Planet Retail

INSIGHT: Amazon continues to sacrifice profit for growth

Amazon saw a slowdown in sales growth for its first quarter ended 31 March 2013, with sales up 22% to USD16.07 billion. This figure compares to a 34% jump for the same period last year and reflects a weaker performance in some of Amazon’s mature international markets, compared to a strong upward trend in the US, driven by Amazon Prime. Planet Retail looks at how the online giant’s performance is indicative of its preparations for further ventures across the retail spectrum.

Written by Lisa Byfield-Green (@LisaByfG)

Click HERE to read the full article.

REPORT

Inditex Insight Deck, 2013

Growth markets and strategic initiatives

by Isabel Cavill  (@IsabelCavill)
Senior Retail Analyst

Planet Retail’s comprehensive Insight Decks dive into the hidden depths of the world’s leading retailers.

In this deck, we examine the drivers behind global clothing market leader Inditex’s unparalleled success, look at its innovative supply chain and discover the brand initiatives upon which the retailer relies to sustain its powerful performance into the future, as well as scrutinising Inditex’s key country level operations.

Understand the challenges facing the world’s premier clothing retailer and learn about the opportunities that these will open up for suppliers.

Reasons to buy:

• Understand the Inditex corporate structure;
• Discover Inditex’s core strengths and major retail initiatives both at home and abroad;
• Gain in-depth knowledge of how Inditex expands globally;
• Examine Inditex’s innovative production model and logistics operations; and; and
• Benchmark yourself against the competition with a global SWOT analysis.

Click HERE to download this report.

INSIGHT: Bricks and clicks success at John Lewis reaches new heights

UK department store retailer John Lewis has announced that online sales passed the GBP1 billion (USD1.51 billion) mark for the first time last week on a rolling 52-week basis, a year ahead of the company’s own forecast and coinciding with the launch of a new multi-million pound web platform. Planet Retail interviewed John Lewis’ IT Director Paul Coby to discuss the drivers of success for the omni-channel retailer.

Written by Lisa Byfield-Green (@LisaByfG)

Click HERE to read the full article.

INSIGHT: Casino looks abroad as the battle at home takes its toll

French retailer Casino has reported a 2.5% rise in revenues excluding fuel to EUR11.7 billion (USD15.18 billion) during the first quarter of 2013, at constant scope of consolidation and exchange rates (organic growth). The positive results were driven by 8.3% growth excluding fuel in its international operations - which represent almost two-thirds of the group’s turnover - to EUR7.37billion (USD9.56 billion). Planet Retail examines Casino’s strategy and asks whether it can successfully fight a price war at home or if it needs to look further afield for sustainable success.

Written by Gildas Aitamer.

Click HERE to read the full article.

PRESS RELEASE: Casino Q1 2013 results

International gains offset Casino’s domestic price war wounds

On Casino’s first-quarter results, Gildas Aitamer, Retail Analyst at Planet Retail, commented:

“Casino is benefiting from a limited reliance on its sluggish home market which represents a mere 37% of its global sales, and its relatively restricted exposure to crisis-struck Europe compared to rival Carrefour. In France, its aggressive price cutting strategy partly contributed to the 3.4% sales decline in Q1. I believe this investment in price is a necessary evil, without which the retailer could find it difficult to maintain its position in a market riven with price wars.

“Even so, we are sceptical of Casino’s ability to sustain its prices longer term when competitors such as Leclerc have had years to refine their cost efficiencies and do not have the extra burden inherent in listed companies of showing profit despite price cuts. Furthermore, a long and arduous journey remains ahead for Casino if it is to improve its price perception following years of drifting prices. This is also at a time when Auchan, Carrefour and the others have been polishing their price perception for several quarters already.

“While trying to turn around sales volumes in its home country, Casino will continue to look towards its overseas growth by investing substantially in promising formats where it so far has had a limited focus to keep pace with its competitors, namely in cash & carry in Brazil and convenience stores in Thailand.”

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Gildas is available for further comment and can be contacted on +44 (0) 20 7715 6013 or via e-mail at gildas.aitamer@4C.planetretail.net

PRESS:

Robyn Ashman, Marketing Executive
Tel: +44 (0) 20 7715 6021; E-mail: marketing@4c.planetretail.net.

INSIGHT: Q1 stuck in neutral as Carrefour seeks to change gear

Carrefour’s Q1 results remained weak with just a 1.4% increase in sales to EUR20.83 billion (USD27.03 billion) at constant exchange rates excluding petrol. Figures are pro forma, so exclude international divestments made in 2012 in Greece, Singapore, Colombia, Malaysia and Indonesia. While LATAM once again lifted the retailer’s results above the mundane, Planet Retail wonders whether further reorganisation is really the answer to Carrefour’s current lack of momentum.

Written by Gildas Aitamer.

Click HERE to read the full article.

PRESS RELEASE: Carrefour Q1 2013 results

Subdued headline figures belie slow underlying improvements

On Carrefour’s first-quarter results, Gildas Aitamer, Retail Analyst at Planet Retail, commented:

“Carrefour’s Q1 results remained weak with just a 1.4% increase, lifted once again by Latin America and especially Brazil, but hampered by Western Europe, which still represents three- quarters of the retailer’s sales. Nonetheless, we believe Carrefour is moving in the right direction in the economically challenged southern European markets, thanks to an increased discount offering and the appointment of a new Director in Italy.

“In its home market, sales were down 1%. Even so, these headline figures should be seen in the light of the relative progress made over the quarters since the arrival of CEO Georges Plassat. The French hypermarket performance (-2.6%) is disappointing, especially in comparison to already poor results in Q1 2012 (-3.3%), but must be put into the context of intensified price competition generally - spearheaded by an unusually aggressive Casino - and the amount of Drives (numbers of which have doubled nationally since last year). Its other formats – convenience stores and cash & carries - were trading against difficult comparisons with the previous year’s results and this dampened headline growth.

“The like-for-like sales figures from China (-2.3%) do not fully reflect the improvement reportedly noted over the past quarter, especially in light of the plummeting like-for-likes of Q1 2012 (-6.9%). China is a recurring problem that needs to be urgently resolved by Carrefour before expansion plans can be stepped up, as previously announced.

“More generally, the company’s international divestment programme is now largely complete – question marks still hang over Turkey and possibly Taiwan – but the business is now more lean and able to invest. Outside of Carrefour’s domestic market, Brazil and China will be the key beneficiaries.”

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Gildas is available for further comment and can be contacted on +44 (0) 20 7715 6013 or via e-mail at gildas.aitamer@4C.planetretail.net

PRESS:

Robyn Ashman, Marketing Executive
Tel: +44 (0) 20 7715 6021; E-mail: marketing@4c.planetretail.net.

REPORT

Traffic Intelligence

The science of shopper conversion

by Sarah Herrlein
Senior Retail Technology Analyst

Compared to pure-play retailers, bricks and mortar operators are so far relatively unaware when it comes to shoppers’ behaviour in the store. Even though customers already deliver valuable insights in the form of POS or loyalty card data when they buy something, store operators feel an increasing need to better understand what happens before the purchase decision.

This report highlights how stationary retailers can close this information gap by deploying a new generation of traffic intelligence solutions. What’s more, we provide insights from best practice implementation projects by retailers including Belle International, FJ Benjamin, Metro Group and Perry Ellis, and provide you with an outlook on future trends in this technology area.

Use this report to understand how retailers are deploying traffic intelligence to:

• Calculate conversion rates and effectively measure the success of promotions or new store layouts;
• Integrate with instore technologies to boost efficiency; and
• Consolidate information from multiple sources to lay the foundations for sophisticated data analysis.

Click HERE to download this report.

INSIGHT: Tesco profits fall as UK overhaul continues

UK-based retailer Tesco has posted a drop in group trading profit of 13% to GBP3.4 billion (USD5.4 billion) in the 52 weeks ended 23 February 2013. The fall came as Tesco continued to channel investment into the UK overhaul programme. Group sales including VAT came in at GBP72.4 billion (USD115 billion), up 1.3% at actual exchange rates and 2.5% at constant exchange rates. Planet Retail looks at what the full-year figures say about Tesco’s ongoing issues and assesses whether the company is moving forward in the right direction.

Written by David Gray.

Click HERE to read the full article.

PRESS RELEASE: Tesco posts first drop in annual profits for almost two decades

On Tesco ’s full-year results, David Gray, Retail Analyst at Planet Retail, commented:

”As expected, Tesco delivered its first drop in annual profits in almost two decades as it continued to channel investment into the UK overhaul programme. Trading at home was dampened by the effects of the horsemeat scandal, despite further progress on the overhaul plan. In non-food, Tesco will need to put further effort into ranging and merchandising to offset sliding sales. Online continues to grow strongly, although it’s increasingly clear this comes at the expense of sales at out-of-town hypermarkets. Further work will be needed to combat this and turn Tesco’s hypermarkets into truly compelling retail destinations.

“In international, as anticipated, sales in both Europe and Asia were impacted by harsh headwinds. In Europe, the chill from the Eurozone crisis continues to hit trading. Meanwhile in Asia, a slowdown in China alongside regulatory changes in Tesco‘s largest international market of South Korea, are dampening sales. The situation in the latter could worsen, with further rules restricting large store openings near traditional marketplaces expected to come into force later this year.

“Nevertheless, we are encouraged by progress on the grocery e-commerce roll-out – with its recent introduction in Thailand, Malaysia and Hungary – although we note that grocery e-commerce remains in its infancy in many of these markets – meaning any further roll-out is likely to be measured.

“In the US, Tesco’s announcement of its intention to exit was welcome news for investors – even if the writedown of US assets will prove unhelpful in the short term. We continue to believe the operation is likely to be split up between a handful of competing buyers such as Aldi Süd, Trader Joe’s (Aldi Nord) and, potentially, US dollar stores – rather than sold off in its entirety.”

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David is available for further comment and can be contacted on +44 (0) 20 7715 6132 or via e-mail at david.gray@4C.planetretail.net

PRESS:

Robyn Ashman, Marketing Executive
Tel: +44 (0) 20 715 6021; E-mail: marketing@4c.planetretail.net.