IRI's Weekly Retail News Update - w/c 31st October 2016

IRI
Weekly News update
Your window on the latest trends
in Packaged Groceries
Stephen Hall
Friday 4th November

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• Nisa agrees supply deal with owner of Haven and Butlin’s Holiday Parks
• IRI data shows huge drop in use of plastic bags in supermarkets following
introduction of levy
• Lidl announces 10th UK distribution facility
• New data shows Ireland cross-border shopping at six-year high
• Coca-Cola announces Christmas activity
• One-fifth of UK Christmas sales will be digital this year
• Deflation continues as BRC warns of 'inevitable' inflation
• The top 30 retailers by store openings in the past 12 months
• Edgewell Personal Care acquires Bulldog skincare
• John Lewis and Clipper form Click & Collect joint venture
• Morrisons reports further quarter of LFL growth
• Bunnings' first UK store location revealed
• New report highlights how grocery shopping is central to UK's foodie identity
• L’Oreal tops estimates with Q3 gains
• Beiersdorf raises FY forecast after strong YTD sales
• B&Q rolls out new store format and plans one hour click and collect
• Average spend on Black Friday expected to double this year
Weekly News Summary – 31st October 2016

Nisa Agrees Supply Deal With Owner Of Haven And Butlin’s
Holiday Parks
Nisa Retail has agreed a two-year deal with Bourne Leisure to supply the convenience stores across its Haven and Butlin’s
holiday park resorts.
The contract will see Butlin’s three sites and 36 Haven sites trading through Nisa from January, with the potential for
future growth. Nisa said that its retail and store development teams have been working with Bourne Leisure’s retail team
to develop store format design, category management and merchandising to create a new store brand to roll out UK wide
across the group’s holiday parks.
The stores will be completed to a high design specification and take a full range across ambient, chilled and frozen from
Nisa, including its Heritage own label range. Nisa meanwhile said it will benefit from the efficiencies of supplying a full,
mixed temperature range across a large estate of stores.
“We’re really excited to be working with Nisa, they have a fantastic range of products available, which will help us develop
and deliver the very best experience and offer for our guests,” said Belinda Reed, Head of Retail for Butlins.
Steve Leach, Sales Director at Nisa, added: “We’re absolutely delighted to welcome Bourne Leisure and its Butlin’s and
Haven holiday park estates to the Nisa membership. We’ve had the pleasure of working closely with Bourne over the past
few months on what we believe will be a fantastic new store format for their business.”
Source: NamNews 31st October 2016

IRI Data Shows Huge Drop In Use Of Plastic Bags In
Supermarkets Following Introduction Of Levy
According to the latest figures from IRI, government targets to reduce the number of plastic bags used by shoppers have
not only been met, but exceeded.
A levy of 5p per bag came into force in England last October, following similar charges enforced some time ago in
Northern Ireland, Scotland and Wales. IRI said that whilst the introduction of the levy saw sales of ‘5p levy’ plastic single
use bags increase from 138 million units (52 weeks to 12 Oct 2015) to 1.1 billion (52 weeks to 10 Oct 2016), an
additional 985 million bags, this is a significant drop from the 8.5 billion bags reportedly given away free by supermarkets
in England, Scotland and Wales in 2014.
The number of shopping bags overall, including ‘bags for life’, increased from 258 million to 1.7 billion, an additional 1.4
billion bags. Supermarket value sales of plastic and fabric shopping bags increased from £50m to £147m , with much of
this additional £97m of revenue going to charity.
“While it still appears that large volumes of plastic bags are being used by shoppers, the Government’s target of an 80%
reduction in plastic bag production was easily met,” according to IRI’s Head of Strategic Insight for Retail, Martin Wood.
“The total of 1.1 billion single use bags in 2015/16 is just 13.2% of the 8.5 billion figure, so close to a 90% drop, which is
astonishing.”
While sales of natural fabric bags, such as cotton, jute and Jaco, grew by 23% in value, these only account for a fraction
(under 1 million) of the additional bags sold. According to IRI’s Retail Advantage, which measures supermarket value and
volume sales data, the biggest growth came from woven/plastic bags, which sold an additional 431 million bags.
More surprising was a clear growth in sales of bin liners, following the price levy, up from £156m to £169m in value sales,
a rise of 8.25%, and up 11.3% in volume sales to 90 million packs (52 weeks to 1 October 2016) – at a time when most
household categories are in decline.
Wood added: “The correlating growth in the bin liner category suggests that some people who previously used free plastic
bags for collecting and disposing of their rubbish are now having to buy bin liners instead!”
According to IRI data, the average price per bag paid came down across all types of multi-use bags, except insulated
bags, which went up from £1.24 to £1.50/bag.
Source: NamNews 1st November 2016

Lidl announces 10th UK facility
Lidl has announced a £55m investment for what will be its 10th UK distribution centre.
Lid’s largest UK DC
The £55m project will see Lidl invest in a 39,000 sq m regional distribution centre (RDC) in Southampton, making it the
discounter’s largest facility in the UK. The RDC will supply stores in Hampshire, Dorset and West Sussex in southern
England and will create up to 400 jobs.
Part of £1.5bn investment
The investment marks another step in Lidl’s pledge to invest in its UK operations. Last year, Lidl announced a £1.5bn
three-year investment plan in the UK to improve its reach around the country, streamline processes and maximise
efficiency.
Lidl’s regional director, Marco Ivone, commented: “The opening of our new Southampton RDC marks an incredibly exciting
time for the business, particularly in the South. Not only is it necessary to accommodate the scale of our existing and
future operations in the area, we have been able to create significant job opportunities as a result of the new warehouse
and will continue to invest in the South as we move forward with our expansion plans.“
Source: IGD 1st November 2016

New data shows Ireland cross-border shopping at six-year high
The latest data from IntertradeIreland, monitoring car park occupancy at shopping centres in Northern Ireland, has shown that in Q3
2016 the presence of Republic-registered cars was at its highest since Q4 2009, when cross-border shopping peaked in the wake of
the 2008 financial crisis. With nearly 57% of all cars recorded in the quarterly survey coming from the Republic, this shows a
significant increase on Q2 when the figure was 44%. The average quarterly figure during 2015 was just 35%. Since the survey was
initiated in 2008 the data has been a key measure of the ebbs and flows of the intensity of shoppers from the Republic choosing to
shop in Northern Ireland.
Clear impact of UK Sterling weakness
With Sterling weakening sharply versus the Euro in the months following the UK Brexit vote, the savings available to ROI shoppers in
the North have increased significantly. Historically the peaks of cross-border shopping have been reached when the Euro has been
worth 85p and above. The Euro has now been worth over 85p consistently since mid-September, and has been hovering around 90p
since early October.
Biggest ROI grocery savings on wines and sprits and OTC medicines
While structurally many items of grocery shopping are slightly cheaper at UK prices in Northern Ireland, the significantly higher
incidence of excise duty on wines and spirits in the Republic, means that as Sterling weakens, the savings available on these
products, in particular, when bought in the North become highly attractive to shoppers from the South. The savings on everyday
medicines (appreciably more expensive in ROI), are also notably magnified.
Opportunity for retailers in NI border locations
While potentially a major incremental footfall driver for many retailers in Northern Ireland, in the grocery sector it's those like Asda,
Tesco and Sainsbury's operating big stores in near-border locations, such as Strabane, Enniskillen, Armagh and Newry who stand to
gain the most. Back at the height of cross-border shopping in 2008 to 2010, border stores were reporting sales up to 50% higher
than normal weekly takes. Around Christmas 2009 Asda Enniskillen, for example, was reported to be the second highest grossing
store in the whole Asda portfolio, at £3m/week.
Challenges for ROI retailers in run-up to Christmas
With Christmas approaching, the attraction of doing big seasonal cross-border shops to stock up on wines and spirits will be intense
for shoppers in the Republic, with the likelihood that cross-border spending will also spill into other seasonal categories too. While
retailers in the Republic have done much to reduce the price differentials versus the North, with no sign of Sterling strengthening
again, the coming seasonal period is likely to prove a challenge. In 2008 to 2010 it is estimated by Irish government sources that
some 250,000 Irish households were regularly shopping north of the border and were spending some £370m a-year in Northern
Ireland stores.
Source: IGD 1st November 2016

Coca-Cola announces Christmas activity
Coca-Cola has unveiled its Christmas 2016 activations, which see the return of its TV advert and Truck Tour, alongside
new on-pack promotions.
In the first of two on-pack promotions, Coca-Cola partners with FareShare, allowing consumers to make donations to the
charity via special labels on promotional packs.
Caroline Cater, operational marketing director GB at Coca-Cola European Partners, said: “Coca-Cola is synonymous with
Christmas, and this year’s festive campaign offers a blend of exciting experiences to bring the season to life, together
with opportunities to provide meals to people in need across GB, reinforcing the spirit of Christmas as the season of
giving.”
FareShare chief executive Lindsay Boswell said: “We have been working in partnership with Coca-Cola for the last two
years, to make best use of their surplus stock within our food redistribution network.
“This on-pack campaign is an exciting development to our partnership, that will not only raise awareness of FareShare
and the lifeline we provide to charities working with hungry and vulnerable people, but will also raise vital funds to
support our operation, helping us to redistribute more food to more people in need.”
The Coca-Cola Christmas Truck Tour also returns for 2016, visiting 43 locations around Great Britain and offering samples
to build consumer excitement around the festive season. Details on the Coca-Cola Truck Tour stops will be revealed online
on 4th November.
Source: Talking Retail 1st November 2016

One-fifth of UK Christmas sales will be digital this year
A new report has predicted that UK online sales in the run-up to Christmas will reach an estimated £16.9 billion and
account for 20.3% of all festive season retail sales. This is up from £14.65 billion and 17.8% last year.
The report by eMarketer predicts that smartphones will account for 36.4% of total retail m-commerce sales but still trail
sales on tablets. However, by 2020 the balance is expected to have shifted, at which point smartphones will account for
52% of the m-commerce total.
“Retail ecommerce sales during the festive season look set to shine this year, despite the wider economic conditions in the
UK,” said eMarketer senior analyst Bill Fisher.
“This is in no small part due to a digitally advanced consumer, who has been quick to embrace digital buying and
particularly smartphone buying. And during the Christmas shopping period, these digital habits become even more
accentuated.”
The study predicts that overall UK retail sales will reach £83.22 billion during the run-up to Christmas, representing
annual growth of 1.3%.
Source: Retail Bulletin 2nd November 2016

Deflation continues as BRC warns of 'inevitable' inflation
Deflation continued apace in October, with shop prices falling 1.7%, as the BRC warned that imported inflation was
“inevitable” next year.
Overall prices declined 1.7%, slightly behind the three-month average of 1.8%, according to the BRC Nielsen Shop Price
Index.
Non-food deflation was flat at 2.1% for the second month in a row, slightly behind the three-month average of -2.2%.
Food deflation declined 1.2%, behind September’s -1.3% and in line with the three-month average.
The BRC said shop price deflation would likely move closer to zero as the year came to an end and that inflation would
begin during the first half of 2017.
Chief executive Helen Dickinson said: “While we know that the devaluation of sterling since the Brexit vote is stoking
inflationary pressures, the good news for consumers is that retailers have been successful in managing this to date and
there is still no impact visible in shop prices.
“However, it is inevitable that imported inflation will begin to make its mark and we would expect to start to see this effect
coming through in the first quarter of 2017.”
Source: Retail Week 2nd November 2016

The top 30 retailers by store openings in the past 12 months
Poundland tops the ranking owing to its acquisition of 99p Stores, while a large number of c-store operators make the top
30.
According to data compiled by the Local Data Company, Poundland was the fastest growing retailer in the past 12 months
because of its acquisition of 99p Stores, with all stores being converted by the end of summer 2016.
Given the strong growth in the convenience market, it was perhaps not a surprise to a see a sizeable number of
convenience store formats represented.
This included symbol groups McColl’s and Spar, but also the c-store operations of Tesco and Sainsbury’s.
Sainsbury’s is now also represented in the list through Argos, which added a net 33 outlets over the 12-month period.
H&M, TK Maxx and Peacocks show that there are still expansion opportunities for more value-oriented fashion retailers,
with these retailers growing by a combined total of 43 stores.
There was also a healthy representation from the general merchandise discounters. Apart from Poundland, the top 30
included Poundworld, B&M and Home Bargains.
Value retailing in general was a recurring theme, with retailers such as Card Factory, The Works, Aldi and Savers also
featured in the ranking.
Apart from the discount sector, builders’ merchants (15.7%) and hardware merchants and ironmongers (12.7%) were the
fastest growing categories.
This group was led by Screwfix, which added a net 50 stores to take its network past the 450 mark. The business is
expected to remain highly ranked over the coming years as it looks to expand to 600 UK stores.
Source: Retail Week 2nd November 2016

Edgewell Personal Care acquires Bulldog Skincare
The male grooming brand founded by Simon Duffy in 2006 will now join the Wilkinson Sword, Banana Boat and Hawaiian
Tropic family
Male grooming brand Bulldog Skincare for Men has been acquired by Edgewell Personal Care.
The company, which operates under Bulldog Skincare Holdings Ltd, is a British brand that specialises in products such as
moisturiser, wash and shave gel.
It will now join the Edgewell Personal Care family of brands, which includes Wilkinson Sword, Schick, Skintimate, Banana
Boat, Hawaiian Tropic and Wet Ones.
Colin Hutchison, Edgewell’s Vice President of Commercial International, said that Bulldog and its “challenger” approach to
men’s skin care is a natural fit for Edgewell.
He said: “This acquisition creates opportunities to expand our personal care portfolio in a growing global category where
we can leverage our large geographic footprint.”
Simon Duffy, who created the brand in 2006, added that Bulldog is “delighted” to join Edgewell’s portfolio.
He said: “Since our founding, our goal has been to put a Bulldog product in every bathroom and we are confident
Edgewell will help us deliver on this mission.”
Source: Cosmetics Business 3rd November 2016

John Lewis And Clipper Form Click & Collect Joint Venture
John Lewis and Clipper Logistics have announced that they are forming a joint venture company to develop Click & Collect
services for other high street retailers.
Amid a rapidly growing online marketplace, Clipper said it had identified a need for a dedicated next-day delivery service
into high street stores. Addressing the ever-growing Click & Collect demands of consumers, the service has been
developed by Clipper following research by the two partners into the specific needs of retailers.
The service provided includes delivery to store; integration with retailers’ customer service systems to provide customer
and store updates; text messaging to retailers’ end customers; and delivery into store in roll cages with clear “parent and
child” relationships between the cage and the parcel in order to facilitate rapid parcel selection.
The service will be operated by Clipper with John Lewis providing expertise and insight into the retail market. John Lewis
will also be a key customer of the service.
An initial trial commenced in the fourth quarter of 2015, and involved a service for John Lewis’s Click & Collect deliveries
into 120 Waitrose stores. Following the success of this trial, the service has recently been expanded to over 300 Waitrose
stores nationwide. The solution is now being extended to other retailers’ stores.
The joint venture formalises the collaboration between John Lewis and Clipper first announced in July 2015. The existing
trade and assets of the collaboration have been transferred to the joint venture.
Commenting on the transaction, Steve Parkin, Executive Chairman of Clipper, said:
“This is a truly ground-breaking development which will revolutionise the provision of Click & Collect services to the High
Street in Britain. We are delighted to have worked closely with our partners, John Lewis, to research and develop this
unique service proposition which will address directly the challenges posed to retailers in this rapidly growing area of
activity.”
Dino Rocos, Operations Director of John Lewis, added: “Click & Collect continues to be our fastest-growing delivery
channel, with deliveries to Waitrose making up the majority of those sales. This joint venture will provide a much more
tailored service so that Click & Collect orders which reach Waitrose branches are handled in a more efficient way. It will
enable us to continue to give an outstanding service to our customers, who love this easy and convenient delivery option.”
Source: NamNews 3rd November 2016

Morrisons reports further quarter of LFL growth
Morrisons has reported that ex-fuel LFL sales were up by +1.6% in the 13 weeks to October 30th, its fourth consecutive quarter of growth.
The result was lifted by more customer transactions as shoppers responded to the retailer's investments in price and stronger retail
proposition.
Fourth quarter of growth
While a shade weaker than Q2's +2.0%, this fourth successive period of LFL growth is still an encouraging result. LFL transactions grew by
4.1% and items per basket fell by 5.5% reflecting a continuing trend towards customers shopping more often buying less each time. While
Morrisons clearly wants to grow items per basket, it is relaxed about the trend as in part this reflects Morrisons growing strength in the
food-to-go sector following investments in Fresh Look stores to expand its offer, for instance with the introduction of made-in-store sushi
and hot pies.
Biggest ever Halloween
An important driver of trading was its step up of activity for Halloween. The event delivered a near 20% year-on-year uplift in sales, with 1
million pumpkins and 140,000 Halloween costumes sold as Morrisons extended its 'Morrisons Makes It' concept into Halloween products
and in-store activity. Learnings from this event are already being used to drive sales for Bonfire night and will feed into Christmas activity.
Back with 'The Best'
During the quarter Morrisons launched 'The Best' as its top tier private label range. The range replaces M Signature and reuses a brand
name Morrisons acquired through its 2004 takeover of Safeway. 470 products have been included in the range so far, with more to follow
by Christmas, providing a premium choice for customers looking to trade up.
Positive about Christmas and beyond
Morrisons goes into the crucial Christmas period with encouraging momentum, though unlike recent quarters trading will not benefit from a
negative comparative. In Q4 last year, Morrisons achieved LFL growth of +0.1% boosted by footfall driving spirits promotions; creating a
more challenging comparative than Q1-Q3 when LFLs fell by over 2% last year. That said, Morrisons is well placed to grow sales of its
Nutmeg range which will be rolled out to 100 more stores - the whole estate - by financial year end. Next year management flagged the
opportunities to grow the home and leisure category and more upside from Nutmeg with the launch of a womenswear range in February /
March.
Value focus paramount
During the call, Morrisons made clear it will remain highly focused on being a value-led retailer. Prices fell by 1.0% during the quarter but
inflation is expected to rise as the impact of sterling's devaluation begins to bite. That said, by stocking a high proportion of UK sourced
meat fish and produce, Morrisons has some insulation against price pressures. An interesting initiative that could help is a trial scheme for
local farms to deliver produce directly to stores, being piloted in selected stores in Yorkshire, Norfolk and Kent. Not only should this deliver
cost savings, but it offers environmental advantages and fits well with customer preferences to buy local sourced products when possible.
Source: IGD 3rd November 2016

Bunnings' first UK store location revealed
The UK’s first Bunnings store will open in St Albans as Homebase’s new owner strides ahead with its conversion plans, Retail Week
can reveal.
The Bunnings Warehouse branded store will replace the Homebase in Griffiths Way, St Albans, and is expected to open in mid-
February.
Measuring 70,000 sq ft, the pilot store will be the first Homebase to be fully converted since Australian giant Wesfarmers acquired
the DIY chain earlier this year.
Wesfarmers, which bought Homebase from Home Retail Group in a deal worth £340m, has confirmed plans today to have “at least
four” pilot stores up and running by the end of next June.
Homebase Bunnings managing director Peter Davis said this particular Homebase was selected for the first pilot because it is “quite
typical” of the conversions the business will face in the future.
He told Retail Week: “The demographic is strong. Plus St Albans is a good distance from the store support centre and London, so it’s
easy for our suppliers and development team to support the opening.”
The Homebase branch will be closed at the end of this month so the retailer can start work on the fit out and training the store
team.
Davis said the store’s current mezzanine will be removed and a larger canopy added.
The store will hold around 40% more SKUs than a traditional Homebase store, and employ an additional 30 members of staff. A café,
a children’s playground and a training area for both staff and customers will also be installed.
Davis also confirmed that “when the time is right” the store will host the Sausage Sizzles for which Bunnings is well-known in
Australia.
Davis described the first Bunnings Warehouse store as a “key milestone” but said the pilot programme is a “small part” of what the
business is focused on.
“It is an opportunity to continue to learn how to combine the best of the UK and Ireland with the best of Bunnings,” he added.
”We want to open between four and ten pilots before we push the button on the wider roll out, because we’ve got a lot to learn,” he
told Retail Week.
Source: Retail Week 3rd November 2016

New report highlights how grocery shopping is central to UK's
foodie identity
A new report conducted by grocery retail chain Waitrose reveals how food is now central to British identity and the top trends of the
year.
The fourth Waitrose Food & Drink Report, published today, outlines four key trends and is based on millions of purchases in shops
and online, with consumer research and insight from Waitrose buyers and experts.
One of the findings in the report is how social media has changed Britons’ relationship with food. One in five Britons has posted a
picture of their food on social media or sent it to a friend in the last month, while over two per cent would’ve shared a picture in the
last day.
Meanwhile, 71 per cent of Britons viewed healthy eating and looking after ourselves as “just a part of who we are”, according to the
report.
In addition, 60 per cent say the food we eat today is naturally lighter and fresher than five years ago, and products including seeds
and grains, coconut flour, cactus water and seaweed are all top food trends of the year.
The third key trend in the report looks at how conscious consumption is now a part of everyday life, with 80 per cent of Britons
actively consider how and where our food is sourced, while 46 per cent throw away less food and one third uses freezers more.
Sales of class two “wonky” vegetables, organic beauty products and food storage containers are also on the rise, and nearly half of
those surveyed shop more frequently for smaller baskets of food to help manage waste.
Finally, the lines between eating out and dining at home were blurring, according to Waitrose’s report, with 40 per cent viewing
eating out as less of a treat than it used to be.
This is because cheaper and healthier casual restaurants means people are increasingly choosing to stay in when they want to treat
themselves.
In the last year, 40 per cent of those surveyed either attended or hosted a Come Dine With Me-style revolving dinner party, a dinner
party where everyone brought a dish, or a themed evening based around a holiday destination or cooking style.
“As a nation we’re expressing ourselves through food as never before,” Waitrose managing director Rob Collins said.
“From healthy eating, to the explosion of food photography on social media, to our desire to entertain others through cooking – food
is today’s hottest social currency; through it, we tell others about ourselves.”
Source: Retail Gazette 3rd November 2016

L’Oreal Tops Estimates With Q3 Gains
L’Oreal has reported better-than-expected sales growth for its fiscal third quarter, helped in particularly by gains in North
America.
For the three months to 30 September, sales were up 4% to €5.95bn (+5.6% like-for-like), easily outpacing analysts’
forecasts. The Consumer Products unit recorded a 2.1% increase to €2.86bn (+4.7% LFL), the Luxe division reported
growth of 9.0% to €1.86bn (+9.3% LFL), while the Active Cosmetics unit reported growth of 4% to €425.7m (+6.5%
LFL). However, the Professional Products unit registered a 0.3% decline to €808.5m (+0.9% LFL).
The cosmetics giant said growth was driven by a “substantial acceleration”, and increased global demand for its make-up
brands. CEO Jean-Paul Agon noted: “The make-up market, whether mass or luxury, is really booming. There is a
momentum effect on all make-up brands.”
However, the group continued to suffer in its home market, as lower tourist numbers hurt sales, with Agon admitting:
“France has been a hard and disappointing market this year”.
Source: NamNews 4th November 2016

Beiersdorf Raises FY Forecast After Strong YTD Sales
Beiersdorf has raised its profit forecast for the full year, citing strong growth at its consumer business in the first three
quarters of the year.
The group said it now expects operating profit margin to significantly exceed last year’s 14.4% figure, compared to its
previous forecast for a “slight improvement”. CFO Jesper Andersen added that the new forecast meant an increase by
more than 50bps, without offering more details.
Beiersdorf said the upgrade was due to efficiency gains seen in procurement and logistics, as well as lower marketing
costs.
For the first nine months of the year, sales edged down 0.1% to €5.04bn, but excluding currency fluctuations, they were
up 2.9%. The group did not publish profit figures for the period.
The Consumer business saw sales edge up 0.1% to €4.18bn (+3.2% organic), helped by a “good performance” in Europe
and increased sales in the Americas. All the core brands reported growth – Nivea was up 3.6%, Eucerin was up 2.9%,
while La Prairie grew by 6.1%. Meanwhile, the tesa unit saw sales decline by 1% to €863m (+1.2% organic).
Source: NamNews 4th November 2016

B&Q rolls out new store format and plans one hour click and
collect
B&Q is rolling out its new design format to 10 stores and will launch a one hour click-and-collect service next year.
The retailer launched its first new concept store at its 140,000 sq ft Cribbs Causeway branch in Bristol in June, the first of four stores
that combine the best design elements from across B&Q-owner Kingfisher’s group.
The store, which was designed by a team of Kingfisher employees from the UK, France, Poland and Russia, forms part of chief
executive Veronique Laury’s ‘One Kingfisher’ strategy, which aims to unify the DIY giant’s global business.
B&Q chief executive Michael Loeve told the Retail Week Interiors Summit that it would roll out the concept to 10 stores by the end of
its current financial year in March.
“We’re trialling it in different catchment areas to see how shoppers react,” he said. Loeve said he was keen to get to a stage where
the payback on store refits was healthy enough to trigger a full roll-out.
Revamping B&Q’s ‘tired’ stores
Loeve admitted that B&Q had “lost a bit of focus” in terms of store design and said shops had started to look “fairly functional” and
“a little bit tired”.
He described the new store design as brighter and more visual, with better in-store navigation and more shop-in-shops.
Meanwhile, Loeve said B&Q – which revealed plans to close 65 stores last year – is looking to open new stores, particularly in and
around London.
Speedy collection
Loeve also revealed that B&Q is set to launch a one hour click-and-collect service next year. The move has been enabled by the
introduction of a unified IT system across the Kingfisher business earlier this year.
B&Q’s sister retailer Screwfix has pioneered speedy collection and allows its tradesmen customers to collect online orders in just five
minutes.
Loeve also hinted that the IT system would spur more innovation from the Kingfisher group and said it planned to introduce “digital
services not seen in the market before”.
Source: Retail Week 4th November 2016

Average spend on Black Friday expected to double this year
Black Friday and Cyber Monday has grown so rapidly that 27 per cent of UK adults now plan to purchase something,
according to a survey conducted for PwC.
In addition, the average spend is expected to reach £203 - nearly double that of 2015 - and sales over that weekend is
predicted to grow 38 per cent to £2.9 billion.
The survey also reveals that 57 per cent of consumers planning a purchase are holding off spending now in anticipation of
getting a better deal during the Black Friday/Cyber Monday long weekend. Among men, that total rises to 65 per cent.
Black Friday is always the day after US Thanksgiving Day, which falls on November 25 this year. Cyber Monday coming
close behind on November 28.
Only implemented by UK retailers two years ago, international giants like Amazon are responsible for importing this sales
event from the US – although the onus is on online sales rather than the US’ in-store sales and frenzied crowds.
Despite its rising popularity, the PwC’s survey found that 36 per cent of UK adults have no interest in either Black Friday
or Cyber Monday and 14 per cent purposely avoided them.
Nonetheless, PwC retail and consumer lead Madeleine Thomson said the survey shows that Black Friday and Cyber
Monday were now here to stay in the UK.
“The report also found consumers are embracing online shopping, with 77 per cent of respondents now planning on
making their purchases in the sales online, compared to just 17 per cent in-store.”
Source: Retail Gazette 4th November 2016

Quarterly LFLs over time
Source: Retailers (Waitrose and Co-op do not release quarterly data). M&S is food business only
%
-8
-6
-4
-2
0
2
4
Q1
2013
Q2 Q3 Q4 Q1
2014
Q2 Q3 Q4 Q1
2015
Q2 Q3 Q4 Q1
2016
Q2 Q3 Q4
Asda M&S Morrisons Sainsbury's Tesco

IRI's Weekly Retail News Update - w/c 31st October 2016

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IRI's Weekly Retail News Update - w/c 31st October 2016

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