Value Clothing Retailing - UK - May 2005

Value Clothing Retailing - UK - May 2005
Fashion High Street: UK	Price: £995 / $1522 / €1119

Report sections

click here to read 'about this report' »

	Contents
	Introduction and Abbreviations
	Executive Summary
	Retail Sales
	Market Factors
	The Consumer
	The Consumer – Detailed Consumer Demographics
	Retail Market Shares
	Retailer Profiles
	Specialist Value Clothing Retailers
	Trade Perspective
	The Future
	Forecast

About the market…

As the retail sector, and clothing within it, faces a tougher 2005 than 2004, many in the industry see further consolidation/casualties in the value sector and the wider clothing arena on the horizon. A key issue is that the big want to get bigger and space growth is increasingly hard to achieve, so Primark was very pleased to get six Allders stores.

Within the sector there has been, and continues to be, quite some evolution as some retailers remain clearly discounters/value and others (such as Peacocks and Select) move much more strongly into the fashion arena. Also, while George and Tesco are ‘value’ retailers they are both stretching their product offers into a lower mainstream price positioning.

About the report…

Mintel’s research provides a series of essential findings for all those who need to know ‘what’s next’ for the value clothing retail sector. Fusing together the latest consumer research and freshest market analysis, Mintel’s research answers vital questions surrounding value clothing. How will value clothing retailers drive forward growth? How will they differentiate themselves, and continue to evolve? How will this impact the mainstream middle clothing market?

Mintel's new report offers you all the insight and inspiration you need for designing clever, creative and profitable marketing strategies in the value clothing retail market. Use Mintel's research to:

Understand the major market trends and drivers
Discover which consumers shop where and what they buy
Establish new customer typologies, based on attitudes towards value clothing retailers.
Pin point market potential, such as the potential to entice more outfit buying and to attract younger and more affluent shoppers, before your competitors
Identify key consumer audiences and find out how to best reach them with the most effective marketing communications
Examine shopping behaviour in relation to buying clothing from value clothing retailers
Learn about the major operators, their market share and assess the potential for new entrants in the market
Measure market sizes and forecasts and build realistic business models
Gain a valuable insight into trade perspective regarding value clothing retailing.

Intriguing findings include:

Some 37% of regular grocery shoppers at M&S like to have a look in value clothing retailers in case they pick up a bargain, meaning they may well be tempted to buy.

Some 36% of women agree that value clothing retailers provide a good range, but 33% say they are good for everyday use but not for smarter occasions. This is clearly an opportunity, and may be a ranging issue (ie not enough tailoring) or a display issue (segment and clearly highlight smarter collections).

If you want more details about this particular report, please contact the Mintel information team on +1 312-932-0400 in the U.S., +44 028-90-241-849 in Northern Ireland, +353 048-90-241-849 in the Republic of Ireland or +44 (0)20-7606-6000 in the UK and the rest of the world, or email info@mintel.com.

Key words and phrases within this report

Asda; Tesco; Matalan; Primark; George; Peacocks; TK Maxx; Ethel Austin; Select; Bewise; Poundstretcher; Officers Club; MK One; Store portfolio; Bonmarché; Strategic evaluation; TJ Hughes; Merchandising/product mix; Financial performance; Detailed Consumer Demographics; VAT; Marks & Spencer; Morrisons; Safeway; Chief executive, discount retailer; Slater Menswear; Cherokee; Chief executive, value retail chain; Employment; Sainsbury’s; Cromwell’s Madhouse; Non-food director, supermarket; Men; Women; Brown & Jackson; Fred; Allders; PDI; Consumer Attitudes; Typologies; Slater; Advertising and marketing; Florence; New Look; Chief executive, value clothing group; Finance director, family value retailer; Moderate Means; Bargain Hunters; Value clothing typologies; Alibi; Baugur; Co-op; Lee Cooper; Levi Strauss; Naf Naf; Sophie; Value; China; Comfortably Off ACORN; Wealthy Achiever; All retail sales; North West; Peacock Group; Basebuy; Essentials; Falmer; Leeds; Liverpool; MBO; Operational issues; Signature; Turkey; Wolsey; Woolworths; Changing consumer behaviour; Chief executive, fashion multiple; Fashion is a key factor in driving growth; Interest rates and inflation; Attitudes towards value clothing retailers; Number of value clothing stores used; Occasional Purchasers; Promiscuous Shoppers; Shopping behaviour; Blakes; Bonusclub; Cardiff; Christmas; Eisenegger; Foxhole; Hull; JJB; JJB Sports; Levi’s; Market positioning and consumer research; Soccer; Somerfield; Sports World; Umbro; Wal-Mart; WH Smith

Contents

Introduction and Abbreviations

Definitions

Research methodology

Consumer research

ACORN

Abbreviations

Executive Summary

Value clothing sector continues to increase its clothing market share

Deflation will continue – requiring greater efficiency

Fashion is a key factor in driving growth

Consumers are shopping for wants and needs

Women are the major purchasers

Underwear offers may need more fashion and quality appeal

Childrenswear much more popular than babywear

Fashion accessories a key growth category

Supermarkets converting grocery shoppers into clothing shoppers

Spending of Occasional and Promiscuous Shoppers

Opportunity to attract younger, more affluent shoppers and third agers

Broader demographic for supermarket clothes shoppers

Affluent groups still keen on getting value for money

Potential to entice more outfit buying

Demand for smarter occasion clothing

Value perceptions need improving

Increasing fashionability perceptions

Quality matters

Value retailers can play in both the low-price and added-value sectors

Taking share from the mainstream

Turnaround year reaps rewards

Catering for the older woman isn’t easy

Impressive performer growing strongly

Will two become a stronger one?

Discounted brands a big draw

Boundaries between value and mainstream breaking down

Downward pressure on price continues, so need to protect margins

Greater interest in fashion and changing perceptions of ‘value’

Pressure on mainstream prices and further consolidation expected

Outperformance will continue, but be slower

The market will continue to change and evolve

Retail Sales

All retail sales

Figure 1: All retail sales, at current and constant 2000 prices, 2000-04

Sales through clothing and textiles retailers

Figure 2: Retail sales through textile, clothing and footwear stores, at current and constant 2000 prices, 2000-04

Value clothing sector

Figure 3: Sales through clothing and footwear specialists and value clothing specialists (excluding VAT), at current prices, 2000-04

Figure 4: Breakdown of sales through value clothing specialists, by retailer, 1999-2003

Figure 5: The UK value clothing market (excluding VAT), 2000-05

Market Factors

PDI and consumer expenditure

Figure 6: PDI and consumer expenditure at constant prices and savings ratio, 2000-10

Interest rates and inflation

Figure 7: RPI for all items and clothing, and interest base rates, 2000-10

Employment

Figure 8: Structure of the UK working population, by male and female employment, 2000-10

Population trends

Figure 9: Total UK population, by age group, 2000-10

Figure 10: Structure of the UK adult population (aged 15+), by lifestage, 2000-10

Figure 11: UK adult population (aged 15+), by socio-economic group, 2000-10

The Consumer

Key consumer findings

Value clothing shops used for buying clothes

Figure 12: Discount and low-price clothing shops used for buying clothing in the last 12 months, 2003 and 2005

Figure 13: Value clothing shops used for buying clothing in the last 12 months, by gender, age and socio-economic group, February 2005

Figure 14: Value clothing shops used for buying clothing in the last 12 months, by gender, age and socio-economic group, February 2005

Items of clothing bought from value clothing shops

Figure 15: Items of clothing bought from value clothing shops in the last 12 months, by gender, February 2005

Figure 16: Purchasing of men’s and women’s clothing from value clothing shops in the last 12 months, by gender, age and socio-economic group, February 2005

Figure 17: Purchasing of children’s clothing, babywear and fashion accessories from value clothing shops in the last 12 months, by gender, age and socio-economic group, February 2005

General categories of clothing purchased

Figure 18: Further analysis of products purchased from value retailers, by gender, age and socio-economic group, February 2005

Figure 19: Further analysis of products purchased from value retailers, by gender, age and socio-economic group, February 2005

The Consumer – Detailed Consumer Demographics

Figure 20: Value clothing shops used for buying clothing in the last 12 months, by lifestage and Mintel’s Special Groups, February 2005

Figure 21: Value clothing shops used for buying clothing in the last 12 months, by lifestage and Mintel’s Special Groups, February 2005

Figure 22: Value clothing shops used for buying clothing in the last 12 months, by region and ACORN category, February 2005

Figure 23: Value clothing shops used for buying clothing in the last 12 months, by region and ACORN category, February 2005

Figure 24: Value clothing shops used for buying clothing in the last 12 months, by media usage, commercial TV viewing and source of regular grocery shopping, February 2005

Figure 25: Value clothing shops used for buying clothing in the last 12 months, by media usage, commercial TV viewing and source of regular grocery shopping, February 2005

Figure 26: Purchasing of men’s and women’s clothing from value clothing shops in the last 12 months, by lifestage and Mintel’s Special Groups, February 2005

Figure 27: Purchasing of children’s clothing, babywear and fashion accessories from value clothing shops in the last 12 months, by lifestage and Mintel’s Special Groups, February 2005

Figure 28: Purchasing of men’s and women’s clothing from value clothing shops in the last 12 months, by region and ACORN category, February 2005

Figure 29: Purchasing of children’s clothing, babywear and fashion accessories from value clothing shops in the last 12 months, by region and ACORN category, February 2005

Figure 30: Purchasing of men’s and women’s clothing from value clothing shops in the last 12 months, by media usage, commercial TV viewing and source of regular grocery shopping, February 2005

Figure 31: Purchasing of children’s clothing, babywear and fashion accessories from value clothing shops in the last 12 months, by media usage, commercial TV viewing and source of regular grocery shopping, February 2005

Retail Market Shares

TK Maxx, Primark and the supermarkets all strengthen their positions

Figure 68: Retail market shares of the UK value clothing market and total clothing and footwear market, 2001 and 2004

Figure 69: Value clothing market shares, 2004

Retailer Profiles

Figure 70: Specialist value clothing retailers, store numbers, 2000/01-2004/05

Specialist Value Clothing Retailers

Cromwell’s Madhouse

Figure 71: Cromwell’s Madhouse, number of stores and productivity, 1999-2004

Figure 72: Cromwell’s Madhouse, financial performance, 1998-2002

Eisenegger

Figure 73: Basebuy Ltd (Eisenegger), number of stores and productivity, 1999-2004

Figure 74: Basebuy Ltd (Eisenegger), financial performance, 1999-2003

Ethel Austin

Figure 75: Ethel Austin, number of stores and productivity, 2000-04

Figure 76: Ethel Austin, product sales mix, 2003 and 2004

Figure 77: Ethel Austin, financial performance, 2000-04

Matalan

Figure 78: Matalan, number of stores and productivity, 2000-05

Figure 79: Matalan, financial performance, 2000-05

MK One

Figure 80: MK One (Northworld Ltd), financial performance, 2000-04

The Officers Club

Figure 81: Officers Club, number of stores, 2000-04

Figure 82: Officers Club, financial performance, 1999-2003

The Peacock Group

Figure 83: Peacocks, number of stores and productivity, 2000-05

Figure 84: Bonmarché, number of stores, 2000-05

Figure 85: Peacocks, financial performance, 2000-04

Figure 86: Bonmarché, financial performance, 2000-04

Primark

Figure 87: Primark Stores, outlet numbers and selling space, 2000-04

Figure 88: Primark Stores, financial performance, 2000-04

QS Group (including Bewise)

Store portfolio

Figure 89: QS and Bewise, number of stores and productivity, 2000-04

Figure 90: QS and Bewise, financial performance, 2000-04

Select

Figure 91: Select, number of stores and productivity, 2000-05

Figure 92: Select, financial performance, 2000-04

Slater Menswear

TK Maxx

Figure 93: TK Maxx, number of stores and productivity, 2000-05

Figure 94: TK Maxx, financial performance, 2000-04

Non-Specialist Value Retailers

George at Asda

Poundstretcher/…instore

Tesco

TJ Hughes

Figure 95: TJ Hughes, number of stores and productivity, 2000-05

Figure 96: TJ Hughes, financial performance, 2000-04

Wilkinson

Figure 97: Wilkinson, financial performance, 2000-04

Off-price retailing locations/factory outlet centres

Factory shops

Wholesale warehouses

Trade Perspective

Overview of 2004

Market challenges

Drivers of growth

Defining the value clothing market

Changing consumer behaviour

Fashion is increasingly important

Store environments must be appealing

Deflation continues with impact from China

Price-sensitivity – but at all market levels

Value sector impacts the mainstream market

Mainstream discounting affecting some value retailers

Is consolidation on the horizon?

Future prospects

The Future

Overview

Factors most likely to influence future performance

Prospects for leading players

Recommendations for retailers to maximise their potential

Forecast

Strong growth with price deflation set to continue

Figure 98: Forecast of the UK value clothing market (excluding VAT), by retailer, 2005-10

Figure 99: Forecast of the UK value clothing market, 2005-10