Mintel last looked at the children's clothing market in February 1996, although other more recent reports have looked at children's clothing retailing. The market for children's clothing is buoyant, despite diminishing numbers of children in the UK population. Consumers are having smaller families, but spending more per child on their children's clothes. Meanwhile, children are having a greater influence on the styles they want and the amount of clothes in their wardrobes. These factors are key in stimulating more demand. The children's clothing market is growing in the core garments. The market is highly shaped by fashion, with some styles being miniaturised versions of adult ranges. Meanwhile youth styles and fashions are opening up a new children's niche, with its own flavour and inspirations.

The retail scene has been very dynamic, with some dramatic developments. A lot of shopping for clothing has gone out-of-town, with the influence of Matalan and the supermarkets drawing attention of shoppers away from the High Street. Asda, keen to continue to develop the powerful George brand, has now opened its first standalone high street shops, fitting in between the value players such as Primark, and the mainstream like Adams, Next and Marks & Spencer. Bhs has become a new powerhouse for children's clothing, and Primark continues to grow from strength to strength. Despite all these changes, there is still a place for the children's clothing independent, particularly in the premium sector.

This report examines the hypothesis that the market is overcrowded making it difficult for retailers to make adequate returns on children's clothing.