Table of Contents
Executive Summary
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- The market
- Consumer spending slows
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- Figure 1: Consumer spending on clothing and accessories, 2014-24
- Clothing specialists outperform
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- Figure 2: Retail sales through specialist clothing retailers, 2014-24
- Specialists regain market share
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- Figure 3: Estimated distribution of consumer spending on clothing, by type of retailer, 2019
- Companies and brands
- Inditex fastest growing specialist as it closes stores
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- Figure 4: Leading specialist retailers: compound annual growth in revenues, 2014-18
- Slight slowdown in online fashion growth
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- Figure 5: Online sales of clothing, accessories and footwear, 2014-24
- ASOS most recommended brand
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- Figure 6: Attitudes towards and usage of selected brands, February-September 2019
- The consumer
- People favour clothing specialists
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- Figure 7: Types of retailers used to purchase clothing in the last 12 months, August 2019
- People buy more frequently
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- Figure 8: Frequency of clothing purchases in the last 12 months, August 2018 and August 2019
- Women return clothes due to fit and size
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- Figure 9: Reasons for returning clothing purchased in the last 12 months, August 2019
- Male 16-34s look for identifiable brands
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- Figure 10: Most important factors when choosing clothing brands to buy, August 2019
- Female 16-34s like to treat themselves
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- Figure 11: Reasons for buying clothes, August 2019
- Sales can be overwhelming
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- Figure 12: Shopping behaviour, August 2019
- What we think
Issues and Insights
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- Who are the winners and losers in clothing?
- The facts
- The implications
- Dealing with the issue of returns
- The facts
- The implications
- What are the opportunities for driving sales?
- The facts
- The implications
The Market – What You Need to Know
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- Consumer spending slows
- Womenswear once again dominates sector
- Clothing specialists outperform
- Online players grow the most
- Garment price inflation drops again in August
- Obesity rates rise among women
Market Size and Forecast
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- Consumer spending slows
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- Figure 13: Consumer spending on clothing and accessories, 2014-24
- The future
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- Figure 14: Consumer spending on clothing and accessories, at current and constant prices, 2014-24
- Share of total consumer spending
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- Figure 15: Spending on clothing and accessories as percentage of all consumer spending, 2015-19
- Womenswear once again dominates sector
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- Figure 16: Estimated breakdown of consumer spending on clothing and accessories, 2019
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- Figure 17: Estimated breakdown of consumer spending on clothing and accessories, 2017-19
- Forecast methodology
Sector Size and Forecast
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- Clothing specialists outperform
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- Figure 18: Retail sales through specialist clothing retailers, 2014-24
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- Figure 19: Retail sales through specialist clothing retailers, at current and constant prices, 2014-24
- Clothing sales through specialist clothing retailers
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- Figure 20: Sales of clothing and accessories through specialist clothing retailers, 2014-19
- Figure 21: Clothing specialists share of consumer spending on clothing and accessories, 2014-19
- Forecast methodology
Channels of Distribution
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- Ongoing shifts in where people shop for clothing
- Specialists regain market share but market grows increasingly challenging
- Non-specialists continue to underperform
- Growing sectors
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- Figure 22: Estimated distribution of consumer spending on clothing, by type of retailer, 2019
- Figure 23: Estimated distribution of consumer spending on clothing, by type of retailer, 2015-19
Market Drivers
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- Inflation steady but clothing prices drop
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- Figure 24: Consumer price inflation, 2008-18
- Garment price inflation drops again in August
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- Figure 25: Consumer price inflation, August 2018-August 2019
- Real wage growth remains strong
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- Figure 26: Real wage growth – Average weekly earnings vs inflation, January 2016-August 2019
- Consumer confidence dips
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- Figure 27: Consumer financial confidence, January 2017-August 2019
- Clothing is still popular for disposable income spend
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- Figure 28: Trends in what extra money is spent on, September 2018 and September 2019
- Catering to an ageing population
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- Figure 29: Trends in the age structure of the UK population, 2016-26
- Obesity rates rise among women
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- Figure 30: Overweight and obesity prevalence in the UK population, 2013-17
- Young consumers share photos and video
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- Figure 31: Online activities done in the last three months on any device*, June 2018
- Instagram usage rises
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- Figure 32: Recent social media network usage, April 2018 and March 2019
Companies and Brands – What You Need to Know
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- Clothing specialists show signs of recovery…
- …while non-specialists continue to face problems
- Online pure players continue to outperform
- Online consumer spending set to reach £35.4 billion by 2024
- Sector advertising spend up 44.3% year-on-year
- Despite declining revenues, M&S remains most trusted and unique
Leading Specialists
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- Next maintains leadership and reverses declining sales
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- Figure 33: Leading specialist retailers: net revenues, 2014-18
- Increasingly polarised performance
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- Figure 34: Leading specialist retailers: compound annual growth in revenues, 2014-18
- Outlet numbers and sales per outlet
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- Figure 35: Leading specialist retailers: outlet numbers, 2014-18
- Sales per outlet
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- Figure 36: Leading specialist retailers: estimated annual sales per outlet, 2014-18
- Sales area and sales densities
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- Figure 37: Leading specialist retailers: total sales area, 2014-18
- Figure 38: Leading specialist retailers: estimated annual sales per square metre, 2014-18
- Operating profits and margins
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- Figure 39: Leading specialist retailers: operating profits, 2014-18
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- Figure 40: Leading specialist retailers: operating margins, 2014-18
Leading Non-specialists
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- Sports retailers
- Department stores
- Supermarkets major players
- Online retailers
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- Figure 41: Leading non-specialists: estimated clothing and footwear revenues, 2014-18
Market Shares
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- Figure 42: Leading retailers’ estimated share of spending on clothing and footwear, 2014-18
- Change in market shares
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- Figure 43: Leading clothing retailers, change in share of clothing spending, 2014-18
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Space Allocation Summary
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- Men’s, women’s and childrenswear overview
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- Figure 44: Men’s, women’s and childrenswear overview, September 2019
- Figure 45: Men’s, women’s and childrenswear overview, September 2019
- Detailed category space allocation
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- Figure 46: Specialist and non-specialist clothing retailers, estimated detailed space allocation, by category, September 2019
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- Figure 47: Specialist and non-specialist clothing retailers, estimated detailed space allocation by category, September 2019
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- Figure 48: Specialist and non-specialist clothing retailers, estimated detailed space allocation by category, September 2019
- Clothing vs non-clothing space
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- Figure 49: Primark beauty services, Birmingham, September 2019
- Figure 50: Specialist and non-specialist clothing retailers, estimated clothing versus non-clothing space, September 2019
Retail Product Mix
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- Figure 51: Leading clothing retailers, estimated sales, by product, 2018
- Figure 52: Leading clothing retailers: share of clothing sales, by product, 2018
- Womenswear
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- Figure 53: Leading clothing retailers estimated share of the womenswear market, 2018
- Menswear
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- Figure 54: Leading clothing retailers estimated share of the menswear market, 2018
- Childrenswear
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- Figure 55: Leading clothing retailers estimated share of the childrenswear market, 2018
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Online
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- Slight slowdown in online fashion growth
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- Figure 56: Online sales of clothing, accessories and footwear, 2014-24
- Figure 57: Online sales of clothing, accessories and footwear, at current and constant prices, 2014-24
- Online spending on clothing and accessories set to rise 15.1% in 2019
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- Figure 58: Breakdown of online sales of clothing, accessories and footwear, 2014-19
- Where they shop online
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- Figure 59: Retailers used to purchase clothing online in the last 12 months, August 2019
- Forecast methodology
Launch Activity and Innovation
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- AI-driven stress-free clothes shop
- Sustainable fashion
- Fashion free from animal-derived components
- Virtual catwalk experience
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- Figure 60: Zalando pop-up store in Madrid, October 2019
- Pop-ups
- Menswear rental service
Advertising and Marketing Activity
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- Sector advertising spend up 44.3% year-on-year
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- Figure 61: Total recorded above-the-line advertising expenditure on clothing and accessories, 2014-18
- Shein the top advertiser
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- Figure 62: Total recorded above-the-line, online, display and direct mail total advertising expenditure on clothing and accessories, by leading top 20 spenders, 2014-18
- 51% of advertising expenditure channelled through digital media
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- Figure 63: Total recorded above-the-line advertising expenditure percentage on clothing, by media type, total market, 2018
- Key campaigns
- Marks & Spencer launch two separate Christmas campaigns in 2018
- adidas and Nike World Cup campaigns
- JD Williams A/W18 campaign featuring real women alongside models
- River Island focus on diversity
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Brand map
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- Figure 64: Attitudes towards and usage of selected brands, February-September 2019
- Key brand metrics
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- Figure 65: Key metrics for selected brands, February-September 2019
- Brand attitudes: Primark and Peacocks offer good value
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- Figure 66: Attitudes, by brand, February-September 2019
- Brand personality: Whistles seen as the most exclusive
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- Figure 67: Brand personality – Macro image, February-September 2019
- Primark and Peacocks are both perceived as basic
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- Figure 68: Brand personality – Micro image, February-September 2019
- Brand analysis
- The market leaders in sales: Next and M&S
- Home shopping retailers: ASOS and Very
- Value retailers: Primark and New Look
- Fast fashion retailers: Topshop/Topman, H&M and Zara
Arcadia Group
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- What we think
- Arcadia focuses on online and physical stores
- Arcadia Group continues to suffer substantial losses
- Shop Direct and Next to launch Topshop/Topman ranges
- Focus remains spread over too many brands
- Company background
- Company performance
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- Figure 69: Arcadia Group: group financial performance, 2012/13-2017/18
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- Figure 70: Arcadia Group: outlet data, 2012/13-2017/18
- Retail offering
Asda Group
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- What we think
- Merger deal with Sainsbury’s blocked
- Inspirational in-store digital signage scheme to be expanded to more supermarkets
- Buy now pay later
- Stepping up production of eco-friendly garments
- Company background
- Company performance
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- Figure 71: Asda Group Ltd: group financial performance, 2014-18
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- Figure 72: Asda Group Ltd: outlet data, 2014-18
- Retail offering
ASOS
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- What we think
- Getting tough on ‘serial returners’
- Bolstering CSR credentials with charity shop initiative
- Making shopping online for clothing easier
- Tailored experience for specific markets
- Becomes the latest fashion retailer to introduce its own homewares collection
- Company background
- Company performance
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- Figure 73: ASOS: group financial performance, 2013/14-2017/18
- Retail offering
Debenhams
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- What we think
- New exclusive womenswear and menswear brands to draw customers in
- Improving the in-store fashion experience
- Using mobile to balance online and offline offering
- Bolstering sustainable fashion credentials
- Company background
- Company performance
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- Figure 74: Debenhams: group financial performance, 2013/14-2017/18
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- Figure 75: Debenhams: outlet data, 2013/14-2017/18
- Retail offering
Edinburgh Woollen Mill Group
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- What we think
- Experimenting with a department store format
- Bonmarché bolsters mature market proposition
- Peacocks ditching plastic to reduce its environmental footprint
- Company background
- Company performance
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- Figure 76: Edinburgh Woollen Mill Group and selected brands: group financial performance, 2013/14-2017/18
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- Figure 77: Edinburgh Woollen Mill Group and selected brands: estimated outlet data, 2013/14-2017/18
- Retail offering
Grupo Inditex
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- What we think
- Growth from a combination of online and offline channels
- Diversification and dedicated content on social channels
- Inditex’s new strategy focuses on sustainability
- Company background
- Company performance
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- Figure 78: Grupo Inditex: sales and outlets by format, 2018/19
- Figure 79: Grupo Inditex, performance by brand, 2017-19
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- Figure 80: Grupo Inditex: group financial performance, 2013/14-2018/19
- Figure 81: Grupo Inditex: outlet data, 2013/14-2018/19
- Retail offering
H&M Hennes & Mauritz
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- What we think
- Digital
- Store development
- Company background
- Company performance
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- Figure 82: H&M Hennes & Mauritz: group financial performance, 2013/14-2017/18
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- Figure 83: H&M Hennes & Mauritz: outlet data, 2013/14-2017/18
- Retail offering
House of Fraser
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- What we think
- What Sports Direct says
- What has Sports Direct done?
- Adverse effect on clothing concessions
- Where next?
- Doubts
- Future unclear
- Company background
- Company performance
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- Figure 84: House of Fraser Plc: group financial performance, 2012/13-2018/19
- Figure 85: House of Fraser Plc: outlet data, 2012/13-2018/19
- Retail offering
John Lewis Partnership
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- What we think
- John Lewis & Partners line
- John Lewis undergoes substantial store overhaul
- Six start-ups shortlisted for in-store innovation scheme
- Where next?
- Company background
- Company performance
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- Figure 86: John Lewis Partnership: group financial performance, 2014-19
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- Figure 87: John Lewis Partnership: outlet data, 2013/14-2018/19
- Retail offering
Marks & Spencer
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- What we think
- Recent performance
- Progress
- It all takes time
- Online
- Where next?
- Company background
- Company performance
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- Figure 88: Marks & Spencer: group financial performance, 2014/15-2018/19
- Figure 89: Marks & Spencer: outlet data, 2014/15-2018/19
- Retail offering
Matalan
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- What we think
- Improved in-store experience
- Enhanced online journey driving ecommerce sales
- Click-and-collect convenience
- Range extension with new affordable own beauty brand
- Menswear brand ambassador
- Company background
- Company performance
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- Figure 90: Matalan Ltd: group financial performance, 2014/15-2018/19
- Figure 91: Matalan Ltd: outlet data, 2014/15-2018/19
- Retail offering
New Look Group
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- What we think
- Focusing on womenswear
- Bolstering its value-led pricing positioning
- Enriched multichannel proposition
- Exploring third-party ecommerce opportunities to offset shuttered international stores
- Vegan accessory and footwear collection
- Company background
- Company performance
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- Figure 92: New Look Retail Group: financial performance, 2017/18-2018/19
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- Figure 93: New Look Group Plc: outlet data, 2014/15-2018/19
- Retail offering
Next Group
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- What we think
- Next improves handling of returns as ‘normal part of doing business’
- Choice as a driver for growth
- Increasing profitability of the store estate
- Next launches Platform Plus
- Where next
- Company background
- Company performance
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- Figure 94: Next Group: group financial performance, 2013/14-2018/19
- Figure 95: Next Group: outlet data, 2013/14-2018/19
- Retail offering
Primark/Penneys
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- What we think
- European expansion continues
- Offline business model could hold back growth
- Greater focus on experience could point the way forward
- Growing sentiment against fast fashion is forcing change on the business
- Where now?
- Company background
- Company performance
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- Figure 96: Primark/Penneys: group financial performance, 2014/15-2018/19
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- Figure 97: Primark/Penneys: outlet data, 2014/15-2018/19
- Retail offering
River Island
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- What we think
- Negotiating with landlords to slash store rents
- Celebrity collaborations to drive sales
- New womenswear brand to appeal to 40-plus age group
- Slick new social shopping experience
- Combating the problem of overstocking and discounting
- Company background
- Company performance
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- Figure 98: River Island Holdings Limited: group financial performance, 2014-2018
- Figure 99: River Island Clothing Co Ltd: outlet data, 2014-18
- Retail offering
Tesco
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- What we think
- Repurposing stores to expand F&F clothing range in its larger stores
- Selected F&F womenswear items on Next.co.uk
- Company background
- Company performance
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- Figure 100: Tesco Plc: group financial performance, 2014/15-2018/19
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- Figure 101: Tesco Plc: outlet data, 2014/15-2018/19
- Retail offering
TJX UK (TK Maxx)
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- What we think
- Brexit forces changes in way company operates
- TJX shifts TK Maxx store opening focus to Europe and HomeSense
- Where now?
- Company background
- Company performance
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- Figure 102: TK Maxx UK: financial performance, 2014/15-2018/19
- Figure 103: TK Maxx UK: outlet data, 2014/15-2018/19
- Retail offering
Zalando
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- What we think
- Selling more products, slower revenue growth
- Zalando continues to succeed by combining online and offline
- Zalando’s circular fashion joins the physical world
- Zalando expands beauty range to five new markets
- Average basket size is still decreasing
- Zalando Plus loyalty scheme expanded
- Zalando trials robots for customer orders
- Moving away from own brands
- What next?
- Company background
- Company performance
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- Figure 104: Zalando: group financial performance, 2013-18
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- Figure 105: Zalando: key metrics, 2016-H1 2019
- Retail offering
The Consumer – What You Need to Know
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- New jeans trends drive purchasing
- People favour clothing specialists
- Men aged under-35 shop more often
- 68% of female under-25s return clothes
- Young Millennials opt for brands that care
- Female 16-34s like to treat themselves
- Sales can be overwhelming
What They Buy
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- Footwear sees biggest fall
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- Figure 106: Fashion items purchased in the last three months, June 2018 and June 2019
- New jeans trends drive purchasing
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- Figure 107: Outerwear items purchased in the last three months, June 2017 and June 2019
- Young women buy less
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- Figure 108: Number of clothing items purchased on most recent shopping trip, by age, June 2019
- Women spend more per trip
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- Figure 109: Amount spent on most recent clothing shopping trip, by gender, June 2019
Where They Shop
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- People favour clothing specialists
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- Figure 110: Types of retailers used to purchase clothing in the last 12 months, August 2019
- M&S number one fashion retailer
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- Figure 111: Retailers used to purchase clothing in the last 12 months, August 2019
- Almost three quarters shop online
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- Figure 112: Types of retailers used to purchase clothing in the last 12 months, by channel, August 2019
- Who is driving growth?
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- Figure 113: 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, August 2019
- Young shop around
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- Figure 114: Repertoire of retailers used to purchase clothing in the last 12months, by channel, August 2019
Customer Profiles
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- John Lewis biased towards men
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- Figure 115: Retailer customer profile, by gender, August 2019
- River Island reaches out to older women
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- Figure 116: Retailer customer profile, by age, August 2019
- New Look looks to regain less affluent customers
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- Figure 117: Retailer customer profile, by socio-economic group, August 2019
- Figure 118: Retailer customer profile, by location type, August 2019
Frequency of Purchases
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- People buy more frequently
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- Figure 119: Frequency of clothing purchases in the last 12 months, August 2018 and August 2019
- Men aged under-35 shop more often
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- Figure 120: Frequency of clothing purchases in the last 12 months, by gender, August 2019
- Online shoppers buy even more frequently
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- Figure 121: Frequency of clothing purchases in the last 12 months, by how they bought clothing, August 2019
- Most affluent shop most often
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- Figure 122: Frequency of clothing purchases in the last 12 months, by socio-economic group, August 2019
Reasons for Returning Clothes
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- Two fifths return clothes
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- Figure 123: Proportion of consumers who have returned clothes, August 2019
- 68% of female under-25s return clothes
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- Figure 124: Proportion of consumers who have returned clothes, by age, August 2019
- Women return clothes due to fit and size
- Trying before buying
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- Figure 125: Reasons for returning clothing purchased in the last 12 months, August 2019
Most Important Factors When Choosing Brands
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- Male 16-34s look for identifiable brands
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- Figure 126: Most important factors when choosing clothing brands to buy, August 2019
- Young Millennials opt for brands that care
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- Figure 127: Most important factors when choosing clothing brands to buy, by generations, August 2019
- Young men want limited-edition styles
Reasons for Buying Clothes
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- Female 16-34s like to treat themselves
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- Figure 128: Reasons for buying clothes, August 2019
- Women want new clothes when weather changes
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- Figure 129: Reasons for buying clothes, by gender, August 2019
Attitudes to Shopping for Clothing
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- Figure 130: Attitudes to shopping for clothing, August 2019
- Shoppers enjoy updates but buy items that don’t go out of style quickly
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- Figure 131: UK: Selected attitudes to shopping for clothing, August 2019
- There is social pressure to buy branded clothes but sales can be overwhelming
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- Figure 132: Selected attitudes to shopping for clothing, August 2019
- Providing a pleasant shopping experience remains key
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- Figure 133: Selected attitudes to shopping for clothing, August 2019
- Attitudes by specialist retailer used
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- Figure 134: Attitudes to shopping for clothing, by where they shopped in the last 12 months: specialists, August 2019
- Attitudes by non-specialist used
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- Figure 135: Attitudes to shopping for clothing, by where they shopped in the last 12 months: non-specialists, August 2019
- Shopping experience is most important for Millennials and in the city
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- Figure 136: Clothing retailing – CHAID – Tree output, August 2019
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- Figure 137: Clothing retailing – CHAID – Table output, August 2019
- Methodology
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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 138: Consumer spending on clothing, best- and worst-case forecast, 2019-24
- Figure 139: Retail sales through specialist clothing retailers, best- and worst-case forecast, 2019-24
- Figure 140: Online sales of clothing, accessories and footwear, best- and worst-case forecast, 2019-24
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