
UK: April retail sales down 18.6% amid the COVID-19 peak
UK: Government considers suspending Sunday trading laws to help UK economy
UK: May sees retail sales decrease by 5.9%

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