Table of Contents
Executive Summary
-
- Clothing sales to see slower growth of 4% in 2015
-
- Figure 1: Best- and worst-case forecast for consumer spending on clothing and accessories (incl. VAT), 2010-20
- Pureplays and sports retailers gain share
-
- Figure 2: Estimated distribution of consumer spending on clothing, by value, 2014 and 2015 (est)
- Online clothing market to reach £10.7 billion
-
- Figure 3: Online as a percentage of total spending on clothing and accessories, 2013-15
- Next viewed as the most stylish brand
-
- Figure 4: Attitudes towards and usage of selected retail brands, August 2015
- Older women shop more online
-
- Figure 5: Retailers from which clothes are bought in-store and online, July 2015
- Dissatisfaction with availability of sizes
-
- Figure 6: Level of satisfaction with last retailer from which clothes were purchased for themselves, July 2015
- Half of women under 45 struggle with fit
-
- Figure 7: Shopping behaviour when buying clothes, July 2015
- High demand for standardising sizes
-
- Figure 8: Attitudes towards shopping for clothes, July 2015
- Over half of young women have returned online purchases
-
- Figure 9: Reasons for returning clothes purchased online, July 2015
- What we think
Issues and Insights
-
- How has the clothing sector performed in 2015?
- The facts
- The implications
- Who are the winners and losers in clothing?
- The facts
- The implications
- What are retailers doing to help solve the problem of the high level of returns for clothing bought online?
- The facts
- The implications
The Market – What You Need to Know
-
- Clothing price deflation
- Ageing population presents an opportunity
- Clothing sales to see slower growth of 4% in 2015
- Consumers cut back on clothing as share of total spend
- Menswear still only accounts for 26% of the total market
- Specialists’ share of clothing spend in decline
Market Drivers
-
- Prices and costs
-
- Figure 10: Consumer prices inflation for garments, July 2014-July 2015
- Figure 11: Consumer prices inflation for garments, 2005-14
-
- Figure 12: Consumer prices inflation for accessories and footwear, July 2014-July 2015
- Inflation versus spending growth
-
- Figure 13: Annual percentage change in spending on clothing (including accessories) versus annual percentage change in consumer prices inflation in clothing, 2011-14
- Obesity levels
-
- Figure 14: Proportion of overweight and obese population, by gender, 2005-13
- Ageing population presents an opportunity
-
- Figure 15: Trends in the age structure of the UK population, 2009-19
Market Size and Forecast
-
- Clothing sales to see slower growth of 4% in 2015
-
- Figure 16: Best- and worst-case forecast for consumer spending on clothing and accessories (incl. VAT), 2010-20
- The future
-
- Figure 17: Consumer spending on clothing and accessories (incl. VAT), at current prices, 2010-20
- Consumers cut back on clothing as share of total spend
-
- Figure 18: Spending on clothing and accessories as percentage of all consumer spending, 2010-15
- Menswear growing but still only accounts for 26% of the total market
-
- Figure 19: Estimated distribution of spending on clothing, by sub-category, 2015 (est)
Sector Size and Forecast
-
- Clothing specialist sales to grow 3.3% in 2015
-
- Figure 20: Best- and worst-case forecast of clothing specialists’ sector sales (incl. VAT), 2010-20
- Figure 21: Clothing specialist sales (incl. VAT), 2010-20
- Specialists’ sales of clothing
-
- Figure 22: Estimated sales of clothing by clothing specialist retailers (incl. VAT), 2010-15
- Specialists’ share of clothing spend in decline
-
- Figure 23: Clothing specialists’ estimated share of spending on clothing, 2010-15
Key Players – What You Need to Know
-
- M&S lead under threat
- Young fashion retailers outperform mid-market
- Primark overtakes Arcadia to become third largest
- Sports Direct is the leading non-specialist
- Supermarkets see slower sales
- Online clothing market to reach £10.7 billion
- Next seen as most stylish brand
Leading Specialist Retailers
-
- Sales – Primark overtakes Arcadia
-
- Figure 24: Leading specialist retailers: net revenues, 2010-14
- Young fashion retailers outperform
-
- Figure 25: Leading 20 specialist retailers; compound annual growth in revenues, 2010-14
- Outlet numbers and sales per outlet
-
- Figure 26: Leading specialist retailers: outlet numbers, 2010-14
- Sales per outlet
-
- Figure 27: Leading specialist retailers: annual sales per outlet, 2010-14
- Sales area and sales densities
-
- Figure 28: Leading specialist retailers: total sales area, 2010-14
- Sales per square metre
-
- Figure 29: Leading specialist retailers: annual sales per sq m, 2010-14
- Operating profits and margins
-
- Figure 30: Leading specialist retailers: operating profits, 2010-14
- Figure 31: Leading specialist retailers: operating margins, 2010-14
Market Shares
-
- Primark overtakes Arcadia
- Half of top players are non-specialists
-
- Figure 32: Leading retailers’ share of spending on clothing and footwear, 2012-14
- M&S continues to lose share
-
- Figure 33: Marks & Spencer’s share of spending on clothing and footwear, 2006-14
Leading Non-Specialist Retailers
-
- Sports Direct is the leading non-specialist
-
- Figure 34: Leading non-specialist retailer: net clothing and footwear revenues, 2012-14
- Supermarkets see slower sales
-
- Figure 35: Retailers from which clothes have been bought in the last 12 months, in-store or online, July 2015
Channels of Distribution
-
- Pureplays and sports retailers gain share
-
- Figure 36: Estimated distribution of consumer spending on clothing, by value, 2013-15 (est)
- Specialists continue to lose share
-
- Figure 37: Clothing specialists’ estimated share of spending on clothing, 2010-15
Space Allocation Summary
-
- Men, women and children’s clothing split
-
- Figure 38: Leading and non-specialist clothing retailers, estimated space allocation by men’s, women’s and childrenswear, October 2015
- Detailed category space allocation
-
- Figure 39: Leading and non-specialist clothing retailers, estimated detailed space allocation by category, October 2015
- Figure 40: Leading and non-specialist clothing retailers, estimated detailed space allocation by category, October 2015
- Specialists and leading general clothing retailers clothing and non-clothing space split
-
- Figure 41: Specialists and leading general clothing retailers, estimated clothing versus non-clothing space, October 2015
- ASDA creating a clothes store within a store environment
-
- Figure 42: Grocers, estimated clothing versus non-clothing space, October 2015
Retail Product Mix
-
-
- Figure 43: Leading clothing retailers, estimated clothing product mix, 2014/15
-
- Figure 44: Leading food retailers, estimated clothing product mix, 2014/15
- Figure 45: Leading clothing retailers, share of clothing sales by product, 2014/15
-
- Figure 46: Leading clothing retailers, estimated sales density by product, 2014/15
- Figure 47: Leading food retailers, estimated clothing sales density by product, 2014/15
- Figure 48: Leading clothing retailers, share of product markets, 2014/15
-
Online
-
- Online clothing market to reach £10.7 billion
-
- Figure 49: Estimated online sales of clothing and footwear (incl. VAT), 2012-15
- Online market shares
-
- Figure 50: Estimated market shares of online sales of clothing and footwear, 2014
- Amazon leads online
-
- Figure 51: Retailers from which clothes were bought in the last 12 months online, July 2015
Innovations and Launch Activity
-
- Men’s fashion store fusing fashion and technology
-
- Figure 52: The lifestyle product range at Dandy Lab, with wall-mounted screens to display information about the products and brands
- Google and Levi’s tie up for ‘smart’ jeans
- Personalising the online shopping experience
- Clothing retailers offer personal style solutions
- Pep&Co takes on the high street
- Engaging with customers through weekly podcasts
- Irish multi-brand site launches in the UK
- Burberry live-streams catwalk show through Periscope
Advertising and Marketing Activity
-
- M&S regains its position as the top clothing advertiser
-
- Figure 54: Recorded above-the-line, online display and direct mail total advertising expenditure by the leading clothing retailers, 2011-15
- Press advertising dominates
-
- Figure 55: Percentage breakdown of leading clothing retailers’ advertising spend, by media type, 2014
- A note on adspend
Brand Research
-
- What you need to know
- Brand map
-
- Figure 56: Attitudes towards and usage of selected retail brands, August 2015
- Key brand metrics
-
- Figure 57: Key metrics for selected retail brands, August 2015
- M&S seen as worth paying more for
-
- Figure 58: Attitudes, by retail brand, August 2015
- H&M benefits from a fun and vibrant image
-
- Figure 59: Brand personality – Macro image, August 2015
- ASOS associated with trendsetting and cutting-edge traits
-
- Figure 60: Brand personality – Micro image, August 2015
- Brand analysis
- Mid-market retailers: M&S, Debenhams and Next
- Supermarket clothing brands: F&F at Tesco and George at Asda
- Young fashion retailers: Topshop/Topman, ASOS, New Look, H&M
- Value retailer: Primark
Arcadia Group
-
- What we think
- BHS sale
- Topshop’s international expansion continues
- Digital tie-ups
- Company background
- Company performance
-
- Figure 61: Arcadia Group: Financial performance, 2009/10-2014/15
-
- Figure 62: Arcadia Group: Outlet data, 2009/10-2013/14
- Retail offering
Asda Group
-
- What we think
- Clothing
- Company background
- Company performance
-
- Figure 63: Asda Group Ltd: Group financial performance, 2009/10-2013/14
-
- Figure 64: Asda Group Ltd: Outlet data, 2009/10-2013/14
- Retail offering
Debenhams
-
- What we think
- Cutting back on sales and special offers
- More third-party clothing retailers
- Own clothing offer not compelling enough?
- Online and multichannel enhancements paying off
- Company background
- Company performance
-
- Figure 65: Debenhams: Group financial performance, 2009/10-2013/14
-
- Figure 66: Debenhams: Outlet data, 2009/10-2014/15
- Retail offering
The Edinburgh Woollen Mill Group
-
- What we think
- Peacocks’ turnaround in fortunes
- Enhanced multichannel capabilities driving online sales
- Concession tie-up opportunities for Peacocks
- Company background
- Company performance
-
- Figure 67: The Edinburgh Woollen Mill Group: Financial performance, 2009/10-2013/14
-
- Figure 68: The Edinburgh Woollen Mill Group: Outlet data, 2009/10-2013/14
- Retail offering
H&M Hennes & Mauritz
-
- What we think
- On-trend affordable fashion proposition
- H&M Sport potential
- Further store expansion opportunities
- Expanding and broadening the online offer
- Company background
- Company performance
-
- Figure 69: H&M Hennes & Mauritz: Group financial performance, 2009/10-2013/14
-
- Figure 70: H&M Hennes & Mauritz: Outlet data, 2009/10-2013/14
- Retail offering
House of Fraser
-
- What we think
- Unique fashion brand proposition
- Developing its multichannel fashion proposition
- Enhanced premium fashion shopping environment
- Company background
- Company performance
-
- Figure 71: House of Fraser Plc: Group financial performance, 2010/11-2014/15
-
- Figure 72: House of Fraser Plc: Outlet data, 2010/11-2014/15
- Retail offering
Grupo Inditex
-
- What we think
- Store openings drive growth
- Shifting focus to new markets
- Zara, the jewel in the crown
- Company background
- Company performance
-
- Figure 73: Grupo Inditex: Group financial performance by major European country, 2010/11-2014/15
- Figure 74: Grupo Inditex: Share of sales, by retail brand, 2014/15
-
- Figure 75: Grupo Inditex: Sales and operating profit, by major retail brand, 2010/11-2014/15
- Source: Company Accounts and Annual Report/Mintel
- Figure 77: Grupo Inditex: Store numbers, by retail brand, 2014/15
-
- Figure 78: Grupo Inditex: Outlet data, 2010/11-2014/15
- Figure 79: Grupo Inditex: Sales per store, by brand, 2014/15
- Retail offering
John Lewis Plc (department store)
-
- What we think
- Loved & Found
- International expansion
- Online
- Company background
- Company performance
-
- Figure 80: John Lewis Plc (department store): Group financial performance, 2010/11-2014/15
- Figure 81: John Lewis Plc (department store): Outlet data, 2010/11-2014/15
- Retail offering
Marks & Spencer
-
- What we think
- Quarterly increases
- Ongoing challenges
- Aligning the business
-
- Figure 82: Customer profile, M&S food vs M&S clothing shoppers, by age, February 2015 and July 2015
- Online
- Company background
- Company performance
-
- Figure 83: Marks & Spencer: Group financial performance, 2010/11-2014/15
-
- Figure 84: Marks & Spencer: Outlet data, 2010/11-2014/15
- Retail offering
Matalan
-
- What we think
- New brand director and advertising campaign to fight off competition
- City centre store opportunities
- Scrapping Sporting Pro
- New distribution hub
- Company background
- Company performance
-
- Figure 85: Matalan Ltd: Group financial performance, 2010/11-2014/15
-
- Figure 86: Matalan Ltd: Outlet data, 2010/11-2014/15
- Retail offering
New Look Group
-
- What we think
- China expansion
- Menswear push
- Third-party partnerships boosts global reach and e-commerce revenue
- Increased delivery options enhance multichannel proposition
- Company background
- Company performance
-
- Figure 87: New Look Group Plc: Group financial performance, 2010/11-2014/15
-
- Figure 88: New Look Group Plc: Outlet data, 2010/11-2014/15
- Retail offering
Next Group
-
- What we think
- Faster fashion
- Less is more
- Online
- International growth
- Company background
- Company performance
-
- Figure 89: Next Group: Group financial performance, 2010/11-2014/15
-
- Figure 90: Next Group: Outlet data, 2010/11-2014/15
- Retail offering
Otto Group (Multichannel Retail)
-
- What we think
- 3SI transformation
- Creating fashion start-ups
- Russian troubles
- Company background
- Company performance
-
- Figure 91: Otto Group (Multichannel Retail): Group financial performance, 2010/11-2014/15
- Retail offering
Primark/Penneys
-
- What we think
- Continued expansion
- Tough German market
- Online
- Company background
- Company performance
-
- Figure 92: Primark/Penneys: Group financial performance, 2010/11-2014/15
- Figure 93: Primark/Penneys: Outlet data, 2010/11-2014/15
- Retail offering
River Island Clothing Co Ltd
-
- What we think
- New fashion in-store and online every single week
- ‘Wow factor’ store design
- Tie-up with Rihanna prompting international expansion
- Doddle partnership enhances multichannel proposition
- Tapping into new technology
- Customer engagement
- Company background
- Company performance
-
- Figure 94: River Island Clothing Co Ltd: Group financial performance, 2009/10-2013/14
-
- Figure 95: River Island Clothing Co Ltd: Outlet data, 2009/10-2013/14
- Retail offering
Tesco
-
- What we think
- Clothing linked to grocery
- Online
- Company background
- Company performance
-
- Figure 96: Tesco: Estimated clothing sales, 2011/12-2014/15
- Figure 97: Tesco Plc: Group financial performance, 2010/11-2014/15
- Figure 98: Tesco Plc: Outlet data, 2010/11-2014/15
- Retail offering
TJX Europe (TK Maxx)
-
- What we think
- A loyal following
- New markets
- Online
- Company background
- Company performance
-
- Figure 99: TJX Europe (TK Maxx): Group financial performance, 2010/11-2014/15
-
- Figure 100: TJX Europe (TK Maxx): Outlet data, 2010/11-2014/15
- Retail offering
The Consumer – What You Need to Know
-
- M&S has oldest customer profile
- Retailers raising their game in menswear
- Dissatisfaction with availability of sizes
- Amazon receives high satisfaction scores
- Half of women under 45 struggle with fit
- 63% of women will spend more on clothes that flatter
- Solving the issue of fit online
- Over half of young women have returned online purchases
- Poor fit is the main reason for returns
What Fashion Items People Buy
-
-
- Figure 101: Spending habits on clothes, footwear and accessories, June 2015
-
- Figure 102: Loved & Found, John Lewis Birmingham, September 2015
- Figure 103: Loved & Found, John Lewis Birmingham, September 2015
-
Retail Customer Profile Comparison
-
- Gender
-
- Figure 104: Customer profile, by gender, July 2015
- Age
-
- Figure 105: Customer profile, by age, July 2015
- Figure 106: Customer profile, by socio-economic group, July 2015
Where People Shop For Clothes
-
- Retailers raising their game in menswear
-
- Figure 107: New Look standalone menswear store Wigan, September 2015
- Figure 108: Retailers from which clothes are bought in-store and online, July 2015
- Young women are the keenest shoppers
- Online and offline split – Where consumers buy
-
- Figure 109: Retailers from which clothes are bought in-store and online, July 2015
- Repertoire analysis
-
- Figure 110: Repertoire of retailers from which clothes are bought in-store and online, July 2015
Level of Satisfaction with Clothing Retailers
-
- Dissatisfaction with availability of sizes
-
- Figure 111: Level of satisfaction with last retailer from which clothes were purchased for themselves, July 2015
- Satisfaction scores for retailers
-
- Figure 112: Satisfaction ratings for M&S relative to clothing average, July 2015
-
- Figure 113: Satisfaction ratings for Next relative to clothing average, July 2015
- Figure 114: Satisfaction ratings for Primark relative to clothing average, July 2015
-
- Figure 115: Satisfaction ratings for Amazon relative to clothing average, July 2015
- Retailers need to promote quality rather than promotions
- Personalising the product on offer
- Prioritising online delivery and service
-
- Figure 117: Correlation with overall satisfaction with clothing retailers – Key driver output, August 2015
Shopping Behaviour
-
- Half of women under 45 struggle with fit
- Men wear what they like regardless of size
-
- Figure 118: Shopping behaviour when buying clothes, July 2015
- Targeting older women with alterations service
- 63% of women will spend more on clothes that flatter
-
- Figure 119: Clothing retailing – CHAID – Tree output, October 2015
Attitudes Towards Shopping for Clothes
-
- High demand for standardising sizes
- 72% of women want retailers to offer more choice of sizes
-
- Figure 120: Attitudes towards shopping for clothes, July 2015
- Solving the issue of fit online
- Clothing recommendations
- Personalisation
Reasons for Returning Clothing
-
- Over half of young women have returned online purchases
-
- Figure 121: Proportion of consumers who have returned clothes purchased for themselves online, July 2015
- Poor fit is the main reason for returns
- Poor pictures lead to returns among young women
-
- Figure 122: Reasons for returning clothes purchased online, July 2015
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Key driver analysis
- Interpretation of results
-
- Figure 123: Overall satisfaction with clothing retailers – Key driver output, August 2015
-
- Figure 124: Satisfaction with clothing retailers, August 2015
- CHAID analysis
- Methodology
-
- Figure 125: Clothing retailing – CHAID – Table output, October 2015
- Data sources
- Definitions
- VAT
- Sales per store, sales per sq m
- Other
- Fan chart forecast
- Abbreviations
Back to top