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110317 global retail_freeview

  1. 1. GLOBAL RETAILFREEVIEWA free synopsis of global retailnews and opinionMarch 17, 2011
  2. 2. GLOBAL RETAIL FREEVIEW March 17, 2011 A free synopsis of global retail news and opinion Welcome to the latest edition of Verdict’s Global Retail FreeView, in which our analysts bring you a roundup of all the major events, news, and views in the international retail sector. Verdict Research is a retail information specialist within the Datamonitor Group. With over 25 years experience, Verdict In this issue, we take an in-depth look at LVMH’s acquisition of a majority stake in Bulgari. We are also publishes unrivalled independent pleased to introduce our Global Hypermarket Revitalization Strategies report and our Forever 21: analysis. Our reports, briefings, Youth Fast Fashion case study. consumer research and consulting services provide clients with a complete picture of the UK and increasingly the international retail arena, helping retailers, manufacturers, serviceLATEST GLOBAL RETAIL NEWS RETAIL VIEW FROM EUROPE LATEST VIEWS AND OPINIONS suppliers, analysts, and consultants to fully exploit opportunities within the ELECTRICALS & HOME sector. Clas Ohlson to open new store in UK LATEST REPORTS & ANALYSIS Swedish homewares retailer Clas Ohlson is to open a new store in the UK, in Newcastle in August 2011. The company first entered the UK with a store in Croydon in November 2008 and currently has eleven outlets. The new store, located in Newcastle’s city center, has 1,889 sq m of space and will showcase 10,000 products. By the end of fiscal 2010–11, Clas Latest reports Ohlson plans to open 19 stores, including another four in the UK. We produce a range of reports analyzing the key players in various Bunnings retaliates against Woolworths’ new hardware stores retail sectors throughout Europe and Australian hardware chain Bunnings is attempting to battle Woolworths’ entry into the hardware sector by posting a the rest of the world. planning application to build a new store close to a Woolworths site. One of Woolworths’ first DIY stores is to open in Tingalpa in Brisbane, and Bunnings has applied to open a 12,206 sq m store in Wynnum West, approximately one minute from its rival’s store. Woolworths has entered into a joint venture with US home improvements chain Lowe’s to build 150 Forever 21: Youth Fast Fashion hardware stores in Australia within five years, which will enable Woolworths to draw on Lowe’s expertise in the sector. Global Hypermarket Revitalization With the new stores expected to be rolled out across Australia, competition between the two players is expected to Strategies intensify. Service Station and Convenience Carpetright to close Irish stores Retailing Joint Ventures in Europe Floorings retailer Carpetright has announced plans to close seven of its stores in the Republic of Ireland due to poor Global Strategies in Online Fashion trading. The company was hoping for a revival in the Irish market, but its continued sales decline meant that the retailer Retailing could not hold off on taking action any longer. Carpetright has seen sales decrease by more than 50% since 2008. At present, the retailer is reviewing its Irish operations to ascertain which stores it will close, with 19 job losses expected.GLOBAL RETAIL FREEVIEWhttp://about.datamonitor.com/sectors/retail.htm| t. +44 (0)20 7551 9000 | f. +44 (0) 87 0136 1073 | e. enquiries@verdict.co.uk
  3. 3. LATEST GLOBAL RETAIL NEWS RETAIL VIEW FROM EUROPE LATEST VIEWS AND OPINIONS LATEST REPORTS & ANALYSIS CLOTHING, FASHION & PERSONAL CARE FOOD & GROCERY Topshop and Topman to enter Canadian market Morrisons buys minority stake in US online grocer UK retailer Arcadia has entered into an agreement with Canadian retailer UK grocery retailer Morrisons has entered the online food retailing market with Hudson’s Bay Co., giving it exclusive rights to open Topshop and Topman stores the purchase of a 10% stake in FreshDirect, a US e-retailer. FreshDirect operates in Canada, as well as shop-in-shops in its The Bay department stores. across New York, Connecticut, and New Jersey, with over 600,000 customers in A Topshop store will open in Toronto in autumn 2011. Arcadia tested the market total. Dalton Philips, Morrisons’ chief executive, has stated that it plans to launch last year, by selling Topshop clothing at Jonathan and Olivia, a Toronto its own UK e-commerce operations by 2013. Morrisons’ stake will help it to gain boutique, for a limited period. The move will help to revive Hudson’s Bay Co.’s insight into FreshDirect’s e-commerce model, which will prove invaluable ahead of department store sales by attracting younger consumers, and will help it to the launch of its own transactional website. better compete against the likes of H&M and Zara, which both operate in Canada, as well as domestic players such as Reitmans and Joe Fresh. The deal Discounter Lidl to enter Romanian market could lead to as many as 50 Topshop or Topman stores opening in Canada by Lidl, the German grocer, has announced plans to open in Romania before the end 2015. of 2011. The discounter has acquired 25 plots of land, and started construction in July 2010. Store managers have also been sent for training in Germany and Gap to undergo major strategic changes in the coming years Croatia. Lidl, which is owned by German group Schwarz, bought the Plus CEO and chairman of Gap, Glenn Murphy, has announced new plans in a bid to supermarket chains in Romania and Bulgaria in February 2010, and now operates reverse the company’s increasingly poor sales performance. Gap will close 200 107 Plus stores. of its 900 stores by 2013, and will revitalize its offering by repositioning the brand to be more trend-led, and by introducing new categories such as jewelry. Metro Group seeks expansion in Turkey The retailer is shifting focus from its US stores, and plans to expand overseas German retailer Metro Group is to push forward with plans to increase its retail and increase online sales, growing their combined share of revenues from 22% store network in Turkey. The group currently operates 18 wholesale cash and to 30% by 2013. carry stores, 13 Real-branded supermarkets and 17 consumer electronics Media Markt and Saturn stores in the country. Dr Eckhard Cordes, CEO of Metro Group, AS Watson Group invests in Ukrainian operations has stated that store numbers in Turkey would double in two years. AS Watson, owned by Hutchinson Whampoa, plans to invest $37m in its retail business in the Ukraine over the next five years. The health and beauty retailer, Migros to drive sales through price cuts the largest in the market by store numbers, is set to open 60 Watsons stores in Swiss retailer Migros has announced it is to permanently reduce prices by up to the market by the end of 2011, as well as rebranding its current 212 DC stores 20% on 200 products. The announcement comes after the company invested to Watsons. Its goal is to reach a total of 500 stores within five years. CHF15m (€11.6m) in December 2010 to lower the prices of 3,000 private label products. Migros believes the strategy will help it to increase sales by attracting more loyal customers.GLOBAL RETAIL FREEVIEWhttp://about.datamonitor.com/sectors/retail.htm| t. +44 (0)20 7551 9000 | f. +44 (0) 87 0136 1073 | e. enquiries@verdict.co.uk
  4. 4. LATEST GLOBAL RETAIL NEWS LATEST VIEWS AND OPINIONS LATEST REPORTS & ANALYSIS RETAIL VIEW FROM EUROPE Spanish online member-only fashion player Privalia has bought German online apparel retailer Dress for Less from Palamon Capital Partners in a deal allegedly worth €150m– 200m. As part of the transaction, Dress for Less’s founders will gain shares in Privalia. Privalia hopes that the buyout will enable it to UK clothing retailer White Stuff plans to reach €400m in revenues this year, make its first foray into the international amounting to a three-digit percentage market. The company, which initially growth. specialized in ski and outdoor wear, plans to open overseas stores in the next five years, and sees great potential in the Scandinavian market. Moreover, it plans to launch international online stores, and will choose which countries to target based on overseas Wholesale retailer Makro Cash & Carry, sales made from its UK site. which is part of Germany’s Metro group, has opened its Drive-In click and collect format in the Czech Republic, enabling shoppers to buy goods online or over the phone and collect them from the Drive-In collection points. French grocery player Carrefour plans to spin off 100% of its Dia discounter chain. The Belgian grocer Delhaize has acquired Serbian move means that the Dia business will be supermarket chain Delta Maxi for the sum of listed as a separate business to its parent €932.5m. Delta Maxi operates around 450 company, allowing Carrefour to focus on its stores in Serbia, Montenegro, Bulgaria, Bosnia transformation plan, which includes and Herzegovina, and Albania. The deal will revitalizing its ailing hypermarket format. allow Delhaize to reach revenues of €3.4bn in southeastern Europe alone, and will help the retailer to strengthen its position in Europe while reducing its dependence on its US operations.GLOBAL RETAIL FREEVIEWhttp://about.datamonitor.com/sectors/retail.htm| t. +44 (0)20 7551 9000 | f. +44 (0) 87 0136 1073 | e. enquiries@verdict.co.uk
  5. 5. LATEST GLOBAL RETAIL NEWS RETAIL VIEW FROM EUROPE LATEST REPORTS & ANALYSIS LATEST VIEWS AND OPINIONS LVMH: ACQUISITION OF MAJORITY STAKE IN BULGARI MAY LEAD TO FURTHER MOVES IN THE LUXURY SEGMENT LVMH has agreed the acquisition of a controlling stake in Italian luxury retailer Bulgari in a share deal which values the company at E3.7bn. The move will help Bulgari to achieve growth, while also doubling the size of LVMHs watches and jewelry division. In the highly competitive luxury market, LVMHs rivals such as PPR are expected to retaliate with their own acquisitions. The worlds largest luxury goods retailer, Moet Bulgaris jewelry and watches division accounted for Hennessy Louis Vuitton (LVMH), has entered into a 65.7% of its revenue in FY2010, showing how it can share deal with Italian retailer Bulgari to purchase a boost the division for LVMH. Furthermore, Bulgaris majority share of the company less than a year chief executive officer Francesco Trapani will head after Bulgari stated it was not for sale. LVMH will up the watches and jewelry division, ensuring LVMH issue 16.5 million shares, worth E1.87bn, to the can exploit his expertise. Bulgari family to buy their 152.5 million shares, which equate to a 50.43% majority share of There are obvious benefits for Bulgari too; not only Bulgari. LVMH will then seek to acquire the will it be able to utilize LVMHs resources to expand outstanding shares at a price of E12.25 per share. further in crucial growth markets such as Asia The agreement means that the Bulgari family will Pacific, but it can also leverage the French retailers become the second largest shareholder in LVMH, experience in key product divisions such as behind founder Bernard Arnault. accessories and perfumes, helping it to become less dependent on watches and jewelry. Bulgari reported The acquisition is a significant victory for LVMH, an operating loss of E20.0m in 2009, partially due especially as rivals PPR and Richemont have to the impact of the economic downturn, but has previously shown interest in acquiring stakes in since bounced back in 2010 and this acquisition will Bulgari. Strategically it allows LVMH to better help the company to ensure that it can build on this compete with Richemont and Swatch in the luxury recent success. watch and jewelry market, which is expected to see growth in the coming years. At present, the French The acquisition of Bulgari follows LVMHs growth of retailers watches and jewelry business is its its stake in luxury fashion house Hermes to 20.2%, smallest division, with sales of E985m in 2010 and confirms LVMHs position as the leader of the accounting for just 4.8% of total revenue. luxury market, ahead of PPR. The recent move will no doubt give some momentum to PPRs acquisition efforts, leading to further consolidation in the ever- growing luxury segment.GLOBAL RETAIL FREEVIEWhttp://about.datamonitor.com/sectors/retail.htm| t. +44 (0)20 7551 9000 | f. +44 (0) 87 0136 1073 | e. enquiries@verdict.co.uk
  6. 6. LATEST GLOBAL RETAIL NEWS RETAIL VIEW FROM EUROPE LATEST VIEWS AND OPINIONS LATEST REPORTS & ANALYSIS GLOBAL LUXURY RETAILING: MARKET SIZE, RETAILER STRATEGIES, AND Features and benefits COMPETITOR PERFORMANCE Make informed regional investment This report gives a comprehensive assessment of the global luxury retail sector outlining decisions with forecasted luxury regional expenditure and five-year forecasts. It provides an in-depth analysis of the key expenditure to 2015 based on a range of inputs including the number of strategic issues facing the sector, as well as offering market shares and profiles of the wealthy individuals. leading luxury retailers. Benchmark your companys performance by accessing profiles of nine leading luxury retailers including their key operating details and global International market shares. expansion Ensure marketing and distribution Link with art Adoption of strategies are up-to-date by uncovering and culture e-commerce competitor activity in areas such as e- commerce and social networking. Focus on Key Strategies Embracing heritage 2011 technology Launch of new Celebrity product endorsement categories Localized productsGLOBAL RETAIL FREEVIEWhttp://about.datamonitor.com/sectors/retail.htm| t. +44 (0)20 7551 9000 | f. +44 (0) 87 0136 1073 | e. enquiries@verdict.co.uk
  7. 7. LATEST GLOBAL RETAIL NEWS RETAIL VIEW FROM EUROPE LATEST VIEWS AND OPINIONS LATEST REPORTS & ANALYSIS GLOBAL HYPERMARKET REVITALIZATION STRATEGIES Features and benefits This report is an in-depth evaluation of the challenges facing hypermarket operators Uncover range assortments and across the world, the strategies being adopted by the leading players, and the key action complementary instore services that can points for retailers wishing to revitalize sales in their large format stores. be used to attract shoppers and revive sales in large format stores. - + Identify a variety of new ways to CHANGE IN SALES reinvigorate the layout of your AREA hypermarket or supermarket by uncovering how other retailers have managed to do it. Adapt the hypermarket size according to trends surrounding urbanization and household sizes by accessing demographic data covering global markets. Develop innovative multi-channel strategies and consider alternative store formats by identifying the strategies of your competitors.GLOBAL RETAIL FREEVIEWhttp://about.datamonitor.com/sectors/retail.htm| t. +44 (0)20 7551 9000 | f. +44 (0) 87 0136 1073 | e. enquiries@verdict.co.uk
  8. 8. LATEST GLOBAL RETAIL NEWS RETAIL VIEW FROM EUROPE LATEST VIEWS AND OPINIONS LATEST REPORTS & ANALYSIS RETAIL INNOVATION CASE PROFILES Recent retail profiles Verdict launched its Retail Innovations case studies in 2010. Each profile provides an Forever 21: Youth Fast Fashion evaluation of a company that stands out due to a set of unique characteristics, or a Carrefour: Hypermarket Reinvention particular strategic initiative. Verdict outlines the background of the company, discusses the strategy, provides details of operational implementation, and outlines action points Costco: The Pinnacle of Value for retailers keen to replicate some of the initiatives. H&M: Designer Collaborations Recent consumer packaged goods profiles Crabbies Alcoholic Ginger Beer Case Study: Finding an untapped niche in the post-recessionary beer market Craft Beers in the US and UK Case Study: How mainstream brewers can benefit from the trend towards craft beers Gatorade Case Study: Using consumer segmentation and social media to drive market growth Carrefours approach to Insight into Costco and revitalizing its lessons for those hypermarket format and considering elements of key action points for the warehouse club retailers looking to model improve their large format (To request a complimentary store sales copy please contact Alena Barford at alenab@verdict.co.uk)GLOBAL RETAIL FREEVIEWhttp://about.datamonitor.com/sectors/retail.htm| t. +44 (0)20 7551 9000 | f. +44 (0) 87 0136 1073 | e. enquiries@verdict.co.uk
  9. 9. LATEST GLOBAL RETAIL NEWS RETAIL VIEW FROM EUROPE LATEST VIEWS AND OPINIONS LATEST REPORTS & ANALYSIS Verdict produces a range of reports analyzing the key issues affecting retail sectors throughout Europe and the rest of the world Sectors, channels, and locations Retail market entry Strategic retail insight Global Luxury Retailing Retailing in Russia: Long-term potential prevails Global Hypermarket Revitalization Strategies Global Airport Retailing Retailing in Eastern Europe: Westwards expansion Service Station and Convenience Retailing Joint Global Jewelry Retailing Retailing in Romania: Developing retail market Ventures in Europe DIY and Home Improvement Retail in Europe Retailing in Czech Republic: First phase complete Global Strategies in Online Fashion Retailing Health and Beauty Retail in Europe Retailing in Poland: Non-food opportunities Private Label Strategies in Global Electricals and DIY Global Department Store Retailing Retailing in Slovakia: Continues to shine Retailing Childrenswear in European Retail Retailing in the Baltic States: Prospects dampened The Future of European Convenience Retailing Value Clothing in European Retail Retailing in Bulgaria: Opportunities for growth Internationalization Strategies of CEE retailers The Future of European Discounters Retailing in Hungary: Retail expenditure squeezed The Impact of the Credit Crunch on European Retail European Shopping Centers Retailing in Spain: Improving situation Private Label in European Retail European Grocery Retailing Retailing in Italy: Tough market with opportunities Retail innovation case profiles European Electricals Retailing Retailing in France: Growing liberalization European Clothing Retailing Retailing in Germany: Consolidation begins Forever 21: Youth Fast Fashion European Furniture Retailing Retailing in Ireland: New space, new opportunities Carrefour: Hypermarket Reinvention Costco: The Pinnacle of Value H&M: Designer Collaborations For more information on our reports and future projects please contact us at enquiries@verdict.co.ukGLOBAL RETAIL FREEVIEWhttp://about.datamonitor.com/sectors/retail.htm| t. +44 (0)20 7551 9000 | f. +44 (0) 87 0136 1073 | e. enquiries@verdict.co.uk