Kantar Worldpanel

London, United Kingdom

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London, United Kingdom
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News Article | May 4, 2017
Site: www.thedrinksbusiness.com

The UK retailer saw like for likes excluding fuel grow to 3.4% in the 13 weeks to 30 April, up from 0.7% a year ago. The results mark the sixth consecutive quarter of like-for-like sales growth for Morrisons, with like-for-like transactions up 4.6%, although items were basket fell by 6.9%, It follows good annual results in March in which the retailer saw 50% increase in profits, its first improvement in underlying profit and like-for-like sales in five years. Chief executive David Potts said the new financial year had started well and it was concentrating on building a broader, stronger company, despite the external pressures of sterling which had pushed the cost of imported goods up. “We are improving the shopping trip in many different ways, which is making Morrisons more popular and accessible for customers. These new initiatives in-store, online, in wholesale and services are beginning to build a broader, stronger Morrisons,” he said. “We are confident we will continue to turnaround and grow Morrisons.” The quarter has seen the extension of the company’s premium offer, its ‘Best range, as well as well as unveiling a new online and in-store ‘Food to Order’ offer that allows customers to pre-order and a selection of nine award-winning wines, party food and flowers for special events. It also noted the growth of its tie-in with Amazon fresh, which launched last November and has since expanded its reach across London. According to Kantar Worldpanel data released yesterday, the retailer was the fastest growing of the big four multiple this quarter, with sales up +2.2%, bolstered by the “huge growth” of its premium own label lines, which are attracting more affluent consumers. This has been ongoing for more than six months, with Kantar’s consumer insight director Andy Crossan reporting in December that Morrisons has seen penetration of its premium private label increase in the 12 weeks before Christmas. He highlighted that in the 12 weeks to 4 December 2016, premium own label bottles at retail – wines over the £8 price mark – had attracted more 440,000 more households overall than in the same period the previous year. The retailer has also just launched its Wine Festival 2017, with a range of bottles on promotion.


News Article | April 6, 2017
Site: www.theguardian.com

The maker of Flora and Stork has put the margarine and spreads business up for sale as consumers turn to butter and healthier options. Unilever, an Anglo-Dutch business which is one of the biggest consumer goods groups in the world, said it plans to sell its spreads business, which is valued at around £6bn, or spin it off into a separate company. Sales of margarine and spreads, once regarded as a healthier alternative to butter, have been in long-term decline in Europe and the US. Concerns about trans fats in the 2000s led to many brands removing hydrogenated fats from their spreads and reformulating their recipes. However, sales have continued to fall. Growing suspicion of processed foods and a re-evaluation of saturated fat have prompted many consumers to return to butter. Households have also cut back on the amount of bread they eat and are buying more butter because they consider it to be more natural. Sales of margarine in the UK are down more than 12% on last year while butter sales have climbed nearly 2%, according to figures from research group Kantar Worldpanel. George Salmon, analyst at City firm Hargreaves Lansdown, said: “The reality of 21st-century life is that people are more likely to grab breakfast on the go rather than sit around the table with a few slices of toast.” A turnaround in expert advice on dairy fats has resulted in the resurging popularity of ‘real’ butter. The growth in home baking and the narrowing price gap between butter and margarine have further contributed to falling sales for the latter.” Margarine has been central to the Unilever business since the company was formed in 1929 by the merger of Lever Brothers, which was making soap from its factory in Port Sunlight, Merseyside, and Margarine Unie, a collection of margarine makers across Europe. Margarine was invented in France in 1869 after Napoleon III offered a reward to anyone who could produce a cheaper and longer-lasting alternative to butter. Hippolyte Mège-Mouriès, a chemist, created margarine and eventually sold his product to Jurgens, a Dutch company that went on to become part of Margarine Unie and then Unilever. The firm’s Stork brand was launched in 1920 and was the subject of famous 1970s and 1980s advertising campaigns, with comedians Sir Bruce Forsyth and Leslie Crowther, the latter fronting TV taste tests in supermarkets. Flora was launched in 1964, and marketed as being healthier than both margarine and butter, while I Can’t Believe It’s Not Butter! – a lower cost spread that claimed to taste more like the real thing – first went on sale in the US in 1986. However, demand for margarine and spreads has been on the slide in recent years. Annual UK sales have dropped by more than a third over the past five years, from £605m to an estimated £399m in 2016. At the same time butter sales have gone up from £666m to £706m, research from Mintel shows. Paul Polman, chief executive of Unilever, said on Thursday: “After a long history in Unilever, we have decided that the future of the spreads business now lies outside the group.” Polman announced the move as part of a shakeup of Unilever after it fought off a $143bn (£115bn) takeover bid from US rival Kraft Heinz. As well as owning the collection of margarine brands, Unilever products include Dove soap, Ben & Jerry’s ice-cream, Persil laundry detergent and Marmite. Unilever also announced it would spend €5bn (£4.3bn) on buying back its own shares – which should push the price of the shares up – and would increase its dividend payout to shareholders by12% this year. The company is also also planning to cut costs, which will result in management job losses, and said it would review its dual legal structure in the UK and the Netherlands. This review, which will be conducted with Brexit as a backdrop, could lead to Unilever ditching its UK legal base, although the company said this did not mean any jobs would be affected. At the time of the Kraft Heinz bid, Polman called for more help from the government to protect “national champions” such as Unilever. Companies in the Netherlands are offered more protection against hostile takeover bids because directors are required to take into account the interests of all stakeholders in the business, not just shareholders. Neil Wilson, a senior market analyst at ETX Capital, said: “The Kraft Heinz bid was a massive wake-up call. Unilever realised it needed to do more for shareholders but it also has to improve margins – the appeal of Kraft’s bid was being able to squeeze far higher margins out of the business – bribes alone won’t work.”


News Article | May 3, 2017
Site: www.foodanddrinktechnology.com

According to Kantar Worldpanel, sales of frozen food in retail grew by 1.3% in value year on year (yoy) in the 52 weeks to 27 March 2017, with the sector now valued at £5.77 billion. Ice cream and frozen confectionery categories saw yoy value growth of 4% and 11% respectively, accompanied by respective yoy volume growth of 2.9% and 7.1%. These sub categories are now valued at £1.22bn and represent more than 21% of the total frozen food retail market. In part, frozen confectionery is being driven by increasing demand for frozen fruit which saw a sales growth of over 35%. This drive for healthy eating has also led to other sub categories seeing growth, with vegetables seeing value growth of 3.3% and volume growth of 3.3% yoy. This is driven by the growth in popularity of frozen sweet potato which saw sales increase by 119% in 2016. John Hyman, chief executive of British Frozen Food Federation, comments, “As consumers are increasingly concerned about healthy choices, many treat categories are struggling to see real growth, frozen seems to be bucking this trend and that’s partly down to how the category has positioned its sweet products. “By owning the occasional indulgence occasion through significant, premium NPD across the board, frozen confectionery and ice cream categories have managed to maintain their appeal to consumers still looking for life’s little luxuries. Similarly, this trend has enabled frozen to expand into new meal occasions and widen its appeal to new groups of consumers with a wide range of prepared fruit and vegetable options to offer healthier choices.”


News Article | March 24, 2017
Site: www.theguardian.com

Get the cheese sauce on. Supermarkets are slashing the price of cauliflower because a relatively warm start to the year has produced a glut of florets. Farmers say they have been producing 50% to 100% more crop than usual in recent weeks. A new harvest of produce from Lincolnshire is about to come on the market, adding to stocks already coming from Cornwall, the Isle of Wight and Suffolk. Morrisons is to cut cauliflower prices to 75p early next week, after Tesco cut its prices from £1 to 79p this week. Asda cut its price to 70p on Thursday, compared with the 95p it was charging in late February. The glut comes after shortages of courgettes, spinach, lettuce and other leafy vegetables earlier this year when snow and wet weather in southern Spain held up harvests. Iceberg lettuces soared in price by nearly 70% as some supermarkets shipped them in from the US. Sources said supermarkets were struggling to clear cauliflower stocks despite a 12% rise in the number sold in the three months to the end of February compared with the same period the previous year, according to the market research firm Kantar Worldpanel. The extra sales have been driven by cheaper prices and by a trend to serve cauliflower as a low-carb alternative. The fashion for clean eating has sparked demand for cauli rice and cauli couscous – basically cauliflower blasted in a food processor – and for cauliflowers to be roasted whole or cut into “steaks”. The warm spring has also put British-grown asparagus on shelves earlier than usual. The first spears of the season have already gone on sale at Marks & Spencer. British asparagus is usually not in season until late April or early May but good weather combined with new early varieties and growing methods have helped produce an early crop. Richard Mowbray, commercial director of the vegetable grower TH Clements and vice-chairman of the Brassica Growers Association, said the cauliflower glut had been building up since November. Colder weather then delayed crops that should have been harvested earlier but have become ready to cut at the same time as later plantings. The weather has a big impact on the growth of cauliflower, which must be harvested within a short time frame – as little as a week – making it tricky to control stocks. “We’ve had a glut for three or four weeks now. The colder weather this week should slow it down, but we’ve got maybe another week or so,” Mowbray said. Tesco said it was buying 220,000 more cauliflowers from its producers this month – on top of the 400,000 it usually stocks – to help tackle the cauliflower mountain. Greville Richards, managing director of Southern England Farms based in Cornwall, said he had ploughed 40 to 50 acres of the 2,000 acres of cauliflowers he grows back into fields as supply had outstripped demand. But he has also been exporting cauliflower to northern Europe, including Denmark, and had sold more cauliflower than usual in the UK in January as crops expected to be supplied from Spain had been held back by poor weather there. Richards said it had been tricky dealing with the overstocks but he was “financially pleased” with his growing season. “We did win business when Spain was out of action and the lower exchange rates have helped exports,” he said. Mowbray said he had also ploughed in some of his cauliflower crop and had frozen some but had been able to export nearly a fifth of his recent crop to Europe, mainly Scandinavia, as the fall in the value of the pound had made British produce more attractive.


News Article | April 15, 2017
Site: www.techtimes.com

The Samsung Galaxy S5 — the company's old warhorse which released in 2014 — is quite the favorite with consumers in the United States. According to a report from the Kantar Worldpanel, a consumer insight firm, the Galaxy S5 is the most favored Samsung smartphone in the country. It will be interesting to see how the Galaxy S5 fares against the newly-launched Galaxy S8 and Galaxy S8+. According to the report, the Galaxy S5 was the most popular smartphone from the South Korean OEM in the United States as of February this year. The second-most popular Samsung smartphone in the country was the Galaxy S7, which accounted for 11.5 percent installed base vis-à-vis the Galaxy S5's 15.6 percent. The Galaxy S6 and Galaxy S7 edge were next in line with 11.4 percent and 5.8 percent installed base, respectively. An interesting trend the report shared was that very few people upgraded to a new handset from Samsung in the past year. "Over the last 12 months, Kantar data shows that roughly 28% of that installed base upgraded to a new Samsung smartphone," noted the report. Out of the percentage which upgraded, roughly 52 percent went for the Galaxy S7 and the Galaxy S7 edge, whereas only 10 percent opted for the Galaxy S6 smartphone. The remaining customers chose from the 48 other Samsung smartphones available in the United States. This data suggests that even though the last company flagship garners maximum consumer attention, the OEMs offering's in the country continue to stay diverse. According to the report, roughly 20 percent of the Galaxy S7 owners in the United States are looking to upgrade their handset in the next 12 months. By comparison, approximately 40 percent and 55 percent Galaxy S6 and Galaxy S5 owners are contemplating upgrading their handset. On the other hand, the data reveals that while older-gen Samsung smartphone owners may be loyal to the company, the preference for the brand "is weaker on newer devices." Nearly 64 percent owners of the Galaxy S6 revealed that they would opt for a Samsung smartphone again vis-à-vis 76 percent Galaxy S5 owners. The brand preference numbers for the Galaxy S7 are not known. The next brand which is preferred by the users of Galaxy S5 and Galaxy S6 is Apple. While 12 percent Galaxy S5 owners like Apple, a marginally higher 15 percent Galaxy S6 owners prefer the company as its next best brand. Consumers may possibly be keen on purchasing the red variants of the iPhone 7 and iPhone 7 Plus. Despite the Galaxy Note 7 battery explosion, the preorder numbers for the next-generation Galaxy S8 and Galaxy S8+ did not suffer a setback. The pre-sale numbers for the Galaxy S8 were double than that of the Galaxy S7. However, based on numbers, it is unlikely that the Galaxy S8 will be the iPhone 8 killer. To put things into perspective, in 2016, only 5 percent customers who switched to Samsung were iPhone users. According to the report, if Samsung intends to increase its consumer base, then the OEM should ensure it focuses on existing customer retention. The company can do so by offering them additional products, which it already is with its Bixby, Samsung Connect, and more. © 2017 Tech Times, All rights reserved. Do not reproduce without permission.


News Article | May 22, 2017
Site: www.fooddive.com

Ever since Lidl announced it was coming to the United States in late 2015, the nation's grocers have been bracing for impact. Now with Lidl's first grand openings a few weeks away, it's just about showtime. With more than 10,000 stores in 27 countries, Lidl already is a global retail behemoth. Most of its offerings are store brand merchandise, and it uses those agreements to bring high quality at low prices. Its U.S. stores, according to executives, are going to be much the same as its European counterparts in that regard. Shelves will be filled with European chocolates, fresh produce, gourmet-curated wines and meat and fish bearing sustainability certifications. Stores also will have fresh bakeries producing breads and pastries throughout the day. And looking at the UK as an example, traditional grocers may definitely see some of their market share slipping. Since 2013, when Lidl and Aldi both started their push into the British market, their combined market share has grown more than 75%, according to data from Kantar Worldpanel. Aldi is now Britain's fifth-largest grocer, with about 7% of the market, while Lidl is the eighth largest, controlling 5%. Aldi, which has been a player in the U.S. since the 1970s, has already started retooling its model for Lidl's entrance with a $1.6 billion chain-wide renovation. Aldi's revamp will bring some of the aesthetics and selection that Lidl is known for to its stores, setting up a direct challenge. But despite its long history of U.S. grocery retail, Aldi has not dethroned the Krogers or Wal-Marts. Both Aldi and Lidl are known for a streamlined selection of goods — only one type of ketchup, just store-brand varieties of cereal. Larger groceries like Wal-Mart and Kroger, on the other hand, are known for a large selection of goods. This is something they can highlight in battles for shoppers. They also can work with major manufacturers to create exclusive products — something that Hostess has done with Deep Fried Twinkies at Wal-Mart and Hershey's and Mars products only sold at Wal-Mart and Target. Also, the hard discounters are not known for their online grocery presence. This is an area that is growing, with a Unata report finding about one in three U.S. shoppers is expected to order groceries online this year. According to a joint study from the Food Marketing Institute and Nielsen, online grocery is predicted to bring in $100 billion a year by 2025. Many grocery retailers are working to build out their click-and-collect and grocery delivery options through their own initiatives or third-party firms like Instacart and Shipt. They  also should highlight these options. Lidl US execs said this week that they have no current plans to enter the e-grocery market.


News Article | May 22, 2017
Site: www.fooddive.com

Ever since Lidl announced it was coming to the United States in late 2015, the nation's grocers have been bracing for impact. Now with Lidl's first grand openings a few weeks away, it's just about showtime. With more than 10,000 stores in 27 countries, Lidl already is a global retail behemoth. Most of its offerings are store brand merchandise, and it uses those agreements to bring high quality at low prices. Its U.S. stores, according to executives, are going to be much the same as its European counterparts in that regard. Shelves will be filled with European chocolates, fresh produce, gourmet-curated wines and meat and fish bearing sustainability certifications. Stores also will have fresh bakeries producing breads and pastries throughout the day. And looking at the UK as an example, traditional grocers may definitely see some of their market share slipping. Since 2013, when Lidl and Aldi both started their push into the British market, their combined market share has grown more than 75%, according to data from Kantar Worldpanel. Aldi is now Britain's fifth-largest grocer, with about 7% of the market, while Lidl is the eighth largest, controlling 5%. Aldi, which has been a player in the U.S. since the 1970s, has already started retooling its model for Lidl's entrance with a $1.6 billion chain-wide renovation. Aldi's revamp will bring some of the aesthetics and selection that Lidl is known for to its stores, setting up a direct challenge. But despite its long history of U.S. grocery retail, Aldi has not dethroned the Krogers or Wal-Marts. Both Aldi and Lidl are known for a streamlined selection of goods — only one type of ketchup, just store-brand varieties of cereal. Larger groceries like Wal-Mart and Kroger, on the other hand, are known for a large selection of goods. This is something they can highlight in battles for shoppers. They also can work with major manufacturers to create exclusive products — something that Hostess has done with Deep Fried Twinkies at Wal-Mart and Hershey's and Mars products only sold at Wal-Mart and Target. Also, the hard discounters are not known for their online grocery presence. This is an area that is growing, with a Unata report finding about one in three U.S. shoppers is expected to order groceries online this year. According to a joint study from the Food Marketing Institute and Nielsen, online grocery is predicted to bring in $100 billion a year by 2025. Many grocery retailers are working to build out their click-and-collect and grocery delivery options through their own initiatives or third-party firms like Instacart and Shipt. They  also should highlight these options. Lidl US execs said this week that they have no current plans to enter the e-grocery market.


News Article | February 15, 2017
Site: www.marketwired.com

Apple Finishes 2016 as Top Smartphone Brand in the US NEW YORK, NY--(Marketwired - Feb 8, 2017) - In September 2016, as the world awaited the release of iPhone 7, the anticipated absence of a traditional earphone jack was all anyone was talking about, according to a blog post this week by Lauren Guenveur, Consumer Insight Director for Kantar Worldpanel ComTech. The press warned that this could spell trouble for Apple, and theorized that no one would want a phone without a standard audio jack. "As often happens, buyers demonstrated that the pundits were wrong and Apple was right," Guenveur wrote. "Actual sales numbers for Q4 2016 showed iPhone 7 to be the best-selling phone in the US, Great Britain, Urban China, France, Germany, Japan, and Australia. This boosted Apple's market share higher than during the fourth quarter of 2015 when iPhone 6s was the flagship device." "In an attempt to beat iPhone 7/7 Plus to market, Samsung hurriedly released the Note 7, and it was soon plagued by two different battery issues that ultimately led to its complete recall. As it turned out, the Note 7 problems have not hurt Samsung badly at all. Samsung sales in the US stayed nearly the same year-over-year, and the company remained the second largest brand in the US, with 28.5% of smartphone sales in Q4 2016. The Galaxy S7, which was occasionally mistaken for the Note 7 in some FAA airline safety notices, was the third-best selling device on the market." However, Samsung did not come out completely unaffected, Guenveur added. "Loyalty to the brand in the USA in the fourth quarter was 62%, the lowest level since before the launch of the Galaxy S6 in the first quarter of 2015, when it was 58%," she reported. "The announcement of the Samsung S8 and whatever features it comes with it might be enough to bring these numbers back up, as the Note 7's past difficulties fade from the collective memory." Google achieved a 2% share of smartphone sales with its new Pixel and Pixel XL phones in Q4 2016. Pixel is outselling more established brands in the USA, including Alcatel, HTC, Huawei, and Microsoft. "With Apple and Samsung capturing a combined 73% of US sales, Pixel may not be the predicted iPhone or Samsung killer, but it is certainly giving other struggling Android brands a run for their money. With production of the Pixel 2 rumored to have begun, it will be interesting to watch how Google evolves the Pixel, and how they take on the big competitive 2017 releases, such as the Samsung S8, and whatever name Apple gives its next iPhone," Guenveur said. The full text of Lauren Guenveur's recent blog post can be found here: https://goo.gl/kXMUNF Kantar Worldpanel Comtech also reported today that in the fourth quarter of 2016, iOS continued year-on-year growth across all tracked regions except Urban China. Android gained in most markets, except the US, Great Britain, and Australia. In the US, iOS accounted for 44.4% of smartphone sales in the fourth quarter of 2016, up from 39.1% in the same period of 2015. Android took 54.4% of sales, down 4.7 percentage points from 4Q 2015. "Although Android still has a larger ecosystem, Apple was the top brand in the US and Great Britain for the final quarter of 2016," Lauren Guenveur said. "In EU5, Samsung was first, with Huawei second. In Urban China, Apple was not able to recapture first place, as Huawei continued to hold that spot." iPhone 7 and iPhone 7 Plus were the top sellers for the holiday period, netting their highest share since their release in mid-September, and representing 28% of smartphones sold in the fourth quarter. Samsung's decision not to announce the Galaxy S8 at Mobile World Congress 2017 is not expected to have a large impact on sales, as rumors circulate that the launch will be close to the traditional April date that customers have come to anticipate. Smartphone sales were down overall in the last quarter of 2016 compared to the final quarter of 2015, the Kantar report said, adding that as smartphones become commodities, there are fewer compelling reasons to frequently buy a new one even when promotions are plentiful. Note: The Kantar Worldpanel ComTech dataviz can be embedded into online articles for a visual representation of Kantar Worldpanel ComTech Smartphone OS market share data. Click here to copy the embed code. To view the complete global OS data and an optional PDF file, please visit: https://goo.gl/q7IyZM Kantar Worldpanel is the global expert in shoppers' behavior. Through continuous monitoring, advanced analytics, and tailored solutions, Kantar Worldpanel inspires successful decisions by brand owners, retailers, market analysts, and government organizations globally. For more information, please visit: www.kantarworldpanel.com For further information, please visit us at www.kantarworldpanel.com. Twitter: Google+: LinkedIn: RSS: Newsletter:


News Article | September 13, 2017
Site: www.marketwired.com

LONDON, UNITED KINGDOM--(Marketwired - Sep 13, 2017) - The latest smartphone OS data from Kantar Worldpanel ComTech reveals that in the three months ending July 2017, iOS performance was strong in the USA, China, and Japan. iOS market share in the EU5 was flat, held back by a resurgent Samsung in Great Britain. Android gained 2.8 percentage points across EU5 with Sony and Huawei the top performers. Europe's big five markets include Great Britain, Germany, France, Italy, and Spain. Sony began making a turnaround in its European smartphone business, reverting back to its previous strength in the mid-price tier with strong sales in Great Britain and Germany. Sony's EU5 sales share in the three months ending July 2017 climbed to 4.8%, up from 3.4% a year earlier. "Sony made a conscious strategy change in 2015 to shift its focus from the middle tier towards the premium market in search of greater profitability," said Dominic Sunnebo, Global Business Unit Director for Kantar Worldpanel ComTech. "However, under-spec'd, wrongly-positioned Sony handsets were poorly received by consumers. The company's recent move back into the mid range -- a segment it is able to serve well -- has produced significant success, especially with models like the Sony Xperia XA." The renewed focus by Sony and Samsung on their successful entry-level models put more pressure on Huawei in Europe, as its share fell in Spain and Great Britain. However, gains in Germany and Italy helped Huawei's EU5 share grow to 14.6% in the three months ending July, up from 12.4% one year earlier. In the USA, Samsung remained in the top spot during the three months ending in July with a 36.2% share, with Apple close behind at 34.1%. The growth rates of the two brands are almost exactly matched at 2.5% for Samsung and 2.6% for Apple. The iPhone 7 was the top-selling handset during the period at 12.6% of sales, while the newer Samsung Galaxy S8 stood at 8.8%. "Apple's US growth is very impressive, given that an all-new iPhone is expected to be announced on September 12, and should become available for purchase later in the month," Sunnebo added. Apple saw something of a rebound in Urban China in the July data period, with share +5.1%pts to 19.3%. The large screen iPhone 7 Plus was the top selling device in Urban China in the month of July, the first time the Plus version has outsold the smaller screen iPhone 7. Note: The Kantar Worldpanel ComTech dataviz can be embedded into online articles for a visual representation of Kantar Worldpanel ComTech Smartphone OS market share data. Click here to copy the embed code. Kantar Worldpanel ComTech's smartphone OS market share data provides the media and businesses with access to the most up-to-date sales and market share figures for the major smartphone operating systems. This information is based on research extracted from the Kantar Worldpanel ComTech global consumer panel. ComTech is the largest continuous consumer research mobile phone tracking panel of its kind in the world, conducting over one million interviews per year in Europe alone. ComTech tracks mobile phone behavior -- including phone purchases, bills/airtime, source of purchase, and usage. It also delivers additional data to promote an understanding of the drivers of share changes, and consumer insight market dynamics. All consumer data in this release excludes enterprise sales. Kantar Worldpanel is the global expert in shoppers' behaviour. Through continuous monitoring, advanced analytics, and tailored solutions, Kantar Worldpanel inspires successful decisions by brand owners, retailers, market analysts, and government organisations globally. With over 60 years' experience, a team of 3,500, and services covering 60 countries directly or through partners, Kantar Worldpanel turns purchase behaviour into competitive advantage in markets as diverse as FMCG, impulse products, fashion, baby, telecommunications, and entertainment, among many others. For further information, please visit us at www.kantarworldpanel.com. Twitter: Google+: LinkedIn: RSS: Newsletter: Kantar is one of the world's leading data, insight, and consultancy companies. Working together across the whole spectrum of research and consulting disciplines, its specialist brands, employing 30,000 people, provide inspirational insights and business strategies for clients in 100 countries. Kantar is part of WPP, and its services are used by over half of the Fortune Top 500 companies. For further information, please visit us at www.kantar.com Twitter: Facebook: Google +: LinkedIn


News Article | September 29, 2016
Site: www.theguardian.com

Sales at HMV went backwards last year as it retreated from the challenging video games market, and Britons’ move away from physical CD, films and games collections continued. HMV turned over £325m in the year to 2 January compared with £366m in 2015, a figure that was bolstered by the inclusion of an extra week’s trading. Despite the decline, HMV chair, Paul McGowan, described the figures as “encouraging”, pointing to market-share gains made in physical music and film sales. “We are very pleased to be approaching our fourth anniversary since we acquired HMV and these encouraging results mirror the exciting year we have witnessed,” said McGowan. McGowan said overall sales had been “in line with budget”, with the decrease down to a 53-week trading period in 2015 as well as the decision to reduce shelf space devoted to video games. The toughness of the games market has been well documented by specialist Game Digital, which has issued a profit warning every Christmas – which in common with HMV is its most lucrative time of year – since returning to the stock exchange in 2014. HMV was bought out of administration by restructuring firm Hilco in 2013. The entertainment chain, established in 1921, had been felled by the financial squeeze created by high debt levels and falling sales. Hilco’s £50m buyout salvaged just over half the HMV chain which now trades from around 120 stores. McGowan, also chief executive of Hilco, said HMV increased its share of the physical music market from 26.7% in 2014 to 27.7% in 2015. Its share of the DVD market also increased from 20.1% to 21.2%. Vinyl sales at established stores surged more than 50% as Britons rekindle their relationship with their record players, HMV said. More recently Hilco was involved in the BHS store closure programme. According to Kantar Worldpanel, the market for physical music, video and games declined by 8.3% to £2.1bn in 2015. The most recent quarterly figures for the entertainment market show it continuing to contract at a similar rate, down 8.1% in the 12 weeks to 3 July. The accounts filed at Companies House show HMV Retail made a pre-tax loss of £8.8m after expenses that included £10.3m of payments to sister companies. Top line operating operating profits were £11.7m, down from £15.2m in the previous year. Among the biggest related party transactions is a £7m payment to Hilco company Goodmans Capital Investments, comprising a £6m loan repayment as well as £1.1m of interest. HMV relaunched online last June and McGowan said the site was enjoying strong growth, pulling in around 1m visitors per month. It has also started selling products such as speakers and turntables online, with the latter enabling it to cash in on the resurgence of vinyl. According to the most recent figures from Kantar Worldpanel, HMV increased its share of the physical entertainment market by 2.3 percentage points to 16.3% in the three months to 3 July compared with the same period a year ago. However, its share was down on the previous quarter’s high of 16.9% as Britons jumped online to buy Star Wars: The Force Awakens and shop the back catalogues of the late David Bowie and Prince.

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