IRI FMCG Weekly News Update - w/c 6th June 2016

Macroview Weekly News updateYour window on the latest trends in Packaged Groceries

Stephen Hall

Friday 10th June

Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 2

• Whole Foods Market to offer on-demand delivery across London• Post Office becomes UK's biggest retailer open on Sundays• Retail sales pick up in May after two flat months• Costco making steady progress in the UK• Co-op plans 80 new store openings by the end of 2016• WH Smith posts flat like-for-like sales• Sainsbury's makes 'solid' start to 2016/17 • Summer of sport set to be a busy time for shoppers, supermarkets and FMCG brands• Amazon regains its crown as most valuable global retail brand with Tesco the UK’s

highest ranking brand• Amazon takes on supermarkets with launch of AmazonFresh• Argos like-for-likes up 0.1% in first quarter• John Lewis reports strong sales increase last week• Discount retailers overtake Big Four supermarket growth • Tesco confirms sales of Giraffe and Kipa• Iceland posts flat full-year profits as performance stabilises• High street struggles continue as consumers curb spending

Weekly News Summary –6th June 2016


Whole Foods Market to offer on-demand delivery across LondonWhole Foods Market is to offer customers in London the option of shopping online and having their groceries delivered in one to two hours.

Working with delivery company Quiqup, Whole Foods completed a successful trial of the service in May.

Benjamin Woodgate, head of marketing at Whole Foods Market, said: “We are delighted that our customers appetite for the highest quality of natural and organic foods can now be met on-demand at www.wholefoods.london exclusively through Quiqup.”

To make their online purchases, customers select from one of seven Whole Foods stores in the capital, add items to a virtual shopping cart and then check out. Quiqup’s personal shoppers then confirm incoming orders on their smartphones, shop for the items at Whole Foods stores and hand over the shopping to the Quiqup driver to deliver to the requested address, whether it’s at home or at the office.

To mark the launch, Whole Foods Market and Quiqup have teamed up to exhibit at the Taste of London event in Regents Park from 15 to 19 June. As the official ingredient sponsor of the event, Whole Foods will showcase celebrity chefs preparing their favourite recipes at the Whole Foods Market Kitchen. Customers will then be able to order all of the ingredients on-demand via Quiqup’s app or web platform.

All new customers receive £10 off their first order with subsequent deliveries costs starting from £5.50.

Source: Retail Bulletin 6th June 2016


Post Office becomes UK's biggest retailer open on SundaysThe Post Office has revealed that it is now the UK's largest retailer open on a Sunday, with 3,800 branches trading seven days a week.

A recent transformation of the business has resulted in thousands of sites offering longer opening hours with the number open on Sundays up by 1,000 since 2013.

Research by the postal retailer found that nearly a third of people are more likely to use their local branch if it was open on a Sunday.

"I'm delighted that millions of people across the UK can now access Post Office services seven days a week. We are building a secure financial footing to maintain our services at the heart of communities for the future" said Kevin Gilliland, Post Office Network and Sales Director.

"Our modernisation plan is all about getting better for customers and making sure that branches across the country offer opening hours to meet their customers' needs, with Sunday opening increasing rapidly across our network.".

Source: Retail Gazette 6th June 2016


Retail Sales Picks Up In May After Two Flat MonthsDespite uncertainty about the economy and concerns over the UK’s possible exit from the EU, retail sales showed a small improvement last month with like-for-like sales edging up 0.5% year-on-year. The figures from the BRC – KPMG Retail Sales Monitor also showed total sales in May up 1.4% after two flat months.

Describing the figures as better news for the UK’s retailers, Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said: “Clothing made a big comeback this month after suffering declines in April. This appears to be due to consumers waiting for just the right moment before embarking on their pre-summer spending. However, with signs that the UK’s economy is slowing it’s unlikely that this is the beginning of a complete reversal of fortunes. The uncertain outlook means that customers will remain cautious with their spending, therefore we expect sales figures to remain volatile for the time being.

“While this month’s pick-up in sales will come as a welcome relief, it’s still a challenging time for retailers. Shop price deflation continues and intensity of competition is fierce. Controlling costs and improving efficiency and productivity will be crucial for retailers as they continue to navigate increasingly tough trading conditions.”

David McCorquodale, Head of Retail, KPMG, added: “Despite rain dampening the May Day mood, fashion sales finally lifted following a tough three months of trading for retailers. The appearance of some spring sunshine encouraged consumers to hit the sales and take advantage of early summer promotions.

“The standout category, however, was children’s footwear, and children’s clothing also saw a boost as parents kitted out the kids for the warmer weather and half term holidays. Mild relief also continued for the Grocers with total food and drink sales remaining positive in the month.

“With a summer of sport kicking off in June and festival season getting underway, retailers will be hoping that the feel good factor coupled with a dose of summer sunshine will keep the tills ringing over the summer months.”Meanwhile, commenting on the Food & Drink sector, Joanne Denney-Finch, Chief Executive of IGD, said: “An increase in sales for May over last year, in spite of lower prices, is encouraging for food and grocery companies, especially as it cannot be attributed to particularly warm weather. For only the second time since we started tracking this question in 2010, a higher number of grocery shoppers plan to focus more on quality in the year ahead (22%) than those prioritising saving money (19%).

“There is further cause for optimism. Big international football tournaments are usually good for food and drink sales and this time there are three UK teams to support.”

Source: NamNews 7th June 2016


Costco Making Steady Progress In The UKLatest accounts filed by Costco’s UK division show the business continuing to make progress despite the competitive trading conditions.

For the 52 weeks to 30 August 2015, Costco UK’s turnover rose 7.1% to £1.9bn with around half this growth coming new warehouses in Hayes and Sunbury.

The group said that membership sales remained strong, boosted the introduction of an online renewal system, along with various marketing initiatives. The remainder of the sales rise came through merchandise sales, helped by an increase in promotional activity. The main drivers of sales growth were its core food and sundries departments with tobacco, grocery and confectionery said to have been particularly strong. However, as a consequence of increased sales via its separate online business, sales of major electronic equipment in its warehouses declined.

The group also highlighted the tough competition from cash & carry businesses, supermarkets and the discounters. Costco said it had responded by stepping up its value proposition with regular vouchering, discounts and maintaining its EDLP strategy on its basic categories in food and sundries.

Despite the competitive pricing pressure, Costco saw its gross profit increase from £49.2m to £56.2m, help by improved inventory and category management. Operating profit came in at £17.5m (2014: £17.2m) and pre-tax profit rose to £17.8m (2014: £17.2m).

The group, which now has 27 outlets in the UK, said it believed the market was large enough for it to continuing opening 1-2 new warehouses a year. A new site is under construction in Wembley with others in the planning stages. Meanwhile, following the opening of two petrol stations last year to add to its one existing site, Costco said it planned to open in other locations in the coming months.

Costco also revealed that sales in the first quarter of its new financial year (to 22 November) 2015) was ahead of the previous year, boosted by promotional offers.



Co-op plans 80 new store openings by the end of 2016The Co-operative has announced plans to open 80 new shops before the end of the year, while a further 152 will be refurbished as the retailer rolls out its familiar cloverleaf logo design as part of a major re-brand.

The community retailer said the new brand also marked the next stage in the evolution of the Group’s identity, with plans over the next five years to include:

• Recruiting one million new members• Doubling sales to members across its family of businesses• Growing digital services

From September, the Co-op said all members would get 5% off Co-op products every time they shopped in stores, to encourage return visits and sales of own-brand products. A further 1% will support community projects chosen by local people.

Co-op head of acquisitions and new store development Rob Bignold said: “Our new store programme is really starting to gain momentum now.“The sheer size of our ambition is making the industry sit up and take notice of us, which is fantastic to see.”

Source: Talking Retail 7th June 2016


WH Smith posts flat like-for-like salesBook and stationery retailer WH Smith saw its group sales rise by 2% in the 14 weeks to 4 June although like-for-like sales were flat.

During the period the group’s high street business continued with its profit focused strategy, with sales in line with expectations. Total sales dropped by 4% while like-for-like sales edged down 3%.

In the retailer’s travel division, which includes stores at airports and rail stations, sales rose by 9% on a total basis and by 3% on a like-for-like basis. The sales performance reflected the division’s ongoing investment in its UK business and an improvement in passenger numbers.

In a statement WH Smith said: “Looking ahead we continue to focus on profitable growth, cash generation and investing in the business to position us well for the future. We remain confident in the outcome for the full year.”



Sainsbury's makes 'solid' start to 2016/17 Announcing performance figures for Q1 of its 2016/17 financial year (12 weeks to 4 June), Sainsbury's has revealed that total sales fell slightly over the period, trending down 0.3% on a total basis (excluding fuel) and down 0.8% like-for-like. However, the business reports that volume growth was positive at total level and transaction numbers increased both in total and like-for-like. These latest sales figures are a slowdown on Q4, when performance was positive: +1.2% total and +0.1% like-for-like.

Focus on simple and lower pricing reducing promotional participationThis latest quarter has been a major watershed for the development of Sainsbury's price and value positioning, as well as discontinuing its money-back-voucher-at-till scheme, Brand Match, the business is aiming to phase out most multi-but activity by August. As a result promotional participation is now tracking at 23%, down from 30% this time last year. Meanwhile the business is implementing significant price reductions on numbers of everyday food items of around 12-16%.

Convenience continues strong growthDeveloping its convenience offer is a key part of enabling customers to shop with Sainsbury's whenever and wherever they want, and it remains the primary focus for growing new retail space. Over the quarter Sainsbury's opened seven new Local stores, taking the total of its convenience portfolio to 744 stores. Boosted by the impact of growing space, sales in its convenience division were ahead by over 6% on the previous year.

Online enhanced with launch of new groceries appThe Sainsbury's online offer continues to evolve, and this latest quarter saw the launch of a new smart phone app, with full transactional capability. Along with the development of click & collect as an alternative fulfilment service, this is now offering customers greater flexibility with their online shopping. The next major step in the development of Sainsbury's online offer will be the acquisition and integration of the of Argos business. This is currently under consideration by the Competition & Markets Authority (CMA), which will deliver a decision on whether the deals needs investigation by 25 July.

Mike Coupe, Sainsbury's chief executive commented"Market conditions remain challenging. Food price deflation continues to impact our sales and pressures on pricing mean the market will remain competitive for the foreseeable future. However, we are confident that our strategy to be a trusted multi-channel, multi-product and services retailer is delivering and will enable us to continue to outperform our major peers."

Source: IGD 8th June 2016


Summer Of Sport Set To Be A Busy Time For Shoppers, Supermarkets And FMCG BrandsA great Summer of Sport that is likely to be dominated by Euro 2016, Wimbledon and the Olympics offers major opportunities for supermarkets and food and drink brands to benefit as the nation comes together to enjoy the sporting occasions.

In its latest Shopper Index, category and shopper management specialist Bridgethorne said that brands and retailers alike need to have strategies in place to maximise these sharing opportunities, whether those occasions are at home or in another venue, and these look set to be different for each event.

The Shopper Index reveals that while we are far more likely to watch Euro 2016 with family or friends in a pub, at home or in a friend’s home, the Olympics look set to be a more predominantly at-home event. Just 9.5% of respondents said they would watch the Olympics in a pub, compared to 31% for the Euros. The younger, 18-34 age group is more likely to watch the Euros with friends than with their family, whereas in life stage terms, families and empty nesters are those likely to be most engaged with the Olympics.

Savoury snacking is the category most likely to benefit from these sporting events. Nearly two thirds of shoppers say they will buy more savoury snacks than usual, with those in the pre-family and family stages saying they expect to buy more savoury snacks than a normal week. Promotions could be influential for snack brands with 63% of those surveyed saying they would buy savoury snack brands that are on special offer at the time, compared with 34%, who said that it wouldn’t matter if the snack brand they wanted was on offer or not.

Unsurprisingly beer shopping is also likely to increase during these events, with nearly three quarters of those in the family life stage saying they expect to buy more beer. Of those questioned, 71% said that they would buy beer that is on special offer at the time; the 18-34s are the most likely to buy on promotion (79%) compared to just 58% of the over 55s who plan to buy beer on special offer.

“Promotions and range targeted at the shopper is probably going to be the most critical factor in the beer category as often the shopper is not the consumer,” said Nevens. “The shopper is predominantly female yet the consumer is predominantly male. Around two thirds of women told us they expect to be buying more beer around these events, presumably the majority of which will be consumed by men.”

The way we will buy wine when we watch these great sporting events is slightly different. Although 61% of the 18-34s and two thirds of the 35-54 age group say they expect to be buying more wine than usual, only a third of the over 55s expect to do so.

There appear to be regional variations too. 74% of shoppers in the South compared to just 56% of shoppers in the North expect to be buying more beer than normal, a situation that is reversed when it comes to wine: 63% of shoppers in the North plan on buying more wine than normal compared to 52% of southern shoppers.

There are two other salient points for brands across all categories to take into account. Despite the efforts of manufacturers to get us to switch allegiance to their brands at these times, the reality is, that 75% of us will not be persuaded to buy a different brand. Efforts instead should be focused on increasing consumption and driving basket spend on our existing favourite brands. Promotions will be key to drive spend, but will probably not be enough to make us switch brands.And to those brands which have made a significant investment in sponsorship of one or more of these major sporting events events, although huge brand awareness may be created, only 5% of shoppers claimed to know a main sponsor of Euro 2016, with more than half of all shoppers having no interest at all.



Amazon Regains Its Crown As Most Valuable Global Retail Brand With Tesco The UK’s Highest Ranking BrandAmazon has become the world’s most valuable global retail brand in the 2016 BrandZ Top 100 Most Valuable Global Brands ranking, released by WPP and Millward Brown.

In the year that Amazon expanded its reach into the logistics sector by shipping its own packages, it also extended the brand experience to include new technology devices that cater for consumers’ personal needs at home, building on last year’s introduction of Amazon Dash, automated replenishment buttons for key FMCG items. The company has boosted its brand value by 59% to just under $100bn.It replaces Chinese e-tailer Alibaba, which now takes the no.2 spot in a global retail sector that has performed strongly overall with an 8% rise in total value to $377bn for the Top 20 brands.

The highest-ranking UK retail brand was Tesco, worth $8.9bn and no.15 in the BrandZ Retail Top 20. The report said that Tesco is leading the way in showing UK retailers how to put their existing estate at the heart of a new seamless multichannel strategy. Service and realistic delivery offers now sit at the heart of a new vision for retail.

Fifteen years after Apple revolutionised retail with its Apple Store, UK retailers are putting maximum emphasis on the retail experience – even for consumers who have bought online. The store now sits at the heart of a seamless strategy designed to put the social value of shopping and quality of service centre stage.

Although Tesco still leads the market for online grocery shopping, revenues still only represent around 10% of its total sales as it has focused on boosting in-store service. Similarly Marks & Spencer has also recently announced plans to boost in-store service (as well as price reductions).

UK retailers are also being more ruthless in assessing the value of online shoppers, driving online customers to their bricks and mortar stores via smart click and collect facilities, where the service element of their offer can swing into action. John Lewis has even started Click and Collect delivery which is free for orders over £30.

Similarly discount grocery brands such as Aldi – valued at $12.1bn – are being targeted with their online offers. The German-owned supermarket has focused on high-value offers such as a half case of champagne, rather than providing a full online shopping service.“In putting their stores at the heart of their multi-channel strategy, retailers are not ignoring digital technology. What they are identifying are the clear areas where they can demonstrate a more compelling offer than the online only retailers. While stores want to sell online as well as in store, the integration of the two helps reinforce the value of service and their ability to do more than just deliver a brown cardboard box quickly,” said Alison Casey, Senior Client Director at Millward Brown UK.



Amazon Takes On Supermarkets With Launch Of AmazonFreshFollowing months of speculation, Amazon has announced the launch of its ‘AmazonFresh’ service in the UK.

The service will initially be available to members of its Prime scheme in 69 postcodes across central and east London. They will be able to benefit from same-day delivery on a extensive range of 130,000 fresh, frozen and ambient grocery items, made up of own label lines from Morrisons and a host of branded products at competitive prices. Amazon will also offer specialty food from 50 local suppliers.

Deliveries will be made from a warehouse in Bow, east London, through Amazon’s existing logistics operation.Amazon has been ramping up its grocery offer in recent months, growing its Prime Now and Amazon Pantry services with customers around the UK. However, widening its product choice will see it competing head on with the supermarket multiples and Ocado.

“We are launching with a comprehensive offer in a limited area and will take our time to hone and improve our service,” said Ajay Kavan, vice president of AmazonFresh.

He added: “The bar in grocery retailing is exceptionally high. The supermarkets and grocers are amongst the very best retailers in the world. We believe that the key to the long term success of AmazonFresh is to bring together the low prices, vast selection, fast delivery options and customer experience that Amazon customers know and love.”Amazon Prime members can sign up for a 30-day trial of AmazonFresh and will then pay £6.99 per month for the service, with unlimited deliveries for orders of over £40.



Argos like-for-likes up 0.1% in first quarter

Home Retail Group has reported that first quarter like-for-like sales edged up 0.1% at Argos.

In the 13 weeks to 28 May total sales rose by 2.6% to £868 million. Net new space contributed 2.5%, mainly as a result of store openings in the previous financial year.

Sales grew in both electrical and non-electrical product categories. The growth in electricals was mainly due to the performance of TVs, mobiles, computers and tablets which was partially offset by a sales decline in white goods.

John Walden, chief executive of Home Retail Group, said: "I am pleased with our performance in the first quarter. Argos delivered good total sales growth together with positive like-for-like growth, representing its strongest sales growth performance in eight quarters. This was achieved against the challenging backdrop of constrained seasonal product sales due to poor weather, on top of a deflationary pricing environment.”

Online sales increased by 16% in the quarter and represented 49% of total Argos sales, up from 44% in the same period last year. Within this, mobile commerce sales grew by 17% to represent 29% of total Argos sales, up from 25% previously.

Walden said Sainsbury’s acquisition of Home Retail Group was on track to complete in the third quarter of this calendar year.

He added: “Given the natural distraction that a transaction such as this can be for our colleagues, on top of the recent sale of Homebase, I am particularly pleased with our performance in the quarter."



John Lewis reports strong sales increase last week

Sales at John Lewis climbed by 11.5% year-on-year last week as the retailer benefited from a rise in footfall due to half term.

Electricals and home technology was the stand out performer with sales up 17.1% on the year. Sales in electricals were driven by the impending summer of sport as customers bought new TVs ahead of the Euro 2016 kick off this Friday.

Fashion sales rose by 10.1% driven by buoyant sales in the beauty, wellbeing and sports categories.

Sales across home products finished the week up 7.7%. Haberdashery performed particularly well with sewing machine sales up 21% due to the influence of the Great British Sewing Bee TV programme. Outdoor living products also had a good week with sales rising by 45.4%.



Discount retailers overtake Big Four supermarket growth A new study has shown that discount retailers have grown at a significantly quicker pace than the Big Four grocers in the last five years.

Between 2010 to 2015, discounters have grown by 52% in comparison to the UK's top supermarket chains growing by 33%, according to a report published by The Local Data Company.

Overall, total growth rates for both supermarkets and discount retailers across a number of towns analysed was 45%, an additional 2,057 stores. Discounters opened 1,487 sites and supermarket chains introduce 570 new locations in the five year period.

Last year, discount stores growth was three times as fast as the Big Four chains. Each discount retailer increased its portfolio with an average of 34 stores each, in comparison to the supermarkets' average of 10 units.Asda has the most stores, out of the top supermarkets, in the fastest growing towns in the last five years, with 23% of the total share. Tesco had the fewest with 17%.

Sainsbury's had the fewest stores, 33% in the densely populated towns.



Tesco Confirms Sales Of Giraffe And KipaTesco confirmed today that it has agreed deals to off-load its Turkish business Kipa and the restaurant chain Giraffe as part of its strategy to refocus on its core grocery operation.

Tesco is selling its 95.5% controlling stake in the 169-strong Kipa chain to Migros, the BC Partners-backed Turkish supermarket chain. The group said the disposal will result in estimated cash proceeds of around £30m and reduce its total indebtedness £110m.

In a separate transaction, Tesco said it had agreed to sell its loss-making Giraffe restaurant chain to Boparan Restaurants Holdings Limited, a private investment vehicle owned by Ranjit Boparan, the founder of 2 Sisters Food. The sale, for an undisclosed sum, includes 54 standalone restaurants, of which 12 are franchise sites, and 3 restaurants within Tesco stores. Boparan Ventures currently owns the restaurant chains Harry Ramsden’s and Fishworks.

Commenting on the sales, Dave Lewis, Tesco Chief Executive, said: “The sale of Kipa reflects the particular strategic challenge we have faced in Turkey as a small regional player in a highly competitive market. It removes the need for the sustained investment required to enable the business to compete independently, allowing us to focus on improving profitability in Central Europe and continuing to grow our businesses in South East Asia.”

On Giraffe, Lewis commented: “As we stabilise the business in the UK, we continue to focus on where we can best serve the needs of our customers, while ensuring our business remains sustainable for the long-term.

“Giraffe is a much loved brand, and while casual dining remains an important part of the shopping trip for many of our customers, we will continue to meet these needs through our Tesco Cafés and other providers”.

Acquired three years ago for £49m under the reign of its former CEO Philip Clarke, Tesco had hoped to use the Giraffe restaurant business to lure shoppers to its larger out-of-town stores. However, losses at the chain have continued to grow and last year it posted a £4.1m loss on the back of new openings and a write-down on the value of some existing sites.As part of his turnaround plan for Tesco’s core grocery business, Lewis has been seeking to cut debt and shed non-core units. He is reportedly also looking for buyers for coffee chain Harris + Hoole and Dobbies, its garden centres business.



Iceland posts flat full-year profits as performance stabilisesIceland reports full-year earnings of £150.5m. Like-for-likes slid 2.7% last year. Market remains “extremely challenging”

Frozen food specialist Iceland has posted flat full-year earnings and the rate of like-for-like sales decline has moderated.The retailer generated adjusted EBITDA of £150.5m last year, compared to £150.2m the previous year.

Sales were £2.68bn in the year to March 26, similar to the £2.69bn in the year before. Like-for-likes slipped 2.7% compared to a 4.4% fall the previous year.

Iceland founder and chief executive Malcom Walker said: “We have achieved good progress with a range of strategic initiatives designed to differentiate our business, and stabilise our financial performance, in what remains an extremely challenging market.”

Power of Frozen

Over the last year Iceland has run a new ‘Power of Frozen’ marketing campaign, invested in the construction of a product development centre and built its online capabilities as it has battled to adapt to a rapidly changing food retail landscape.The retailer has also been rolling out a sister chain, Food Warehouse. Last year the number of Food Warehouse stores was doubled to 12 and this year 25 more are planned. The stores, which at 10,000 sq ft are twice the size of a typical Iceland branch, are on retail parks, where shopper numbers are better than on traditional high streets, and operate at a lower cost to sell than Iceland shops.

Walker said: “We see the future of the group in three principal, distinct and complementary business streams: our traditional Iceland stores and home delivery service, our growing online channel and The Food Warehouse.”All three businesses will continue to benefit from our investment in the ‘Power of Frozen’ marketing campaign and new product development.”

Source: Retail Week 10th June 2016

http://www.retail-week.com/companies/iceland

http://www.retail-week.com/stores/store-gallery-the-verdict-on-icelands-gourmet-food-warehouse-fascia/5078669.fullarticle


High Street Struggles Continue As Consumers Curb SpendingThe beginning of June may have seen the first signs of summer in 2016, but figures released today by BDO show the UK high street is in the grip of a deep financial winter.

One month after it recorded the biggest drop in sales since the height of the recession, BDO’s monthly High Street Sales Tracker (HSST) recorded a -1.9% fall in overall year-on-year sales for May. Lifestyle sales dropped -2.4% compared to May 2015 and fashion was down -1.9%.

Sales of homewares grew by just 1% year-on-year and non-store sales rose 18.5%. The figures would have been worse were it not for widespread promotional activity in the latter half of May in a bid to increase footfall and shift surplus stock.

Since October last year, retailers have been finding it tough to convince consumers to part with their cash.Aside from an uplift during the January sales, BDO’s HSST figures have shown negative growth since October 2015. Consumer confidence has been knocked by a combination of factors, including uncertainty caused by the June referendum on the UK’s EU membership, and a recent report confirming the pressure on household budgets is as fierce as it has been in nearly two years.

Sophie Michael, Head of Retail and Wholesale at BDO LLP, said May had been a bad month across the whole high street. “A fall in retail sales is often sparked by consumers choosing to spend their disposable income on things like eating out, but the evidence is that people are reducing spending across the board,” she said. “Things have been tough for retailers since the end of last summer and there’s not much to suggest confidence will pick up soon. Retailers will have to be strategic with their discounting and confident their product is strong enough to appeal to their customers when they decide to spend.”



Last full year like-for-likes

52 weeks to 31.01.1652 weeks to 30.01.16 52 weeks to 31.12.15

-1.3%

52 weeks to 27.02.1652 weeks to 02.01.16-0.9%

52 weeks to 12.03.16-0.4%+1.6%

-2.0% -4.7%


Big Four quarterly LFLs over time

Source: Retailers

%

Note: Trading periods vary in their length and dates. Full details are on the next slide

2013 Q1

2013 Q2

2013 Q3

2013 Q4

2014 Q1

2014 Q2

2014 Q3

2014 Q4

2015 Q1

2015 Q2

2015 Q3

2015 Q4

2016 Q1

2016 Q2

2016 Q3

2016 Q4

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

Asda

Morrisons

Sainsbury's

Tesco

Macroview Weekly News updateYour window on the latest trends in Packaged Groceries

Stephen Hall

Friday 10th June