January 9, 2019

AMZN, ASC LN, FTCH, ZAL GR, La Redoute S.A., NKE, PVH

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SOURCES AND BACKGROUND

14 vendors, comprising 10 apparel, footwear and accessory sources in Germany (3), France (4) and the United Kingdom (3), and 4 cosmetics sources in the United Kingdom (2), France (1) and Germany (1)

REPEAT SOURCES 4 from OTR Global’s October report

INTERVIEWS Nov. 22 through Dec. 19

European ecommerce sales improved slightly qq during 4Q18, especially in Germany and France, though the U.K. outlook was undermined by concerns about the potential fallout from a hard Brexit.

  • French and German sources upbeat about online growth in 2019; 2 of 3 U.K. sources cautious, all 3 concerned about Brexit; 4Q18 demand aided by more normal temperatures following hot weather in 3Q18
  • ZAL GR's 4Q18 apparel/footwear sales met plan for 5 of 8 vendors, fell below for 3 (improvement vs. 3Q18); orders up yy for 6 of 7, flat for 1 (similar to October); beauty sales off to slow start
  • AMZN's 4Q18 apparel/footwear sales met plan for all 3 German vendors, fell below for all 4 U.K., French vendors; orders up yy for 3, flat for 2 and down for 2 (slight deterioration vs. October)
  • U.K. sources optimistic about ASC LN's VIP program, perceive student discount as key to attracting young demographic; French sources mostly positive about ASC LN, FTCH's Farfetch
by Pascal Benazet
Europe