Retail Week
March 18 2011

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Simon Fox: HMV will retain its strong high street presence

HMV will still have a portfolio of hundreds of stores on the high street in five years, HMV CEO Simon Fox told delegates.
A mobile-optimised site is a must

Google’s retail, technology and business markets director Peter Fitzgerald told delegates at day two of Retail Week Conference that a mobile-optimised website should be their top priority for investment.
A tribute to Leahy

We start our special issue on the retiring Tesco boss Sir Terry Leahy by looking at what makes him special, in the words of those who have worked with him, or competed with him
A tribute to Rose

We start our special issue on the retiring Tesco and Marks & Spencer boss by looking at what makes him special, in the words of those who have worked with him, or competed with him.
All Saints ‘on the brink’ of winning new investment

The future of All Saints was in the balance as Retail Week went to press.
All Saints in final negotiations with potential investors

All Saints is understood to be finalising the terms of a potential £50m rescue deal to secure its long-term future.
Alworths meeting in bid to secure business’ future

Alworths, the ‘son of Woolworths’ chain launched by a former Woolworths director, was due to meet with financial adviser Leonard Curtis to discuss its future as Retail Week went to press.
American Golf owner kicks off £80m sale talks

Lloyds Development Capital is understood to have started talks with financial advisers over a sale of American Golf for up to £80m.
Archie Norman: Healthy businesses should close stores

Retailers should look to close around four stores per year even when sales are healthy, former Asda CEO told Retail Week delegates. “In healthy times retailers don’t close stores they accumulate the walking dead,” he said.
Argos to drive engagement with TV channel

Catalogue store group Argos is to launch a digital TV home shopping channel this summer.
Asda set to open its first high street supermarket without car parking

Asda is to open its first high street supermarket without car parking as it seeks to ramp up expansion.
Auchan net sales up 7.1% to £36.5bn

FRANCE
Awards matter

Last week’s Oracle Retail Week Awards stand as proof of the importance of store design in difficult times
Big ticket sales show signs of growth but VAT still curbing spending

Sales of big ticket items began to show a month-on-month improvement in February, following the fall in January after the VAT rise, according to data from EBay.
Blim's net sales soared 23.5% to £2.8bn

Turkey
Blockbuster to go ahead with its proposed £180m sale to investors

Troubled retailer Blockbuster has been given clearance by the US courts to go ahead with its proposed $290m (£180m) sale to investors, overcoming fears that the group may file for Chapter 7 liquidation.The retailer had come under pressure from creditors, including a growing number of movie studios that were owed money by the chain. However, following negotiations in court, creditors have worked out an arrangement to benefit from proceeds of the sale, meaning they will continue to ship
Boots boss Hornby: Customer service critical to save high street

A double dip recession looks unlikely, but colleague and customer engagement will be critical if retailers are to maintain high street spend, delegates at the Retail Week Conference heard.
C&A São Paulo, Brazil

C&A in the UK - until its disappearance at the beginning of the last decade - was one of those stores you didn’t really visit for store ambience.
Carphone Warehouse and Best Buy launch royal wedding phone

Carphone Warehouse and Best Buy are the latest retailers to jump on the bandwagon of royal wedding memorabilia with the launch of a special-edition royal wedding phone.
Couche-Tard Q3 net earnings jump 29.6% to £46m

Convenience store operator Couche-Tard posted net earnings of $71m (£46m) for the third quarter ended January 30, up 29.6% from the comparable period last year. The increase was attributable to growth in merchandise and service sales, the contribution from a rising number of sites offering fuel and the growth in same-store motor fuel volume in Canada and the US.The strengthening of the Canadian dollar as well as Couche-Tard’s sound management of its expenses also contributed. Like-for-
Crackdown on Channel Islands VAT loophole

Chancellor George Osborne is planning to crack down on cheap goods flooding into the UK from the Channel Islands.
Customer service key for high street retailers

There’s more to high street retailing than distribution and if you don’t offer customer service you may not succeed.
Debenhams on track for profit growth

Department store group Debenhams assured the City that interim profits would meet consensus and be ahead of last year.
Double dip unlikely says retailer panel

The chief executives of Debenhams, New Look and Kingfisher have all predicted that the UK will not suffer from a double dip recession.
Dual-branded Oasis and Warehouse store opens in the UK

Aurora Fashions has opened its first dual-branded Oasis and Warehouse store in the UK in Cheltenham this week.
Focusing on core proposition critical to survival

Clarity on what your business means to customers has never been more important, Retail Week conference delegates heard.
Former Best Buy director says don’t hold back on international expansion

Former Best Buy international director Bob Willett has encouraged retailers to keep international on their agenda.
Foyles acquires Grant & Cutler book store

Bookseller Foyles has acquired Grant & Cutler, the largest foreign language bookshop in the UK.
French connection boss hits out at upward only rent reviews

French Connection chief executive Stephen Marks has hit out at upward only rent reviews, asking the government to review the law.
French Connection to up sales densities

French Connection has vowed to drive sales densities in stores after its UK and European retail arm slipped into the red.
Gap to close 200 of its 900 stores worldwide by 2013

Clothing giant Gap is to close 200 of its 900 stores worldwide by 2013, and has stated that part of its difficulties are due to it not investing enough in attracting ethnic minority customers in the US. Chairman and chief executive Glenn Murphy said Gap’s market share among African-, Asian- and Hispanic-Americans was too low. He also added that he would develop Gap’s product offer, build categories like jewellery and increase trend-led products.
Go Outdoors to sell stake to private equity

Outdoors specialists Go Outdoors is poised to sell a minority stake to a private equity firm to fund its expansion plans.
Green and Cheshire debate CVAs

Arcadia owner Sir Philip Green told a packed audience at the Retail Week conference it is inevitable that landlords will accept CVAs because they are in their interest.
Henleys retail arm in administration

Young fashion brand Henleys has shut its 18 stores blaming poor trading and difficult leases for its demise. Its wholesale business is unaffected.
HMV hires Comet's Ewan Pinder as head of technology

HMV has appointed Comet head of merchandising and store development Ewan Pinder as its head of technology.
HMV shares rise as boss Simon Fox remains upbeat

HMV shares surged yesterday after chief executive Simon Fox remained upbeat on the entertainment retailer’s future.
HMV to present rescue plan to banks this week

HMV is to meet with banks this week to outline a rescue plan that could include a sale of its book chain Waterstone’s.
How Leahy made Tesco a global giant

With its razor-sharp focus on the customer wherever they might be, Tesco now operates in 14 countries. Tim Danaher and Jennifer Creevy trace how a UK grocer now bestrides the globe
How Leahy transformed Tesco’s business in the UK

Terry Leahy was told Tesco had reached saturation point in the UK. Having developed non food, gone online and moved into services, he’s proved the doubters wrong.
In Focus: Richer Sounds

I confess to being a long-term fan of Richer Sounds. It all started in 1988 when my business partner Clive Grant and I came across them compiling our second edition (we’d missed them in the first) of The Retail Rankings.
In pictures: Oracle Retail Week Awards drinks reception

Pictures from the drinks reception at the Oracle Retail Week Awards 2011
In pictures: Oracle Retail Week Awards winners

Pictures of all the award winners from the Oracle Retail Week Awards 2011
In pictures: Retail Week Conference

Photos from day one of the Retail Week Conference
Inditex to push lesser known brands in UK

Spanish fashion giant Inditex plans to roll out its lesser-known brands including Pull and Bear and Bershka across the UK this year.
Interview: Leahy - All in a day’s work

Sir Terry Leahy’s legacy at Tesco is formidable. He invented Clubcard, took the grocer into non-food and online, and propelled it to become one of the world’s leading retailers. In an exclusive interview, Tim Danaher speaks to the man who changed the face of retailing.
Interview: Sir Stuart Rose - Mr M&S

Outspoken, controversial and never dull, Sir Stuart Rose is a retailer’s retailer. He tells George MacDonald about the mess he inherited in 2004, the highs and lows of his time in charge and his plans for the future
It’s time for a retail clean-up

When sales of scratchcards soar we know that consumer confidence has reached a particularly low ebb - or so the logic goes.
ITM sales up 4% to £30bn

Grocer ITM has grown sales 4% for 2010 to reach nearly E35bn (£30bn) as a result of a strong international performance. Sales in France grew 1.6%. As part of its three-year plan, ITM intends to grow sales per square metre 15% and an extensive remodelling programme will be completed by the end of this year.The retailer will grow its Drive network from eight units to 80. Other strategies include a roll-out of its new private label, Itinéraire des Saveurs, which will cover world food and
James Hart

Ecommerce director, Asos
JD Sports Fashion rescues Fenchurch from administration

JD Sports Fashion has rescued streetwear brand Fenchurch from administration, but all of its staff have been made redundant.
JJB bolstered by landlord Peel's backing

One of JJB’s largest landlords Peel Holdings has bolstered the struggling retailer’s survival plans by backing its CVA proposal.
JJB CVA approved

JJB Sports’ creditors and shareholders have approved the struggling sports retailer’s CVA proposal.
JJB CVA gets landlord Hammerson's backing

JJB Sports’ proposed company voluntary arrangement (CVA) has been further bolstered as it wins landlord Hammerson’s backing.
JJB to reveal result of life-saving CVA today

Troubled sports retailer JJB Sports has said it expects to reveal the results of its company voluntary arrangement (CVA) meetings later today.
John Lewis bond fully subscribed

The John Lewis Partnership has closed its first retail investment bond to new applications after it reached its £50m target in 11 days.
John Lewis records 1.8% fall in weekly sales

Sales at John Lewis department stores fell last week as the retailer came up against tough comparatives.
Kantar Worldpanel: Audio-Visual Entertainment

The latest Kantar Worldpanel Audio-Visual Entertainment data for the 52 weeks ending January 23, 2011 vs 2010
Kantar Worldpanel: Toiletries

The latest Kantar Worldpanel Toiletries data for the 12 weeks ending February 20, 2011 vs 2009
Lighting specialist Ryness deemed ‘attractive asset’ as it goes up for sale

Ryness Lighting & Electrical has been put up for sale by its private equity owner Epic.
Majestic Wine gives its website a more local feel

Majestic Wine is aiming to improve engagement and interactivity on its website by localising content and revamping the product reviews process.
Management behind deal for Allied Carpets

Allied Carpets operations director Dean Weston is understood to have led Savana Trading’s purchase of the retailer, which was completed on Monday.
Markets are shaken by Japanese disaster

The earthquake in Japan shook the stock markets worldwide as investors assessed what the costs, commercial as well as human, might be.
Matalan planning to grow online business

Value fashion and homewares group Matalan is to ramp up its ecommerce operations and plans to hire a top-level online retail specialist to drive growth.
Mercadona gross sales up 6.3% to £341m

Grocer Mercadona has reported gross sales of E16.5bn (£14.2bn) for the 2010 fiscal year, up 6.3% from last year. Net income was E398m (£341m), a 47% increase compared with 2009. The company invested about E600m (£515m), opening a net total of 46 stores.Mercadona reduced prices by an average of 4% across its product offer, which together with the 10% reduction made in 2009 has produced savings of E2.2bn (£1.9bn) for its customers since 2008. The retailer hired 1,500 new employees in 201
Morrisons pushes online with stake in US etailer FreshDirect

Morrisons is expecting to circumnavigate the pain of setting up an online food operation with the lessons it will learn from buying a 10% stake in US etailer FreshDirect.
Morrisons’ Pennycook: Retail innovation critical to survival

Innovation will be crucial if retailers are to thrive in tough times, Morrisons’ FD Richard Pennycook told delegates at the Retail Week Conference.
New Look CEO Carl McPhail resigns

New Look chief executive Carl McPhail has resigned, and founder Tom Singh returns to the business.
New Malden turns to New York

Morrisons’ acquisition of a stake in New York online grocer FreshDirect came as a bolt from the blue.
Not just a campaign

The perception of Marks & Spencer has been transformed in the seven years that Sir Stuart was at the helm. Its Your M&S advertising campaign was central to that, says Charlotte Hardie
Ocado poaches Simon Belsham from Tesco

Ocado has poached Simon Belsham from Tesco to head up non-food as it seeks to ramp up its non-grocery offer.
Oddbins offers creditors £4.7m compensation pot in CVA

Oddbins wants to close a third of its stores and creditors will be offered a stake in a £4.7m compensation pot as part of its company voluntary arrangement (CVA).
Online grocery

Morrisons may have come to the ecommerce party late but it is making up for lost time. However, is the online cake big enough to go round and is there any money in it?
Oracle Retail Week Awards winners

Sir Terry Leahy and Sir Stuart Rose were both recognised at the Oracle Retail Week Awards last night, while several other retailers also received gongs for their work in retail.
Oxo total revenue jumps 16.3% to £3.2bn

Convenience store chain Oxxo has reported a total revenue increase of 16.3% for the 2010 financial year, up to 62.3bn pesos (£3.2bn). Sales growth was driven by the opening of 1,092 net new stores during the year and a 5.2% increase in like-for-like sales. Store traffic experienced a 3.9% increase, while average basket value increased 1.3%.
Peacocks considers sale of Bonmarché

The Peacock Group is reported to be exploring options for Bonmarché, which could lead to a sale of the older womenswear chain.
Perfume Shop expands shop-in-shops

The Perfume Shop is to open more shop-in-shops in sister retailer Superdrug and will roll out a loyalty scheme later this year.
Phones4U sold to private equity firm BC Partners

Private equity house BC Partners has bought mobiles specialist Phones4U for an undisclosed sum from Providence Equity.
Poor weather conditions hit Flying Brands’ profit

Multichannel retailer Flying Brands reported a fall in full-year group pre-tax profit as poor weather hampered its core gardening and flowers business during crucial trading periods.
Putting the customer at the heart of the business

Sir Terry Leahy’s Clubcard revolutionised how Tesco did business and changed the way retailers learn about customers. Rebecca Thomson finds out how it started and where it goes from here
Regional electricals chain bought out of administration

Norfolk-based electrical retail chain Bennetts has been bought by Lowestoft-based Hughes Electrical after it collapsed into administration earlier this month.
Reiss to launch anniversary collection and push overseas expansion

Premium retailer Reiss is to launch a new range to mark its anniversary this year and is continuing to expand overseas.
Retail entrepreneurs alive and well in the UK

Entrepreneurs are born or may be raised, but are an essential part of UK retail activity
Retail predecessor to River Island is to be revived

Chelsea Girl, the iconic 1970s fashion retailer that later became River Island, is to be revived as a branded capsule collection.
Retail Week Conference quiz

It’s been a busy week this week with the Retail Week Conference taking place. But were you paying attention to who said what? Take our quiz and find out.
Retailers and brands count cost of devastating Japan earthquake

Retailers and luxury brands are taking a hit in Japan following the tragic earthquake and tsunami that has killed thousands of people and rocked the country.
Retailers need to be creative to succeed on Facebook

Retailers need to be creative and work out how to use information on Facebook to make the network work for them, Facebook’s head of mid-market sales for EMEA said.
Retailers relocate in Japan amid nuclear fallout fears

Swedish fashion retailer H&M and French luxury group PPR have temporarily relocated from their offices in Tokyo for fear of nuclear fallout.
Rose: Entering the 21st century

Sir Stuart Rose will be remembered for creating the internal climate of change he created that enabled a massive store portfolio to be transformed. John Ryan charts what took place
Rose: The man with the plan

Under Sir Stuart Rose’s leadership, Marks & Spencer has developed one of the most comprehensive CSR programmes of any retailer. Charlotte Hardie examines the achievements of Plan A so far.
Sainsbury's says helping customers gets it through the downturn

Sainsbury’s says finding ways to help customers is a big theme for the company during the economic downturn, as it uses its insight from data and interviews to find ways to assist people.
Sir Philip Green comes out in support of UK manufacturing

Sir Philip Green has come out in support of a return to British manufacturing, stating the time is right to examine opportunities to re-open UK factories and that Arcadia will try to bring more production to British shores.
Sir Terry Leahy invests in homework site

Sir Terry Leahy, who stood down from Tesco this month, has made his first significant investment since leaving the grocer.
Sports Direct throws down gauntlet to rival Decathlon

Sports Direct chief forecasts the pair will fight it out for global dominance over the next 10 years
Standing in the customers’ shoes

The importance of building consumer confidence is now crystal clear, says Lord Kirkham
Store revamps at heart of JJB’s recovery plans

JJB Sports chief executive Keith Jones is confident that its new business plan can revive the ailing sportswear retailer, despite like-for-likes slumping 13.5% from January 24 to March 13.
Tesco launches kids' wedding wear

Tesco has launched its first collection of bridesmaid and page boy outfits as part of its Florence & Fred (F&F) kidswear range.
Tesco names Graham Harris head of telecoms division

Graham Harris has been appointed chief executive of Tesco Telecoms and Tesco Mobile.
Tesco UK boss Brasher: 'averages don't work'

Tesco UK chief executive Richard Brasher has warned against grouping consumers together and assuming they will react in the same way in response to the tough economic times.
Tesco.com R&D head says contactless payments are not ready for retail

Head of research and development at Tesco.com Nick Lansley says near field communication (NFC), the technology behind contactless payments, needs to mature before it will be useful for retailers.
TK Maxx unveils radical new ad message

TK Maxx has unveiled its spring television advertising campaign which breaks with tradition and lets shoppers into the closely-guarded secret, that the chain deals directly with designers rather than just sourcing old season stock.
Two all-time retail greats

At the Oracle Retail Week Awards 2011, we recognised the careers of Sir Terry Leahy and Sir Stuart Rose, and this special coverage is dedicated to celebrating their remarkable achievements in this industry.
Video: Andy Hornby

We catch up with Andy Hornby, Alliance Boots group chief executive at the Retail Week Conference
Video: Marks & Spencer shifts marketing focus

Marks & Spencer will tomorrow launch its spring advertising campaign featuring the use of ‘Only at Your M&S’ branding for the first time and including its first menswear TV ad.
Video: Oracle Retail Week Awards winners interviews

We catch up with the winners backstage at the Oracle Retail Week Awards
Video: Sir Stuart Rose at the Oracle Retail Week Awards

Carphone Warehouse founder Charles Dunstone honoured Sir Stuart Rose last night at the Oracle Retail Week Awards.
Video: Sir Terry Leahy at the Oracle Retail Week Awards

Morrisons founder Sir Ken Morrison paid tribute to Sir Terry Leahy last night at the Oracle Retail Week Awards.
Waitrose boss happy with Ocado deal at present

Upmarket grocer Waitrose managing director Mark Price has said he is “really happy” with the retailer’s relationship with online grocer Ocado but did not rule out operating independently when their current contract runs out.
Walgreens sells its pharmacy benefit management business

Walgreens has sold its pharmacy benefit management business Walgreens Health Initiatives (WHI) to Catalyst Health Solutions for $525m (£450m), subject to certain adjustments. The transaction is structured as an acquisition of all the capital stock of WHI.Walgreens will retain and look to continue growing its speciality pharmacy and mail service businesses. The transaction, subject to regulatory approvals and clearances, is expected to close by the end of June 2011.
Walmart sets its sights on small format expansion

Speaking at an investor conference last week, Walmart US chief executive Bill Simon outlined plans for a much larger foray into small-format retailing than many industry observers had anticipated.
Walmart sets its sights on small-format expansion

Speaking at an investor conference last week, Walmart US chief executive Bill Simon outlined plans for a much larger foray into small-format retailing than many industry observers had anticipated.
What are the main differences between ERP and Best of Breed supply chain solutions?

I need to replace my current supply chain system, but don’t know whether to select an ERP or a Best of Breed application. What are the main differences between the two solutions?
When is the best time to send an email marketing message so that it gets the best response?

When is the best time to send an email marketing message so that it gets the best response?
X5 Retail Group elects new chief executive

RUSSIA

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Retail Week
March 18 2011