Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Consumer spending expected to grow 5.3% in 2018
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- Figure 1: Consumer spending on clothing and accessories, 2013-23
- Retail sales through clothing specialists will only rise 1.0%
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- Figure 2: Retail sales through specialist clothing retailers, 2013-23
- Leading players continue to lose market share
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- Figure 3: Estimated distribution of consumer spending on clothing, by type of retailer, 2018
- Companies and brands
- Inditex is the UK’s fastest growing multi-channel retailer
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- Figure 4: Leading specialist retailers: compound annual growth in revenues, 2013-17
- Online fashion market set to reach £32.8 billion by 2023
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- Figure 5: Online sales of clothing, accessories and footwear, 2013-23
- Despite declines, M&S still highly regarded amongst UK consumers
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- Figure 6: Attitudes towards and usage of selected brands, January-August 2018
- The consumer
- Store-based clothing retailers remain popular
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- Figure 7: Types of retailers used to purchase clothing in the last 12 months, August 2018
- Fashion consumers are shopping less frequently
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- Figure 8: Frequency of clothing purchases in the last 12 months, August 2017 and August 2018
- High satisfaction with quality and range of clothing
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- Figure 9: Key drivers of overall satisfaction with clothing retailers, August 2018
- The perception that shopping online is cheaper
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- Figure 10: Why consumers shop online for clothing, August 2018
- The ability to try clothes on ahead of purchase is important
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- Figure 11: Why consumers don’t shop online for clothing, August 2018
- Consumers want retailers to incentivise their sustainability efforts
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- Figure 12: Clothing shopping behaviours, August 2018
- What we think
Issues and Insights
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- The high-street vs online
- The facts
- The implications
- Is the tide about to turn on fast fashion?
- The facts
- The implications
- Rebuilding brand loyalty
- The facts
- The implications
The Market – What You Need to Know
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- Womenswear drives consumers spending growth
- Slow growth projected for the specialists
- Online-only retailers capture greater share of spending
- Inflation pressure has eased in 2018…
- …but consumer confidence has taken a hit from ongoing economic uncertainty
Market Size and Forecast
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- Consumers remain willing to spend on clothing
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- Figure 13: Consumer spending on clothing and accessories, 2013-23
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- Figure 14: Consumer spending on clothing and accessories, at current and constant prices, 2013-23
- What might Brexit mean for the UK clothing market?
- Clothing takes increased share of total consumer spending
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- Figure 15: Spending on clothing and accessories as percentage of all consumer spending, 2014-18
- A renewed appetite for womenswear
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- Figure 16: Estimated breakdown of consumer spending on clothing and accessories, 2018
- Figure 17: Estimated breakdown of consumer spending on clothing and accessories, 2016-18
- Forecast methodology
Sector Size and Forecast
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- Clothing specialists fail to sustain momentum gained in 2017
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- Figure 18: Retail sales through specialist clothing retailers, 2013-23
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- Figure 19: Retail sales through specialist clothing retailers, at current and constant prices, 2013-23
- Clothing sales through specialist clothing retailers
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- Figure 20: Sales of clothing and accessories through specialist clothing retailers, 2013-18
- Figure 21: Clothing specialists share of consumer spending on clothing and accessories, 2013-18
- Forecast methodology
Channels of Distribution
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- Ongoing shifts in where people shop for clothing
- Specialists losing share
- Non-specialists also underperforming
- Growing sectors
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- Figure 22: Estimated distribution of consumer spending on clothing, by type of retailer, 2018
- Figure 23: Estimated distribution of consumer spending on clothing, by type of retailer, 2016-18
Market Drivers
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- High inflation throughout 2017
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- Figure 24: Consumer price inflation, 2007-17
- Garment price inflation eases
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- Figure 25: Consumer price inflation, August 2017-August 2018
- Real wage showing signs of growth in 2018
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- Figure 26: Real wage growth – Average weekly earnings vs inflation, January 2016-August 2018
- Consumer confidence dips end of spring/summer 2018
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- Figure 27: Consumer financial confidence, September 2016-September 2018
- Clothing is still popular for disposable income spend
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- Figure 28: Trends in what extra money is spent on, September 2017 and September 2018
- Catering to an ageing population
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- Figure 29: Trends in the age structure of the UK population, 2016-26
- High obesity rates increase the demand for plus size ranges
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- Figure 30: Overweight and obesity prevalence in the UK population, 2012-16
- Younger consumers ideal targets for online
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- Figure 31: Online activities done in the last three months on any device*, June 2018
- Social media usage is on the rise
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- Figure 32: Recent social media network usage, March 2017 and April 2018
- The gender pay gap is slowly closing
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- Figure 33: Median gross hourly earnings (excluding overtime) for full-time employees, by sex, UK, 2011-17
Companies and Brands – What You Need to Know
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- Clothing specialists continue to struggle…
- …but non-specialists are also facing problems
- Online-only retailers continue to outperform
- Online consumer spending set to reach £32.8 billion by 2023
- M&S most trusted, but Next wins on style
Leading Specialists
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- Next continues to lead although still in decline
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- Figure 34: Leading specialist retailers, net revenues. 2013-17
- Retailers with strong lifestyle brands outperform
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- Figure 35: Leading specialist retailers: compound annual growth in revenues, 2013-17
- Outlet numbers and sales per outlet
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- Figure 36: Leading specialist retailers: outlet numbers, 2013-17
- Sales per outlet
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- Figure 37: Leading specialist retailers: estimated annual sales per outlet, 2013-17
- Sales area and sales densities
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- Figure 38: Leading specialist retailers: total sales area, 2013-17
- Figure 39: Leading specialist retailers: estimated annual sales per sq m, 2013-17
- Operating profits and margins
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- Figure 40: Leading specialist retailers: operating profits, 2013-17
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- Figure 41: Leading specialist retailers: operating margins, 2013-17
Leading Non-specialists
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- Sports retailers
- Department stores
- Supermarkets major players
- Online retailers
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- Figure 42: Leading non-specialists, estimated clothing and footwear revenues, 2015-17
Market Shares
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- Figure 43: Leading retailers’ estimated share of spending on clothing and footwear, 2015-17
- Change in market share
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- Figure 44: Leading clothing retailers, change in share of clothing spending, 2014-17
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Space Allocation Summary
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- Men’s, women’s and childrenswear overview
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- Figure 45: Men’s, women’s and childrenswear overview, October 2018
- Figure 46: Men’s, women’s and childrenswear overview, October 2018
- Detailed category space allocation
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- Figure 47: Specialist and non-specialist clothing retailers, estimated detailed space allocation, by category, October 2018
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- Figure 48: Specialist and non-specialist clothing retailers, estimated detailed space allocation, by category, October 2018
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- Figure 49: Specialist and non-specialist clothing retailers, estimated detailed space allocation, by category, October 2018
- In-store concessions giving shoppers a wider choice of fashion options
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- Figure 50: Tesco Extra Next branded concession, October 2018
- Figure 51: Next 120-128 Oxford Street, London, Costa Coffee and Hema in-store concessions, October 2018
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- Figure 52: Specialist and non-specialist clothing retailers, estimated clothing versus non-clothing space, October 2018
Retail Product Mix
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- Figure 53: Leading clothing retailers, estimated sales, by product, 2017
- Figure 54: Leading clothing retailers: share of clothing sales, by product, 2017
- Womenswear
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- Figure 55: Leading clothing retailers estimated share of the womenswear market, 2017
- Menswear
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- Figure 56: Leading clothing retailers estimated share of the menswear market, 2017
- Childrenswear
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- Figure 57: Leading clothing retailers estimated share of the childrenswear market, 2017
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Online
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- Online fashion growth continues to outperform
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- Figure 58: Online sales of clothing, accessories and footwear, 2013-23
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- Figure 59: Online sales of clothing, accessories and footwear, at current and constant prices, 2013-23
- Online spending on clothing and accessories set to rise 8.2% in 2018
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- Figure 60: Breakdown of online sales of clothing, accessories and footwear, 2013-23
- Where they shop online
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- Figure 61: Retailers used to purchase clothing online in the last 12 months, August 2018
- Forecast methodology
Launch Activity and Innovation
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- Inditex aiming to fully integrate online and offline
- In-store tech becomes mainstream
- The rise of lifestyle retailing
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- Figure 62: H&M Fragrance Collection, 2018
- Figure 63: River Island Homeware Collection, 2018
- Own-label expansion
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- Figure 64: Amazon Aurique Collection, 2018
- New fashion labels target young shoppers
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- Figure 65: ASOS Collusion, 2018
- Social shopping
- This year’s big collaborations
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- Figure 66: H&M x William Morris Collection, 2018
- In search of sustainability
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- Figure 67: H&M Paris Store, 2018
- Rejecting fabrics derived from animals
- Improved order fulfilment
- Try before you buy
Advertising and Marketing Activity
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- Advertising spend for the clothing market has increased
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- Figure 68: Recorded above-the-line advertising expenditure on clothing and accessories, total market, 2013-17
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- Figure 69: Recorded above-the-line, online, display and direct mail total advertising expenditure on clothing, by leading top 20 spenders in 2017, 2014-18
- Key campaigns
- Holly Willoughby for Marks & Spencer
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- Figure 70: M&S Holly Willoughby Campaign, 2018
- The real winner of Love Island
- Just Do It
- Digital increasing its share of expenditure
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- Figure 71: Recorded above-the-line advertising expenditure percentage on clothing, by media type, total market, 2017
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Brand map
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- Figure 72: Attitudes towards and usage of selected brands, January-August 2018
- Key brand metrics
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- Figure 73: Key metrics for selected brands, January-August 2018
- Brand attitudes: M&S offers great customer service
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- Figure 74: Attitudes, by brand, January-August 2018
- Brand personality: Ted Baker seen as most exclusive
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- Figure 75: Brand personality – Macro image, January-August 2018
- Primark perceived as basic
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- Figure 76: Brand personality – Micro image, January-August 2018
- Brand analysis
- Mass market retailers: Next, M&S and Gap
- Premium lifestyle retailers: Superdry, Ted Baker and Reiss
- Home shopping retailers: Very, JD Williams and Boden
- Value retailers: Primark, New Look and Matalan
- Fast fashion retailers: Topshop/Topman, H&M and Zara
Arcadia Group
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- What we think
- Topshop/Topman is priority for turnaround
- Too many brands?
- Dorothy Perkins, Evans and Wallis show signs of recovery
- Company background
- Company performance
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- Figure 77: Arcadia Group: group financial performance, 2012/13-2016/17
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- Figure 78: Arcadia Group: outlet data, 2012/13-2016/17
- Retail offering
Asda Group
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- What we think
- Proposed merger with Sainsbury’s will create one of the UK’s largest clothing groups
- Using digital technology to enhance the in-store clothes shopping experience
- 60-second click-and-collect
- Enhanced mobile experience with new progressive web app
- Combatting the use of microplastics in clothing
- Company background
- Company performance
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- Figure 79: Asda Group Ltd: group financial performance, 2013-17
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- Figure 80: Asda Group Ltd: outlet data, 2013-17
- Retail offering
ASOS
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- What we think
- Highlighting inclusivity
- Sustainability and welfare pledges
- Collaboration and innovation
- Try before you buy
- Athleisure launches
- Seamless shopping
- Company background
- Company performance
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- Figure 81: ASOS: group financial performance, 2012/13-2016/17
- Retail offering
Debenhams
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- What we think
- A delicate financial balancing act
- Time to focus resources on the home market?
- Fewer, smaller stores in the future?
- Digital growth offers hope
- Clothing revitalisation also at heart of growth plans
- Company background
- Company performance
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- Figure 82: Debenhams: group financial performance, 2012/13-2016/17
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- Figure 83: Debenhams: outlet data, 2012/13-2016/17
- Retail offering
Edinburgh Woollen Mill Group
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- What we think
- Building a multi-brand multi-price fashion conglomerate
- Department store selling fashion brands rescued from collapse
- New online checkout system helps increase conversion rate
- Company background
- Company performance
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- Figure 84: Edinburgh Woollen Mill Group: group financial performance, 2012/13-2016/17
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- Figure 85: Edinburgh Woollen Mill Group: outlet data, 2012/13-2016/17
- Retail offering
H&M Hennes & Mauritz
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- What we think
- A new fascia joins the stable
- Technology enhancing the customer experience
- A first in pet streetwear
- Localisation
- Making fashion circular
- COS expansion into China
- Company background
- Company performance
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- Figure 86: H&M Hennes & Mauritz: group financial performance, 2012/13-2016/17
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- Figure 87: H&M Hennes & Mauritz: outlet data, 2012/13-2016/17
- Retail offering
House of Fraser
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- What we think
- Administration
- Positioning/repositioning
- Own brands
- Stores
- Will it work?
- Working practices
- Room for optimism
- Company background
- Company performance
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- Figure 88: House of Fraser Plc: group financial performance, 2012/13-2016/17
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- Figure 89: House of Fraser Plc: outlet data, 2012/13-2016/17
- Retail offering
Grupo Inditex
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- What we think
- Online
- Where next
- Company background
- Company performance
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- Figure 90: Grupo Inditex, sales and outlets by format, 2017
- Figure 91: Grupo Inditex, performance by brand, 2016-17
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- Figure 92: Grupo Inditex: group financial performance, 2013/14-2017/18
- Figure 93: Grupo Inditex: outlet data, 2013/14-2017/18
- Retail offering
John Lewis Partnership
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- What we think
- Rebrand
- Own brand expansion
- Investment in product service and innovation
- Doing the right thing
- Company background
- Company performance
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- Figure 94: John Lewis Partnership: group financial performance, 2013/14-2017/18
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- Figure 95: John Lewis Partnership: outlet data, 2013/14-2017/18
- Retail offering
Marks & Spencer
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- What we think
- Recent performance
- New CEO, new strategy
- Missing link – the merchandise
- Must do better
- Online
- Where next?
- Company background
- Company performance
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- Figure 96: Marks & Spencer: group financial performance, 2013/14-2017/18
- Figure 97: Marks & Spencer: outlet data, 2013/14-2017/18
- Retail offering
Matalan
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- What we think
- Optimising existing store space and improving in-store customer experience
- New website and expanded multichannel capabilities driving online sales growth
- Influencer recommendation and celebrity endorsement
- Focusing on improving operational performance
- Company background
- Company performance
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- Figure 98: Matalan Ltd: group financial performance, 2013/14-2017/18
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- Figure 99: Matalan Ltd: UK outlet data, 2013/14-2017/18
- Retail offering
New Look Group
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- What we think
- Company Voluntary Agreement
- Back to value fashion
- Do consumers still want fast fashion?
- Celebrity social media power
- Backlash over pricing
- Company background
- Company performance
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- Figure 100: New Look Group: group financial performance, 2013/14-2017/18
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- Figure 101: New Look Group: outlet data, 2013/14-2017/18
- Retail offering
Next Group
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- What we think
- Unlimited delivery service launch
- Manchester Arndale experiment
- Credit incentives drive sales growth
- Company background
- Company performance
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- Figure 102: Next Group: group financial performance, 2013/14-2017/18
- Figure 103: Next Group: outlet data, 2013/14-2017/18
- Retail offering
Primark
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- What we think
- Europe to remain focus of expansion
- Can Primark continue without an e-commerce presence?
- Company background
- Company performance
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- Figure 104: Primark/Penneys: group financial performance, 2013/14-2017/18
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- Figure 105: Primark/Penneys: outlet data, 2013/14-2017/18
- Retail offering
River Island
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- What we think
- New concept store
- Branching into homewares
- Inclusive campaigning
- Like mother like daughter
- Extending the online offer
- Company background
- Company performance
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- Figure 106: River Island Clothing Co Ltd: group financial performance, 2013-17
- Figure 107: River Island Clothing Co Ltd: outlet data, 2013-17
- Retail offering
Tesco
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- What we think
- Fewer ways to buy
- Marketing support behind F&F helps lift brand awareness and sales
- In-store clothing concessions to give shoppers a wider choice
- Social media influencers to push clothing
- Eliminating hazardous chemicals from its clothes
- Company background
- Company performance
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- Figure 108: Tesco Plc: group financial performance, 2013/14-2017/18
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- Figure 109: Tesco Plc: outlet data, 2013/14-2017/18
- Retail offering
TK Maxx UK
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- What we think
- UK still important but Europe is main focus of expansion
- Lack of top-drawer digital presence is hurting the brand
- Company background
- Company performance
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- Figure 110: TK Maxx UK: group financial performance, 2013/14-2017/18
- Figure 111: TK Maxx UK: outlet data, 2013/14-2017/18
- Retail offering
YNAP Group
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- What we think
- Richemont takeover completed
- YNAP focuses on m-commerce…
- …and expands product range
- Sustainability commitments
- Company background
- Company performance
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- Figure 112: YNAP group: group financial performance, 2014-17
- Retail offering
Zalando
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- What we think
- Expanding brand partnership scheme
- Driving out friction in delivery, returns and payments
- Working towards delivering a truly personalised on-site experience
- Head-to-toe fashion
- Conversational commerce to tackle customer pain points
- Dealing with excess and unwanted stock in a non-wasteful manner
- Company background
- Company performance
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- Figure 113: Zalando: group financial performance, 2013-17
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- Figure 114: Zalando: key metrics, 2016-H1 2018
- Retail offering
The Consumer – What You Need to Know
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- Despite high street woes, most still shop in-store
- Consumer are buying fashion less often
- Retailers need to prioritise in-store experience
- Consumers use online channel to access lower prices…
- …but fit issues keep people coming back to stores
- Consumers want retailers to incentivise their sustainability efforts
What They Buy
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- Slowing fashion purchasing
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- Figure 115: Fashion items purchased in the last three months, September 2017 and September 2018
- Weather impacts what people buy
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- Figure 116: Outerwear items purchased in the last three months, September 2017 and September 2018
- Demand for fast fashion highest amongst young
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- Figure 117: Number of clothing items purchased on most recent shopping trip, by age, September 2018
- Men spend significantly more
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- Figure 118: Amount spent on most recent clothing shopping trip, by gender, September 2018
Where They Shop
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- High-street fashion retailers continue to dominate
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- Figure 119: Types of retailers used to purchase clothing in the last 12 months, August 2018
- Rising use of supermarket brands
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- Figure 120: Retailers used to purchase clothing in the last 12 months, August 2018
- Two out of three now shop online for fashion
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- Figure 121: Types of retailers used to purchase clothing in the last 12 months, by channel, August 2018
- More retailer loyalty online
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- Figure 122: Repertoire of retailers used to purchase clothing in the last 12 months, by channel, August 2018
Customer Profiles
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- Amazon and John Lewis more popular with men
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- Figure 123: Retailer customer profile, by gender, August 2018
- Topshop and ASOS attract youngest customer base
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- Figure 124: Retailer customer profile, by age, August 2018
- Primark and Asda appeal to less affluent
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- Figure 125: Retailer customer profile, by socio-economic group, August 2018
- Online-only retailers attract more rural shoppers
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- Figure 126: Retailer customer profile, by location type, August 2018
Frequency of Purchases
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- A possible shift away from fast fashion
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- Figure 127: Frequency of clothing purchases in the last 12 months, August 2017 and August 2018
- Women shop more frequently
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- Figure 128: Frequency of clothing purchases in the last 12 months, by gender, August 2018
- Young consumers shop often
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- Figure 129: Frequency of clothing purchases in the last 12 months, by age, August 2018
- Less affluent more likely to shop infrequently
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- Figure 130: Frequency of clothing purchases in the last 12 months, by socio-economic group, August 2018
- Online has increased purchasing frequency
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- Figure 131: Frequency of clothing purchases in the last 12 months, by how they bought clothing, August 2018
Satisfaction with Clothing Retailers
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- Most consumers happy with their experience
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- Figure 132: Satisfaction with retailer used most regularly to purchase clothing, August 2018
- Department stores stand out for in-store experience
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- Figure 133: Satisfaction with retailer used most regularly to purchase clothing, by type of retailer used to purchase clothing, August 2018
- ASOS and Next outperform other specialists
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- Figure 134: Satisfaction with retailer used most regularly to purchase clothing, by specialist retailers used to purchase clothing, August 2018
Key Driver Analysis
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- Methodology
- Retailers should promote clothing quality
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- Figure 135: Key drivers of overall satisfaction with clothing retailers, August 2018
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- Figure 136: Overall satisfaction with clothing retailers - key driver output, August 2018
Reasons for Shopping Online
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- Lower prices are driving people online
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- Figure 137: Why consumers shop online for clothing, August 2018
- Product reviews are important to young shoppers
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- Figure 138: Why consumers shop online for clothing, by age, August 2018
Reasons against Shopping Online
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- Trying on clothing remains important
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- Figure 139: Why consumers don’t shop online for clothing, August 2018
- Delivery costs are a deterrent for young shoppers
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- Figure 140: Why consumers don’t shop online for clothing, by age, August 2018
Clothing Shopping Behaviours
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- Brand loyalty is low
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- Figure 141: Clothing shopping behaviours, August 2018
- Older shoppers less interested in fashion sustainability
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- Figure 142: Clothing shopping behaviours: agreement with sustainability statements, by age, August 2018
- Young seek out inspiration from a variety of different sources
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- Figure 143: Clothing shopping behaviours: agreement with purchasing influence statements, by age, August 2018
- Women feel pressured when receiving personal styling advice
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- Figure 144: Clothing shopping behaviours: agreement with retailer advice statements, by gender, August 2018
- Fashion campaigns make women feel more self-conscious
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- Figure 145: Clothing shopping behaviours: agreement with fashion advertising statement, by age and gender, August 2018
- Young most likely to buy lifestyle products from fashion retailers
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- Figure 146: Clothing shopping behaviours: agreement with customer loyalty statements, by age, August 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market/Sector Size and Forecast
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- Forecast methodology
- Best and worst case forecasts
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- Figure 147: Consumer spending on clothing and accessories, best and worst case forecast, 2018-23
- Figure 148: Retail sales through specialist clothing retailers, best and worst case forecast, 2018-23
- Figure 149: Online sales of clothing, accessories and footwear, best and worst case forecast, 2018-23
Appendix – Key Driver Analysis
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- Interpretation of results
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- Figure 150: Overall satisfaction with clothing retailers – Key driver output, August 2018
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- Figure 151: Satisfaction with clothing retailers, August 2018
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