Table of Contents
Overview
-
- What you need to know
- Products covered in this report
Executive Summary
-
- The market
- Clothes sales to grow 3.1% in 2017
-
- Figure 1: Best- and worst-case forecast for consumer spending on clothing and accessories (incl VAT), 2012-22
- Clothing specialist sales grow only 2.4%
-
- Figure 2: Clothing specialists’ estimated share of spending on clothing, 2012-17
- Companies and brands
- Innovative brands continue to outperform
-
- Figure 3: Leading specialist retailers: compound annual growth in revenues, 2012-16
- Online clothing market to reach £13.9 billion
-
- Figure 4: estimated market shares of online sales of clothing and footwear, 2015-16
- Boohoo has highest level of recommendation
-
- Figure 5: Attitudes towards and usage of selected brands, February, May and August 2017
- The consumer
- Supermarkets become fashion destination
-
- Figure 6: Retailers from where clothes are bought both in-store and online, July 2017
- Most buy every few months or less
-
- Figure 7: How often consumers have bought clothes in the last 12 months, July 2017
- Most interest in food and drink areas
-
- Figure 8: Interest in additional services at retailers’ stores, July 2017
- Young women want newness
-
- Figure 9: Attitudes to shopping for clothes, July 2017
- Over-45s like try-before-you-buy option
-
- Figure 10: Interest in in-store or online innovations, July 2017
- What we think
Issues and Insights
-
- How has the clothing sector performed in 2017 and who is driving sales?
- The facts
- The implications
- Who are the winners and losers in clothing?
- The facts
- The implications
- What are the opportunities for driving sales?
- The facts
- The implications
The Market – What You Need to Know
-
- Rising inflation hits clothing
- Consumer confidence dips
- Clothes sales to grow 3.1% in 2017
- Clothing market will reach £69 billion by 2022
- Childrenswear drives growth
- Clothing specialist sales grow only 2.4%
Market Drivers
-
- Rising inflation hits clothing
-
- Figure 11: Consumer prices inflation for garments, Jul 2016-Jul 2017
-
- Figure 12: Consumer prices inflation for garments, 2006-16
- Footwear sees higher levels of discounting
-
- Figure 13: Consumer prices inflation for accessories and footwear, Jul 2016-Jul 2017
- Inflation versus spending growth
-
- Figure 14: Annual percentage change in spending on clothing (including accessories) versus annual percentage change in consumer prices inflation in clothing, 2013-16
- Consumer confidence drops
-
- Figure 15: Trends in consumer sentiment for the coming year, Jan 2016-Aug 2017
- Obesity soars among young men
-
- Figure 16: Proportion of overweight and obese population, by gender, 2010-15
- Ageing population impacts sector
Market Size and Forecast
-
- Clothes sales to grow 3.1% in 2017
-
- Figure 17: Best- and worst-case forecast for consumer spending on clothing and accessories (incl VAT), 2012-22
- The future
-
- Figure 18: Consumer spending on clothing and accessories (incl VAT) at current prices, 2012-22
- Consumers continue to spend on clothes
-
- Figure 19: Spending on clothing and accessories as percentage of all consumer spending, 2012-17
- Childrenswear drives growth
-
- Figure 20: Estimated distribution of spending on clothing, by sub-category, 2017 (est)
- Forecast methodology
Sector Size and Forecast
-
- Clothing specialist sales grow only 2.4%
-
- Figure 21: Best- and worst-case forecast of clothing specialists’ sector sales (incl. VAT), 2012-22
-
- Figure 22: Clothing specialist sales (incl VAT), 2012-22
- Specialists’ sales of clothing
-
- Figure 23: Estimated sales of clothing by clothing specialist retailers (incl VAT), 2012-17
- Specialist sales of clothing spend declines
-
- Figure 24: Clothing specialists’ estimated share of spending on clothing, 2012-17
Key Players – What You Need to Know
-
- Next still in the lead despite declines
- Innovative brands continue to outperform
- Half of the top players are non-specialists
- Online clothing market to reach £13.9 billion
- Clothing retailers turn to visual search apps
- Boohoo has highest level of recommendation
Leading Specialist Retailers
-
- Next still in the lead despite declines
-
- Figure 25: Leading specialist retailers, net revenues. 2012-16
- Innovative brands continue to outperform
-
- Figure 26: Leading specialist retailers: compound annual growth in revenues, 2012-16
- Outlet numbers and sales per outlet
-
- Figure 27: Leading specialist retailers: outlet numbers, 2012-16
- Sales per outlet
-
- Figure 28: Leading specialist retailers: annual sales per outlet, 2012-16
- Sales area and sales densities
-
- Figure 29: Leading specialist retailers: total sales area, 2012-16
- Figure 30: Leading specialist retailers: annual sales per sq m, 2012-16
- Operating profits and margins
-
- Figure 31: Leading specialist retailers: operating profits, 2012-16
- Figure 32: Leading specialist retailers: operating margins, 2012-16
Market Shares
-
- Half of the top players are non-specialists
-
- Figure 33: Leading retailers’ share of spending on clothing and footwear, 2014-16
- Department stores lose share
- M&S clothing share continues to drop
-
- Figure 34: M&S’s share of spending on clothing and footwear, 2009-16
Leading Non-Specialist Retailers
-
- Online-only retailers see strongest growth
- JD Sports outperforms Sports Direct
-
- Figure 35: Leading non-specialist retailers: net clothing and footwear revenues, 2014-16
Channels of Distribution
-
- Pureplays gain share
-
- Figure 36: Estimated distribution of consumer spending on clothing by type of retailer, 2016 and 2017
- Grocers grow focus on clothing
-
- Figure 37: Estimated distribution of consumer spending on clothing by type of retailer, 2015- 2017
- Specialists lose share further
-
- Figure 38: Clothing specialists’ estimated share of spending on clothing, 2012-17
Space Allocation Summary
-
- Men’s, women’s and children’s wear overview
-
- Figure 39: Men’s, women’s and children’s wear overview, October 2017
- Detailed category space allocation
-
- Figure 40: Specialist and non-specialist clothing retailers, estimated detailed space allocation by category, October 2017
- Figure 41: Specialist and non-specialist clothing retailers, estimated detailed space allocation by category, October 2017
- Figure 42: Specialist and non-specialist clothing retailers, estimated detailed space allocation by category, October 2017
- Clothing versus non-clothing space
-
- Figure 43: Specialist and non-specialist clothing retailers, estimated clothing versus non-clothing space, October 2017
Retail Product Mix
-
-
- Figure 44: Leading clothing retailers, estimated sales by product, 2016
- Figure 45: Leading clothing retailers: share of clothing sales by product, 2016
-
- Figure 46: Leading clothing retailers, estimated sales density by product, 2016
- Womenswear
-
- Figure 47: Leading clothing retailers, Estimated share of womenswear market, 2016
- Menswear
-
- Figure 48: Leading clothing retailers, Estimated share of menswear market, 2016
- Childrenswear
-
- Figure 49: Leading clothing retailers, Estimated share of Childrenswear market, 2016
-
Online
-
- Online clothing and accessories market to reach £13.9 billion
-
- Figure 50: Estimated online sales of clothing and footwear (incl VAT), 2014-17
- Online market shares
-
- Figure 51: estimated market shares of online sales of clothing and footwear, 2015-16
- Where do people shop online for clothes?
-
- Figure 52: Types of retailers where clothes were bought online in the last 12 months, July 2017
-
- Figure 53: Retailers where clothes were bought online in the last 12 months, July 2017
Launch Activity and Innovation
-
- Clothing retailers turn to visual search apps
-
- Figure 54: ASOS visual search option, 2017
- Gender neutral clothing
- John Lewis childrenswear goes genderless
-
- Figure 55: John Lewis gender neutral range, 2017
- Unisex adult clothing
-
- Figure 56: LaneFortyFive unisex clothing, 2017
- Modest fashion
-
- Figure 57: Nike Pro Hijab, 2017
- Personalisation
- 3D knitwear
-
- Figure 58: Adidas 3D knitwear printing, 2017
- Omnichannel approach
- Missguided open first physical store
-
- Figure 59: Missguided stores digital displays, 2017
- Farfetch store of the future
-
- Figure 60: Phone app for Farfetch ‘store of the future’, 2017
- Next to open in-store restaurant
- Sustainability
-
- Figure 61: Oasis x ZSL collection, 2017
- Try before you buy
-
- Figure 62: The Chapar personal styling service offering try before you buy, 2017
- Amazon Prime Wardrobe
- Net-a-Porter – You Try, We Wait
Advertising and Marketing Activity
-
- Increased advertising spend by major sports retailers
-
- Figure 63: Total above-the-line, online display, and direct mail advertising expenditure on clothing and accessories, top 30 spenders, 2013-17
- M&S Spend It Well
- H&M: She’s a lady
-
- Figure 64: Video still from H&M’s she’s a lady campaign, 2016
- ‘Why would anyone shop at TK Maxx?’
-
- Figure 65: TK Maxx Ridiculous Possibilities campaign, 2017
- Press remains top medium for advertising spend
-
- Figure 66: Total above-the-line, online display and direct mail advertising expenditure on clothing, by media type, 2016
- Nielsen Ad Intel coverage
Brand Research
-
- What you need to know
- Brand map
-
- Figure 67: Attitudes towards and usage of selected brands, February, May and August 2017
- Key brand metrics
-
- Figure 68: Key metrics for selected brands, February, May and August 2017
- Brand attitudes: Supermarkets offer good value
-
- Figure 69: Attitudes, by brand, February, May and August 2017
- Brand personality: M&S tired and boring, while Boohoo is fun and vibrant
-
- Figure 70: Brand personality – Macro image, February, May and August 2017
- Young fashion brands seen as trendsetting and stylish
-
- Figure 71: Brand personality – Micro image, February, May and August 2017
- Brand analysis
- Mid-market retailers: M&S, Next, and Mango
- Lifestyle retailers: Joules, Fat Face, and Cos
- Supermarket retailers: F&F, Tu, George, and Nutmeg
- Young fashion retailers: Topshop/Topman, H&M, New Look, Boohoo, and River Island
What Fashion Items People Buy
-
- Young men keen clothes shoppers
-
- Figure 72: Spending habits on clothes, footwear and accessories, June 2017
- Jeans on trend
-
- Figure 73: Types of outerwear purchased in the last three months, June 2017
Retail Customer Profile Comparison
-
- Amazon grows female focus
-
- Figure 74: Customer profile, by gender, July 2017
- Rise in 25-34s shopping for clothes
-
- Figure 75: Customer profile, by age, July 2017
-
- Figure 76: Customer profile, by socio-economic group, July 2017
Where People Shop for Clothes
-
- Supermarkets become fashion destination
-
- Figure 77: Retailers from where clothes are bought both in-store and online, July 2017
- Primark, M&S and Next all see declines
- Sports shops lose out to non-specialists
- Young women opt to shop at pureplays
-
- Figure 78: Retailers from where clothes are bought split by in-store and online, July 2017
- Who is driving growth?
-
- Figure 79: People who have bought clothes for themselves in-store and/or online or have not bought clothes in the last 12 months, by gender and age, July 2017
- Repertoire analysis
-
- Figure 80: Repertoire of retailers from which clothes are bought in-store or online, July 2017
Frequency of Buying Clothes
-
- Most buy every few months or less
-
- Figure 81: How often consumers have bought clothes in the last 12 months, July 2017
- Young men buy clothes less often
-
- Figure 82: Consumers who have bought clothes once a month or more, by gender and age, July 2017
- Affluent buy clothes less often
-
- Figure 83: How often consumers have bought clothes in the last 12 months, by financial situation, July 2017
Interest in Additional Store Services
-
- Most interest in food and drink areas
-
- Figure 84: Interest in additional services at retailers’ stores, July 2017
- High demand from under-35s for beauty services
-
- Figure 85: Interest in additional services at retailers’ stores, by gender and age, July 2017
- Attracting older women with VIP events
Attitudes to Shopping for Clothes
-
- Young women want newness
-
- Figure 86: Attitudes to shopping for clothes, July 2017
- 70% of 16-24s want more eco fashion
- Women demand more diverse models
-
- Figure 87: Clothing retailing – CHAID – Tree output, August 2017
- Methodology
Interest in Innovations
-
- Over-45s like try before you buy option
-
- Figure 88: Interest in in-store or online innovations, July 2017
- Millennials keen on using visual search
- Men drawn to subscription boxes
Arcadia Group
-
- What we think
- Topshop loses its appeal
- Dorothy Perkins falls behind other retailers
- Dealing with loss-making brands
- Company background
- Company performance
-
- Figure 89: Arcadia Group: Group financial performance, 2011/12-2016/17
-
- Figure 90: Arcadia Group: Outlet data, 2012/13-2016/17
- Retail offering
ASOS
-
- What we think
- Tapping into consumer demand for newness
- Exclusivity differentiates the brand and gives consumers more reason to visit
- M-commerce fuelling sales growth
- Bolstering ethical and environmental credentials
- Significantly enhancing its US proposition
- Company background
- Company performance
-
- Figure 91: ASOS: Group financial performance, 2011/12-2015/16
- Retail offering
Asda Group
-
- What we think
- A major player in clothing retailing
- Looking to become leaner
- Toyou service continues to drive footfall into stores
- Rumoured B&M deal would give Asda another outlet for clothing
- Where now?
- Company background
- Company performance
-
- Figure 92: Asda Group Ltd: Group financial performance, 2012-16
- Figure 93: Asda Group Ltd: Outlet data, 2012-16
- Retail offering
Debenhams
-
- What we think
- New strategy to lure shoppers back to its stores
- Veteran designers could face the axe in own-fashion range shake-up
- Extended lingerie offering
- ‘Mobile first’ strategy driving e-commerce sales
- Innovative click-and-collect experience planned to encourage incremental business
- Broadening its customer reach through third-party online partners
- Company background
- Company performance
-
- Figure 94: Debenhams: Group financial performance, 2011/12-2015/16
-
- Figure 95: Debenhams: Outlet data, 2011/12-2015/16
- Retail offering
Edinburgh Woollen Mill
-
- What we think
- Another wave of acquisitions
- On the lookout for more
- Bringing a new department store to the market
- Company background
- Company performance
-
- Figure 96: The Edinburgh Woollen Mill Group: Group financial performance, 2011/12-2015/16
- Figure 97: The Edinburgh Woollen Mill Group: Outlet data, 2011/12-2015/16
- Retail offering
Grupo Inditex
-
- What we think
- Inditex retains strong position but must continue to innovate
- Brand extensions
-
- Figure 98: Stradivarius menswear collection, 2017
-
- Figure 99: Pull&Bear beauty range, 2017
- Digital innovations
- Company background
- Company performance
-
- Figure 100: Grupo Inditex: Group financial performance, 2012/13-2016/17
- Figure 101: Grupo Inditex: % share of sales, by retail brand, 2015/16-2016/17
-
- Figure 102: Grupo Inditex: Sales and operating profit, by major retail brand, 2012/13-2016/17
-
- Figure 103: Grupo Inditex: Outlet data, by region, at January 2017
- Figure 104: Grupo Inditex: Store numbers, by retail brand, at January 2016 and January 2017
- Figure 105: Grupo Inditex: Outlet data, 2012/13-2016/17
- Retail offering
H&M Hennes & Mauritz
-
- What we think
- Looking beyond fast fashion
- A more seamless shopping experience
- New designer collection aims to appeal to fashion conscious male shoppers
- New loyalty scheme with exclusive offers and brand experiences
- Focusing on offering sustainable finishing processes and eco-friendly materials
- Company background
- Company performance
-
- Figure 106: H&M Hennes & Mauritz: Group financial performance, 2011/12-2015/16
-
- Figure 107: H&M Hennes & Mauritz: Outlet data, 2011/12-2015/16
- Retail offering
House of Fraser
-
- What we think
- Refreshing flagging womenswear offering
- New fashion concept
- Lifestyle-led in-store experiences to drive footfall and extend dwell time
- £25 million upgrade of e-commerce platform to double online sales
- Company background
- Company performance
-
- Figure 108: House of Fraser Plc: Group financial performance, 2012/13-2016/17
-
- Figure 109: House of Fraser Plc: UK & Ireland outlet data, 2012/13-2016/17
- Retail offering
John Lewis
-
- What we think
- A focus on exclusivity
- Investment in experience-driven stores
- Improved information to streamline the shopping experience
- Company background
- Company performance
-
- Figure 110: John Lewis Plc (department store): Group financial performance, 2012/13-2016/17
-
- Figure 111: John Lewis Plc (department store): Outlet data, 2012/13-2016/17
- Retail offering
Marks & Spencer
-
- What we think
- Repositioning clothing
- Reshaping its stores
- Online
- Company background
- Company performance
-
- Figure 112: Marks & Spencer: Group financial performance, 2012/13-2016/17
-
- Figure 113: Marks & Spencer: Outlet data, 2012/13-2016/17
- Retail offering
Matalan
-
- What we think
- Investment in product quality driving full-price sales
- Extensive store refurbishment programme
- Exploring international sales growth opportunities
- Bespoke fashion and style show enhances online presence
- Influencer-generated content boosts fashion credentials
- Parcel pick-up service is an opportunity to drive store footfall
- Company background
- Company performance
-
- Figure 114: Matalan Ltd: Group financial performance, 2012/13-2016/17
-
- Figure 115: Matalan Ltd: Outlet data, 2012/13-2016/17
- Retail offering
New Look
-
- What we think
- Focused on delivering trends to market faster
- Fewer discounts and promotions
- Multichannel sales potential compromised by slumping website traffic and sales
- Expanded menswear proposition
- Tailored ranges and domestic sourcing helps boost business in China
- Recruiting social media influencers to drive brand awareness and identify trends quicker
- Company background
- Company performance
-
- Figure 116: New Look Group Plc: Group financial performance, 2012/13-2016/17
-
- Figure 117: New Look Group Plc: Outlet data, 2012/13-2016/17
- Retail offering
Next Group
-
- What we think
- Pushing too hard for flexibility?
- A bold strategy…
- …which could leave it exposed
- Giving customers more reason to visit stores
- Devaluation impact on prices is diminishing
- Where now?
- Company background
- Company performance
-
- Figure 118: Next Group: Group financial performance, 2012/13-2016/17
-
- Figure 119: Next Group: Outlet data, 2012/13-2016/17
- Retail offering
Primark
-
- What we think
- Getting the product right
- Competition intensifying from rivals
- Brexit impact mitigated but price rises a possibility
- Should Primark have a transactional website?
- Where next?
- Company background
- Company performance
-
- Figure 120: Primark/Penneys: Group financial performance, 2012/13-2016/17
-
- Figure 121: Primark/Penneys: Outlet data, 2012/13-2016/17
- Retail offering
River Island
-
- What we think
- Avoiding seasonal fashion marketing
- Integrating influencer-generated content
- Seamless cross-channel shopping experience
- Customer-facing digital enhancements streamline the in-store shopping experience
- Improved stock availability boosting store sales
- Pushing for a bigger slice of the children’s clothing market
- Cutting-edge canine fashion
- Preparing to launch its own homewares
- Company background
- Company performance
-
- Figure 122: River Island Clothing Co Ltd: Group financial performance, 2012-16
- Figure 123: River Island Clothing Co Ltd: Outlet data, 2012-16
- Retail offering
Tesco
-
- What we think
- Leading the pack with online innovations
- Making stores work harder
- Where next?
- Company background
- Company performance
-
- Figure 124: Tesco Plc: Group financial performance, 2012/13-2016/17
-
- Figure 125: Tesco Plc: Outlet data, 2012/13-2016/17
- Retail offering
TK Maxx UK
-
- What we think
- Attracting a broad demographic
- Launching Treasure
- Online offers an opportunity to accelerate growth
- Company background
- Company performance
-
- Figure 126: TK Maxx UK: Group sales performance, 2012/13-2016/17
-
- Figure 127: TK Maxx UK: Outlet data, 2012/13-2016/17
- Retail offering
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Definitions
- VAT
- Sales per store, sales per sq m
- Other
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
-
- Forecast methodology
Back to top