Clothing Retailing - Spain - September 2008

MARKET IN BRIEF
The future
Market size and performance
The competitive landscape
REPORT SCOPE
 TECHNICAL NOTES
Definitions
Financial definitions
Currencies
Country codes
Figure 1: Country codes
VAT
Figure 2: Europe: Standard VAT rates, 2007
BROADER MARKET ENVIRONMENT
Positive factors
Negative factors
Gradual population growth
Growing population…
Figure 3: Spain: Population trends, 2003-07
but ageing too…
Figure 4: Spain: Population projections, by age group, 2007 and 2015
The economy hitting the buffers
Figure 5: Spain: Gross domestic product, 1998-2007
Inflation rising
Figure 6: Spain: Consumer prices, 1999-2008
Unemployment rising
Figure 7: Spain: Unemployment rate, 1996-2008
Consumer confidence hitting new lows
Figure 8: Spain: Consumer confidence indicator, 2005-08
Consumer spending falling
Figure 9: Spain: Household consumer expenditure, 1998-2007
THE MARKET IN CONTEXT
Key findings
Disappointing clothing performance
Figure 10: Spain: Consumer spending, growth in main categories, 2002-06
Figure 11: Spain: Consumer spending on clothing and footwear, 2002-06
Detailed spending data
Figure 12: Spain: Detailed breakdown of clothing spending, 2006
Figure 13: Spain: UK: Clothing market breakdown, 2006
Rising inflation a growing problem
Figure 14: Spain: Clothing prices, 2002-08
 CHANNELS OF DISTRIBUTION
Figure 15: Spain: Clothing and footwear, estimated channels of distribution, 2007
SECTOR SIZE AND FORECAST
Key findings
Economic outlook
Retail prospects
Figure 16: Spain: Retail sales, 2003-12
Recent trends in Spanish clothing retail
RETAIL COMPETITOR ANALYSIS
Key findings
Home grown talent
Grupo Inditex dominant
Cortefiel appears to be struggling
Other Spanish fashion retailers
Other foreign players looking to make inroads
Figure 17: Spain: Leading clothing specialists, 2007/08
Market shares and evaluation
Figure 18: Spain: Leading clothing specialists’ market shares, 2007
ADOLFO DOMINGUEZ
Figure 19: Adolfo Dominguez: Sales as share of clothing, footwear & textiles in Spain, 2003-07
History
Financial performance
Figure 20: Adolfo Dominguez: Group financial performance, 2003-07
Store portfolio
Figure 21: Adolfo Dominguez: Outlet data, 2003-07
Retail offering
Market positioning
Brands
e-commerce and home shopping
ARCADIA GROUP
Figure 22: Arcadia Group Brands Ltd: Sales as share of clothing specialists in UK, 2003-07
Strategic evaluation
Varied portfolio
But not all fascia performing to their potential
Extending the boundaries
Recent history
Financial performance
Figure 23: Arcadia Group: Group financial performance, 2003-07
Topshop
Topman
Burton’s
Dorothy Perkins
Miss Selfridge
Evans
Wallis
Store portfolio
Figure 24: Arcadia Group Brands Ltd: Outlet data, 2003-07
Figure 25: Arcadia Group: Breakdown of International outlets, July 2008
Figure 26: Arcadia Group: Breakdown of European outlets by fascia, July 2008
 RETAIL OFFERING
Topshop
Topman
Dorothy Perkins
Burton
Miss Selfridge
Evans
Figure 27: Evans – Sub-branding portfolio, 2008
Wallis
Advertising and marketing
Figure 28: Arcadia Group: Breakdown of advertising spend of main fascia, 2007
e-commerce and home shopping
Figure 29: Arcadia Group: Websites, 2008
BENETTON GROUP
Figure 30: Benetton (Europe): Sales as share of clothing specialists in Europe, 2003-07
Strategic evaluation
History
Financial performance
Figure 31: Benetton Group: Group financial performance, 2003-07
Store portfolio
Figure 32: Benetton Group: Outlet data, 2003-07
Retail offering
Market positioning
Product offer
Figure 33: Benetton Group: Sales by brand, 2007
Advertising and marketing
e-commerce and home shopping
C&A
Figure 34: C&A: Sales as share of clothing retailers’ sales in Europe, 2005-07
Figure 35: C&A Germany: Sales as share of clothing retailers’ sales in Germany, 2003-07
Strategic evaluation
History
Financial performance
Figure 36: C&A: Group sales performance, 2005/06-2007/08
Figure 37: C&A: Share of group sales by market, 2007/08
Store portfolio
Figure 38: C&A: Outlet data, 2003/04-2007/08
Figure 39: C&A: Sales per Outlet in selected countries, 2005-07
Figure 40: C&A: Fascias operated by C&A in Europe, 2008
Retail offering
Market positioning
Brands and product offer
Pricing
Operational issues
Advertising and marketing
e-commerce and home shopping
DIRAMODE
Recent history
Financial performance
Store portfolio
Figure 41: Diramode: Outlet data, 2006
Retail offering
Market positioning, products and brands
Operational issues
e-commerce and home shopping
ETAM GROUP
Figure 42: Etam Group: Sales as share of clothing specialists’ sales in Europe, 2003-07
Recent history
Financial performance
Figure 43: Etam Group: Group financial performance, 2003-07
First half 2008
Store portfolio
Figure 44: Etam Group: Outlet data, 2003-07
Figure 45: Etam: Outlet numbers by brand, 2003-07
Retail offering
Market positioning and brands
Figure 46: Etam Group Brands, 2007
Advertising and marketing
e-commerce and home shopping
GRUPO CORTEFIEL
Strategic evaluation
History
Financial performance
Figure 47: Grupo Cortefiel: Group financial performance, 2003/04-2007/08
Figure 48: Grupo Cortefiel: Sales by brand, year to February 2008
Recent performance
Store portfolio
Figure 49: Grupo Cortefiel: Outlet data, 2002/2003-2004/05 & June 2007
Figure 50: Grupo Cortefiel: European store numbers, year to February 2008
Retail offering
Market positioning
Brands
e-commerce and home shopping
GRUPO INDITEX
Figure 51: Grupo Inditex: Sales as share of clothing specialists’ sales in Europe, 2003-07
Strategic evaluation
Recent history
Financial performance
Figure 52: Grupo Inditex: Group financial performance – continuing operations, 2003/04-2007/08
Figure 53: Grupo Inditex: Sales growth by type, 2003/04-2007/08
Figure 54: Grupo Inditex: Estimated sales in key European markets, 2004/05-2007/08
Figure 55: Grupo Inditex: Consolidated sales by geographic region, year to January 2004-08
Figure 56: Grupo Inditex: Sales performance by fascia, 2003/04-2007/08
Store portfolio
Figure 57: Grupo Inditex: Outlet and country numbers, 2003/04-2007/08
Figure 58: Grupo Inditex: Outlet numbers by fascia, 2003/04-2007/08
Figure 59: Grupo Inditex: Outlet data by fascia, 2003/04-2007/08
Figure 60: Grupo Inditex: European outlet numbers by country and fascia, January 2008
Figure 61: Grupo Inditex: Breakdown of proportion of company owned and franchise stores, by fascia, 2006-07
Figure 62: Grupo Inditex: Expansion plans, 2008
Retail offering
Market positioning
Zara
Massimo Dutti
Bershka
Figure 63: Grupo Inditex: Company websites, 2008
GRUPO INDUYCO
History
Financial performance
Store portfolio
Figure 64: Grupo Induyco: Outlet data, 2004-08
Retail offering
e-commerce
H&M HENNES & MAURITZ
Figure 65: H&M Hennes & Mauritz: Sales as share of clothing specialists’ sales in Europe, 2003-07
Figure 66: H&M Hennes & Mauritz: Sales as share of clothing specialists’ sales in the UK, 2003-07
Strategic evaluation
Recent history
Financial performance
Figure 67: H&M Hennes & Mauritz: Group financial performance, 2002/03-2006/07
Figure 68: H&M Hennes & Mauritz Sales by: country, 2002/03-2006/07
Store portfolio
Figure 69: H&M Hennes & Mauritz: Outlet data, 2003-07
Figure 70: H&M Hennes & Mauritz: Sales per outlet, 2003-07
Figure 71: H&M Hennes & Mauritz: Comparison of percentage increase in sales vs percentage increase in outlet numbers, European markets, 2005/06-2006/07
Retail offering
Market positioning
Brands
Figure 72: H&M, own brand portfolio, 2008
Product offer/pricing
H&M – Cos
Operational issues
Advertising and marketing
Figure 73: H&M Hennes & Mauritz: Breakdown of advertising expenditure in the UK, 2007
e-commerce and home shopping
MANGO GROUP
Figure 74: Mango Group: Sales as share of clothing specialists’ sales in Europe, 2003-07
Figure 75: Mango Spain: Sales as share of all clothing specialists’ sales in Spain, 2003-07
Strategic evaluation
Recent history
Financial performance
Figure 76: Mango Group: Group financial performance, 2003-08
Figure 77: Mango: Estimated performance by major markets, 2007
Store portfolio
Figure 78: Mango Group: Outlet data, 2002-07
Figure 79: Mango Group: Breakdown of stores in Europe, 2004-08
Retail offering
Market positioning
Brands
Product offer
Pricing
Advertising and marketing
Figure 80: Mango: Breakdown of advertising expenditure in the UK, 2007
e-commerce and home shopping