An increase in like-for-like sales of a mere 1.8 per cent, compared with 3.6 per cent the previous year, was put down to interest rate increases and bad weather. Total sales rose 4 per cent

IN THE NEWS
Mothercare put forward a proposal to buy Early Learning Centre’s parent company Chelsea Stores, which would enable it to create destination stores for parents around the globe.

Baugur planned to privatise Mosaic Fashions 12 months after Mosaic merged with Rubicon Retail, so that it could complete its integration away from business analysts and investors.

Woolworths’ Worth It range smashed its sales targets in its first week – a much needed break for the company.

EBay was flooded with auctions selling Kate Moss for Topshop items on the day that the range hit Topshop stores. The collection generated sales of about£3.5 million for Topshop during its first week.

Stuart Rose hailed a new era at M&S, as profits hit£1 billion.

Alliance Boots announced that it would replace its Advantage Point kiosks with a second-generation device that was more prominent and more female-friendly. Boots said that 90 per cent of its loyalty cards were held by women.

Sports Direct issued what was perceived by some to be a profit warning. Meanwhile, the City was said to be outraged at Ashley’s “abuse” of investors, citing the absence of a house broker and the infamous “invisible” finance director.

Following interest rate increases, a Retail Week survey revealed that nearly 30 per cent of shoppers said they would check their spending and 42 per cent considered themselves worse off.

Sainsbury’s announced plans for a non-food sales offensive, as part of an ambitious plan to increase sales by£3.5 billion over the next three years.

Budgens and East of England Co-op reported profit uplifts, undermining the view that Britain’s big four supermarkets were trampling on smaller competitors.

US fashion retailer Gap shut its 315-319 Oxford Street store to make way for the redevelopment of the Legal & General-owned property.

Stefano Pessina and KKR were considering expanding Boots into emerging markets in continental Europe, Asia and Latin America, while improving Boots’ positioning in the local healthcare industry.

STORE OF THE MONTH
Gap, Brent Cross
Gap has had more than its fair share of detractors over the past couple of years, most of them focusing on its lacklustre performance, although it has moved back into profit recently.

In terms of store design, the decision for the European arm to go it alone must have been a tough one to take, but the outcome proved worthwhile. The 15m wide open entrance with its outsize Gap logo moves away from the retailer’s traditional shop front approach, while within, the central, circular “Architects of denim” feature – complete with overhead lighting rig – returns the brand to its roots. A mention should also be given to Dalziel + Pow, the design consultancy responsible for both this store and the Primark behemoth.

ON THE MOVE

Ruth Dangerfield joined Habitat as head of its UK business, having left Diesel, where she was UK head of retail.

House of Fraser hired its first brand director Matt Chambers to lead the rejuvenation of the chain. Chambers had worked at M&S for 20 years, in commercial and marketing roles.

Miss Selfridge buying director Adele Clough left the retailer after less than six months in the job, having joined from Bay Trading at the end of 2006.

Tony Duffy was appointed to revamp Lush’s multichannel offer, after profits plummeted. He joined from Next.

END OF AN ELECTRICALS ERA

2007 has been a hard year for DSGi. From collapsing sales in Italy to fraud scandals in France, the pressure was mounting through the early part of the year. But even still, no one expected Retail Week’s revelation that veteran boss John Clare was to step down in autumn.

The veteran retailer had been at the business for more than 20 years and chief executive for 13 of those. His decision marked the end of an era for the electricals sector – particularly since Jean-Noël Labroue, chief executive of arch-rival Kesa, was also to stand down in the new year.

Clare was credited with having driven huge change at DSGi – not least its overseas expansion – and was renowned for bold decision-making. One of his boldest was the introduction of the retailer’s computer and digital equipment support service Tech Guys, which has expanded rapidly since its launch. Another was the decision to move Dixons online. Although it shocked the industry, within a year it had become the fastest-growing part of the group.

Clare was also a straight-talker and not one who was afraid to speak out. In his valedictory interview with Retail Week, he lashed out at the property industry for imposing the rent reviews that drove Dixons off the high street.

His successor has taken up the reins at a time of great change for the electricals sector. It is a market that is being transformed by price deflation and the rising power of e-tailers. But, as the saying goes: a change is as good as a rest, so it’s an exciting time for the electricals giant. Nonetheless, it’s tinged with nostalgia – Clare’s departure has severed one of few remaining connections between DSGi and the business style pioneered by legendary founder Lord Kalms and the early signs are that his replacement John Browett will be taking a different approach.

So, what next for Clare? In his parting words to Retail Week he indicated that he won’t be disappearing. “I might have a few more long weekends, but don’t worry, I’m sure we will be talking about other things in the future.”