A.S. Watson will open 88 new stores in the UK despite Brexit concerns. Lidl plans to double its UK store openings to 60 per year. Morrisons launched an online flower delivery service called Flowerworld. Sales declined at M&S but showed signs of recovery, while B&M and Superdrug saw continued strong growth boosted by deals and weather. Cadbury will expand production at its Bournville site. Tate & Lyle launched a new sugar range. Warm weather and food inflation boosted June retail sales. Beiersdorf will invest €230 million in a new HQ and research center in Germany.

1. IRI
Weekly News update
Your window on the latest trends
in Packaged Groceries
Stephen Hall
Friday 14th July

2. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 2
Retailer News:
• A.S. Watson to open 88 new stores in the UK despite Brexit concerns
• Lidl to double UK store openings to 60 a year
• Morrisons branches out into online florist market
• Sales decline continues at M&S but showing signs of recovery
• B&M continues its strong growth
• Superdrug sales heat up with Love Island deal
Category News:
• Cadbury expanding production at Bournville site following investment
• Tate & Lyle launches new sugar range
• The UK's biggest beauty spenders revealed
Other News:
• Warm weather and food inflation boosted retail sales last month
• Beiersdorf to invest €230m in new HQ and research centre in Germany
Weekly News Summary – 10th July 2017

3. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 3
Retailer News

4. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 4
A.S. Watson To Open 88 New Stores In The UK Despite Brexit
Concerns
A.S. Watson, the Hong Kong-based retail giant that owns the Superdrug, Perfume Shop and Savers chains, has revealed
that it is stepping up its expansion in the UK despite the slowdown in the retail market caused by Brexit uncertainty and
rising prices.
The group said it would be creating more than 1,000 jobs across the UK with the opening of 30 more Superdrug stores,
45 Savers outlets and 13 The Perfume Shop sites.
Dominic Lai, A.S. Watson’s Managing Director, said: “We are under a lot of pressure, with Brexit uncertainty and sterling
going down, but we will continue to invest in the UK.”
Last week, Superdrug posted soaring profits and revenues for its last financial year. The health & beauty retailer, which
operates nearly 800 shops in the UK & Ireland, reported a 10.4% rise in sales and 41% jump in profits, boosted by strong
sales of cosmetics.
Source: NamNews 10th July 2017

5. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 5
Lidl to double UK store openings to 60 a year
Lidl intends to open another 60 stores per year in the UK and has amassed a £1.5bn war chest to fund the programme.
Lidl opened 30 shops last year and now has 670, but there are many locations where shoppers do not have a branch
sufficiently close, UK chief executive Christian Härtnagel told The Telegraph.
Härtnagel aims to open “at least one shop a week” and said that Lidl has already agreed locations for between 50 and 60
shops a year for the next two years, compared with 30 last year.
“That is the fastest we have ever grown in the UK,” he told the newspaper.
The grocer’s market share now stands at 5% following its rapid growth as shoppers have switched from established
supermarkets and headed for Lidl and value rival Aldi.
Approximately 50% of Britons shopped at a Lidl store last year as it made the most of a reputation for quality as well as
low prices.
Härtnagel said Lidl’s profits will be lower this year “because of the huge investment figure and the effect of Brexit”.
However, he said “we are privately owned and we are still focused on our long-term profitability”.
About 25% of Lidl’s UK staff are from outside the EU and Härtnagel hoped for “clarity” on their status.
He said: “A quarter of our employees have an unclear status at the moment due to Brexit and I hope the significance of
this means that the movement of people will have the highest agenda it can have in negotiations.
“We need clarity for our colleagues here but also for our UK employees who are working for Lidl in different countries. I
just want to have clarity, because then I can prepare.”
Source: Retail Week 10th July 2017

6. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 6
Morrisons Branches Out Into Online Florist Market
Morrisons has launched an online flower delivery service called Flowerworld.
Brits spend over £2.3bn on cut flowers and indoor plants every year. With over 400 trained florists creating up to 900,000
bouquets a week, and over 260 million flowers a year passing through Flowerworld, Morrisons said it is set to become the
UK’s biggest florist.
Morrisons originally acquired Flowerworld in 2011 with its bouquets now be available on www.flowerworld.co.uk, as well
as 491 Morrisons across the UK.
Source: NamNews 11th July 2017

7. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 7
Sales Decline Continues At M&S But Showing Signs Recovery
Marks & Spencer has reported another fall in underlying sales in its latest quarter, with weaker than expected trading in
its food unit. However, the figures suggested that performance in its clothing & home division is starting to improve as a
result of the turnaround plan being implemented by Chief Executive Steve Rowe.
During its first quarter to 1 July, like-for-like clothing & home sales fell 1.2%. This compares with a 5.9% fall in the final
quarter of last financial year. In line with its new strategy, M&S said that full price sales were up around 7% and it had
reduced discounting during the period.
Meanwhile, performance in its food division was somewhat disappointing with like-for-like sales slipping 0.1%. This was
worse than expected and without Easter falling in April, revenue would have declined further. M&S said its new Simply
Food stores continued to perform ahead of its expectations and remained focused on “improving ranging in store and on
delivering stronger promotions in a competitive market”.
In total, sales across the whole business, including its international operation, increased by 2.7% to £2.53bn.
Rowe commented: “Trading in the first quarter was in line with our expectations and we are on track with delivery of the
plan we announced last year.”
Source: NamNews 11th July 2017

8. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 8
B&M Continues Its Strong Growth
B&M has revealed another period of strong sales growth, boosted by the good weather, the later Easter, and robust
grocery sales.
Despite “challenging trading conditions”, the fast-growing discounter saw UK like-for-like sales in its first quarter to 24
June jump 7.3%. As well as benefitting from the favourable seasonal weather, B&M said its performance was buoyed by
strong grocery sales and the timing of Easter trading, which fell in the quarter this year and added approximately 1% to
the headline like-for-like total.
Total UK revenues over the 13-week period increased by 17.8% to £598.4m, whilst sales at its Jawoll unit in Germany
rose 23.9% to £57.9m.
The group opened 6 net new outlets during the period, taking its total store count in the UK to 543. B&M expects to open
between 40 and 50 new shops this financial year as it pushes towards its recently upwardly revised UK store target of at
least 950 outlets.
It added that it also has a “healthy pipeline” of new stores for the following year. The group has been opening more
stores in southern England recently after finding its model did well in areas beyond its northern heartland.
Simon Arora, Chief Executive, said: “In these uncertain times, and with inflation returning to the UK market, more and
more shoppers are actively seeking out value in our stores and that means our business is strongly positioned to do well
and continue its rapid growth.”
Source: NamNews 12th July 2017

9. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 9
Superdrug sales heat up with Love Island deal
Superdrug’s sponsorship deal with British dating reality TV series Love Island is proving to be a scorching success.
According to figures revealed to Cosmetics Business, 200,000 consumers visit the retailer’s website immediately after the
show.
Product placement in also included in the deal where Superdrug provides own brand holiday essentials for the contestants
to use on their stay on the Island including Solait sun care and bronzing products.
The A.S. Watson-owned retailer has claimed that the arrangement has paid off, as its Solait bronzing range has seen a
76% spike in sales.
“Sales over the last few weeks have really shown that the audience is the perfect demographic for our brand,” Simon
Comins, Superdrug Commercial Director, told Cosmetics Business.
“We know our customers follow the latest celebrities and trends and sales are proving that Love Island has had an impact
on products such as fake tan and sun care.
“In addition to sales we’ve seen over 200,000 clicks to the website straight after the show for customers searching for
own brand holiday products.”
This s is the second summer that Superdrug has partnered with Love Island.
Source: Cosmetics Business 14th July 2017

10. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 10
Category News

11. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 11
Cadbury Expanding Production At Bournville Site Following
Investment
Cadbury’s famous chocolate factory in Bournville is to expand production for the first time since Mondelēz International
invested £75m to improve productivity levels at the site.
The group revealed that Cadbury Dairy Milk Oreo and Cadbury Dairy Milk Tiffin will now be produced at the Birmingham
factory from this summer.
Dairy Milk Oreo is a recent innovation by the chocolate maker and is currently made in Germany. Meanwhile, following a
successful limited edition run of Dairy Milk Tiffin last year, the bar is now set for a permanent comeback with Bournville
taking over production from Poland. The chocolate was launched in 1937 but Cadbury stopped making it in 1972. It then
made a return in 1985 but was withdrawn again in 2003.
Glenn Caton, President of Northern Europe for Mondelēz International, said: “I am delighted that Cadbury Dairy Milk Oreo
and Cadbury Dairy Milk Tiffin will be made in Bournville. These great tastes are the first additional products that we are
welcoming to Bournville following our multi-million pound investment in the UK. It shows that our investment has paid off
and that Bournville is now competing in the Premier League of European factories.”
Source: NamNews 10th July 2017

12. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 12
Tate & Lyle Launches New Sugar Range
Tate & Lyle has unveiled a new range of premium brown and golden sugars, called ‘Taste for Adventure’.
Inspired by flavours from around the world and containing Fairtrade pure cane sugar, the range is aimed at consumers
who pride themselves in being adventurous in the kitchen. It includes five sugars – Dark Soft Brown (RRP £1.75),
Organic Dark Soft Brown (RRP £2.50), Golden Caster (RRP £1.75), Organic Golden Caster (RRP £2.25), and Demerara
(RRP £1.75).
The sugars come in stylish packaging that includes descriptors for each sugar, illustrations that take inspiration from
around the world, and visual cues to help consumers pick the right product for the relevant recipe.
The resealable pouches ensure that the freshness and flavour remains locked in.
Source: NamNews 13th July 2017

13. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 13
The UK's biggest beauty spenders revealed
Leeds has been named the UK’s biggest beauty spender, with consumers in the northern city spending an average of
£7,000 each a year on their looks.
According to research by TotallyMoney, at just over £1,000, teeth whitening is typically the biggest category while skin
care products come a close second at £916.
Beauty fans in the region also spend the most on colour cosmetics, at £280 per person.
London and Coventry were neck and neck for the second spot, with an average spend of £6,300 and £6,268 respectively.
Those in the British capital focused primarily on fitness – they spent the second most in the UK on gyms, at £601 yearly
per person.
People in Coventry were more concerned about having their hair done (£750), shaving (£338) and manicures (£206).
The figures by the comparison website revealed that 70% of people admit to being beauty conscious; the average Brit
spends £4,454 on their looks annually.
“The piece isn’t just about the total spend,“ said Joe Gardiner, TotallyMoney’s Head of Brand and Communications.
”It’s interesting to see the breakdown and understand which cities value which parts of their appearance the most.”
Source: Cosmetics Business 14th July 2017

14. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 14
Other News

15. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 15
Warm Weather And Food Inflation Boosted Retail Sales Last
Month
The arrival of warm summer weather provided a welcome pick-up to sales growth in the UK retail sector last month. Data
from the BRC & KPMG showed that June sales increased by 1.2% on a like-for-like basis compared to the same month
last year, buoyed by strong growth in the food sector. Total sales rose 2%.
Over the three months to June, food sales increased 3.6% on a like-for-like basis with total growth of 4.7%. This was the
strongest three-month average in five years and comes as the devaluation of sterling drives up shelf prices.
Meanwhile, despite the difficult trading conditions, non-food retail sales rose 0.9% on a like-for-like basis with total
growth of 1.2%. This was the best three-month average since December and was helped by consumers spending on
summer clothing, beauty products and outdoor toys.
Helen Dickinson, Chief Executive of British Retail Consortium said June’s strong performance painted a slightly rosier
picture for retail sales. However, she stressed that rising food prices were responsible for the main component of growth
and has prompted more cautious spending towards discretionary non-food items.
“Looking ahead, there’s a question mark over whether this spending momentum will last, as household expenditure is
increasingly squeezed from rising inflation and slowing wage growth,” she said.
Commenting on the food & drink sector, Joanne Denney-Finch, Chief Executive at IGD, said: “According to the Met Office,
England enjoyed the second equal warmest June on record. Alongside rising inflation, this helped the food and grocery
sector to experience a three-month growth trend that is now at its highest since March 2013.
“The inconclusive election result has introduced further uncertainty and this will test the sector’s momentum. However,
there has also been a further injection of shopper patriotism with 47% saying it is very important to support British
producers, up from 41% last September.”
Source: NamNews 11th July 2017

16. Copyright © 2017 Information Resources, Inc. (IRI). Confidential and Proprietary. 16
Beiersdorf to invest €230m in new HQ and research centre in
Germany
Beiersdorf, the parent company of Nivea, La Prairie and Eucerin, has announced plans to build a new €230m headquarters
and research centre in Hamburg-Eimsbüttel, Germany.
The new buildings, spanning 100,000sqm, will be located on the company’s existing Troplowitzstrasse site between
Stresemannallee and Wiesingerweg. The new headquarters will replace the one currently situated between Unnastrasse
and Quickbornstrasse.
Stefan F Heidenreich, the CEO of Beiersdorf, said the project demonstrates Beiersdorf’s commitment to Hamburg and
Germany as business locations. “Beiersdorf and Hamburg are connected by their open-mindedness and internationality.
It’s a good fit,” he said.
“With the construction of our new headquarters… Beiersdorf is sending a clear signal about its future growth. We have
been very successful in recent years.
“We have significantly expanded our international business, developed outstanding innovations and put Beiersdorf on a
stable and profitable growth path. This is the result of all our employees’ hard work.”
As well as a head office and research centre, Beiersdorf will build a two-level underground car park.
Source: Cosmetics Business 14th July 2017

17. IRI
Weekly News update
Your window on the latest trends
in Packaged Groceries
Stephen Hall
Friday 14th July