Spain Clothing Retailing Market Report 2020
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Report Summary
Everything you need to make the right decisions
Providing the most comprehensive and up-to-date information and analysis of the Clothing Retailing – Spain market including the behaviours, preferences and habits of the consumer.
Mintel has the answers you’re looking for
What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?
Covered in this report
The Spanish clothing market contracted in both 2018 and 2019, when it was valued at €25.35 billion. The economy has been the hardest hit of all the Eurozone countries, and we anticipate a further contraction in the clothing market of around 18% for the whole of 2020, resulting in a market size that is €3 billion smaller than in 2015. Clothing retailers have seen their sales decline over 2020 as a result of store closures, decreased discretionary spending, and fewer reasons to shop for clothes. Even prior to the pandemic their share of the whole retail sector had been declining as they face competition from online pureplayers, such as Amazon and Zalando, the flash sales operators, such as Veepee, and the marketplaces on eBay and AliExpress.
Expert analysis from a specialist in the field
Written by Natalie Macmillan, a leading analyst in the Retail sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Spain is facing its worst recession since the Civil War, and consumers face a difficult and uncertain future. Unemployment, which was already high, is soaring, particularly amongst young people, impacting on confidence and purchasing power. Fashion is a largely discretionary spending area, and retailers have an uphill battle to regain ground lost as a result of the pandemic. But there are some strong retailers in Spain, not least Inditex and El Corte Inglés, which have the scale and agility to adapt and succeed as the COVID-19 outbreak evolves. As in all countries, the pandemic is shaking out weaker players and changing people’s priorities. Sports retailers, value-for-money retailers and those with a well-integrated online model are well positioned to benefit.
Natalie Macmillan
Senior Retail Analyst
Table of Contents
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Overview
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- Key issues covered in this Report
- Areas covered in this Report
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Executive summary
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- The market
- The economy
- Consumer spending
- Figure 1: Spain: Consumer spending on clothing and footwear (incl. VAT), 2015-20
- Sector size and forecast
- Channels of distribution
- Figure 2: Spain: Estimated distribution of spending on clothing and footwear by channel, 2019
- Companies and brands
- Key metrics
- Market shares
- Figure 3: Spain: Leading specialist clothing retailers, sales as % all spending on clothing and footwear, 2019
- Online
- The consumer
- How they shop for clothing
- Figure 4: Spain: Channels used for buying clothes in the last 12 months, June 2020
- Where they shop for clothing
- Figure 5: Spain: retailers used for buying clothing in the last 12 months, June 2020
- Clothes shopping behaviours relating to COVID-19
- Figure 6: Spain: clothing shopping behaviour during the COVID-19 epidemic, June 2020
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The Impact of COVID-19 on Clothing Retailing
- Short, medium and long-term impact on the sector
- Figure 7: Short, medium and long term impact of COVID-19 on Clothing retailing, October 2020
- Opportunities and threats
- COVID-19 brings online to the forefront
- Figure 8: Decathlon’s ‘scan & go’ service, 2020
- Providing a feeling of shopping in-store from home
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- Figure 9: Gucci’s personalised virtual shopping, June 2020
- Athleisure versus formalwear
- How COVID-19 will reshape the industry
- Sustainability in fashion gains further relevance
- Figure 10: Zalando announces ‘Pre Owned’ category, 2020
- Risk of lower profitability due to discounts and promotions
- Discounters strengthen their position in clothing
- Figure 11: Aldi’s new fashion campaign in Germany, 2020
- The forecast for clothing retailing improving from 2021
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- Figure 12: Europe Big Five: Total specialist clothing retailers’ sales and forecast, 2015-25
- Figure 13: Europe Big Five: Total specialist clothing retailers’ sales and forecast, by country, 2015-25
- The impact of COVID-19 on consumer behaviour across Europe
- Concern about exposure to COVID-19 steady but showing signs of increasing
- Figure 14: Europe: Those extremely worried about the risk of being exposed to COVID-19, March-October 2020*
- Many cutting back on non-essential purchases
- Time-limiting store visits places premium on in-store navigation
- Many consumers reluctant to use cash
- A big switch to online
- Figure 15: Europe: Changes to shopping behaviour since the start of the COVID-19 outbreak, September/October 2020*
- Clothing slips down the spending agenda
- Figure 16: Europe: Net balance* of expected spending on selected items in the next month, September/October 2020**
- Trying on clothing in-store remains an issue
- Figure 17: Europe: people who would feel uncomfortable trying on clothing in-store, September/October 2020*
- People not keen on handling/touching products in-store
- Figure 18: Europe: people who would feel uncomfortable handling/touching products in-store, September/October 2020*
- How the crisis is impacting on key consumer segments
- Women and older age groups most concerned about the virus
- Figure 19: Europe: Those extremely worried about the risk of being exposed to COVID-19, by gender and age, September/October 2020*
- Women and older age groups also trying to limit time in-store
- Figure 20: Europe: consumers trying to limit the time they spend in-store, by gender and age, September/October 2020*
- Youngest age groups most likely to be shopping more online
- Figure 21: Europe: consumers shopping more online, by age and gender, September/October 2020*
- COVID-19: Market context
- UK
- France
- Germany
- Italy
- Spain
- Short, medium and long-term impact on the sector
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Issues and insights
- The impact of COVID-19 on Spanish clothing retail
- Value will be increasingly relevant
- Clothing needs are changing
- Digital is imperative
- Sustainability in fashion could be a by-product of the pandemic
- The impact of COVID-19 on Spanish clothing retail
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The market – Key takeaways
- The hit to Spain’s economy from COVID-19 is the worst of the Eurozone
- Fashion spending will be hit hard by COVID-19
- Online will not offset lost store-based sales for most specialists
- Fashion specialists capture 70% of clothing and footwear spending
- The hit to Spain’s economy from COVID-19 is the worst of the Eurozone
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Consumer spending
- The economy
- Steep decline in spending on fashion expected for 2020
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- Figure 22: Spain: Consumer spending on clothing and footwear (including VAT), 2015-20
- The economy
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Sector size and forecast
- Clothing retailers look set to among the worst hit by COVID-19
- Figure 23: Spain: Specialist clothing retailers, sales (excluding VAT), 2015-20
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- Figure 24: Spain: Specialist clothing retailers, forecast sales (excluding VAT), 2020-25
- Clothing retailers look set to among the worst hit by COVID-19
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Inflation
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- Figure 25: Spain: Consumer prices * of clothing and footwear, Annual % change, 2015-19
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- Figure 26: Spain: Consumer prices of clothing and footwear, Annual % change, January 2019 –July 2020
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Channels of distribution
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- Figure 27: Spain: Estimated distribution of spending on clothing and footwear by channel, 2019
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Companies and brands – Key takeaways
- Inditex’s agile business model helps it retain its leading position
- Inditex and foreign retailers are growing fastest as market consolidates
- Leading retailers are well established online and investing in its growth
- Inditex’s agile business model helps it retain its leading position
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Leading players
- Inditex’s business model helps it maintain its lead
- UK’s Primark continues to thrive despite no online presence
- Winners and losers in 2019
- Figure 28: Spain: Leading specialist clothing retailers, sales (excl. VAT), 2016-19
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- Figure 29: Spain: Leading specialist clothing retailers, outlets, 2016-19
- Figure 30: Spain: Leading specialist clothing retailers, sales per outlet, 2016-19
- Inditex’s business model helps it maintain its lead
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Market shares
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- Figure 31: Spain: Leading specialist clothing retailers, sales as % all spending on clothing and footwear, 2016-19
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Online
- Internet usage
- Figure 32: Spain: Broadband connections (percentage of households), 2014-19
- Online market size
- Leading online players
- Figure 33: Spain: Leading retailers’ estimated clothing and footwear sales online, 2016-19
- Internet usage
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The consumer – Key takeaways
- Online gaining momentum
- M-commerce important for younger shoppers
- Store-based specialists and sports stores most popular shopping destination
- Primark’s popularity suggests shift towards budget-priced clothes
- Amazon now the most popular non-specialist clothing destination
- Fashion buyers prioritise essential items over clothing since COVID-19
- Online gaining momentum
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How they shop for clothes
- Online gaining share
- Figure 34: Spain: Channels used for buying clothes in the last 12 months, June 2020
- Men accelerate shift to buying fashion online
- Figure 35: Spain: Online shopping for clothes in the last 12 months by age and gender, June 2020
- Purchasing on a laptop/desktop most popular, but younger buyers like m-commerce
- Figure 36: Spain: Channels and device used for buying clothes in the last 12 months, June 2020
- Online gaining share
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Where they shop for clothes
- Store-based specialists the most popular destination, but buyers migrating online
- Figure 37: Spain: Stores used to shop for clothing, combined nets, June 2020
- Clothing specialists
- Figure 38: Spain: Specialist retailers used for buying clothing in the last 12 months, June 2020
- Customer profiles
- Figure 39: Spain: Specialist retailers used for buying clothing in the last 12 months, June 2020
- Non-specialists
- Usage of Amazon skyrockets on back of boosted fashion appeal
- Sports good retailers well positioned to capitalise on growing popularity of athleisure
- El Corte Inglés turbocharges online order fulfilment proposition
- Figure 40: Spain: Non-Specialist retailers used for buying clothing in the last 12 months, June 2020
- Store-based specialists the most popular destination, but buyers migrating online
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Clothes shopping behaviours relating to COVID-19
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- Figure 41: Spain: clothing shopping behaviour during the COVID-19 epidemic, June 2020
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- Figure 42: Spain: clothing shopping behaviour during the COVID-19 epidemic, by gender, June 2020
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- Figure 43: Spain: clothing shopping behaviour during the COVID-19 epidemic amongst women, by age, June 2020
- Clothes shopping behaviours by retailer used
- Figure 44: Spain: Selected clothing shopping behaviours during the COVID-19 epidemic by retailer shopped, June 2020
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Appendix – Data sources, abbreviations and supporting information
- Abbreviations
- Data sources
- Abbreviations
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C&A
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- What we think
- New store concept to tempt customers through the door
- New concession format to replace no longer sustainable standalone stores
- A leader in fashion sustainability
- Company background
- Company performance
- Figure 45: C&A: Estimated group sales performance, 2015/16-2019/20
- Figure 46: C&A: Estimated outlet data, 2015/16-2019/20
- Retail offering
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H&M Hennes & Mauritz
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- What we think
- New hyper-local store concept
- Custom-made perfect fit jeans
- Online expansion giving more customers more options to access its brands
- Livestreaming shopping events
- Fashion rental and re-sale point towards an increased focus on sustainability
- Company background
- Company performance
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- Figure 47: H&M Hennes & Mauritz: Group financial performance, 2014/15-2018/19
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- Figure 48: H&M Hennes & Mauritz: Outlet data, 2014/15-2018/19
- Retail offering
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Grupo Inditex
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- What we think
- A global business
- Upsizing stores
- Online a big opportunity for growth
- Technology at the heart of the business
- Flexible and responsive approach to production helped it cope with COVID
- Sustainability is key to future
- Where now?
- Company background
- Company performance
- Figure 49: Grupo Inditex: Group financial performance, 2015/16-2019/20
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- Figure 50: Grupo Inditex: Sales by brand, 2019/20
- Figure 51: Grupo Inditex: Outlet data, 2015/16-2019/20
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- Figure 52: Grupo Inditex: Outlet numbers by brand, 2019/20
- Retail offering
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Primark/Penneys
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- What we think
- Missing out on online sales costs the brand millions in lost revenue
- A must-visit destination for consumers shopping for clothes in-store
- Cut-price fashion
- New eco-conscious fashion, homeware and beauty collection
- First ever sportswear collaboration
- Company background
- Company performance
- Figure 53: Primark/Penneys: Group financial performance, 2015/16-2019/20
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- Figure 54: Primark/Penneys: Outlet data, 2015/16-2019/20
- Retail offering
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Zalando
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- What we think
- Taking the guesswork out of size and fit
- Customers can now tailor their experience by following their favourite brands
- Boosting sustainability credentials with eco-friendly offering and second-hand platform
- Expanding luxury ranges to meet demand among younger consumers
- Company background
- Company performance
- Figure 55: Zalando: Group financial performance, 2015-19
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- Figure 56: Zalando: key metrics, 2017-H1 2020
- Retail offering
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About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Market
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Consumer
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Brand/Company
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Data
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*databooks not available with UK B2B Industry reports.
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