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Fashion Retail Service - UK - February 2009
International Reports (Academic USA), Fashion High Street: UK Price: £1500 / $2310 / €1793
Contents
Issues in the Market
Market in Brief
Strengths and Weaknesses in the Market
Internal Market Environment
Broader Market Environment
Competitive Context
The Consumer – Where They Shop
Consumer Views by Where They Shop
Companies and Services
Appendix – Where They Shop
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About this report

Fashion retailers like Next, M&S and Topshop have been through a long period when they have been able to rely solely on declining prices to drive sales upwards. However, with the falling pound and rising overseas sourcing costs, competing on price is going to become increasingly difficult for them.

Customers who still have money to spend are going to be ever more demanding. Retailers will have to identify the needs of their core customer even more closely and make sure that they are met. Improving staff training, motivation and product knowledge, as well as recruitment and retention will be crucial in doing so.

The use of technology is likely to become an increasingly important aspect of providing improved service, especially among younger customers for whom it is a core part of their everyday lives.

Key report themes:
  • What do consumers think of the service they receive?
  • Who are the most demanding groups and which areas of service are most important to them?
  • What are the potential improvements retailers could make to their service proposition?
  • Which retailers are innovating in terms of customer service?
  • What role is technology likely to play in improving the customer experience?
  • How important is the role of customer relationship management?
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.
Contents

Issues in the Market

Main themes

Definition

Abbreviations

Market in Brief

Customer service needs set to polarise

Wages and recruitment key

Technology offers new opportunities

The bad news on customer service

...and the good news

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Internal Market Environment

Key points

Clothing market downturn

Figure 1: Clothing retail sales, non-seasonally adjusted, current and constant 2000 prices, and price change, quarter against same quarter year before, Q3 2006 to Q3 2008

Pay levels and the National Minimum Wage

Age structure of workforce

The rise of value retailers and the supermarkets

Figure 2: Value clothing specialists’ and non-specialists’ sales and consumer clothing expenditure, 2003-08

The impact of the internet and in-store technology

Word of mouth is key

Broader Market Environment

Key points

Consumer recession

Figure 3: UK personal disposable income and consumer expenditure, % per annum change, 2003 prices, 2003-13

Age structure will shift

Figure 4: UK population, by age, 2003-13

Socio-economic changes

Figure 5: UK adult population 15+, by socio-economic group, 2003-13

Increasing unemployment

Figure 6: UK unemployment, % of workforce, 2003-13

Competitive Context

Key points

Fashion better than household, worse than food and drink

Poor performance at bottom end

Figure 7: Respondents saying retailer has excellent customer service, fashion retail versus household and food and drink retail, 2007-08

Best fashion retailers are very strong on service

Figure 8: Respondents saying retailer has excellent customer service, top ten specialist fashion retailers, 2007-08
Figure 9: Respondents saying retailer has excellent customer service, top ten specialist household retailers, 2007-08
Figure 10: Respondents saying retailer has excellent customer service, top ten specialist food and drink retailers, 2007-08

The Consumer – Where They Shop

Key points

Figure 11: Where they regularly buy clothing, November 2008
High street still dominates
Department stores ahead of supermarkets and value stores
Value stores visited more by women
Younger men prefer the internet
Figure 12: Where they regularly buy clothing, by gender, age and socio-economic group, November 2008
Figure 13: Where they regularly buy clothing, by gender, age and socio-economic group, November 2008

Consumer Views by Where They Shop

Key points

Value stores falling behind on service

Figure 20: Attitudes towards service, by where they regularly buy clothing, November 2008

Companies and Services

Key points

The methodology

Figure 23: Top ten of all fashion retailers, 2007-08

The case of John Lewis

Marks & Spencer

Figure 24: Respondents who agree M&S has great customer service, %, 2007-08
Figure 25: Fashion customer services provided by Marks & Spencer, January 2009

Arcadia Group

Figure 26: Respondents who agree different Arcadia fascias have great customer service, %, 2007-08

Topshop/Topman

Figure 27: Fashion customer services provided by Topshop/Topman, January 2009

Dorothy Perkins

Figure 28: Fashion customer services provided by Dorothy Perkins, January 2009

Next

Figure 29: Respondents who agree that Next has great customer service, %, 2007-08
Figure 30: Fashion customer services provided by Next, January 2009

TK Maxx

Figure 31: Respondents who agree that TK Maxx has great customer service, %, 2007-08
Figure 32: Fashion customer services provided by TK Maxx, January 2009

New Look

Figure 33: Respondents who agree that New Look has great customer service, %, 2007-08
Figure 34: Fashion customer services provided by New Look, January 2009

Primark

Figure 35: Respondents who agree that Primark has great customer service, %, 2007-08
Figure 36: Fashion customer services provided by Primark, January 2009

Matalan

Figure 37: Respondents who agree that Matalan has great customer service, %, 2007-08
Figure 38: Fashion customer services provided by Matalan, January 2009

Tesco

Figure 39: Respondents who agree that Tesco clothing has great customer service, %, 2007-08
Figure 40: Fashion customer services provided by Tesco, January 2009

Asda

Figure 41: Respondents who agree that George at Asda has great customer service, %, 2007-08
Figure 42: Fashion customer services provided by George at Asda, January 2009

River Island

Figure 43: Respondents who agree River Island has great customer service, %, 2007-08
Figure 44: Fashion customer services provided by River Island, January 2009

Debenhams

Figure 45: Respondents who agree that Debenhams has great customer service, %, 2007-08
Figure 46: Fashion customer services provided by Debenhams, January 2009

Peacocks

Figure 47: Respondents who agree that Peacocks has great customer service, %, 2007-08
Figure 48: Fashion customer services provided by Peacocks, January 2009

Appendix – Where They Shop

Figure 49: Where they buy clothing, by special group, region, ACORN group, technology users/TV received, daily web use, daily newspapers read and supermarket used, November 2008
Figure 50: Where they buy clothing, by special group, region, ACORN group, technology users/TV received, daily web use, daily newspapers read and supermarket used, November 2008