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Clothing Retailing - Europe - October 2016

Published By :

Mintel

Published Date : Nov 2016

Category :

Apparel

No. of Pages : N/A

This report series covers the 19 leading economies of Western Europe. In total these countries account for around 95% of all European retail sales, excluding Russia.

This data in its entirety is contained in the single copy 19-country report, which gives a full overview of clothing retailing in Europe. Single country reports are also available for the UK, France, Germany, Spain and Italy.

As in previous years, the focus of the European clothing report is the clothing specialists, because these are the dominant players in the sector. Nevertheless, for each country in this report we provide total consumer spending data for clothing, which includes expenditure through all channels. And we include Mintel’s Channels of Distribution estimates for each European country, which indicate how this spending is distributed by retail sector.

This year, our exclusive consumer research spanned the UK, France, Germany, Italy and Spain. In each of these markets, we asked consumers about their attitudes to clothing size and fit, their interest in sizing and fitting services and their reasons for returning items bought online.

Table of contents

EUROPE – OVERVIEW
Country and company coverage
Consumer research coverage
Definitions
Retail sector definitions
Consumer spending definitions
Financial definitions
Currencies
VAT rates
Figure 1: VAT rates around Europe, 2011-16
Abbreviations

EXECUTIVE SUMMARY – EUROPE – THE MARKET
Spending on clothing and footwear
Figure 2: Europe: Spending on clothing, 2011-15
Figure 3: Europe: Consumer spending on clothing, growth pa, 2011-15
Figure 4: Europe: Consumer spending per capita on clothing, 2015
Clothing specialists’ sales
Figure 5: Europe: Clothing specialists sales (excl. VAT), 2012-16
Figure 6: Europe: Clothing specialists forecast sales, 2017-21
Specialists relative to the market
Figure 7: Europe: Specialists’ sales relative to all clothing spending, gain or loss, 2015 on 2010
All clothing and footwear specialists sales
Figure 8: Europe: Clothing and footwear specialists sales, excl. VAT, 2012-16
Figure 9: Europe: Clothing and footwear specialists forecast sales, excl. VAT, 2017-21
Online
Figure 10: Europe: Proportion of individuals who have bought something online in last three months, 2011-15
Figure 11: Europe: Proportion of individuals who have bought clothing or sports goods online in last 12 months, 2011-15
Online sales
Figure 12: Major European economies: Online clothing and footwear sales, 2015
Leading players
Figure 13: Europe: Top 30 leading clothing specialist retailers, sales, 2013/14-2015/16
Figure 14: Europe: Top 30 leading clothing specialist retailers outlet numbers, 2013/14-2015/16
Figure 15: Europe: Top 30 leading clothing specialist retailers, sales per outlet, 2013/14-2015/16
Market share gains and losses
Figure 16: Major European clothing retailers, market share gains and losses, 2015
Market shares
Figure 17: Europe: Top 10 clothing retailers sales as % all spending on clothing, 2013-15
What we think

EXECUTIVE SUMMARY – EUROPE – THE CONSUMER
Where they shop
Online vs in-store
Figure 18: Europe: Number of clothing shoppers, in-store and online, July 2016
Specialists
Figure 19: Europe: Use of specialists for buying clothing, in-store and online, July 2016
Supermarkets
Figure 20: Europe: Use of supermarkets for buying clothing, in-store and online, July 2016
Online
Figure 21: Europe: Use of online-only businesses for buying clothing, July 2016
Attitudes to shopping for clothes
Figure 22: Europe: Those who agree with attitude statements, July 2016
Behaviours when shopping for clothes
Figure 23: Europe: Those who agree with the statements on technology use, July 2016

EXECUTIVE SUMMARY – EUROPE – INNOVATION AND LAUNCH ACTIVITY
Zalando hosts tech-focused Bread & Butter
Zara uses tech to enhance changing room experience
LENA ups the ante on apparel sharing
Etam Group trials size recommendation technology
The Travelling Tailor Mates on-demand service
Patagonia’s Worn Wear Tour
Figure 24: Patagonia’s Worn Wear Tour, 2016
The next generation in clothing delivery
Figure 25: ZOOT Try & Buy Stores, 2016

FRANCE
Overview
What you need to know
Areas covered in this report
Executive summary
The market
Spending and inflation
Figure 26: France: Consumer spending on clothing and share of all spending, 2012-16
Channels of distribution
Figure 27: France: Estimated channels of distribution for clothing and footwear spending, 2015
Sector size and forecast
Figure 28: France: Specialist clothing retailers’ sales and share of all retail sales, 2012-16
Leading players
Key metrics
Market shares
Figure 29: France: Leading specialist clothing retailers’ shares of consumer spending on clothing and footwear, 2015
Online
Figure 30: France: Proportion of people saying they have bought clothing or sports goods online in the last year, 2010-15
The consumer
Where they shop
Figure 31: France: Where people shopped for clothing in the past 12 months, by retailer, online/catalogue vs in-store, July 2016
Attitudes to shopping for clothing
Figure 32: France: Profile of those who agree with the attitudes statements, July 2016
Behaviours when shopping for clothing
Figure 33: France: Agreement with various shopping behaviours, July 2016
What we think
Issues and insights
Specialists need to up their game online
The facts
The implications
Is the middle market a danger zone?
The facts
The implications
The market – What you need to know
Economy showing signs of an uplift
Clothing spending subdued
Shoppers use a variety of retail channels
Clothing retailers
Spending and inflation
Economic recovery taking hold, boosted by consumer spending
Clothing market is low growth
Figure 34: France: Consumer spending on clothing and footwear (incl. VAT), 2012-16
Inflation
Figure 35: France: Consumer prices * of clothing and footwear, annual % change, 2011-15
Figure 36: France: Consumer prices * of clothing and footwear, annual % change, January 2015-August 2016
Market segmentation
Figure 37: France: Clothing market, estimated segmentation, 2011-15
Channels of distribution
Department stores and mixed goods
Hypermarkets/supermarkets
Home shopping/online (non-store)
Other
Figure 38: France: Estimated distribution of consumer spending on clothing and footwear, 2015
Sector size and forecast
Total retail sales recovered in 2015, further growth forecast in 2016
Specialists’ weak performance continues
Figure 39: France: Clothing specialists’ sales (excl. VAT), 2012-16
Figure 40: Forecast clothing specialists’ sales forecasts (excl. VAT), 2016-21
Leading players – What you need to know
Vivarte struggling
H&M, Zara and Mango driving growth
Crowded middle ground
Foreign-owned fast fashion capturing more spending
Online growing
But store-based retailers missing out
Leading players
Vivarte in trouble
Overcrowded middle ground
Kiabi doing well
Foreign fast fashion players driving growth
Figure 41: France: Leading clothing specialists, sales (excl Vat), 2013-15
Figure 42: France: Leading clothing specialists, outlet numbers, 2013-15
Figure 43: France: Leading clothing specialists, sales per outlet, 2013-15
Market shares
Figure 44: France: Leading clothing retailers, sales as % all spending on clothing and footwear, 2013-15
Online
The online sector as a whole
Shopping for clothing online
Figure 45: France: Proportion of people saying they have bought clothing or sports goods online in the last year, 2010-15
Leading online players
Specialists
Online-only retailers
Figure 46: France: Leading online retailers’ estimated clothing sales (excl. Vat), 2013-15
The consumer – What you need to know
Widespread buying behaviour
Non-specialists as popular as specialists
H&M leads in store-based shopping
Online appeals to younger customers
Overpopulated middle ground
Online and in-store increasingly integrated
Where they shop
Clothes shopping near universal
Non-specialist retailers as popular as clothing specialists
Usage of online-only retailers lags behind Germany and Italy
Figure 47: France: Where people shopped for clothing in the past 12 months, by broad category, July 2016
Figure 48: France: Profile of who shops where, by broad category, July 2016
Purchasers by retailer
H&M leads, with Kiabi in second place
Amazon popular but lower usage than in Germany, Italy and Spain
Online-only retailers the most important non-specialist category
Figure 49: France: Where people shopped for clothing in the past 12 months by retailer, whether in-store or online/by catalogue, July 2016
In-store vs online
Kiabi the most popular store-based retailer online
Figure 50: France: Where people shopped for clothing in the past 12 months, online/catalogue vs in-store, July 2016
Customer profiles
Figure 51: France: Profile of who shops where, July 2016
Attitudes to shopping for clothing
Consumers value integration between stores and online
Store-based retailers need to translate in-store strengths to online
Online-only retailers need to adapt offer too
Delivery charges deter online shopping
Figure 52: France: Attitudes to shopping for clothing, July 2016
Figure 53: France: Profile of those who agree with attitudes statements, July 2016
Behaviours when shopping for clothing
Figure 54: France: Agreement with various shopping behaviours, July 2016
Figure 55: France: Profile of those agreeing with various shopping behaviours, July 2016
Appendix – Data sources, abbreviations and supporting information
Abbreviations
Data sources

GERMANY
Overview
What you need to know
Areas covered in this report
Executive summary
The market
Spending on clothing and footwear
Inflation
Figure 56: Germany: Consumer prices for clothing and footwear, annual % change, 2015-16
Consumer confidence
Figure 57: Germany: Consumer and retailer confidence levels, January 2015-August 2016
Market segmentation
Figure 58: Germany: Clothing market, estimated segmentation, 2015
Channels of distribution
Figure 59: Germany: Estimated distribution of spending on clothing and footwear, 2015
Sector size and forecast
Figure 60: Germany: Specialist clothing retailers sales as % all spending on clothing, 2011-15
Leading players
Key metrics
Some retailers struggling
Market shares
Figure 61: Germany: Leading clothing specialists, sales as % all spending on clothing and footwear, 2013-15
Online
Figure 62: Germany: Proportion of people saying they have bought clothing or sports goods online in the last year, 2010-15
The consumer
Where they shop
Figure 63: Germany: Where people shopped for clothing in the past 12 months, by retailer, July 2016
Attitudes to shopping for clothing
Figure 64: Germany: Attitudes to shopping for clothing, July 2016
Behaviours when shopping for clothing
Figure 65: Germany: Agreement with various shopping behaviours, July 2016
What we think
Issues and insights
Decline of the specialists
The facts
The implications
Too many low-priced retailers?
The facts
The implications
Development of online in clothing shopping
The facts
The implications
The market – What you need to know
Spending on clothing and footwear
Inflation
Consumer confidence
Channels of distribution
Sales by clothing specialists
Spending and inflation
Economy and consumer confidence
Figure 66: Germany: Consumer and retailer confidence levels, January 2015-August 2016
Consumer spending on clothing and footwear
Figure 67: Germany: Consumer spending on clothing and footwear (inc VAT), 2012-16
Inflation
Figure 68: Germany: Consumer price inflation for clothing and footwear, annual percentage change, 2011-15
Figure 69: Germany: Consumer prices for clothing and footwear, Annual % change, 2015-16
Market segmentation
Figure 70: Germany: Clothing market, estimated segmentation, 2015
Channels of distribution
Specialists dominate
Grocery sector small role in clothing
Mixed goods
Non-store growing fast
Figure 71: Germany: Estimated distribution of spending on clothing and footwear, 2015
Sector size and forecast
Clothing specialists weak
Figure 72: Germany: Specialist clothing retailers’ sales as % all spending on clothing, 2011-15
Figure 73: Germany: Clothing specialists sales (excl. VAT), 2012-16
The weakness likely to continue
Figure 74: Germany: Clothing specialists sales forecasts (excl. VAT) 2016-21
Leading players – What you need to know
H&M leads the sector
Some retailers struggling
Fragmented market
Online is growing
Leading players
Winners
Zalando leading the online charge
Large numbers of discounters
Share losses
Figure 75: Germany: Leading clothing specialists, sales (excl Vat), 2013-15
Figure 76: Germany: Leading clothing specialists, outlet numbers, 2013-15
Figure 77: Germany: Leading clothing specialists, sales per outlet, 2013-15
Market shares
Figure 78: Germany: Leading clothing retailers, sales as % all spending on clothing and footwear, 2013-15
Online
Figure 79: Germany: Proportion of people saying they have bought clothing or sports goods online in the last year, 2010-15
Online spending on clothing
Online clothing retailers
eBay
Figure 80: Germany: Leading clothing retailers’ online sales (excl. Vat), 2013-15
The consumer – What you need to know
Specialists in decline
Shops and home shopping used interchangeably
C&A most used
Online appeals to younger customers
Online and in-store complementary
Smartphone usage still developing
Where they shop
Broad category
Figure 81: Germany: Where people shopped for clothing in the past 12 months, by broad category, July 2016
Figure 82: Germany: Profile of who shops where by broad category, July 2016
Purchasers by retailer
Figure 83: Germany: Where people shopped for clothing in the past 12 months, by retailer, July 2016
Figure 84: Germany: Profile of who shops where, by retailer across all channels, July 2016
Attitudes to shopping for clothing
Figure 85: Germany: Attitudes to shopping for clothing, July 2016
Figure 86: Germany: Profile of those who agree with attitude statements, July 2016
Attitudes by retailer
Figure 87: Germany: Attitudes to clothing purchases by retailers bought from, July 2016
Behaviours when shopping for clothing
Figure 88: Germany: Agreement with various shopping behaviours, July 2016
Figure 89: Germany: Profile of those agreeing with various shopping behaviours, July 2016
Attitudes by retailer
Figure 90: Germany: Use of technology while shopping by retailers used, July 2016
Appendix – Data sources, abbreviations and supporting information
Abbreviations
Data sources

ITALY
Overview
What you need to know
Areas covered in this report
Executive summary
The market
Spending and inflation
Figure 91: Italy: Consumer prices * of clothing and footwear, annual % change, January 2015-August 2016
Channels of distribution
Figure 92: Italy: Estimated distribution of consumer spending on clothing and footwear, 2015
Sector size and forecast
Figure 93: Italy: Sales by clothing and footwear specialists as % all spending on clothing and footwear, 2012-16
Leading players
Key metrics
Market leaders
Figure 94: Italy: Leading clothing specialists, sales as % of all spending on clothing and footwear, 2013-15
Online
The consumer
Where they shop
Figure 95: Italy: The consumer: Where people shopped for clothing in the past 12 months, by broad category, July 2016
H&M and OVS are the most used retailers
Figure 96: Italy: Where people shop for clothing in the past 12 months, by retailer, July 2016
Young people drive clothes purchasing
Figure 97: Italy: Attitudes to shopping for clothing, July 2016
The omnichannel experience is increasingly important
Figure 98: Italy: Attitudes to shopping for clothing, by gender, July 2016
Behaviours when shopping for clothing
What we think
Issues and insights
The drive to modernise Italian retailing is coming from outside
The facts
The implications
The opportunity in online
The facts
The implications
The market – What you need to know
Economy edging forward
Clothing demand weak
Inflation falling
Clothing dominant
Clothing specialists strong
Modest growth
Spending and inflation
Economic recovery showing worrying signs of weakness of late
Increased spend on clothing
Figure 99: Italy: Consumer spending on clothing and footwear (incl. VAT), 2012-16
Inflation
Figure 100: Italy: Consumer prices * of clothing and footwear, annual % change, 2011-15
Figure 101: Italy: Consumer prices * of clothing and footwear, annual % change, January 2015-August 2016
Market segmentation
Figure 102: Italy: Clothing market, estimated segmentation, 2015
Channels of distribution
Figure 103: Italy: Estimated distribution of consumer spending on clothing and footwear, 2015
Sector size and forecast
2015 total retail sales growth up, but expected to slow in 2016
Sales through specialists accelerated in 2015
Figure 104: Italy: Clothing, footwear and textiles specialists’ sales (excl. VAT), 2012-16
Figure 105: Italy: Forecast clothing, footwear and textiles retailers’ sales (excl. VAT), 2016-21
Leading players – What you need to know
Market leaders
Fragmented market
Online underdeveloped
Leading players
Market leaders doing well
Some established players struggling
Figure 106: Italy: Leading clothing specialists, sales, 2013-15
Figure 107: Italy: Leading clothing retailers, outlet numbers, 2013-15
Figure 108: Italy: Leading clothing retailers, sales per outlet, 2013-15
Market shares
Figure 109: Italy: Leading clothing retailers, sales as % of all spending on clothing and footwear, 2013-15
Online
Shopping for clothing online
Figure 110: Italy: Proportion of all individuals saying they have purchased goods online in the last year, 2010-15
Leading retailers
The consumer – What you need to know
Specialists dominate the Italian clothing sector
H&M and OVS are the most used retailers
Young people drive clothes purchasing
Online clothes shopping is underdeveloped
Consumers reluctant is shop online for clothes
Trying on clothing ahead of purchase is important
The omnichannel experience is increasingly important
Where they shop
Three-quarters of consumers shop at non-specialists
Figure 111: Italy: Where people shopped for clothing in the last 12 months, by broad category, July 2016
H&M and OVS are the leading retailers
Figure 112: Italy: Where people shopped for clothing in the past 12 months, by retailer, July 2016
Women more likely to shop at specialist retailers
Figure 113: Italy: Where people shopped for clothing in the past 12 months, by gender, July 2016
Young people drive clothing purchasing
Figure 114: Italy: Where people shopped for clothing in the past 12 months, by age, July 2016
Attitudes to shopping for clothing
Delivery costs impact the number of people shopping online
Figure 115: Italy: Attitudes to shopping for clothing, July 2016
More women struggle to find clothes that are the right size
Figure 116: Italy: Attitudes to shopping for clothing, by gender, July 2016
Over 55s most inspired by in-store displays
Figure 117: Italy: Attitudes to shopping for clothing, by age, July 2016
Supermarket shoppers least likely to find store staff helpful
Figure 118: Italy: Attitudes to shopping for clothing, by retailers used, July 2016
Behaviours when shopping for clothing
More than half research a retailer online before buying clothes
Figure 119: Italy: Agreement with various shopping behaviours, July 2016
Smartphone usage instore driven by 16-24s
Figure 120: Italy: Agreement with various shopping behaviours, by age, July 2016
Guess shoppers most likely to use smartphones instore
Figure 121: Italy: Agreement with various shopping behaviours, by retailers used, July 2016
OVS customers least likely to research fashion trends using social media
Figure 122: Italy: Agreement with various shopping behaviours, by retailers used, July 2016
Appendix – Data sources, abbreviations and supporting information
Abbreviations
Data sources

SPAIN
Overview
What you need to know
Areas covered in this report
Executive summary
The market
Spending and inflation
Figure 123: Spain: Consumer spending on clothing and footwear (incl VAT), 2012-16
Market segmentation
Channels of distribution
Figure 124: Spain: Distribution of consumer spending on clothing and footwear, 2015
Sector size and forecast
Leading players
Key metrics
Market shares
Figure 125: Spain: Leading clothing specialists’ shares of consumer spending on clothing and footwear, 2015
Online
The consumer
Where they shop
Figure 126: Spain: The consumer: Where people shopped for clothing in the past 12 months, by retailer: Online/catalogue vs in-store, July 2016
Attitudes to shopping for clothing
Figure 127: Spain: Attitudes to shopping for clothing, July 2016
What we think
Issues and insights
Specialists gaining share, but some more than others
The facts
The implications
What are the opportunities for clothing online?
The facts
The implications
The market – What you need to know
Clothing market delivers positive growth
Womenswear spend grows ahead of menswear
Clothing prices inflate 0.4%
Clothing specialists’ sales growth accelerates
Spending and inflation
Clothing market delivers positive growth
Figure 128: Spain: Consumer spending on clothing and footwear (incl VAT), 2012-16
Improvements in the Spanish economy
Figure 129: Spain: Retail confidence and consumer confidence indicator, January 2015-September 2016
Inflation
Figure 130: Spain: Consumer prices* of clothing and footwear, annual % change, 2011-15
Figure 131: Spain: Consumer prices* of clothing and footwear, annual % change, January 2015-August 2016
Market segmentation
Figure 132: Spain: Clothing, retail market segmentation, 2014 and 2015
Channels of distribution
Figure 133: Spain: Estimated distribution of consumer spending on clothing and footwear, 2015
Sector size and forecast
Clothing specialists’ sales growth accelerates
Figure 134: Spain: Clothing specialists’ sales (excl. VAT), 2012-16
Figure 135: Spain: Clothing specialists’ sales forecasts (excl. VAT), 2016-21
Growth of specialists’ sector outpaces consumer spending
Figure 136: Spain: Clothing sector sales as a proportion of all spending on clothing, 2012-16
Leading players – What you need to know
Inditex dominates, but Primark is growing fast
Market share gains for Inditex, H&M and Primark
Online development lags behind Europe, but is catching up
Leading players
Sales
Figure 137: Spain: Leading clothing specialists, sales (excl vat), 2012-15
Outlets
Figure 138: Spain: Leading clothing specialists, outlet numbers, 2012-15
Sales per outlet
Figure 139: Spain: Leading clothing specialists, sales per outlet, 2012-15
Market shares
Figure 140: Spain: Leading clothing specialists, market shares, 2012-15
Online
The online channel
Shopping for clothing online
Figure 141: Spain: Proportion of people saying they have bought clothing or sports goods online in the last year, 2010-15
Leading online players
Where people shop online
Figure 142: Spain: Where people shopped for clothing online in the past 12 months, by retailer, July 2016
Revenues
Figure 143: Spain: Leading online retailers, estimated online sales of clothing and footwear (Ex VAT), 2013-15
The consumer – What you need to know
H&M and Zara close the gap with El Corte Inglés
Opportunity for specialists online
Need for more transitional clothing
Opportunity for digital personal styling initiatives
Young consumers are active on their smartphones while in store
Where they shop
H&M and Zara close the gap on El Corte Inglés
Figure 144: Spain: Where people shopped for clothing in the past 12 months, by retailer, whether in-store or online/by catalogue, July 2016
Figure 145: Spain: Where people shopped for clothing in the past 12 months, by retailer, in-store or online/by catalogue, July 2016
Sports goods retailers important to the clothing market
Opportunity for specialists online
Figure 146: Spain: Where people shopped for clothing in the past 12 months, by broad category, July 2016
El Corte Inglés attracts an older demographic
Figure 147: Spain: Profile of who shops where, by retailer across all channels, July 2016
Attitudes to shopping for clothing
Opportunity for digital personal styling initiatives
Figure 148: Spain: Attitudes to shopping for clothing, July 2016
Need for more transitional clothing
Stores remain a key source of inspiration
Behaviours when shopping for clothing
Young consumers are active on their smartphones while in store
Figure 149: Spain: Agreement with various shopping behaviours, July 2016
Appendix – Data sources, abbreviations and supporting information
Abbreviations
Data sources

UK
Overview
What you need to know
Products covered in this Report
Executive summary
The market
Clothes sales to be hit by low growth of 1.8% in 2016
Figure 150: Best- and worst-case forecast for consumer spending on clothing and accessories (incl. VAT), 2011-21
Specialists’ share of clothing spend declines further
Figure 151: Clothing specialists’ estimated share of spending on clothing, 2011-16
Companies and brands
Over half of the top players are non-specialists
Boohoo and Missguided benefit from cutting-edge image
Figure 152: Attitudes towards and usage of selected brands, January-August 2016
The consumer
M&S sees declining in-store female shoppers
Figure 153: Retailers from which clothes are bought both in-store and online, July 2016
Young men buy clothes most often
Figure 154: How often consumers have bought clothes in the last 12 months, July 2016
Half of women treat themselves to clothes
Figure 155: Reasons consumers have bought clothes for themselves in the last 12 months, July 2016
Growing interest in Made in Britain clothes
Figure 156: Agreement with attitudes towards buying clothes, July 2016
End to seasonal clothes
Figure 157: Agreement with attitudes towards shopping for clothes, July 2016
What we think
Issues and insights
How has the clothing sector performed in 2016?
The facts
The implications
Who are the winners and losers in clothing?
The facts
The implications
What are the opportunities for driving sales in the sector?
The facts
The implications
The market – What you need to know
Deepening deflation
Consumer confidence only dips slightly post-Brexit vote
Clothes sales to be hit by low growth of 1.8% in 2016
Consumers cut back on clothing as share of total spend
Menswear drives growth
Clothing specialists’ sales to drop 4%
Market drivers
Deepening deflation
Figure 158: Consumer prices inflation for garments, Aug 2015-Aug 2016
Figure 159: Consumer prices inflation for garments, 2005-15
Figure 160: Consumer prices inflation for accessories and footwear, Aug 2015-Aug 2016
Inflation versus spending growth
Figure 161: Annual percentage change in spending on clothing (including accessories) versus annual percentage change in consumer prices inflation in clothing, 2012-15
Obesity levels
Figure 162: Proportion of overweight and obese population, by gender, 2009-14
Consumer confidence only dips slightly post-Brexit vote
Figure 163: Trends in consumer sentiment for the coming year, January 2015-August 2016
Implications of a drop in young consumers
Figure 164: Trends in the age structure of the UK population, 2010-20
25-44s drive clothing sales
Catering to an ageing population
Market size and forecast
Clothes sales to be hit by low growth of 1.8% in 2016
Figure 165: Best- and worst-case forecast for consumer spending on clothing and accessories (incl. VAT), 2011-21
The future
Figure 166: Consumer spending on clothing and accessories (incl. VAT) at current prices, 2011-21
Consumers cut back on clothing as share of total spend
Figure 167: Spending on clothing and accessories as percentage of all consumer spending, 2011-16
Menswear drives growth
Figure 168: Estimated distribution of spending on clothing, by sub-category, 2016
Forecast methodology
The impact of the EU referendum vote
Clothing spend has been resilient in previous slowdowns
Figure 169: Alternative market scenarios for the post-Brexit clothing and accessories market, at current prices, 2016-21
Figure 170: Detailed post-Brexit scenarios for the clothing and accessories market, at current prices, 2016-21
Clothing is struggling, but not as a result of the Brexit vote
Consumers prioritised clothing over leisure previously
Women continued to spend post-recession
Sector size and forecast
Clothing specialists’ sales to drop 4%
Figure 171: Best- and worst-case forecast of clothing specialists’ sector sales (incl. VAT), 2011-21
Figure 172: Clothing specialist sales (incl. VAT), 2011-21
Specialists’ sales of clothing
Figure 173: Estimated sales of clothing by clothing specialist retailers (incl. VAT), 2011-16
Specialists’ share of clothing spend declines further
Figure 174: Clothing specialists’ estimated share of spending on clothing, 2011-16
Key players – What you need to know
Next moves into the lead
Retailers with strong lifestyle brands outperform
Over half of the top players are non-specialists
M&S sees its share of clothing decline further
Supermarkets develop their clothing ranges
ASOS is the brand with the highest level of recommendations
Leading specialist retailers
Next moves into the lead
Figure 175: Leading specialist retailers: net revenues, 2011-15
Retailers with strong lifestyle brands outperform
Figure 176: Leading 20 specialist retailers: compound annual growth in revenues, 2011-15
Outlet numbers and sales per outlet
Figure 177: Leading specialist retailers: outlet numbers, 2011-15
Sales per outlet
Figure 178: Leading specialist retailers: Annual sales per outlet, 2011-15
Sales area and sales densities
Figure 179: Leading specialist retailers: Total sales area, 2011-15
Figure 180: Leading specialist retailers: Annual sales per sq m, 2011-15
Operating profits and margins
Figure 181: Leading specialist retailers: Operating profits, 2011-15
Figure 182: Leading specialist retailers: Operating margins, 2011-15
Market shares
Over half of the top players are non-specialists
Figure 183: Leading retailers’ share of spending on clothing and footwear, 2013-15
M&S sees its share of clothing decline further
Figure 184: Marks & Spencer’s share of spending on clothing and footwear, 2008-15
Leading non-specialist retailers
Figure 185: Leading non-specialist retailers: Net clothing and footwear revenues, 2013-15
Online-only retailers see strong sales
Figure 186: Retailers from which clothes have been bought in the last 12 months, in-store or online, July 2016
Channels of distribution
Grocers and pureplays gain share
Figure 187: Estimated distribution of consumer spending on clothing, by value, 2014-16
Specialists lose share further
Figure 188: Clothing specialists’ estimated share of spending on clothing, 2011-16
Space allocation summary
Gender split
Figure 189: Specialist and non-specialist clothing retailers, estimated space allocation by men’s, women’s and children’s wear, October 2016
Detailed category space allocation
Figure 190: Specialist and non-specialist clothing retailers, estimated detailed space allocation by category, October 2016
Figure 191: Specialist and non-specialist clothing retailers, estimated detailed space allocation by category, October 2016
Clothing versus non-clothing space split
Figure 192: Specialist and non-specialist clothing retailers, estimated clothing versus non-clothing space, October 2016
Retail product mix
Figure 193: Leading retailers of clothing, estimated sales mix, 2015
Figure 194: Leading clothing retailers, share of clothing sales by product, 2015/16
Figure 195: Leading clothing retailers, estimated sales density by product, 2015/16
Figure 196: Leading clothing retailers, share of product markets, 2015/16
Online
Online clothing market to reach £12.8 billion
Figure 197: Estimated online sales of clothing and footwear (incl. VAT), 2013-16
Online market shares
Figure 198: Estimated market shares of online sales of clothing and footwear, 2015
Where consumers shop online
Figure 199: Retailers from which clothes were bought in the last 12 months online, July 2016
Launch activity and innovation
Supermarkets develop their clothing ranges
Figure 200: Press images from Sainsbury’s TU Premium range, autumn 2016
Retailers expand their menswear offer
Made in Britain: Patrick Gant launches not-for-profit label
British-made jeans
Zara launches sustainable clothing collection
Figure 201: Garments from Zara’s sustainable Join Life collection, autumn/winter 2016
ASOS and New Look introduce one-hour delivery slots
Jigsaw debuts at London Fashion Week
Selfridges launches Body Studio
Figure 202: Selfridges’ new Body Studio department, April 2016
Figure 203: Interactive mirrors by Oak Labs, 2015
Mr Porter creates shoppable video content for Apple TV
Long Tall Sally creates mannequin based on 3D scan of a customer
Advertising and marketing activity
Declining advertising spend at the supermarkets
Figure 204: Total above-the-line, online display and direct mail advertising expenditure on clothing, top 30 spenders, 2012-16
Boohoo and Burberry utilise digital channels
Amazon Fashion launches first television advert
H&M retains high-profile campaign with David Beckham
Press advertising accounts for almost half of spend
Figure 205: Total above-the-line, online display and direct mail advertising expenditure on clothing, by media type, 2015
Nielsen Ad Intel coverage
Brand research
What you need to know
Brand map
Figure 206: Attitudes towards and usage of selected brands, January-August 2016
Key brand metrics
Figure 207: Key metrics for selected brands, January-August 2016
Brand attitudes: ASOS and Very provide a great online service
Figure 208: Attitudes, by brand, January-August 2016
Brand personality: Ted Baker and Jigsaw earn an image of exclusivity
Figure 209: Brand personality – Macro image, January-August 2016
Boohoo and Missguided benefit from cutting-edge image
Figure 210: Brand personality – Micro image, January-August 2016
Brand analysis
Mid-market retailers: M&S, Next and Gap
Young and premium fashion retailers: Zara, Superdry, Ted Baker and Jigsaw
Online-only fashion retailers: ASOS, Boohoo, Missguided and Very
Value retailers: Primark and TK Maxx
The consumer – What you need to know
Increase in male shoppers
M&S sees declining female shoppers
Young men buy clothes most often
Half of women treat themselves to clothes
Moving away from discounting
Growing interest in Made in Britain clothes
End to seasonal clothes
What fashion items people buy
Outerwear dominates
Figure 211: Spending habits on clothes, footwear and accessories, September 2016
Retail customer profile comparison
Increase in male shoppers
Figure 212: Customer profile, by gender, July 2016
Rise in 35-44s shopping for clothes
Figure 213: Customer profile, by age, July 2016
Figure 214: Customer profile, by socio-economic group, July 2016
Where people shop for clothes
M&S sees declining female shoppers
Figure 215: Retailers from which clothes are bought both in-store and online, July 2016
Amazon is fifth most popular for fashion
Figure 216: Retailers from which clothes are bought split by in-store and online, July 2016
Supermarkets grow in popularity for clothing
Young men are shopping more at young fashion retailers
Who is driving growth?
Figure 217: 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 2016
Repertoire analysis
Figure 218: Repertoire of retailers from which clothes are bought in-store or online, July 2016
Frequency of buying clothes
Figure 219: How often consumers have bought clothes in the last 12 months, July 2016
Young men buy clothes most often
Figure 220: Consumers who have bought clothes once a month or more often in the last 12 months, by gender and age, July 2016
Women aged 25-44 shop less frequently, but will pay for quality
Affluent buy clothes more frequently
Figure 221: Consumers who have bought clothes once a month or more often or once every 2-3 months or less in the last 12 months, by how they describe their financial situation, July 2016
Reasons for buying clothes
Half of women treat themselves to clothes
Retailers combine leisure and retail
Figure 222: Reasons consumers have bought clothes for themselves in the last 12 months, July 2016
Moving away from discounting
Figure 223: Consumers who have bought clothes for themselves in the last 12 months to take advantage of a sale/special offer, by gender and age, July 2016
Attitudes towards buying clothes
Growing interest in Made in Britain clothes
Figure 224: Agreement with attitudes towards buying clothes, July 2016
Young men focus on design
Figure 225: Agreement with statement ‘I prefer designs that stand out’, by gender and age compared with average, July 2016
Young women drawn to low prices
Attitudes towards shopping for clothes
End to seasonal clothes
Figure 226: Agreement with attitudes towards shopping for clothes, July 2016
Older women drawn to in-store displays
Young men want to see stock availability online
Appendix – Data sources, abbreviations and supporting information
Data sources
Definitions

VAT
Sales per store, sales per sq m
Other
Abbreviations
Consumer research methodology
Appendix – Market size and forecast
Forecast methodology

ARCADIA GROUP
What we think
Total sales grow but like-for-likes are down
Topshop/Topman drives the business
Other brands less profitable
Scope for rationalisation
Burton: could do better
Company background
Company performance
Figure 227: Arcadia Group: Group financial performance, 2010/11-2014/15
Figure 228: Arcadia Group: Outlet data, 2010/11-2014/15
Retail offering

ASDA GROUP LTD
What we think
In a spin
Clothing
Project Renewal
The need for online growth
ToYou could provide increased store footfall
Company background
Company performance
Figure 229: Asda Group Ltd: Group financial performance, 2011-15
Figure 230: Asda Group Ltd: Outlet data, 2011-15
Retail offering
C&A
What we think
The times they are a changing
Weak performance in core market Germany
Keeping up, just….
Western Europe weak, expanding in the East
Company background
Company performance
Figure 231: C&A (Europe): Group sales performance, excl. sales tax, 2011/12-2015/16
Figure 232: C&A (Europe): Outlet data, 2011/12-2015/16
Figure 233: C&A (Europe): Outlet data by country, October 2016
Retail offering
DEBENHAMS
What we think
More relevant marketing
More exciting and exclusive new Designers at Debenhams launches
Children’s clothing
Improved multichannel fashion experience
New chief executive brings a wealth of fashion experience
Company background
Company performance
Figure 234: Debenhams: Group financial performance, 2010/11-2014/15
Figure 235: Debenhams: Outlet data, 2010/11-2014/15
Retail offering

THE EDINBURGH WOOLLEN MILL GROUP
What we think
Company background
Company performance
Figure 236: The Edinburgh Woollen Mill Group: Group financial performance, 2010/11-2014/15
Retail offering

EL CORTE INGLÉS
What we think
Online service offering stands out
El Corte Inglés targets female teen market
Sfera develops international partnerships to fuel growth
Company background
Company performance
Figure 238: El Corte Inglés: Group financial performance, 2011/12-2015/16
Figure 239: El Corte Inglés: Outlet data, 2011/12-2015/16
Retail offering

ESPRIT
What we think
Company background
Company performance
Figure 240: Esprit: Group financial performance, 2011/12-2015/16
Figure 241: Esprit: Outlet data, 2011/12-2015/16
Retail offering
Figure 242: Esprit sales mix, H1 2015/16

ETAM GROUP
What we think
Etam’s extended offering drives growth
Struggling 1.2.3 repositions following lacklustre sales
Digital innovation at the heart of Undiz
Company background
Company performance
Figure 243: Etam Group: Group financial performance, 2011-15
Figure 244: Etam Group: Outlet data, 2011-15
Figure 245: Etam Group: Store network, by region, 2014 and 2015
Retail offering

GRUPO CORTEFIEL
What we think
Company background
Company performance
Figure 246: Grupo Cortefiel: Group financial performance, 2011/12-2015/16
Figure 247: Grupo Cortefiel: Outlet data, 2011/12-2015/16
Retail offering

GRUPO INDITEX
What we think
Inditex outperforms the market
Integrating the digital and physical experience
Zara adopts a more sustainable approach to fast fashion
Company background
Company performance
Figure 248: Grupo Inditex: Group financial performance, 2011/12-2015/16
Figure 249: Grupo Inditex: Share of sales, by retail brand, 2015/16
Figure 250: Grupo Inditex: Sales and operating profit, by major retail brand, 2011/12-2015/16
Figure 251: Grupo Inditex: Outlet data, by region, at January 2016
Figure 252: Grupo Inditex: Store numbers, by retail brand, at January 2016
Figure 253: Grupo Inditex: Outlet data, 2011/12-2015/16
Retail offering

H&M HENNES & MAURITZ
What we think
Designer collaborations boost sales and strengthen fashion credentials
Rapid store growth
E-commerce expansion
A one-stop shop for fashion and beauty
Sustainable fashion initiatives
Company background
Company performance
Figure 254: H&M Hennes & Mauritz: Group financial performance, 2010/11-2014/15
Figure 255: H&M Hennes & Mauritz: Outlet data, 2010/11-2014/15
Retail offering

HOUSE OF FRASER PLC
What we think
Capitalising on House Brand and womenswear sales growth
Online fashion shopping proposition
Perfect fit
Store refurbs attracting new fashion brands
Embracing multicultural fashion
Company background
Company performance
Figure 256: House of Fraser Plc: Group financial performance, 2011/12-2015/16
Figure 257: House of Fraser Plc: Outlet data, 2011/12-2015/16
Retail offering

JOHN LEWIS
What we think
A strong performance
An area of focus
Innovation drives growth
Online
Company background
Company performance
Figure 258: John Lewis Partnership: Group financial performance, 2011/12-2015/16
Figure 259: John Lewis Partnership: Outlet data, 2011/12-2015/16
Retail offering

KIABI
What we think
Company background
Company performance
Figure 260: Kiabi: Group financial performance, 2011-15
Figure 261: Kiabi: Outlet data, 2011-15
Retail offering

MARKS & SPENCER
What we think
Clothing: still the main problem for M&S
Womenswear remains the focus
Streamlining the brand portfolio
Availability and in-store experience must improve
Back to basics
Menswear looks promising
Online sales must improve
The road ahead
Company background
Company performance
Figure 262: Marks & Spencer: Group financial performance, 2011/12-2015/16
Figure 263: Marks & Spencer: Outlet data, 2011/12-2015/16
Retail offering

MATALAN
What we think
Liverpool warehouse problems resolved
New web platform to push online growth
New shop-in-shop concept
Bolstering fashion credentials
Fresh store layouts for a more enjoyable shopping experience
Company background
Company performance
Figure 264: Missouri TopCo Ltd/Matalan: Group financial performance, 2011/12-2015/16
Figure 265: Matalan Ltd: Outlet data, 2011/12-2015/16
Retail offering

NEW LOOK GROUP PLC
What we think
Menswear push
Cosmetics and fragrances and homewares
Web enhancements and wider delivery options drive own online sales
Capitalising on third-party e-commerce partners’ local knowledge and expertise
New concept stores delivering sales and profit growth
China expansion gathering pace
Company background
Company performance
Figure 266: New Look Group Plc: Group financial performance, 2011/12-2015/16
Figure 267: New Look Group Plc: Outlet data, 2011/12-2015/16
Retail offering
NEXT
What we think
A solid performer
E-commerce late to mobile
Becoming more agile
Store network facilitates click-and-collect
One brand, multiple channels?
Company background
Company performance
Figure 268: Next plc: Group financial performance, 2011/12-2015/16
Figure 269: Next plc: Outlet data, 2011/12-2015/16
Retail offering
OVS
What we think
New OVS store format ‘recording excellent sales’
Big name collaborations
Planned international expansion through Charles Vögele takeover
Zalando partnership widens online availability
Company background
Company performance
Figure 270: OVS SpA: Group financial performance, 2011/12-2015/16
Figure 271: OVS SpA: Outlet data, 2011/12-2014/15
Retail offering

PRIMARK/PENNEYS
What we think
The most popular clothing retailer
Inevitable slowing of growth
Facing a triple threat
Lack of transactional website is hurting it
Devaluation of pound set to hit margins
Company background
Company performance
Figure 272: Primark/Penneys: Group financial performance, 2011/12-2015/16
Figure 273: Primark/Penneys: Outlet data, 2011/12-2015/16
Retail offering

RIVER ISLAND CLOTHING CO LTD
What we think
Catering to plus-sized customers
Making it easier for its customers to buy online
Menswear push
New kids’ collection to capitalise on the growing UK children’s clothing market
Tapping into the athleisure trend
New delivery option for customers unable to collect their orders
Using digital technology to drive footfall to stores
New channels to shop River Island
Company background
Company performance
Figure 274: River Island Clothing Co Ltd: Group financial performance, 2010/11-2014/15
Figure 275: River Island Clothing Co Ltd: Outlet data, 2010/11-2014/15
Retail offering

TESCO PLC
What we think
On the road to recovery
Clothing sales tracking UK sales
Streamlining online ordering
In-store concessions: no decision yet
Exposed to performance of larger Tesco stores
International expansion for F&F brand
Company background
Company performance
Figure 276: Tesco Plc: Group financial performance, 2011/12-2015/16
Figure 277: Tesco Plc: Outlet data, 2011/12-2015/16
Retail offering
TJX INTERNATIONAL (TK MAXX)
What we think
TK Maxx benefits from younger men’s penchant for designer brands
Scope for catching up in the online space
Company background
Company performance
Figure 278: TJX International (TK Maxx): Group financial performance, 2011/12-2015/16
Figure 279: TJX International (TK Maxx): Outlet data, 2011/12-2015/16
Retail offering

VIVARTE
What we think
Slow to modernise in an evolving market
Problems at the core format La Halle
Sell, sell, sell…..
Company background
Company performance
Figure 280: Vivarte: Group sales performance, 2010/11-2015/16
Figure 281: Vivarte: Store numbers, 2010/11-2014/15
Retail offering
Figure 282: Vivarte: Clothing brands, 2016
La Halle

ZALANDO
What we think
Complementing the high street leaders
Brand focus
Company background
Company performance
Figure 283: Zalando: Group financial performance, 2011-15
Retail offering

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