Insight ReportJanuary 2019 UK Retail Sales: Solid Growth for Grocery and Clothing Coresight Research February 18, 2019 Executive SummaryCoresight Research’s monthly reports keep you up to date on US and UK retail sales, US retail traffic and in-store metrics, selected US retailers’ same-store sales and key global consumer indicators. Click here to view our full collection of Monthly Reports. Our monthly UK Retail Sales Report reviews the latest sector data published by the Office for National Statistics (ONS). Highlights from our January UK Retail Sales Report: The Office for National Statistics (ONS) reported a solid January for U.K. retail sales, with value growth of 3.5% year over year, supported by a 3.2% volume increase. The grocery and clothing sectors enjoyed robust growth, though department stores/mixed-goods retailers turned negative. Total growth was supported by surprisingly large reported increases at DIY stores and health and beauty retailers, partially offset by reported deep declines at furniture retailers, floor coverings specialists, and computers and telecoms retailers. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportDecember 2018 US Retail Sales: Year-Over-Year Growth Slows to Just 1.0% as Most Sectors Experience a Sluggish December Coresight Research February 18, 2019 Executive SummaryCoresight Research’s monthly reports keep you up to date on US and UK retail sales, US retail traffic and in-store metrics, selected US retailers’ same-store sales and key global consumer indicators. Click here to view our full collection of Monthly Reports. Our monthly US Retail Sales Report reviews the latest sector data published by the US Census Bureau. Highlights from our December US Retail Sales Report: Total retail sales excluding fuel and automobiles increased just 1.0% in December, slowing dramatically from the 5.2% growth reported for November. This dragged down total holiday period sales growth (ex fuel and automobiles) to just 2.9% year over year, below many estimates — including our own. Total seasonally adjusted U.S. retail sales including automobiles and gasoline increased 2.1% on a year-over-year basis in December. This was slower than the 4.0% year-over-year growth we saw in November. All major sectors saw slowing growth in December, with the exception of clothing stores and electronics and appliance retailers. Clothing stores proved particularly robust, with year-over-year growth nudging up to 4.7% in December, from 4.6% in November. Non-store retailers, which include high-growth Internet retailers, saw growth slow to 3.7% in December. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportLondon Likely to Remain Europe’s Top Tech-Startup Hub Despite Brexit Uncertainty Coresight Research February 15, 2019 Executive SummaryThe uncertainty looming over U.K. businesses in the run-up to Brexit appears not to have threatened London’s position as the top startup ecosystem in Europe. The U.K. boasts more than double the number of venture capital (VC) deals than its closest European counterparts. The U.K. startup ecosystem — led by companies in London — continues to attract the lion’s share of VC investments in Europe. London has by far the highest concentration of startups in Europe and enjoys a number of hard-to-copy favorable factors, which should safeguard the city’s leading position whether the U.K leaves the EU with or without a deal. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Market Navigators/Market OutlookSector Overview: Luxury — New Customers and New Business Models Equals a New Luxury Coresight Research February 15, 2019 Executive SummaryEach of our Sector Overview reports provides an essential briefing on a sector or market. An evolving definition of luxury and new luxury consumers set the stage for dynamic changes in global personal luxury goods sector. The global personal luxury goods sector achieved a 4.2% five-year CAGR in the 2012-2017 period. The top 15 industry participants hold close to 50% of the market on a combined basis. Industry participants have anticipated a slowdown in the last few years. However, we are seeing more of a market shift as Asia-based transactions are syphoning off top-line growth in the more developed luxury markets of Europe and the U.S. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Analyst CornerWEINSWIG’S WEEKLY FEBRUARY 15, 2019 Coresight Research February 15, 2019 Executive Summary This week’s note “From the Desk of Deborah Weinswig” discusses eight things we can learn about retailing from China. Walmart is laying claim to a growing market for furniture products sold online with a new private-label brand called MoDRN. The brand is geared to customers who want trendier furniture at lower prices. JCPenney announced it will stop selling appliances and furniture in its U.S. stores as of Feb. 28. The company noted it will continue to sell appliances and furniture on its website and in some stores in Puerto Rico. China’s retail sales during the Lunar New Year holiday grew 8.5% year over year, according to the country’s Ministry of Commerce, but the pace of growth over the holiday period was the slowest since 2005. This document was generated for
Company Earnings UpdateCanada Goose (NYSE: GOOS) 3Q19 Results: Revenue and EPS Beat Consensus, Raises FY19 Guidance Coresight Research February 15, 2019 Executive Summary Canada Goose reported adjusted EPS of C$0.96 for fiscal 3Q19, beating the consensus estimate of C$0.82, and revenue of C$399.3 million, beating the consensus estimate of C$361.0 million. Gross margin was 64.4%, up 80 basis points year over year. Gross profit increased from C$169.1 million to C$179.0 million, driven by a higher proportion of sales being direct to consumer. Based on the strong results in 3Q19, the company revised its outlook for FY19. The company expects revenue growth in the mid- to high thirties on a percentage basis, adjusted EPS growth of mid- to high forties on a percentage basis. This document was generated for
Company Earnings UpdateTaubman Centers (NYSE: TCO) 4Q18 Results: Beats Consensus Estimates, Lowers 2019 Guidance, Announces Sale of Half its Stake in Asia Malls Coresight Research February 15, 2019 Executive Summary Taubman Centers reported 4Q18 adjusted FFO of $0.91 per share, ahead of the $0.89 consensus estimate. Revenues were $167.5 million, down 2.7% year over year. Separately, the company announced plans to sell 50% of its interests in three Asia shopping centers to the Blackstone Group for $480 million, to close throughout 2019. For 2019, Taubman expects EPS of $0.84-1.08 (versus $0.95 in 2018) and FFOPS of $3.62-3.74 (below $3.83 in 2018), based on the assumption of 2% growth in NOI. This document was generated for
Store TrackerWeekly Store Openings and Closures Tracker 2019, Week 7: Payless May Shut Most of its Stores Coresight Research February 15, 2019 Executive SummaryCoresight Research tracks store closures, openings and bankruptcies for a select group of retailers in the US and the UK. Our Weekly Store Tracker focuses on department stores and specialty retail stores, including, but not limited to, those selling softlines, hardlines, consumer electronics, groceries and furniture. Click here to view our full collection of Weekly US and UK Store Trackers. Highlights from this week’s Store Tracker: Year to date in 2019, U.S. retailers have announced 2,187 store closures and 1,503 store openings. Payless is likely to shutter most or all of its stores. Ikea has opened a new store in Live Oak, Texas. Year to date in 2019, U.K. retailers have announced 284 store closures and 315 store openings. Superfi has shut all six of its stores. Ikea has opened a new store in Greenwich. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Company Earnings UpdateUnibail-Rodamco-Westfield (AMS: URW) FY18 Results: Earnings Beat Guidance, Capital-Consolidation Phase Ahead in the Near Term Coresight Research February 14, 2019 Executive Summary Unibail-Rodamco-Westfield (URW) reported 2H18 gross rental income of €1.22 billion, up 33.7% year over year. Adjusted recurring earnings per stapled share (AREPS) were €6.34, up 7.6%. FY18 AREPS were €12.92, exceeding guidance of €12.75-12.90. NRI like-for-like growth was 4.0% in continental Europe for the year and 3.4% in the U.K. U.S. comparable net operating income (NOI) declined 1.6%, but just 0.3% for flagships. For 2019, the company guided for AREPS of €11.80-12.00, growth of 4-5%. This document was generated for
Flash ReportLunar New Year Recap: China’s Retail Sales Grow at the Slowest Pace in Years Coresight Research February 14, 2019 Executive SummaryAccording to China’s Ministry of Commerce, total retail and food-service sales in China during the Lunar New Year period (February 4-10) rose to ¥1.0 trillion (US$148.7 billion), growing by 8.5% year over year. Lunar New Year’s Eve dinners, family reunion feasts and dinners with relatives and friends dominated festival dining consumption, and the number of orders for fully- or half-cooked dinners sold online rose noticeably. This year’s 8.5% growth in holiday sales was the slowest since 2005, indicating that Chinese consumers are becoming increasingly frugal amid uncertainty caused by the U.S.-China trade war, the changing macro environment and a slowing Chinese economy. This document was generated for
Company Earnings UpdateKering (ENXTPA: KER) FY18 Results: Gucci’s Momentum Sets Kering’s Stride Coresight Research February 14, 2019 Executive Summary Kering grew 2018 revenues 26.3%, as Gucci’s momentum continued. Gross margin expansion and operating leverage resulted in a 400-bps operating margin increase to 28.9% of sales. Kering’s use of AI to identify and target high potential customers is proving almost twice as successful as selections made by sales associates, and Kering is rolling this out as part of its transformational initiatives. This document was generated for
Insight ReportFirst Round of US Tax Refunds Lower, Likely Due to Tax Changes and Government Shutdown: 2019 Tax Tracker #1 Coresight Research February 14, 2019 Executive SummaryThe U.S. Internal Revenue Service (IRS) tracks tax return filings on a weekly basis. As of February 1, the IRS had received 16 million tax returns, down 12.4% year over year. A total of 4.7 million refunds had been issued as of that date (down 24.3% year over year), totaling $8.7 billion (down 30.6% year over year) and averaging $1,865 each (down 8.4% year over year). The drop in returns filed is likely due to confusion ensuing from tax law changes, combined with reduced availability of IRS agents due to the government shutdown. Given a solid U.S. economy, higher wages and employment rates, total refunds are likely to be higher in 2019, once the disruption from the government shutdown is resolved. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Market Navigators/Market OutlookSector Overview: Beauty Brands and Retailers — Global Companies are Innovating with Independent Brands to Expand Portfolios Coresight Research February 14, 2019 Executive SummaryEach of our Sector Overview reports provides an essential briefing on a sector or market. This report reviews beauty brands and retailers. The $133-billion global skincare market is the largest beauty category, comprising 29% of the global market in 2018. The skincare category is expected to grow at a 5% compound annual growth rate (CAGR) until 2022. We expect beauty brands and retailers to launch even more new product formulations such as dermocosmetics and products containing CBD oil. L’Oréal is the global beauty brand leader with 9.7% of the beauty and personal skincare market – the largest of any brand. Procter & Gamble holds second position with 7.9%, and Unilever is third at 7.8%. The top three companies together hold 25.4% of global market share, and the top 10 companies collectively hold 44.9% of the global market. The two beauty categories expected to see the greatest global growth are color cosmetics, expected to grow at a CAGR of 6% to 2022, and baby and child-specific products, growing at a 7% CAGR to 2022. The demand for beauty products in China remains high. Alibaba’s Tmall is teaming up with retailers and brands to bring more beauty products onto its platform. The beauty landscape continues to evolve: Large companies are looking to bolster innovation from independent brands through accelerators, incubators, acquisitions, expanded platforms and technology adoption. Independent brands are moving from online to offline. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportUS Store Closures 2019 Outlook: No Light at the End of the Tunnel Coresight Research February 13, 2019 Executive SummaryCoresight Research tracked 5,524 U.S. store-closure announcements in 2018. While this figure was down 32% from the prior year, the number of store closure announcements so far in 2019 is up 23% versus this time last year, with potentially many more on the way due to companies currently in the bankruptcy process and more on the horizon. This report analyzes drivers of store closures, including the following factors: E-commerce continues its relentless share gains in retail, and market forecasts call for this rate to accelerate. Consumer retail spending remains at a high rate, so spending can only decrease from “peak retail.” Retailers in the U.S. continue to open stores at a rapid pace despite flattish store-based retail sales per capita. Interest rates continue to rise in the U.S., putting increasing pressure on retailers with high debt loads. Retail bankruptcies continue at a rapid pace, with the number of filings in the first six weeks of 2019 already at one-third of last year’s total. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Flash ReportOcado’s First Fully Automated Distribution Center Destroyed by Fire, Threatening Confidence in Its Robotics Offering Coresight Research February 13, 2019 Executive SummaryA fire devastated U.K. online grocery retailer and technology provider Ocado Group’s first robotic distribution center in Andover, England. Ocado said the Andover center handled only 10% of total capacity, but acknowledged the lost capacity would slow sales growth until the company increases capacity elsewhere. Ocado’s existing retail partners are likely to seek reassurances over safety and designs for ongoing customer fulfilment center (CFC) construction could be reviewed. These projects are typically not set to come onstream for a couple of years or more. The fire highlights the risk of the centralized distribution model, which is virtually unique to Ocado in the U.K. online grocery space; most of Ocado’s online grocery rivals in the U.K. rely heavily on in-store picking, dispersing risk of disruption among hundreds of local stores. This document was generated for
