The evolution of
the high-volume
retail sector in
Europe over the
past 5 years
Final report
Consultative
Commission on
Industrial Change
Prepared by
London Economics
September 2008
The evolution of the high-volume retail
sector in Europe over the past 5 years
Final report
Consultative Commission on Industrial Change
Prepared by
London Economics
September 2008
Contents
Page
1 Introduction
1
2 Methodology
2
3 The number of HVR in Europe
6
4 Turnover of HVR
9
5 Employment in HVR
18
6 Import penetration
27
7 Suppliers’ sales in HVR
30
8 Evolution of wholesale-retail price indices
31
9 Synoptic description of M&A
34
10 Conclusions
35
Annex 1 Firms included in the analysis (definition HVR1)
37
London Economics
September 2008
i
Tables & Figures
Page
Table 1: Data sources and definition of sectors of interest
4
Table 2: Number of HVR according to different definitions
Food sector (2006)
7
Table 3: Number of HVR according to different definitions
Clothing sector (2006)
8
Table 4: Top-10 European retail companies at national level
(2006)
11
Table 5: HVR1 food sales 2003-2006 (EUR billion, 2006 prices)
12
Table 6: HVR1 clothing sales 2003 and 2006 (EUR billion, 2006
prices)
12
Table 7: Mergers and acquisitions in the food sector for
selected countries
34
Table 8: List of firms included in the analysis (definition
HVR1) Food Sector
37
Table 9: List of firms included in the analysis (definition
HVR1) Textile Sector
38
Figure 1: Total food sales in selected countries 2003 and 2006
(EUR billion, 2006 prices)
9
Figure 2: Total sales of clothing in selected countries 2003 and
2006 (EUR billion, 2006 prices)
10
Figure 3: C5 for food retail sales (2003 and 2006)
14
Figure 4: C5 for clothing retail sales (2003 and 2006)
15
Figure 5: Share of turnover of HVR3 (food and department
stores)
16
Figure 6: Share of turnover of HVR3 (other retail sub-sectors)
17
Figure 7: Number of employees in HVR3. Food and
department stores (‘000)
18
Figure 8: Number of employees in HVR3. Other retail subsectors (‘000)
19
Figure 9: Share of employment in HVR3 (food and department
stores)
20
Figure 10: Share of Employment in HVR3 (other retail subsectors)
21
London Economics
September 2008
ii
Tables & Figures
Page
Figure 11: Female employment in 2006 (in %)
22
Figure 12: Female participation (in %). Wholesale and retail
sectors
23
Figure 13: Age distribution of employees Wholesale and retail
sectors
24
Figure 14: Part-time employees in 2006 (in %).
25
Figure 15: Part-time employment (in %).
26
Figure 16: Imports as a percentage of domestic apparent
consumption for the manufacture of food products
and beverages
28
Figure 17 Imports as a percentage of domestic apparent
consumption for the manufacture of wearing apparel
29
Figure 18: Suppliers' sales in HVR (as % of total production).
30
Figure 19: Ratio consumer to producer prices indices. Food
(2001-2007).
32
Figure 20: Ratio consumer to producer prices indices.
Clothing (2001-2007).
33
London Economics
September 2008
iii
Glossary
Glossary
Member State abbreviations
CZ
Czech Republic
HU
Hungary
DE
Germany
PL
Poland
ES
Spain
RO
Romania
FR
France
UK
United Kingdom
IT
Italy
London Economics
September 2008
iv
Executive Summary
Executive Summary
The overarching aim of this study is to provide a complete and detailed
insight of the evolution of high-volume retailers (HVR) in the food and
clothing sectors in France, Germany, Italy, Poland, Romania, Spain, the UK,
the Czech Republic and Hungary, over the last 5 years.
The first stage of the analysis required an appropriate definition of HVR.
Different definitions have been proposed and these depend on the
information published by different data sources. The following definitions are
being used:

HVR1: HVR are firms having more than 5% of market share.

HVR2: HVR are firms with turnover higher than EUR 200m.

HVR3: HVR are firms which employ 250 persons or more.

HVR4: HVR are the 5 largest firms (by turnover) in each retail sector
of interest.
Number of HVR
The number of HVR has been calculated for the food and clothing sectors
using different definitions and data sources.

Definition HVR1 uses Mintel data and shows approximately 5 HVR per
country in the food sector. The only exceptions are Poland and Romania
with nil and one HVR, respectively (no comparable data is available for
Hungary and the Czech Republic). The clothing sector is much more
fragmented and shows only 3, 2 and 1 HVR in the UK, Germany and
Italy, respectively (no data are available for Spain, the Czech Republic and
Poland).

Definitions HVR2 and HVR3 use Eurostat data. According to HVR2 there
are 131, 55 and 52 HVR in the sector of food and department stores in
Germany, Italy and the United Kingdom. There are only 2 and 8 HVR in
Romania and Hungary, respectively. According to HVR3 there is a much
larger number of HVR in all countries for the food and department stores.
Concentration of HVR in Europe
The C5 (combined market share of the top-5 firms) in the food retail market
varies significantly between countries. The main findings are:
London Economics
September 2008
v
Executive Summary

Germany and the UK are the most concentrated markets with over
70% of the market controlled by the largest five firms.

The French market is also comparatively concentrated, with a C5 of
around 60%.

In Italy, Spain and the Czech Republic, the C5 is between 30% and
45%.

There have been significant increases in market concentration in the
UK, the Czech Republic, Romania and Spain over the last three years.
The clothing retail sector remains fragmented across the selected countries
where data was available. The C5 in the UK is the highest with 35%, in
Germany is second (around 25%), while in Italy and France the top-5 firms
control less than 20% of the market.
Employment in HVR
The share of employment in HVR food and department stores is very
different across Europe, according to definition HVR3.

In the UK and Germany, HVR employ respectively more than 75%
and 60% of workers in food and department stores.

In Poland they employ about 20% and in Romania less than 5%.

The proportion of employees working for HVR has increased in
Spain, the UK and Eastern European countries.
Import penetration in the retail sectors
The proportion of imported food is generally higher in the Western countries,
which show percentages around 20% for 2006 (24% is the highest in Germany
and 18% the lowest in Spain). However, the proportion of imports in food
consumption is rising quickly in Eastern European countries, especially in
Hungary and the Czech Republic.
Western countries show a very high import penetration in the clothing sector.
The highest import penetration is observed in France and Germany, while the
percentages for Spain and Italy are much lower.
Suppliers’ sales in HVR
The percentage of suppliers’ sales achieved through HVR has increased in
every country but Germany and France, where it has remained almost
constant. There are significant differences between countries: HVR share of
suppliers’ sales ranges from 10% in Romania to 64% in Germany, in 2006.
London Economics
September 2008
vi
Executive Summary
Conclusions
The main conclusions from the analysis are the following.

The number of HVR (firms with more than 5% market share) in the
food sector is around 5 in each country. Using other definitions, the
number of HVR is the highest in Germany.

The number of HVR in the clothing sector is the highest in the United
Kingdom using several definitions.

Indicators of market concentration show that the United Kingdom is
the most concentrated market in both food and clothing sectors.

In the food sector, market concentration has increased in recent years
in every country but France and Germany, where it remains constant.

In the clothing sector, market concentration has increased between
2003 and 2006 in Germany and Italy but has decreased in France and
the United Kingdom.

The number of employees working for HVR is by far the highest in
the United Kingdom in food and department stores and in the other
retail sub-sectors.

In every country, the proportion of employees working for HVR is
higher in the food sector than in other sectors (except in Romania).

Female employment is generally higher (France is an exception) in
the wholesale and retail sectors than in the economy as a whole.
Female employment has stayed constant in recent years in all
countries except in Germany where it has decreased.

Part-time employment is more important in the wholesale and retail
sectors in the UK and Germany, but not in the rest of countries.
Recent trends show that part-time employment is increasing in
Western Europe (except Germany where it has decreased) and stay
constant in Eastern Europe.

Import penetration is more important in the clothing sector than in
the food sector. In both sectors, import penetration has generally
increased over the recent years.

Between 2001 and 2007 the margin between consumer and producer
food prices widened in the Czech Republic, Spain, and Hungary, and
narrowed in Romania. The margin between consumer and producer
prices in the clothing sector narrowed mainly in the Czech Republic,
the UK and Romania.
London Economics
September 2008
vii
Section 1
Introduction
1 Introduction
The overarching aim of this study is to provide a complete and detailed
insight of the evolution of high-volume retailers (HVR) in Europe over the
last 5 years. To this end, the study provides a synoptic analysis by compiling
and cross-referencing the various existing data (including statistics,
specialised literature and other sources) so as to describe the evolution of
HVR in Europe.
With this aim, the study starts with a definition of HVR, describes its time
evolution, and investigates how HVR are impacting consumers and other
suppliers and companies (e.g. small and medium enterprises).
The original scope of the report was the European Union, with special focus
on the largest Member States: France, Germany, Italy, Poland, Romania,
Spain and UK. At request from CCMI we included two additional countries
(Czech Republic and Hungary) to account for the recent growth of the
Eastern European market.
In this report we provide:

Tables and figures for all the data collected across relevant
subdivisions;

An synoptic analysis of the data, presented according to the
breakdown criteria given in the terms of reference; and

Conclusions.
The structure of the report is as follows: In section 2, we present the
methodology and the various definitions of HVR used. In section 3, we show
the number of HVR according to each definition. In the next two sections, we
study the evolution of turnover and employment over recent years. In section
6, we analyse recent trends on imports of goods in Europe and in section 7,
we analyse the proportion of suppliers’ sales achieved in HVR. In section 8,
we discuss the evolution of wholesale-retail prices. In section 9, we report
main merger and acquisition activity during the last four years in the relevant
sectors. In the last section, we conclude by summarising the main findings of
the report.
London Economics
September 2008
1
Section 2
Methodology
2 Methodology
The first stage of the analysis requires the appropriate identification of HVR
from secondary data sources as a basis for further analysis. Given the range of
questions we are attempting to answer, we made use of a number of different
data sources.
Initially we sourced indicators from AMADEUS database, which is a
comprehensive pan-European database containing financial information on
over 8 million public and private companies in 38 European countries,
including the 27 EU Member States.1
After analysing the data we found that the consolidated accounts for some of
the major players were missing in different countries. We initially resolved
this problem by aggregating the data of the different identified subsidiaries;
however, it remained impossible to get meaningful data for some companies
and especially for those operating under voluntary groups2, cooperatives, or
franchises. In such cases data were not recorded in the AMADEUS database.
Our second source of information has been the European Retail Book
published by Mintel. We have been able to source data from 2004, 2005, 2006
and 2007 reports and have complemented our analysis with data from
Eurostat. In particular we used the Structural Business Statistics (SBS), the
Labour Force Survey, the harmonised indices of consumer prices, and
Prodcom.
The two sectors of interest, as defined by CCMI, are food and clothing.
Unfortunately, the various data sources do not have a consistent definition
for these sectors. However, to ensure the greatest degree of comparability, we
made sure that for each data source the most appropriate sectoral definition
was used.
Data from Mintel uses “food, drink and tobacco” and “clothing, textiles and
footwear” for reporting the sales of major retailers. Data from Eurostat is
provided by sectors classified according to NACE. Hence, for food products
we use “52.11: Retail sale in non-specialized stores with food, beverages or
tobacco predominating”, and “52.2: Retail sale of food, beverages or tobacco
in specialized stores”. For clothing we use “52.42: Retail sale of clothing”.
1
Bureau Van Dijk assembles data from a number of regional information providers and compiles them
into a single database, which provides information in a standardised format that is comparable across
countries.
2
A voluntary group is a wholesaler-sponsored group of independent retailers. A complete range of
services is offered to retail members including centralized advertising and promotion, store location
and store layout, training, financing, and accounting.
London Economics
September 2008
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Section 2
Methodology
Data from SBS for different company-size bands is only available at a very
aggregated level. As a proxy for food, we use “G521: Retail sale in nonspecialized stores” and “G522: Retail sale of food, beverages, tobacco in
specialized stores” (thereafter called “Food and department stores”). As an
approximation for clothing, we use “G524: Other retail sale of new goods in
specialized stores” (thereafter called “Other retail sub-sectors”).
Consumer prices provided by Eurostat are available for “FOOD: Food
including alcohol and tobacco” and “CP031: Clothing” and domestic
producer prices are provided for “manufacture of food products; beverages
and tobacco” and “manufacture of wearing apparel; dressing; dyeing of fur”.
We use “Manufacture of food products and beverages” and “Manufacture of
wearing apparel; dressing and dying of fur” for the data from the Prodcom
database.
A list of the data sources and sector definition is provided in Table 1.
London Economics
September 2008
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Section 2
Methodology
Table 1: Data sources and definition of sectors of interest
Data source
Food
Clothing
Mintel
Food, drink and tobacco
Clothing, textiles and footwear
Eurostat
“52.11: Retail sale in nonspecialized stores with food,
beverages or tobacco
predominating”,
“52.42: Retail sale of clothing”
“52.2: Retail sale of food,
beverages or tobacco in
specialized stores”
SBS
“G521 Retail sale in nonspecialized stores”,
“G524 Other retail sale of new
goods in specialized stores”
“G522 Retail sale of food,
beverages, tobacco in
specialized stores”
Prodcom
Manufacture of food products
and beverages
Manufacture of wearing apparel;
dressing and dying of fur
CPI Eurostat
FOOD: Food including alcohol
and tobacco
CP031: Clothing
PPI Eurostat
DA: Manufacture of food
products; beverages and
tobacco
DB18: Manufacture of wearing
apparel; dressing; dyeing of fur
Definition of high-volume retailers
Initially, we proposed several definitions to define HVR. Some of the
definitions were based on turnover, number of employees or the annual
balance sheet of the company.
For example, one definition identified as HVR those firms with more than 250
employees. Another definition was based on the structure of the enterprise
and considered as HVR firms that are not a small and medium enterprise
(SME).3
3
Recommendation 2003/361/EC defines SME in the following way: “The category of micro, small and
medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which
have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43
million euro.” Extract of Article 2 of the Annex of Recommendation 2003/361/EC.
London Economics
September 2008
4
Section 2
Methodology
One problem with both definitions is that data on the number of employees
and annual balance sheets are not available for a number of significant
players in different countries. This is especially the case for buying or
voluntary groups, cooperatives, and for players organised under franchises.4
Therefore, the proposed definitions are heavily conditioned by the way the
different data sources publish the data. With this in mind, we have proposed
the following definitions:
HVR1: HVR are firms having more than 5% of market share.
In some sources, data is available according to a breakdown that can be used
to describe the HVR sector. For example, Eurostat provides data on
employment based on different bands of turnover and employment. For the
analysis of these data it is convenient to use the following two definitions:
HVR2: HVR are firms with turnover higher than EUR 200m.5
HVR3: HVR are firms which employ 250 persons or more.
In addition, in some cases it can be useful to analyse the top 5 firms in each
market. The following definition is proposed.
HVR4: HVR are the 5 largest firms (by turnover) in each retail sector of
interest.
4
For example data was not available for E. Leclerc and Intermarché (France); Edeka/AVA Gruppe and
Schwarz Gruppe (Germany); and Co-op Italia and Interdis (Italy). Data is also difficult to obtain for
Eastern European countries.
5
In the analysis it was found that data is missing for many years in the UK and therefore the definition has
not been used for the analysis of trends.
London Economics
September 2008
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Section 3
The number of HVR in Europe
3 The number of HVR in Europe
The number of HVR can be calculated according to different definitions for
the food and clothing sectors. We use Mintel data as the basis of the analysis
in relation for definition HVR1, and Eurostat data for HVR2 and HVR3.
Eurostat does not provide a more refined breakdown by sector and we use
food and department stores as a proxy for the food sector, and other retail
sub-sectors as an approximation of the clothing sector.
The distribution of the number of HVR in each country varies depending on
the definition used (Table 2). According to HVR2 and HVR3, Germany has
the largest number of HVR. Definition HVR1 uses 5% of market share and
shows approximately 5 HVR per country. The only exceptions are Poland6
and Romania with nil and one HVR respectively (no comparable information
is available in the Czech Republic and Hungary). A list of all firms used in
definition HVR1 is in Annex 1.
HVR2 uses turnover greater than EUR 200m as a threshold to classify HVR
firms. There are many large companies in Germany, Italy and the United
Kingdom and there appear 131, 55 and 52 HVR in these countries,
respectively. There are only 2 and 8 HVR in Romania and Hungary,
respectively. The HVR3 definition shows a larger number of HVR in all
countries.
6
This means that no retailer has more than 5% of market share in the Polish market.
London Economics
September 2008
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Section 3
The number of HVR in Europe
Table 2: Number of HVR according to different definitions
Food sector (2006)
Country
CZ
DE
ES
FR
IT
HU
PL
RO
UK
Total
HVR1
n.a.+
6
4
6
5
n.a.+
0
1
4
39
HVR2*
11
131
33
46
55
8
n.a.
2
52
338
HVR3*
55
251
105**
184
129
36**
102
22
171
1055
HVR4
5
5
5
5
5
5
5
5
5
45
Note: * Food and Department stores and Other retail sub-sectors. Data for HVR3 refer to 2005; **
Department stores only. + The number of HVR in Hungary and Czech Republic is 9 and 4, respectively,
but these numbers may be overestimated as the sales figures include department stores and food stores.
HVR1: HVR are firms having more than 5% of market share. HVR2: HVR are firms with turnover higher
than EUR 200m. HVR3: HVR are firms which employ 250 persons or more. HVR4: HVR are the 5 largest
firms (by turnover) in each retail sector of interest.
Source: London Economics using Eurostat and Mintel.
Table 3 shows the number of HVR in the clothing sector using different
definitions. The UK has the largest number of HVR according to HVR2 and
HVR3 with 81 and 314 respectively, followed closely by Germany with 45 and
278, respectively. New Member States have the lowest number of HVR by
any definition: using definition HVR2, there are at most 1 HVR (no data is
available for Poland) and with the exception of Poland (with 43) the
remaining countries have less than 25 HVR according to HVR3. Notably, very
few firms were identified as HVR according to the HVR1 definition,
indicating that the clothing market tends to be more fragmented. A list of all
firms used in definition HVR1 is in Annex 1.
London Economics
September 2008
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Section 3
The number of HVR in Europe
Table 3: Number of HVR according to different definitions
Clothing sector (2006)
Country
CZ
DE
ES
FR
IT
HU
PL
RO
UK
Total
HVR1
n.a.+
2
n.a.+
0
1
0
n.a.+
0
3
6
HVR2*
0
45
19
52
17
0
n.a.
1
81
215
HVR3*
23
278
77
169
64
15
43
19
314
1002
HVR4
5
5
5
5
5
5
5
5
5
45
Note: * Food and Department stores and Other retail sub-sectors. Data for HVR3 refer to 2005. **
Department stores only. +No information available regarding the size of the clothing market, and so it is
not possible to calculate HVR1. HVR1: HVR are firms having more than 5% of market share. HVR2: HVR
are firms with turnover higher than EUR 200m. HVR3: HVR are firms which employ 250 persons or more.
HVR4: HVR are the 5 largest firms (by turnover) in each retail sector of interest.
Source: London Economics using Eurostat and Mintel
London Economics
September 2008
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Section 4
Turnover of HVR
4 Turnover of HVR
Retail sales of food in the countries of the study amounted to EUR 754 billion
in 2006, representing an increase of 3.4% in real terms from 2003. It can be
seen that France, the UK, and Germany account for more than 65% of the
total 2006 sales, with Italy, Spain and Poland accounting for a further 30%.
Less than 5% of the total spending occurred in Romania, Hungary and the
Czech Republic combined.
Figure 1: Total food sales in selected countries 2003 and 2006
(EUR billion, 2006 prices)
800
700
600
500
400
300
200
100
0
2003
DE
2006
ES
FR
IT
UK
CZ
HU
PL
RO
Note: For Poland and Czech Republic, sales include all of Nace code 52.1 and 52.2. 2006 data for Czech
Republic estimated based on total retail sales growth.
Source: Mintel.
Data for retail sales of clothing is more difficult to obtain. In addition, in the
Czech Republic, Poland and Spain data for overall sales is not available from
the Mintel reports. In the remaining countries of the study, retail amounted to
EUR 120 billion in 2006, having grown by 2.5% in real terms since 2003.
Almost all retail sales occurred in the UK, Germany, France and Italy,
although this may be a reflection of the limited data availability in the New
Member States.
London Economics
September 2008
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Section 4
Turnover of HVR
Figure 2: Total sales of clothing in selected countries 2003 and 2006
(EUR billion, 2006 prices)
140
120
100
80
60
40
20
0
2003
2006
DE
FR
IT
UK
HU
RO
Source: Mintel.
The largest players in Europe
The 10 companies with largest turnover at national level in the countries and
sectors of interest are shown in Table 4. All the largest players operate in the
food sector. Tesco is the largest operator in the UK and is significantly ahead
of its main rivals: in 2006 national sales were EUR10 billion higher than the
French operator Carrefour, in second place. When comparing food and
clothing retailers the largest clothing firm (Marks and Spencer) appears only
in 25th place.
Unsurprisingly, all the largest firms are based in Western Europe in the three
largest markets of Germany (4), the UK (3) and France (3) (although some
have operations in Eastern Europe).
London Economics
September 2008
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Section 4
Turnover of HVR
Table 4: Top-10 European retail companies at national level (2006)
Company
Country
Operation
National market
sales (EURm)
Tesco
UK
Multiple grocer
47,928
Carrefour
FR
Food multiple
37,200
Edeka/AVA Gruppe
DE
Voluntary group
30,200
E. Leclerc
FR
Voluntary group
27,500
J Sainsbury
UK
Multiple grocer
24,738
Rewe Gruppe
DE
Food group
24,400
Asda (Wal-Mart)
UK
Multiple grocer
23,048
Intermarché (ITM)
FR
Voluntary group
22,000
Schwarz Gruppe
DE
Discount food stores &
hypermarkets
22,000
Aldi
DE
Discount food stores
21,100
Source: Mintel.
Presence of HVR in Europe
Over the last four years, food sales of HVR (according to HVR1 definition)
have remained relatively constant in the two largest markets (France and
Germany). In the UK, sales of HVR have increased by almost 10%, which is
primarily due to the growth of Tesco.
There has been an increase by more than 25% in sales of HVR in the food
sector in both Italy and Spain, since 2003. HVR in Czech Republic and
Romania also experienced a significant growth (albeit Romania started from
an extremely low base). Sales of HVR in Hungary also grew but at a lower
pace. No HVR operated in Poland (under the HVR1 definition during the
period).
London Economics
September 2008
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Section 4
Turnover of HVR
Table 5: HVR1 food sales 2003-2006 (EUR billion, 2006 prices)
Country
CZ
DE
ES
FR
IT
HU
PL
RO
UK
Total
2003
3.5
112.3
28.1
135.0
28.6
9.0
0.0
0.1
103.8
420.4
2006
4.6
115.2
35.7
137.1
38.8
9.4
0.0
1.1
114.0
455.9
% change
33.3%
2.5%
26.9%
1.6%
35.5%
4.5%
n.a.
n.m.
9.8%
8.4%
Note: UK 2003 value includes sales of Safeway, which was later acquired by Wm Morrison.
Source: Mintel.
As seen, the clothing sector is much less concentrated and HVR (according to
definition HVR1) are only present in three of the nine markets in the study.
HVR in both Germany and the UK experienced steady sales growth (of 5%
and 3% respectively). The one HVR in Italy however (the Benetton Group)
saw a decline in sales in real terms between 2003 and 2006.
Table 6: HVR1 clothing sales 2003 and 2006 (EUR billion, 2006 prices)
Country
CZ
DE
ES
FR
IT
HU
PL
RO
UK
Total
2003
2006
n.a.
n.a.
% change
n.a.
4.1
4.3
5.3%
n.a.
n.a.
n.a.
0.0
0.0
n.a.
1.3
1.3
-5.2%
0.0
0.0
n.a.
n.a.
n.a.
n.a.
0.0
0.0
n.a.
10.9
11.2
2.5%
16.3
16.7
2.6%
Note: No information on market size in Czech Republic, Poland and Spain. No HVR identified in France,
Hungary or Romania. Clothing sales separated from footwear sales based on sales per store in the case of
two French companies.
Source: Mintel.
London Economics
September 2008
12
Section 4
Turnover of HVR
Analysis of market concentration over time
We analyse market concentration by looking at the evolution of C5 (the
combined market share of the top-5 firms) in the food and clothing sectors in
each of the selected countries.7
Concentration in the food retail market varies significantly between countries.
Germany, the UK and Hungary are the most concentrated markets with over
70% of the market controlled by the largest five firms.8 The French market is
also comparatively concentrated, with a C5 of around 60%. In Italy, Spain and
the Czech Republic, the C5 is between 30% and 45%, while the market is
much less concentrated in Romania and Poland (with the top-5 companies
controlling less than 20% of the market).
As Figure 3 indicates, there have been significant increases in market
concentration in food retail over the last three years in several countries,
including the UK, the Czech Republic, Romania and Spain.
7
In several countries, this is very similar to the firms identified under the HVR1 definition.
8
The estimates for Hungary and the Czech Republic should be treated with caution as the sales data
include some outlets selling non-food items.
London Economics
September 2008
13
Section 4
Turnover of HVR
Figure 3: C5 for food retail sales (2003 and 2006)
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
DE
ES
FR
IT
UK
2003
CZ
HU
RO
PL
2006
Note: Sales include other goods beside food in Hungary and Czech Republic.
Source: Mintel.
The clothing retail sector remains fragmented across the selected countries
where data was available. The C5 in the UK is the highest with 35%, in
Germany is second (around 25%), while in Italy and France the top-5 firms
control less than 20% of the market.
London Economics
September 2008
14
Section 4
Turnover of HVR
Figure 4: C5 for clothing retail sales (2003 and 2006)
40%
35%
30%
25%
20%
15%
10%
5%
0%
DE
FR
IT
2003
UK
2006
Note: No information on market size in Czech Republic, Poland and Spain. Insufficient sales data available
for Romania and Hungary. Clothing sales separated from footwear using sales per store in the case of two
French companies.
Source: Mintel.
We now analyse the evolution of concentration according to the HVR3
definition and using Eurostat data. Results are presented for two broad
sectors: food and department stores, and other retail sub-sectors.
The share of turnover according to the HVR3 definition in food and
department stores is shown in Figure 5 for several years. HVR account for
more than 50% of turnover in the UK, Germany, Spain, France, Hungary and
the Czech Republic. Overall, the UK is the most concentrated market and
Romania the least. It is noticeable that the market concentration in the Czech
Republic and Hungary is roughly the same than in France and Italy. The
recent evolution shows that the market concentration has increased in most
countries. It has decreased in Germany and stayed approximately constant in
France. The main conclusions are consistent with the findings of Figure 3.
London Economics
September 2008
15
Section 4
Turnover of HVR
Figure 5: Share of turnover of HVR3
(food and department stores)
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
DE
ES
FR
IT
2002
UK
2003
CZ
2004
HU
PL
RO
2005
Source: Eurostat
The share of turnover according to the HVR3 definition in the other retail
sub-sectors is shown in Figure 6 for several years. The UK is again the most
concentrated market and is the only country where HVR have more than 50%
market share. Market concentration has increased in most countries
(especially in Romania) but has remained constant in Germany and Hungary.
London Economics
September 2008
16
Section 4
Turnover of HVR
Figure 6: Share of turnover of HVR3
(other retail sub-sectors)
70%
60%
50%
40%
30%
20%
10%
0%
DE
ES
FR
IT
2002
UK
2003
CZ
2004
HU
PL
RO
2005
Source: Eurostat
London Economics
September 2008
17
Section 5
Employment in HVR
5 Employment in HVR
In this section we analyse employment data using HVR3 definition. All the
data are sourced from Eurostat. Results are presented for two broad sectors:
food and department stores, and other retail sub-sectors.
Number of employees in HVR
Overall 3 million people are employed in HVR in the food and department
stores in the countries of interest in 2005. Of these, around 1.2 million people
are employed in HVR in the food sector in the UK. The remaining countries
employ much less, but overall HVR in Western European countries employ a
higher number of workers than Eastern European countries. The number of
employees has increased since 2003 in every country except in France and the
Czech Republic where it has remained constant (Figure 7).
Figure 7: Number of employees in HVR3.
Food and department stores (‘000)
1,400
1,200
1,000
800
600
400
200
0
DE
ES
FR
IT
2002
UK
2003
CZ
2004
HU
PL
RO
2005
Source: Eurostat
London Economics
September 2008
18
Section 5
Employment in HVR
A similar picture can be observed in the other retail sub-sectors. As before,
HVR in the UK employ the highest number of workers. However, the number
of employees has steadily increased in all the countries except in the UK
where it increased in 2003 and has reduced since. Overall, 1.5 million people
are employed in HVR in other retail sub-sectors in 2005, in the countries
studied.
Figure 8: Number of employees in HVR3.
Other retail sub-sectors (‘000)
900
800
700
600
500
400
300
200
100
0
DE
ES
FR
IT
2002
UK
2003
CZ
2004
HU
PL
RO
2005
Source: Eurostat
Evolution of the proportion of employees working in HVR
The share of employment in HVR is very different across Europe. In the UK
and Germany, HVR employ respectively more than 75% and 60% of workers
in food and department stores whereas in Poland they employ about 20% and
in Romania less than 5% (Figure 9). The proportion of employees working for
HVR has increased in Spain, the UK and Eastern European countries; has
stayed almost constant in Germany and France and has increased only
slightly in Italy.
London Economics
September 2008
19
Section 5
Employment in HVR
Figure 9: Share of employment in HVR3
(food and department stores)
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
DE
ES
FR
IT
2002
UK
2003
CZ
2004
HU
PL
RO
2005
Source: Eurostat
HVR in the UK employ about 60% of the workforce of the other retail subsectors. In Spain, Italy, the Czech Republic, Hungary, Poland and Romania
HVR employ about 10% or less; and in Germany and France about 30%. The
proportion of employees working for HVR has increased steadily in all
countries except in Germany and the UK: in Germany the proportion reduced
in 2003 and increased steadily thereafter, and in the UK it first increased and
decreased steadily from 2003 (Figure 10).
London Economics
September 2008
20
Section 5
Employment in HVR
Figure 10: Share of Employment in HVR3
(other retail sub-sectors)
70%
60%
50%
40%
30%
20%
10%
0%
DE
ES
FR
IT
2002
UK
2003
CZ
2004
HU
PL
RO
2005
Source: Eurostat
London Economics
September 2008
21
Section 5
Employment in HVR
Female participation in the retail market
Overall, female participation in the wholesale and retail sectors is higher than
in the entire workforce across Europe but such difference is much higher in
the 10 New Member States that in the EU15 (Figure 11). The only exception is
France that shows a lower share of women in the wholesale and retail sector
compared to the economy as a whole.
Figure 11: Female employment in 2006 (in %)
60%
50%
40%
30%
20%
10%
0%
EU15 NMS10
UK
FR
RO
All sectors
HU
DE
PL
CZ
ES
IT
Wholesale and Retail sectors
Source: Eurostat.
Female participation in the wholesale and retail sectors remained fairly
constant between 2002 and 2006 in most countries (Figure 12). Germany is the
only exception to this, showing a decline in each year from between 2002 and
2006. There is also some evidence of a sustained increase in participation in
both Spain and Italy over the period.
London Economics
September 2008
22
Section 5
Employment in HVR
Figure 12: Female participation (in %).
Wholesale and retail sectors
60%
50%
40%
30%
20%
10%
0%
DE
ES
FR
IT
2002
UK
2003
2004
CZ
2005
HU
PL
RO
2006
Source: London Economics using Eurostat data.
Age distribution of employees
The age distribution of employees in the wholesale and retail sectors shows
that the workforce is dominated by employees below the age of 50, who
account for between 75% and 85% of the workforce (Figure 13). Further, these
sectors have very few employees (under 5% of the total workforce) over the
age of 65.
There are some interesting differences in the age distribution between
Member States. The UK, for example has a much higher proportion of young
workers (aged under 25) than anywhere else, but also a higher proportion of
workers older than 65 (although still a very small amount). Italy and
Germany also have a small but noticeable proportion of workers older than
65. Italy, the Czech Republic and Hungary have a lower number of young
workers but have a higher proportion of workers aged 25-49.
Notably, there are no clear differences between the EU15 countries and the
New Member States in the graph.
London Economics
September 2008
23
Section 5
Employment in HVR
Figure 13: Age distribution of employees
Wholesale and retail sectors
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
DE
ES
FR
IT
15-24
UK
25-49
50-64
CZ
HU
PL
RO
Over 65
Source: Eurostat.
Part-time employment
Around 5.15 million people are working part-time in the retail and wholesale
sectors in the countries of interest (6.59 million people in the EU27). Part-time
work is higher in the wholesale and retail sectors than in the entire European
economy, although there are important differences across countries, and also
between the EU15 and NMS10 (Figure 14).
Part-time work is more common across the EU15 than in the NMS10 (around
20% compared to 8%), and this is reflected in the wholesale and retail sectors.
Across the EU15, part-time work was more common in wholesale and retail
than the economy as a whole (around 25% compared to 20%), whereas in the
NMS10, the proportion was approximately the same. However, the result for
the EU15 appears to be driven by the countries with the highest proportion of
part-time workers (Germany and the UK). In these countries, part-time work
exceeds 25% across all sectors, and 30% in retail and wholesale. In the other
EU15 countries, the overall proportions are much lower, and also there is
little difference between the wholesale and retail sectors and the rest of the
London Economics
September 2008
24
Section 5
Employment in HVR
economy. A similar pattern is seen in the New Member States, with the
exception of Romania (where part-time employment is much higher overall
than in the wholesale and retail sectors).
Figure 14: Part-time employees in 2006 (in %).
Wholesale and retail sectors
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
EU15 NMS10
DE
UK
FR
All sectors
UT
ES
PL
RO
CZ
HU
Wholesale and Retail sectors
Source: London Economics using Eurostat data.
The evolution of part-time employment shows a different pattern for Western
and Eastern countries (Figure 12). In all Western countries, part-time
employment has increased recently except in the UK. The increase in
Germany, Italy and Spain can possibly be attributed to labour market
reforms. In Eastern Europe, the proportion of part-time employees has stayed
roughly constant, except in Hungary that has increased recently.
London Economics
September 2008
25
Section 5
Employment in HVR
Figure 15: Part-time employment (in %).
Wholesale and retail sectors
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
DE
ES
FR
IT
2002
2003
UK
2004
CZ
2005
HU
PL
RO
2006
Source: London Economics using Eurostat data.
London Economics
September 2008
26
Section 6
Import penetration
6 Import penetration
In this section we analyse the evolution of import penetration in Europe.
Import penetration is calculated as imports divided by domestic apparent
consumption. Domestic apparent consumption is calculated as the value of
production plus the value of imports less the value of exports.
Data on imports, exports and production are obtained from Eurostat’s
Prodcom database.9 Data are provided for very large product, each with an
eight digit product code. To calculate indicators for a whole sector it is
necessary to aggregate the data across all the relevant eight digit product
codes. This creates some complications because data is missing for imports,
exports or production for some years and product codes. In order to be
consistent, we excluded from the analysis the product groups with at least
one missing value (in imports, exports or production) for the sample period.
For years prior to 2003 there are a lot of missing data. The analysis is therefore
undertaken for the years 2003 to 2006 inclusive.
For the food sector10, generally the percentage of imports in domestic
apparent consumption is increasing in the countries of interest (Figure 16).
The only exception is Spain, where overall it has stayed roughly the same
over the four-year period (it has increase in the last three years but fallen by
0.3% in total).
The proportion of imported food is generally higher in the Western countries,
which show percentages around 20% for 2006 (24% is the highest in Germany
and 18% the lowest in Spain).
The proportion of imports in food consumption is rising quickly in Eastern
European countries. This is especially true for Hungary which in 2003
imported less food as a percentage of total consumption than any of the
western countries, but by 2006 has the highest percentage of imported food.
The Czech Republic shows a similar pattern. Finally, Poland and Romania
import a noticeably smaller percentage of their food consumption than the
other countries.
9
10
This database classifies products using the first four digits of Nace Rev. 1 and digits five and six of the
CPA (Classification of products by activity).
The food sector is defined as all products in the ‘manufacture of food products and beverages’ category.
London Economics
September 2008
27
Section 6
Import penetration
Figure 16: Imports as a percentage of domestic apparent consumption for
the manufacture of food products and beverages
35%
30%
25%
20%
15%
10%
5%
0%
DE
ES
FR
IT
2003
UK
2004
CZ
2005
HU
PL
RO
2006
Source: Prodcom database.
Western countries show a very high import penetration in the clothing
sector.11 In many cases the percentage is greater than 100% (Figure 17). This is
because the total value of exports is greater than the total value of production,
meaning that some goods are imported and then re-exported. The highest
percentages in France and Germany (where they reach 170% and 146% by
2006, respectively) reflect their low domestic production and high volumes of
imports and exports. Over the last two decades, French retailers and clothing
and footwear manufacturers have moved their production facilities to lowcost counties or decided to concentrate on design and marketing activities,
purchasing items abroad. The German textile and clothing sector has also
gone through major structural changes that have led the industry to reduce
and outsource some of its inland production and cover its local demand for
11
The clothing sector is defined as all products with in ‘manufacture of wearing apparel; dressing and
dying of fur’.
London Economics
September 2008
28
Section 6
Import penetration
textiles and clothing largely by importing from other countries. Conversely
the import shares for Spain and Italy are well under 100% (85% and 80% in
2006 respectively).
For most of the Western countries imports as a percentage of consumption
rise over the period. The only exception is the UK where the ratio remained at
around 100%. The results for Eastern European countries are very unreliable
due to poor data and have not been reported.
Figure 17 Imports as a percentage of domestic apparent consumption for
the manufacture of wearing apparel
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
DE
ES
FR
2003
2004
IT
2005
UK
2006
Source: Prodcom database
London Economics
September 2008
29
Section 7
Suppliers’ sales in HVR
7 Suppliers’ sales in HVR
In this section we analyse HVR share of suppliers’ sales and how this has
been changing over time. For this section, we use definition HVR1.
Total suppliers’ sales sold by HVR are calculated using the share of HVR
suppliers’ sales times total domestic sales. We use total production minus
exports (from Prodcom data) as total domestic sales. Since we do not have the
share of suppliers’ domestic sales achieved by HVR we use the total market
shares of HVR. Finally, we express the HVR domestic sales as a share of total
production.
In the food sector, we see that more than 50% of the national food production
is sold by HVR in Germany and the UK (Figure 18). The percentage of
suppliers’ sales achieved through HVR has increased in every country but
Germany and France, where it has remained almost constant. There are
significant differences between countries: HVR share of suppliers’ sales
ranges from 10% in Romania to 64% in Germany, in 2006.
Figure 18: Suppliers' sales in HVR (as % of total production).
Food
70%
60%
50%
40%
30%
20%
10%
0%
DE
ES
FR
2003
IT
2004
UK
2005
CZ
RO
2006
Source: Prodcom database
London Economics
September 2008
30
Section 8
Evolution of wholesale-retail price indices
8 Evolution of wholesale-retail price indices
In this section we present the evolution of consumer and producer prices. The
analysis uses the ratio of consumer price index and domestic producer price
index12 for the food and clothing sectors. Hence, the different charts presented
below show the changes (increases, decreases) of consumer prices in relative
terms, i.e. compared to producer prices. A chart with an increasing ratio
represents a situation where consumer prices have been increasing more
rapidly than producer prices. A decreasing ratio means that consumer prices
have been increasing less rapidly than producer prices. In the first case it
means that the margin in absolute terms has been widening, in the second,
narrowing.
One should be cautious on the type of conclusions drawn from this analysis.
The differences in the evolution of prices do not necessarily reflect changes in
the profit margins for producers and retailers. This is because prices are
affected by many other variables. For example, changes in Value Added
Taxes,13 wages, import prices or technical improvements could explain a drop
of consumer prices and this could be unrelated with the prices producers
receive.
The results of the analysis are shown in Figure 19 and Figure 20.
Between 2001 and 2007 consumer food prices have increased more rapidly
than producer prices in the Czech Republic, Spain, and Hungary (Figure 19).
This implies that for these countries, the margin has been widening. In
Romania consumer prices increased significantly less rapidly than producer
prices. In the other countries there are only small differences between the
growth rates of producer and consumer prices.
12
The domestic producer price index (or domestic output price index) for an economic activity measures
the average price development of all goods and related services resulting from that activity and sold
on the domestic market.
13
“The prices measured are those actually faced by consumers, so for example they include sales taxes on
products, such as Value Added Tax, and they reflect end-of-season sales prices”, Harmonized Indices of
Consumer Prices (HICPs) A Short Guide for Users, Eurostat, March 2004
London Economics
September 2008
31
Section 8
Evolution of wholesale-retail price indices
Figure 19: Ratio consumer to producer prices indices.
Food (2001-2007).
DE
ES
EU
FR
HU
IT
PL
.8
.9
1
1.1
.8
.9
1
1.1
CZ
2000 2002 2004 2006 2008 2000 2002 2004 2006 2008
UK
.8
.9
1
1.1
RO
2000 2002 2004 2006 2008 2000 2002 2004 2006 2008
Time
Graphs by Country
Note: Consumer prices include VAT so any change in VAT has an effect on the indices.
Source: Eurostat.
Between 2001 and 2007 consumer prices have been increasing less rapidly
than producer prices prices in EU27 as a consequence of imports from abroad
(Figure 20). This is particularly noticeably in the Czech Republic, the UK and
Romania. This means that the margin between consumer and producer prices
narrowed.
London Economics
September 2008
32
Section 8
Evolution of wholesale-retail price indices
Figure 20: Ratio consumer to producer prices indices.
Clothing (2001-2007).
DE
ES
EU
FR
HU
IT
PL
.6
.8
1
1.2
.6
.8
1
1.2
CZ
2000 2002 2004 2006 2008 2000 2002 2004 2006 2008
UK
.6
.8
1
1.2
RO
2000 2002 2004 2006 2008 2000 2002 2004 2006 2008
Time
Graphs by Country
Note: Consumer prices include VAT so any change in VAT has an effect on the indices.
Source: Eurostat.
London Economics
September 2008
33
Section 9
Synoptic description of M&A
9 Synoptic description of M&A
In this section we provide a synoptic description of the main operations of
merger and acquisitions in the relevant countries for the past four years.
Information has been obtained from Mintel reports.
Table 7: Mergers and acquisitions in the food sector for selected countries
Country
Description
FR
Carrefour purchased Rewe’s Penny Market stores in June 2005
Intermarché sold Spar Handels and Netto to Edeka in April 2005
Metro acquired Wal-Mart Germany in July 2006
DE
Spar AG sold its 50% stake in Netto to Intermarché at the end of 2004
Rewe acquired the Swiss food retail and catering group Bon Appetit in 2003
IT
Coop Italia and Conad signed a partnership agreement in 2001
Caprabo purchased Alcosto in 2003
ES
Ahold exited the market and sold its business to private equity firm Permira in October 2004
Laurus exited the Spanish market in 2003
Morrison’s acquired Safeway in March 2004. The acquisition was approved by the High Court
in March 2004, with the requirement that 53 of the acquired stores be divested
J Sainsbury acquired the Bells stores, Jackson’s stores and JB Beaumont convenience store
chains in 2004
Cellar 5 (previously Parisa Group) entered administration in December 2002, before being
UK
acquired by Maryland Securities in March 2003
Tesco acquired 45 convenience stores from Adminstore in January 2004
United Co-op acquired Yorkshire Co-op in 2003
Irish Musgrave acquired the Londis chain in June 2004
Delvita sold to Rewe in May 2007
CZ
Tesco bought Carrefour’s business in 2005, and most of Edeka’s stores in early 2006
Casino withdrew from the market selling its Geant hypermarkets to METRO-owned Real, and
its Leader Price chain to Tesco in 2006
Ahold sold its Polish businesses to Carrefour in December 2006. (Competition comission’s
approval in June 2007)
PO
Ahold reduced its stake in Poland, it sold its 13 Hypernova-branded hypermarkets to IC
Company in 2005
Edeka sold its Polish operation to local group Rojal Markety in March 2003
Metro and Spar own jointly the buying group Metspa since 1995
HU
Spar acquired 14 Billa stores from Rewe in 2002, and 22 Kaiser’s stores from Tengelmann in
September 2003
Cora opened its second hypermarket in the country in October 2005
Delhaize Group acquired a majority share of Mega Image in March 2000
Tengelmann opened its first Plus discount store in Romania in October 2005
Schwarz Group launched its first two Kaufland discount hypermarkets in the second half of
RO
2005
Metro Group launched its Real supermarket chain in March 2006
Carrefour opened a store in Bucharest in July 2001 in a joint venture with one of its major
franchisees Hyparlo
Source: Mintel
London Economics
September 2008
34
Section 10
Conclusions
10 Conclusions
Some conclusions arise from the analysis undertaken in this report.

The number of HVR (firms with more than 5% market share) in the
food sector is around 5 in each country. Using other definitions, the
number of HVR is the highest in Germany.

The number of HVR in the clothing sector is the highest in the United
Kingdom using several definitions.

Indicators of market concentration show that the United Kingdom is
the most concentrated market in both food and clothing sectors.

In the food sector, market concentration has increased in recent years
in every country but France and Germany, where it remains constant.

In the clothing sector, market concentration has increased between
2003 and 2006 in Germany and Italy but has decreased in France and
the United Kingdom.

The number of employees working for HVR is by far the highest in
the United Kingdom in food and department stores and in the other
retail sub-sectors.

In every country, the proportion of employees working for HVR is
higher in the food sector than in other sectors (except in Romania).

Female employment is generally higher (France is an exception) in the
wholesale and retail sectors than in the economy as a whole. Female
employment has stayed constant in recent years in all countries except
in Germany where it has decreased.

Part-time employment is more important in the wholesale and retail
sectors in the UK and Germany, but not in the rest of countries. Recent
trends show that part-time employment is increasing in Western
Europe (except Germany where it has decreased) and stay constant in
Eastern Europe.

Import penetration is more important in the clothing sector than in the
food sector. In both sectors, import penetration has generally
increased over the recent years.

According to definition HVR1, HVR achieve more than 50% of
domestic suppliers’ sales in Germany and the United Kingdom.
London Economics
September 2008
35
Section 10

Conclusions
Between 2001 and 2007 the margin between consumer and producer
food prices widened in the Czech Republic, Spain, and Hungary, and
narrowed in Romania. The margin between consumer and producer
prices in the clothing sector narrowed mainly in the Czech Republic,
the UK and Romania.
London Economics
September 2008
36
Section 10
Conclusions
Annex 1 Firms included
(definition HVR1)
in
the
analysis
Table 8: List of firms included in the analysis (definition HVR1)
Food Sector
Country
Retailer
Operation(s)
Sales (EURm)
2006
Market share
2006
FR
Carrefour
Food multiple
37,200
17.9%
FR
E. Leclerc
Voluntary Group
27,500
13.3%
FR
Intermarché (ITM)
Voluntary Group
22,000
10.6%
FR
Auchan
Food multiple
18,600
9.0%
FR
Casino
Food multiple
17,600
8.5%
FR
Système U
Food buying group
14,200
6.8%
DE
Edeka/AVA Gruppe
Voluntary group
30,200
22.5%
DE
Rewe Gruppe
Food group
24,400
18.2%
DE
Schwarz Gruppe
Discount food stores & hypermarkets
22,000
16.4%
DE
Aldi
Discount food stores
21,100
15.7%
DE
Real (METRO)
Hypermarkets & superstores
9,100
6.8%
DE
Tengelmann
Food group
8,400
6.3%
IT
Co-op Italia
Co-operative group
11,800
12.0%
IT
Conad-Rewe (Coopernic)
Buying group
7,796
7.9%
IT
Interdis
Voluntary group
7,098
7.2%
IT
Carrefour (France)
Hypermarkets, supermarkets, cash&carry
6,397
6.5%
IT
Auchan (France)
Hyper/supermarkets
5,700
5.8%
ES
Carrefour (France)
Grocery multiple
12,354
15.5%
ES
Mercadona
Large supermarkets
12,158
15.2%
ES
Grupo Eroski
Retail/co-operative group
6,415
8.0%
ES
El Corte Inglés
Hypermarkets/ supermarkets
4,735
5.9%
UK
Tesco
Multiple grocer
47,928
30.6%
UK
Sainsbury's (J Sainsbury)
Multiple grocer
24,738
15.8%
UK
Asda (Wal-Mart, USA)
Multiple grocer
23,048
14.7%
UK
Wm Morrison Supermarkets
Multiple grocer
18,285
11.7%
RO
Rewe (Germany)
Groceries
1,050
10.1%
Source: Own elaboration and Mintel.
London Economics
September 2008
37
Section 10
Conclusions
Table 9: List of firms included in the analysis (definition HVR1)
Textile Sector
Country
Retailer
Operation(s)
Sales (EURm)
2006
Market share
2006
DE
C&A
General clothing
2,422
8.9%
DE
H&M (Sweden)
Men’s, women’s, childrenswear
1,880
6.9%
IT
Benetton Group
General clothing
1,250
6.3%
UK
Marks & Spencer (non-food)
Adult and children’s clothing
5,241
12.6%
UK
Next Retail
Adult and children’s clothing
3,309
8.0%
UK
Arcadia Group
Adult clothing
2,643
6.4%
Source: Own elaboration and Mintel.
London Economics
September 2008
38