Value Clothing Retailing - UK

Published by: Mintel International Group Ltd.

Published: Dec. 1, 2007 - 118 Pages

Table of Contents

Issues in the Market

Main issues:

Definitions

Abbreviations

Market in Brief

The market

Shopping patterns

Drivers of growth

Main challenges

Main opportunities

Future prospects

Industry Insights

Key points

The market

Changing the nature of deflation

Market growth

Blurring of the boundaries

It’s not just about price

Challenges in the sector

The retailers - winners and losers

The online opportunity

Changing consumers

Product offers

Ethical/environment issues

Advertising/marketing

The future

Internal Market Environment

Falling prices

Fast fashion vs sustainable style, and the question of growth

Fashion: autumn more challenging

Fashion: the clean-cut/well-groomed look

Fashion: the problem with ubiquity

Fashion: design and differentiation

Store design

Ethical/green/environmental issues

Going transactional

Broader Market Environment

PDI, consumer expenditure and saving

Figure 1: PDI and consumer expenditure, at current and constant 2002 prices, 2002-12

Figure 2: UK real personal disposable income growth, consumer expenditure growth, bank base rate and savings ratio, actual and projected, 2002-12

Consumer confidence

Weather

Inflation/deflation

Employment

Figure 3: UK workforce and employment, 2002-12

Population

Figure 4: Population numbers, by age group, 2002-12

Socio-economic changes

Figure 5: Population numbers and percentage change, by socio-economic group, 2002-12

Figure 6: Share of the population, by socio-economic group, 2002-12

Market in Context

Key points

Spending on clothing

Figure 7: UK consumer spending on clothing, and value clothing, including sales tax, current prices, 2002-07

The clothing market

Figure 8: UK index of consumer spending growth in clothing and all retail sales, 2002-06

Buying clothing

Figure 9: UK consumer spending on selected categories (incl sales tax), at current prices, 2002-06

Market Size and Forecast

Key points

Specialists’ sales

Figure 10: Sales through clothing specialists and value clothing specialists (excluding VAT), at current prices, 2002-07

Figure 11: The UK value clothing market (excluding VAT), 2002-07

Forecast

Figure 12: Forecast of the UK value clothing market (excluding VAT), at current and constant prices, 2007-12

Annual growth to pick up steadily

Non-specialists continue to grow

Figure 13: Percentage share of UK value clothing specialists and non specialists within the total UK value clothing market, by year, 2002-07, and forecasted shares from 2008-12

Specialists will face difficult conditions

Factors used in the forecast

Strengths and Weaknesses in the Market

Where They Buy

Key findings

Figure 14: Where they buy value clothes, September 2007

Clear winners and losers over time

Figure 15: Value clothing shops used for buying clothing in May 2003, February 2005 and September 2007

George leads the pack

Matalan under increasing pressure

Primark and TK Maxx are a hit with the fashionable young

Peacocks coming on strongly

Figure 16: Where they buy value clothing, by gender, age and socio-economic group, September 2007

Smaller chains in competition for consumers

Age group differentiation

Bonmarché opportunity

Some will struggle

Competition from charity shops

Figure 17: Where they buy value clothing, by gender, age and socio-economic group, September 2007

Who doesn’t buy?

Key findings

Where They Buy - Detailed Consumer Demographics

Figure 18: Where they have bought value clothing, by Mintel’s special groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarket used, September 2007

Figure 19: Where they have bought value clothing, by Mintel’s special groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarket used, September 2007

Figure 20: Where they have bought value clothing, by Mintel’s Special Groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarket used, September 2007

What They Buy

Key findings

Figure 21: What value clothing items they buy, September 2007

Men buying for themselves

Most women are keen shoppers

Less of a destination for childrenswear

Figure 22: What value clothing they buy, by gender, age and socio-economic group, September 2007

Figure 23: What value clothing they buy, by gender, age and socio-economic group, September 2007

Key findings

What They Buy - Detailed Consumer Demographics

Figure 24: What value clothing they buy, by Mintel’s special groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarkets used, September 2007

Figure 25: What value clothing they buy, by Mintel’s special groups, region, ACORN categories, technology users, daily newspapers, commercial TV viewing and supermarkets used, September 2007

Retail Competitor Analysis

Key points

Trading performance

Figure 53: Value clothing retailers key data and estimated clothing sales

Positioning and strategic analysis

Figure 54: Selected value clothing retailers positioning, strategy and analysis, 2007

Retailer Profiles

Figure 55: Value clothing retailers, store numbers, 2002-07

Ethel Austin

Figure 56: Ethel Austin, store numbers 2002-07

Figure 57: Ethel Austin limited, financial performance, 2002-07

mkone

Figure 58: mkone (Northworld Ltd), financial performance, 2002-07

Matalan

Figure 59: Matalan own-brand clothing portfolio, 2007

Figure 60: Matalan financial performance, 2002-07

Officers Club

Figure 61: The Officers Club, financial performance, 2002-06

Primark

Figure 62: Primark store numbers, 2002-07

Figure 63: Primark own-brand portfolio, 2007

Figure 64: Primark UK, financial performance, 2002-06

QS Group

Figure 65: QS Group, store numbers, 2002-07

Figure 66: QS Group, financial performance, 2004-07

The Peacock Group (Bonmarché and Peacocks)

Figure 67: Peacocks and Bonmarché store numbers, 2002-07

Figure 68: Peacocks and Bonmarché sub-brands, 2007

Figure 69: Bonmarché, financial performance, 2002-07

Figure 70: Peacocks, financial performance, 2002-07

Slater

TJ Hughes

Figure 71: TJ Hughes, clothing own-brands, 2007

Figure 72: TJ Hughes, financial performance, 2002-07

TK Maxx

Figure 73: TK Maxx, UK financial performance, 2002-07

Supermarkets

Figure 74: Estimated sales of clothing & footwear in grocery multiples, at current prices, 2001-06

George at Asda

Figure 75: George at Asda distribution, 2003-07

Figure 76: George at Asda sub-brands in clothing, 2007

Figure 77: Retail offer categories by percentage of clothing sales, 2007

Tesco

Figure 78: Tesco sub-brands in clothing, 2007

Wholesaler/grocery discount retailers

Discount supermarkets

Netto

Aldi

Lidl

Discount wholesalers

Costco

Makro

Other value/discount retailers

Wilkinsons

Retail Advertising and Promotion

Figure 79: Main media advertising spend, by leading value retailers, 2002-06

Abstract

Since Mintel’s last Value Clothing Retailing report in 2005, the market has changed significantly. The big retailers have become bigger (notably the supermarkets and Primark) and some of the smaller players have found trading very tough: some have exited the market and others have needed rescuing/refinancing. However, while the clothing market overall has been very challenging in 2006 and 2007 (due both to economic issues and the weather), Mintel estimates that the value clothing sector has outperformed the rest of the clothing market and that value specialists now account for 15.1% of all clothing specialists’ sales.

The other key change has been the blurring of the boundaries between value retailers and the middle market. The former have broadened their appeal and ‘good/better/best’ price ranges, and product architecture, as well as enhanced their store environments; the latter have sharpened their opening price points and become a lot more competitive.

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