Grant Thornton Retail Excellence Irish Retail
Industry Productivity Review Q1 2018
TABLE OF CONTENTS Q1 2018
INTRODUCTION:The Grant Thornton Retail Excellence Retail Productivity Review
provides the most in-depth retail industry and sectoral analysis
available today. The Review monitors overall industry performance
and sectoral performance. The Review aggregates and analyses data
from over 4,500 retail stores in Ireland. Retail Excellence collated
data through on-line survey. GfK collated data through “plug-in” to
retailer Epos.
COPYRIGHT:It is an offence to distribute this report to third party organisations orindividuals without the express agreement of Retail Excellence. Thisinformation is compiled exclusively for use by members of RetailExcellence, and cannot be reproduced without the prior writtenpermission of Retail Excellence. GfK data remains the property ofGfK.
DISCLAIMER:Although every effort has been made to ensure the accuracy of thematerial contained in this document, complete accuracy cannot beguaranteed. Neither Retail Excellence Ireland nor the author(s) acceptany responsibility whatsoever for loss or damage occasioned orclaimed to have been occasioned, in part or in full, as a consequenceof any person acting or refraining from acting, as a result of a mattercontained in this document.
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3 Like for Like Industry Sales – Q1 2018 vs Q1 2017
4 Footwear Sales – Q1 2018 vs Q1 2017
5 Furniture & Flooring Sales – Q1 2018 vs Q1 2017
6 Garden Centre Sales - Q1 2018 vs Q1 2017
7 Gift & Homeware Sales – Q1 2018 vs Q1 2017
8 Grocery Sales – Q1 2018 vs Q1 2017
9 Hot Beverage Sales – Q1 2018 vs Q1 2017
10 Jewellery Sales – Q1 2018 vs Q1 2017
11 Ladies Fashion Sales – Q1 2018 vs Q1 2017
12 Menswear Sales – Q1 2018 vs Q1 2017
13 Pharmacy Sales – Q1 2018 vs Q1 2017
14 Childrenswear Sales – Q1 2018 vs Q1 2017
15 Agri Retail Sales – Q1 2018 vs Q1 2017
16 Health Store Sales – Q1 2018 vs Q1 2017
17 Lingerie Sales – Q1 2018
18 Consumer Electronics (Brown Goods) Sales – Q1 2018 vs Q1 2017
19 Major Appliances - Q1 2018 vs Q1 2017
20 IT | Computing Sales – Q1 2018 vs Q1 2017
21 Home Appliances (Small Appliances) Sales – Q1 2018 vs Q1 2017
22 Digital Cameras – Q1 2018 vs Q1 2017
23 About Retail Excellence, Grant Thornton & GfK
Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Retail Industry Like for Like Sales Q1 2018
3
Retail Excellence CEO David Fitzsimons comments: Quarter 1 2018 proved a challenging one for the Irish retail industry. While a prolonged period of
inclement weather impacted negatively on most retail sectors, the Beast From The East eroded sales significantly in early March. From a macro perspective
most retail sectors are now experiencing negative growth, and those that are growing and demonstrating declining rates of growth. Whilst the Grocery
sector experienced a reasonable trading period spurred on by Easter falling in Quarter 1, most sectors reliant on discretionary consumer spend suffered
declines over the period. What is very clear is that the Irish Retail Industry is in a state of significant flux.
Like for Like Sales Q1 2018 vs Q1 2017 (Industry Average)
LIKE FOR
LIKE SALES Q1 2018(INDUSTRY AVERAGE)
January
+0.17%
February
+0.42%
March
-1.22%
Q1
-0.21%
LIKE FOR LIKE SALES Q1 2018 vs Q1 2017
Industry Average -0.21%Footwear -1.74%Furniture & Flooring +3.57%Garden Centres -15.80%Gift & Homeware -0.44%Grocery +1.12%Hot Beverage +1.13%Jewellery -4.73%Ladies Fashion -2.01%Menswear -1.70%Pharmacy 1.38%Childrenswear +1.07%Agri Retail +2.18%Health Stores +4.02%Lingerie -7.61%Consumer Electronics (Brown Goods) +4.00%Home Appliances (Small) +6.00%IT | Computing -17.00%Digital Camera +1.00%Home Appliances (Major) +4.80%
Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Footwear Sales – Q1 2018Comparable with Retail Industry Average
2018FOOTWEAR
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan +1.59% +0.17%
Feb +2.64% +0.42%
Mar -7.66% -1.22%
Q1 -1.74% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Footwear Sales
4Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Furniture & Flooring Sales – Q1 2018Comparable with Retail Industry Average
2018FURNITURE &
FLOORING
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan +2.72% +0.17%
Feb +4.00% +0.42%
Mar +3.83% -1.22%
Q1 +3.57% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Furniture & Flooring Sales
5Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Garden Centre Sales – Q1 2018Comparable with Retail Industry Average
2018GARDEN
CENTRE
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan -10.12% +0.17%
Feb +1.47% +0.42%
Mar -23.34% -1.22%
Q1 -15.80% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Garden Centre Sales
6Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Gift & Homeware Sales – Q1 2018Comparable with Retail Industry Average
2018GIFT &
HOMEWARE
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan -0.22% +0.17%
Feb +0.38% +0.42%
Mar -2.05% -1.22%
Q1 -0.44% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Gift & Homeware Sales
7Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Grocery Sales – Q1 2018Comparable with Retail Industry Average
2018GROCERY
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan +0.08% +0.17%
Feb +1.22% +0.42%
Mar +1.89% -1.22%
Q1 +1.12% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Grocery Sales
8Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Hot Beverage Sales – Q1 2018Comparable with Retail Industry Average
2018HOT
BEVERAGE
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan +1.43% +0.17%
Feb +0.56% +0.42%
Mar +1.17% -1.22%
Q1 +1.13% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Hot Beverage Sales
9Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Jewellery Sales – Q1 2018Comparable with Retail Industry Average
2018JEWELLERY
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan -2.58% +0.17%
Feb -2.51% +0.42%
Mar -6.41% -1.22%
Q1 -4.73% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Jewellery Sales
10Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Ladies Fashion Sales – Q1 2018Comparable with Retail Industry Average
2018LADIES
FASHION
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan -0.96% +0.17%
Feb -1.02% +0.42%
Mar -3.21% -1.22%
Q1 -2.01% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Ladies Fashion Sales
11Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Menswear Sales – Q1 2018Comparable with Retail Industry Average
2018MENSWEAR
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan -0.71% +0.17%
Feb -3.01% +0.42%
Mar -0.35% -1.22%
Q1 -1.70% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Menswear Sales
12Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Pharmacy Sales – Q1 2018Comparable with Retail Industry Average
2018PHARMACY
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan +3.75% +0.17%
Feb +2.35% +0.42%
Mar -1.65% -1.22%
Q1 +1.38% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Pharmacy Sales
13Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Childrenswear Sales – Q1 2018Comparable with Retail Industry Average
2018CHILDRENSWEAR
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan -4.75% +0.17%
Feb +1.05% +0.42%
Mar +5.47% -1.22%
Q1 +1.07% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Childrenswear Sales
14Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Agri Retail Sales – Q1 2018Comparable with Retail Industry Average
2018AGRI RETAIL
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan +3.24% +0.17%
Feb +3.64% +0.42%
Mar -2.10% -1.22%
Q1 +2.18% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Agri RetailSales
15Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Health Store Sales – Q1 2018Comparable with Retail Industry Average
2018HEALTH STORE
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan +5.23% +0.17%
Feb +4.44% +0.42%
Mar +3.78% -1.22%
Q1 +4.02% -0.21%
Like For Like Sales Q1 2018 (Industry Average)
Health Store Sales
16Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Lingerie Sales – Q1 2018Comparable with Retail Industry Average
Like For Like Sales Q1 2018 (Industry Average)
Lingerie Sales
17
2018LINGERIE
SALES
LIKE FOR
LIKE SALES
Q1 2018(INDUSTRY
AVERAGE)
Jan -8.02% +0.17%
Feb -4.94% +0.42%
Mar -9.84% -1.22%
Q1 -7.61% -0.21%
Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
18
Commentary from Nick Simon, CE Insight Director, GfK:
Consumer Electronics (Brown Goods) Sales – Q1 2018Value and Volume performance Year on Year - Figures include: Audio Systems, DVD Players, Portable Media Players
(MP3/4),Flat TV & Radio Devices (Table Top), Headphones, Docking Speakers, Loudspeakers
2018Value
Performance (Vs.
2017)
Volume
Performance (Vs.
2017)
Jan +4.00% -3.00%
Feb -8.00% -14.00%
Mar +19.00% +12.00%
Q1 +4.00% -2.00%
Volume Growth %
Value Growth %
Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
After a positive end to 2017, Q1 2018 saw an overall value growth of 4%. This is the cumulative effect of a yoyo three months, with bad weather in
February tempering a reasonable January and a very strong March. Bear in mind though, Easter fell in April last year, so this would partially explain the
strong growth in March this year. The dominant TV market contributed to this, with OLED increasing its share of the still developing 4K segment.
Soundbar sales were not dissimilar from the previous year, but the decline of the other vision categories continued. Overall Audio products’ growth was
attributed to premium wireless speakers and headphones.
Value and Volume performance Year on Year (includes washing machines, tumble dryers, dishwashers, cooling,
freezers, cooking, hobs, hoods and microwaves)
Home Appliances (Major Appliances) Sales – Q1 2018
19
Q1 2018 showed growth over Q1 2017, but the fact that Easter fell in Q1 this year and Q2 last year needs to be borne in mind when making this comparison.
Tumble dryers was the biggest growth category, up 25% in value, led by premium condenser dryers. These have been the stand out performers in major
appliances during recent months and were one of the only areas not to see a fall during February when total value and volume declined by 5%. Cooking,
hobs and hoods experienced dampened performance recently with growth during March not recovering as much as other categories. This is due to a
combination of lower than average volume sales as well as a large fall in average selling prices (ASP). The drop in ASP was seen across major appliances
and meant that volume outperformed against value in March linked in part to price promotions but also consumers shifting activity towards entry price point
models.
2018Value
Performance (Vs.
2017)
Volume
Performance
(Vs. 2017)
Jan +8.60% +8.10%
Feb -5.20% -5.10%
Mar +9.50% +11.60%
Q1 +4.80% +5.20%
Commentary from Bethan Fleming-Locock, Client Insight Director, GfK:
Volume Growth %
Value Growth %
Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Information Technology (IT) Sales – Q1 2018Value and Volume performance Year on Year. Figures include Mobile Computing, Desk Computing, and Tablets
Commentary from Kate Hills, Office Account Manager, GfK:
20
2018Value
Performance (Vs.
2017)
Volume
Performance (Vs.
2017)
Jan -20.70% -11.70%
Feb -25.20% -20.40%
Mar -0.70% -0.10%
Q1 -17.00% -11.20%
Volume Growth %
Value Growth %
Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Q1 2018 saw a deep decline for both volume and value at a total level. For Q1 as a whole it is Desktop PCs, Computing Tablets, and Mobile PCs that
are driving the declines, with volume declining at 24.5%, 46.9%, and 10.9% respectively. Value is also a bleak picture, as Desktops displayed a 22.1%
decline, Computing tablets a 33.4% decline and Mobile PCs a 15.6% decline. Media Tablets and Mediabooks (Chromebooks) have also dropped off in
Q1 with a 17.6% and 10.7% respective value decline. January and February were very poor (Feb also impacted by the poor weather), particularly for
value, suggesting price drops and preference towards more entry level products. March was reasonable, but Easter fell in March this year, compared to
April last year, so this is likely a short term gain.
Home Appliances (Small Appliances) Sales – Q1 2018Value and Volume performance Year on Year (includes irons, kettles, toasters, food preparation, shavers , hair
dryers and hair stylers, hot beverage makers and vacuum cleaners)
21
Growth in the small appliances market was boosted by the Easter weekend falling in March this year compared to April last year, helping to drive growth
for the total quarter. Value again outgrew volume as consumers continued to shift their spending towards higher-priced categories such as vacuum
cleaners and coffee machines, and more premium appliances in general. The toaster category was the best performer over the quarter, growing almost
16% in value and aided by an increased average selling price of €35, a rise of 10% on Q1 2017. Elsewhere handstick vacuum cleaners and espresso full
automatic coffee machines continued their strong 2017 performances into the new year. Conversely, food preparation appliances, irons and hair stylers
suffered ongoing declines, suggesting that consumers are willing to stick with their older models for longer or are being tempted away to spend money on
other categories.
2018Value
Performance (Vs.
2017)
Volume
Performance
(Vs. 2017)
Jan +1.50% -7.60%
Feb +0.40% -6.90%
Mar +19.10% +9.80%
Q1 +6.00% -2.60%
Commentary from Alex Hall, Client Insight Manager, GfK:
Volume Growth %
Value Growth %
Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
2018Value
Performance
(Vs. 2017)
Volume
Performance (Vs.
2017)
Jan +15.00% -5.00%
Feb -6.00% -19.00%
Mar -9.00% -25.00%
Q1 +1.00% -16.00%
Digital Camera Sales – Q1 2018Value and Volume performance Year on Year - Figures include: Fixed Lens, Bridge, CSC and SLR
Commentary from Emily Vallis, Photo, GfK:
22
Volume Growth %
Value Growth %
Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
Overall, the digital cameras market has grown by 1% in value during Q1 year on year (YOY) while volume has fallen by 16%. So while consumers are
buying less cameras, they are spending more when they do buy. The strongest value growth continues to come from compact system cameras, up 39%
YOY. This segment of the market has seen a shift towards more premium cameras, the value growth came with 5% volume decline. Another segment
with a strong start to 2018 is Bridge Cameras. Both value and volume are in growth YOY, up 19% and 10% respectively. Bridge cameras are the only
segment in digital cameras to grow in both volume and value in Q1.
About Retail Excellence, Grant Thornton & GfK
23
ABOUT Retail Excellence
Retail Excellence is the largest retail industry
trade body in Ireland. Retail Excellence aim to
enhance the consumer's retail experience by
developing top class retail standards and skills,
and promoting a vibrant and competitive world
class retail industry in Ireland.
Retail Excellence involves over 1,750 leading
retail companies who operate over 13,000
stores in the Irish market.
Retail Excellence is a not for profit organisation
which invests in inFebative and exciting
learning, market intelligence, HRM supports,
Government representation and member
networking initiatives.
Retail Excellence collected this data via on-line
survey response.
ABOUT GfK
GfK is one of the world’s largest research
companies. 11,500 GfK experts are working to
discover new insights about the way people live,
think and shop, in over 100 markets, every day.
GfK is constantly inFebating to use the latest
technologies and the smartest methodologies to
give its clients the clearest understanding of the
most important people in the world: their
customers. That knowledge empowers GfK’s
clients to make the right Marisions, and position
their businesses for the future.
How do GfK gather this data?
•Data is collected via EPOS systems so minimal
time commitment is involved in supplying data
•Sales data is gathered confidentially and no
individual retailer’s data is ever disclosed
•Exclusive lines/models are suppressed
•Reports are provided to participating retailers
free of charge
ABOUT GRANT THORNTON
Grant Thornton are leading Irish retail industry
advisors and exclusive financial and accounting
partners of Retail Excellence Ireland.
Grant Thornton is the fastest growing professional
services firm in Ireland comprising over 1000
people operating from offices in Dublin, Belfast,
Cork, Galway, Kildare, Limerick and Longford.
The firm’s Retail team has the expertise and
knowledge to provide specific solutions to their
retail clients. By identifying the key drivers of
value creation crucial to the success of any retail
business Grant Thornton can work with clients to
maximise their business potential. Services
include annual audits, regular business reviews,
quarterly management accounts, bank financing
applications, independent business reviews,
franchise/supplier agreement negotiations,
benchmarking and projections.
Grant Thornton Retail Excellence Irish Retail Industry Sales Review Q1 2018
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