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Clothing Retailing - Europe - October 2017

Published By :

Mintel

Published Date : Nov 2017

Category :

Apparel

No. of Pages : N/A

Clothing retailing is changing. Consumers are becoming more demanding and too many well established retailers have failed to respond adequately. New dynamic retailers are developing to take their place some online only, but others combining online and stores. Clothing retailers of the future will have to be much more responsive to fashion trends because the main impact of the growth in online has been to increase competition and make it easier for new dynamic retailers to enter the market and make their mark.

Table of Contents

EUROPE – OVERVIEW
Introduction
Country and company coverage
Consumer research coverage
Definitions
Retail sector definitions
Consumer spending definitions
Financial definitions
Currencies
Sales tax rates
Figure 1: Europe: VAT rates, 2012-17
Abbreviations
EXECUTIVE SUMMARY – EUROPE - THE MARKET
Spending on clothing and footwear
Figure 2: Europe: Spending on clothing, inc VAT, 2011-16
Figure 3: Europe: Spending on clothing and footwear, inc VAT, 2011-16
Figure 4: Europe: Change in clothing’s share of all consumer spending, 2012-16
Figure 5: Europe: Change in clothing’s share of all retail sales, 2012-16
Spending per capita
Figure 6: Europe: Spending on clothing per capita, 2016
Clothing and footwear specialists’ sales
Figure 7: Europe: Clothing and footwear specialists, sales (ex-VAT), 2012-17
Figure 8: Europe: Clothing and footwear specialists, forecast sales (ex-VAT), 2018-22
Specialists relative to all spending
Figure 9: Europe: Change in clothing and footwear retailers’ share of all spending on clothing and footwear, 2012-16
Online
Online buyers
Figure 10: EU: Proportion of people who have bought online in last 12 months, 2011-16
Figure 11: EU: Proportion of people who have bought clothing and sportswear online in the last 12 months, 2012-16
Online sales
Figure 12: Europe: Online sales of clothing in the leading economies (incl. VAT), 2015-16
Leading retailers
Figure 13: Europe: Top 30 clothing specialists, sales 2014/15-2016/17
Figure 14: Europe: Top 30 clothing specialists, outlets 2014/15-2016/17
Figure 15: Europe: Top 30 clothing specialists, sales per outlet, 2014/15-2016/17
Market shares
Figure 16: Top 30 clothing retailers, share of all spending on clothing and footwear, 2014/15-2016/17
Market share winners and losers
Figure 17: Top 30 clothing specialists: Winners and losers of market share, 2016
What we think
EXECUTIVE SUMMARY – EUROPE – THE CONSUMER
Where they shop
Market leaders by number of shoppers – In store
Figure 18: Europe: Most used clothing retailer, by country, September 2017
Market leaders by number of shoppers - Online
Figure 19: Europe: Most used clothing retailer online, by country, September 2017
Customers by channel
Specialists
Figure 20: Europe: Clothing buyers at clothing specialists, in-store vs online, September 2017
Department stores
Figure 21: Europe: Clothing buyers at department stores, in-store vs online, September 2017
Supermarkets
Figure 22: Europe: Clothing buyers at supermarkets, in-store vs online, September 2017
Attitudes to shopping for clothes
Figure 23: Europe: Level of agreement with attitude statements relative to the average, by country, September 2017
EXECUTIVE SUMMARY – EUROPE - LAUNCH ACTIVITY AND INNOVATION
Hema goes gender neutral
Figure 24: Hema’s gender-neutral baby section, 2017
H&M flagships tempt customers with food offer
H&M’s Barcelona flagship
Figure 25: Flax&Kale x H&M, 2017
Arket European expansion
Figure 26: Arket flagship store, Munich, 2017
Zalando delivery
Zalando Zet
Geolocation based delivery
Technical fabrics
Stone Island Ice Knit
Figure 27: Ice Knit yellow to orange jumper, 2017
Stain-proof fabrics
Figure 28: Labfresh stain resistant shirt, 2017
Sustainable clothing
C&A cradle-to-cradle
Figure 29: C&A cradle-to-cradle t-shirts, 2017
Houdini ‘edible’ clothing
Adidas customisable clothing
Figure 30: Adidas Knit for You, 2017
FRANCE
Overview
What you need to know
Areas covered in this report
Executive summary
The market
Spending and inflation
Figure 31: France: Consumer spending on clothing, 2012-17
Channels of distribution
Figure 32: France: Estimated distribution of spending on clothing and footwear, 2016
Sector size and forecast
Leading players
Key metrics
Market shares
Figure 33: France: Leading specialist clothing chains’ shares of consumer spending on clothing and footwear, 2016
Online
The consumer
Where they shop
Figure 34: France: Where people shopped for clothing in the last 12 months by retailer, whether in-store or online, September 2017
Attitudes to shopping for clothes
Figure 35: France: Attitudes to shopping for clothes, September 2017
What we think
Issues and insights
Why are some French brands struggling while international retailers thrive?
The facts
The implications
Ethical and environmental concerns are growing
The facts
The implications
The market – What you need to know
Clothing market is low growth
Specialists dominate spending on clothing
Specialists sector in decline
Spending and inflation
Economy recovering, but growth subdued
Inflation
Figure 36: France: Consumer prices* of clothing and footwear, annual % change, 2012-16
Figure 37: France: Consumer prices* of clothing and footwear, annual % change, January 2016-August 2017
Clothing market is low growth
Figure 38: France: Consumer spending on clothing and footwear (incl. VAT), 2013-17
Market segmentation
Figure 39: France: Clothing market, estimated segmentation, 2012-16
Channels of distribution
Figure 40: France: Where people shopped for clothing in the last 12 months, by type of retailer, September 2017
Specialist sports shops
Footwear specialists
Department stores and mixed goods retailers
Hypermarkets strong at lower end of the market
Online expanding fast
Figure 41: France: Estimated distribution of spending on clothing and footwear, 2016
Sector size and forecast
Total retail sales recovering, further growth forecast in 2017
Specialist clothing sector is struggling
Figure 42: France: Specialist clothing retailers, sales (excl. VAT), 2013-17
Figure 43: France: Specialist clothing retailers, forecast sales (excl. VAT), 2017-22
Leading players – What you need to know
A sector in crisis
Structural change
Fragmented market
Clothing a significant part of growing online sector
Shopping for clothing online increasing
Online spending on clothing
Leading online players
Leading players
Market leader Vivarte restructuring
Eram: Gemo drops prices and ups digital innovations in-store
Crowded middle ground
Competition and casualties increasing
A new group emerging from the Mulliez family
Figure 44: France: Leading clothing specialists, sales (excl. VAT), 2012-16
Figure 45: France: Leading clothing specialists, outlets, 2012-16
Figure 46: France: Leading clothing specialists, sales per outlet, 2012-16
Market shares
Figure 47: France: Leading clothing specialists: Sales as % all spending on clothing and footwear, 2012-16
Online
Online development
Shopping for clothing online
Figure 48: France: Proportion of people saying they have bought clothing or sports goods online in the last year, 2011-16
Figure 49: France: Where people shopped for clothing online/by catalogue in the past 12 months by retailer, September 2017
Online clothing market size
Leading online players
Figure 50: France: Leading fashion/textiles retail sites by number of unique visitors, April-June 2017
Figure 51: France: Leading retailers’ estimated online sales of clothing, 2016
The consumer – What you need to know
Clothing shopping near ubiquitous
Specialists most important channel, but lagging behind online
Sports retailers and grocers are significant non-specialists
Home-grown Kiabi the most popular, but Amazon growing
Customer profiles
Concern for the environment and where clothes come from
Quality more important to older, more affluent
Where they shop
Almost everyone buys clothes
Where they shop by type of retailer
Figure 52: France: Where people shopped for clothes in the last 12 months, by type of retailer, in-store vs online, September 2017
Customer profiles by type of retailer
Figure 53: France: Profile of clothing shoppers by type of retailer, September 2017
Where they shop: named retailers
Local retailer Kiabi ahead of international giant H&M
Amazon growing
Busy middle ground
Sports retailers and grocers popular…
...but department stores increasingly niche
Figure 54: France: Where people shopped for clothes in the last 12 months by retailer, whether in-store or online, September 2017
Customer profiles by named retailers
Figure 55: France: Profile of clothing shoppers by retailer, whether in-store or online, September 2017
Shopping online and in-store
Figure 56: France: Where people shopped for clothes in the last 12 months, in-store vs online/by catalogue, September 2017
Number of retailers used
Figure 57: France: Repertoire of where people shopped for clothes, whether in-store or online, September 2017
Figure 58: France: Profile of customers by number of outlets used, September 2017
Attitudes to shopping for clothes
“Green” credentials rank top
Where are my clothes from?
Quality
Men vs women
Figure 59: France: Attitudes to shopping for clothes, September 2017
Figure 60: France: Profile of those who agree with attitude statements, September 2017
Attitudes by retailer
Figure 61: France: Attitudes to shopping for clothes, by people who shop at mid-market family clothing retailers, September 2017
Figure 62: France: Attitudes to shopping for clothes, by people who shop at fashion chains, September 2017
Figure 63: France: Attitudes to shopping for clothes, by people who shop at online/home shopping clothing retailers, September 2017
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
Figure 64: Germany: Spending on clothing and footwear as % all retail sales, 2011-17
Inflation
Figure 65: Germany: Consumer prices for clothing and footwear – Annual % change, 2016-17
Consumer confidence
Figure 66: Germany: Consumer and retailer confidence levels, November 2016-August 2017
Channels of distribution
Figure 67: Germany: Estimated distribution of spending on clothing and footwear, 2016
Sector size and forecast
Leading players
Key metrics
Market shares
Figure 68: Germany: Leading clothing retailers, Sales as % all spending on clothing and footwear, 2014-16
Online
Figure 69: Europe: Proportion of people saying they have bought clothing or sports goods online in the last year, 2011-16
The consumer
Where they shop
Figure 70: Germany: Where people shopped for clothing in the last 12 months by type of retailer, in-store vs online, September 2017
Figure 71: Germany: Profile of clothing shoppers by type of retailer used, whether in-store or online, September 2017
Figure 72: Germany: Profile of clothing shoppers, by retailer, whether in-store or online, September 2017
Attitudes to shopping for clothes
Figure 73: Germany: Attitudes to buying clothes, September 2017
What we think
Issues and insights
The market is changing
The facts
The implications
Online and in-store sales – Understanding each other’s strengths
The facts
The implications
The market – What you need to know
Consumer confidence
Clothing and footwear spending underperforming
Inflation low
Clothing and footwear specialists take over half of category spending
Spending and inflation
Economy and consumer confidence
Figure 74: Germany: Consumer and retailer confidence levels, November 2016-August 2017
Inflation
Figure 75: Germany: Consumer prices of clothing and footwear, Annual % change, 2012-16
Figure 76: Germany: Consumer prices of clothing and footwear, annual % change, 2016-17
Consumer spending on clothing
Figure 77: Germany: Consumer spending (inc VAT), 2012-17
Figure 78: Germany: Spending on clothing and footwear as % all retail sales, 2011-17
Market segmentation
Figure 79: Germany: Clothing market, estimated segmentation, 2012-16
Channels of distribution
Figure 80: Germany: Estimated distribution of spending on clothing and footwear, 2016
Sector size and forecast
Clothing specialists recovering
Figure 81: Germany: Specialist clothing retailers’ sales as % all spending on clothing, 2007-17
Figure 82: Germany: Specialist clothing retailers, sales (excl. VAT), 2012-17
Too early to forecast if the recovery will be sustained
Figure 83: Germany: Specialist clothing retailers, forecast sales (excl VAT), 2017-22
Leading players – What you need to know
Young fashion retailers are growing
Older focussed retailers are often struggling
Price-led retailers also doing well
Fragmented market
Online is growing
Leading players
Figure 84: Germany: Leading clothing specialists, sales (excl Vat), 2014-16
Figure 85: Germany: Leading clothing specialists, Outlets, 2014-16
Figure 86: Germany: Leading clothing specialists, sales per outlet, 2014-16
Market shares
Figure 87: Germany: Leading clothing retailers, Sales as % all spending on clothing and footwear, 2014-16
Online
Shopping for clothing online
Figure 88: Europe: Proportion of people saying they have bought clothing or sports goods online in the last year, 2011-16
Online clothing market size
Leading online players
Figure 89: Germany: Online clothing sales of leading online clothing retailers (excl. Vat), 2014-16
Figure 90: Germany: Leading online pure players, Clothing sales as % all spending on clothing and footwear, 2014-16
The consumer – What you need to know
Specialists losing out
Sales per customer lower online
Shops and home shopping used interchangeably
Shopper profiles
Younger shoppers use more outlets
Quality more important than fashion
Green attitudes
Where they shop
Figure 91: Germany: Where people shopped for clothes in the last 12 months, by type of retailer, September 2017
Figure 92: Germany: Where people shopped for clothes in the last 12 months, September 2017
Online growing
Figure 93: Germany: Proportion of shoppers at department stores, in-store and online, 2014, 2016, 2017
Figure 94: Germany: Proportion of online shoppers, 2014, 2016, 2017
Customer profiles by type of retailer
Figure 95: Germany: Profile of clothing shoppers by type of retailer, whether in-store or online, September 2017
Customer profiles by named retailers
Figure 96: Germany: Profile of clothing shoppers, by retailer, whether in-store or online, September 2017
Number of retailers used
Figure 97: Germany: Repertoire of where people shopped for clothes, whether in-store or online, September 2017
Figure 98: Germany: Profile of customers by number of clothing outlets used, whether in-store or online, September 2017
Attitudes to shopping for clothes
Figure 99: Germany: Attitudes to shopping for clothes, September 2017
Figure 100: Germany: Profile of those who agree with attitude statements, September 2017
Attitudes by retailer
Figure 101: Germany: Attitudes to shopping for clothes, by people who shop at mass market multiples, September 2017
Figure 102: Germany: Attitudes to shopping for clothes, by people who shop at department stores (incl. P&C), September 2017
Figure 103: Germany: Attitudes to shopping for clothes, by people who shop at online pureplayers, September 2017
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 104: Italy: Annual percentage change in consumer spending on clothing and footwear (incl VAT), 2013-17
Channels of distribution
Figure 105: Italy: Estimated distribution of spending on clothing and footwear, 2016
Sector size and forecast
Figure 106: Italy: Annual percentage change in clothing, footwear and textiles specialists’ sales (excl VAT), 2013-17
Leading players
Market shares
Figure 107: Italy: Leading clothing specialists: Sales as % all spending on clothing and footwear, 2016
Online
The consumer
Where they shop
Figure 108: Italy: Where people shopped for clothes by type of retailer, in-store vs online, September 2017
Attitudes to shopping for clothes
Figure 109: Italy: Attitudes to shopping for clothes, September 2017
What we think
Issues and insights
Online is a key driver of growth
The facts
The implications
Environmental and ethical credentials are important to consumers
The facts
The implications
The market – What you need to know
Economy weak
Inflation just staying positive
Consumer spending on clothing and footwear slowed in 2016
Specialists dominate the sector
Clothing retailers may see their share of retail sales slip back
Spending and inflation
Consumer confidence weak
Figure 110: Italy: Consumer and retailer confidence levels, November 2016-August 2017
Inflation
Figure 111: Italy: Consumer prices of clothing and footwear, Annual % change, 2012-16
Figure 112: Italy: Consumer prices of clothing and footwear, annual % change, January 2016-August 2017
Spending on clothing
Figure 113: Italy: Consumer spending on clothing and footwear (incl VAT), 2012-17
Market segmentation
Figure 114: Italy: Clothing market, estimated segmentation, 2012-16
Channels of distribution
Figure 115: Italy: Estimated distribution of spending on clothing and footwear, 2016
Sector size and forecast
Department stores weak
Slow but steady structural change
Figure 116: Italy: Specialist clothing retailers, sales (excl. VAT), 2013-17
Figure 117: Italy: Specialist clothing retailers, forecast sales (excl. VAT), 2018-22
Leading players – What you need to know
An evolving sector
Young fashion retailers growing fastest, and older brands struggling
Foreign brands prominent
Fragmented market
Online growing fast – Amazon investing
Leading players
Sector is evolving and changing
Young fashion retailers growing fastest, and now Primark is here….
Many older, established brands are struggling
OVS leads the market
Gruppo Teddy a local fast fashion group
Foreign brands
Figure 118: Italy: Leading clothing specialists, sales (excl VAT), 2012-16
Figure 119: Italy: Leading clothing specialists, outlets, 2012-16
Figure 120: Italy: Leading clothing specialists, sales per outlet, 2012-16
Market shares
Figure 121: Italy: Leading clothing specialists: sales as % all spending on clothing and footwear, 2012-16
Online
The online sector as a whole
Shopping for clothing online
Figure 122: Italy: Proportion of people saying they have bought clothing or sports goods online in the last year, 2011-16
Online market size
Leading online players
Specialists
Figure 123: Italy Where people shopped for clothing online/by catalogue in the past 12 months by retailer, September 2017
Figure 124: Italy: Leading retailers’ estimated online sales of clothing, 2016
The consumer – What you need to know
Specialists still dominant
Enthusiastic shoppers
Shopper profiles
Increasingly shoppers use online and in-store interchangeably
Quality more important than fashion
Green attitudes
Where they shop
Figure 125: Italy: Where people shopped for clothes in the last 12 months by type of retailer, in-store vs online, September 2017
Figure 126: Italy: Where people shopped for clothes in the last 12 months by retailer, in-store vs online, September 2017
Figure 127: Italy: Proportion of shoppers at department stores, instore vs online, 2014, 2016, 2017
Figure 128: Italy: Proportion of online shoppers, 2014, 2016, 2017
Profile of shoppers
Figure 129: Italy: Profile of clothing shoppers by type of retailer, whether in-store or online, September 2017
Figure 130: Italy: Profile of clothing shoppers, by retailer, whether in-store or online, September 2017
Number of retailers used
Figure 131: Italy: Repertoire of where people shopped for clothes, whether in-store or online, September 2017
Figure 132: Italy: Profile of customers by number of outlets used, September 2017
Attitudes to shopping for clothes
Figure 133: Italy: Attitudes to shopping for clothes, September 2017
Figure 134: Italy: Profile of those who agree with attitude statements, September 2017
Attitudes by retailer
Figure 135: Italy: Attitudes to shopping for clothes, by retailer used, September 2017
Figure 136: Italy: Attitudes to shopping for clothes, by retailer used (continued), September 2017
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 on clothing and footwear
Figure 137: Spain: Consumer spending on clothing and footwear (incl VAT), 2013-17
Channels of distribution
Sector size and forecast
Leading players
Key metrics
Market shares
Figure 138: Spain: Leading clothing specialists, sales as % all spending on clothing and footwear, 2016
Online
The consumer
Where they shop
Figure 139: Spain: Where people shopped for clothes in the last 12 months, in-store vs online, September 2017
Figure 140: Spain: Repertoire of where people shopped for clothes, whether in-store or online, September 2017
Attitudes to shopping for clothes
Figure 141: Spain: Attitudes to shopping for clothes, September 2017
Figure 142: Spain: Agreement with statement ‘I prefer to shop at retailers that have frequently updated ranges, by country, September 2017
What we think
Issues and insights
Who are the winners and losers in clothing retail in Spain?
The facts
The implications
What are the opportunities for driving sales in Spain?
The facts
The implications
The market – What you need to know
Clothing market to grow 3.7%
Inflation climbs
Womenswear grows faster than menswear
Specialists take two-thirds of spending
Clothing specialists outperform
Spending and inflation
Spain among fastest growing economies in eurozone
Figure 143: Spain: Retail confidence and consumer confidence indicator, January 2016-July 2017
Inflation climbs
Figure 144: Spain: Consumer prices* of clothing and footwear, annual % change, 2012-16
Figure 145: Spain: Consumer prices* of clothing and footwear, annual % change, January 2016-June 2017
Clothing market to grow 3.7%
Figure 146: Spain: Consumer spending on clothing and footwear (incl VAT), 2013-17
Market segmentation
Figure 147: Spain: Clothing retail market segmentation, 2015 and 2016
Channels of distribution
Figure 148: Spain: Estimated distribution of consumer spending on clothing and footwear, 2016
Sector size and forecast
Clothing specialists outperform
Figure 149: Spain: Specialist clothing retailers, Sales (excl VAT), 2013-17
Figure 150: Spain: Specialist clothing retailers, sales forecasts (excl VAT), 2018-22
Leading players – What you need to know
Primark see the strongest growth
Inditex closes stores
Inditex and Primark grab share
Online spend grows
Privalia leading pureplay in Spain
Leading players
Figure 151: Spain: Leading clothing specialists, sales (excl VAT), 2013-16
Figure 152: Spain: Leading clothing specialists, outlets, 2014-16
Figure 153: Spain: Leading clothing specialists, Sales per outlet, 2014-16
Market shares
Figure 154: Spain: Leading clothing specialists, sales as % all spending on clothing and footwear, 2016
Figure 155: Spain: Leading clothing specialists, sales as % all spending on clothing and footwear, 2013-16
Online
Online development
Online market size
Shopping for clothing online
Figure 156: Spain: Proportion of people saying they have bought clothing or sports goods online in the last year, 2011-16
Where people shop online
Figure 157: Spain: Where people shopped for clothes online in the last 12 months, September 2017
Leading online players
Figure 158: Spain: Leading online retailers, estimated online sales of clothing and footwear (ex vat), 2014-16
The consumer – What you need to know
El Corte Inglés most popular for clothes
Spaniards shopping more online
H&M leads in youth fashion
Spanish women shop around
Great interest in transparency
Spanish demand most newness
Where they shop
El Corte Inglés most popular for clothes shopping
Figure 159: Spain: Where people shopped for clothes in the last 12 months, whether in-store or online, September 2017
H&M leads for youth fashion
Spaniards shop more online
Figure 160: Spain: Where people shopped for clothes in the last 12 months, by type of retailer, in-store vs online, September 2017
Customer profiles by type of retailer
Figure 161: Spain: Profile of clothing shoppers by type of retailer, whether in-store or online, September 2017
Zara grows online shoppers
Figure 162: Spain: Where people shopped for clothes in the last 12 months by retailer, in-store vs online, September 2017
Customer profiles by named retailers
Figure 163: Spain: Profile of clothing shoppers by retailer, whether in-store or online, September 2017
Spanish women shop around
Attitudes to shopping for clothes
Great interest in transparency
Figure 165: Spain: Attitudes to shopping for clothes, September 2017
Spanish demand most newness
Figure 166: Spain: Agreement with statement ‘I prefer to shop at retailers that have frequently updated ranges, by country, September 2017
Attitudes by retailer
Figure 167: Spain: Attitudes to shopping for clothes, by people who shop at clothing specialists, September 2017
Figure 168: Spain: Attitudes to shopping for clothes, by people who shop at non-clothing specialists, September 2017
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 grow 3.1% in 2017
Figure 169: UK: Best- and worst-case forecast for consumer spending on clothing and accessories (incl VAT), 2012-22
Clothing specialist sales grow only 2.4%
Figure 170: UK: Clothing specialists’ estimated share of spending on clothing, 2012-17
Companies and brands
Innovative brands continue to outperform
Figure 171: UK: Leading specialist retailers: compound annual growth in revenues, 2012-16
Online clothing market to reach £13.9 billion
Figure 172: UK: Estimated market shares of online sales of clothing and footwear, 2015-16
Boohoo has highest level of recommendation
Figure 173: UK: Attitudes towards and usage of selected brands, February, May and August 2017
The consumer
Supermarkets become fashion destination
Figure 174: UK: Retailers from where clothes are bought both in-store and online, July 2017
Most buy every few months or less
Figure 175: UK: How often consumers have bought clothes in the last 12 months, July 2017
Most interest in food and drink areas
Figure 176: UK: Interest in additional services at retailers’ stores, July 2017
Young women want newness
Figure 177: UK: Attitudes to shopping for clothes, July 2017
Over-45s like try-before-you-buy option
Figure 178: UK: Interest in in-store or online innovations, July 2017
What we think
Issues and insights
How has the clothing sector performed in 2017 and who is driving sales?
The facts
The implications
Who are the winners and losers in clothing?
The facts
The implications
What are the opportunities for driving sales?
The facts
The implications
The market – What you need to know
Rising inflation hits clothing
Consumer confidence dips
Clothes sales to grow 3.1% in 2017
Clothing market will reach £69 billion by 2022
Childrenswear drives growth
Clothing specialist sales grow only 2.4%
Market drivers
Rising inflation hits clothing
Figure 179: UK: Consumer prices inflation for garments, Jul 2016-Jul 2017
Figure 180: UK: Consumer prices inflation for garments, 2006-16
Footwear sees higher levels of discounting
Figure 181: UK: Consumer prices inflation for accessories and footwear, Jul 2016-Jul 2017
Inflation versus spending growth
Figure 182: UK: Annual percentage change in spending on clothing (including accessories) versus annual percentage change in consumer prices inflation in clothing, 2013-16
Consumer confidence drops
Figure 183: UK: Trends in consumer sentiment for the coming year, Jan 2016-Aug 2017
Obesity soars among young men
Figure 184: UK: Proportion of overweight and obese population, by gender, 2010-15
Ageing population impacts sector
Market size and forecast
Clothes sales to grow 3.1% in 2017
Figure 185: UK: Best- and worst-case forecast for consumer spending on clothing and accessories (incl VAT), 2012-22
The future
Figure 186: UK: Consumer spending on clothing and accessories (incl VAT) at current prices, 2012-22
Consumers continue to spend on clothes
Figure 187: UK: Spending on clothing and accessories as percentage of all consumer spending, 2012-17
Childrenswear drives growth
Figure 188: UK: Estimated distribution of spending on clothing, by sub-category, 2017
Forecast methodology
Sector size and forecast
Clothing specialist sales grow only 2.4%
Figure 189: UK: Best- and worst-case forecast of clothing specialists’ sector sales (incl. VAT), 2012-22
Figure 190: UK: Clothing specialist sales (incl VAT), 2012-22
Specialists’ sales of clothing
Figure 191: UK: Estimated sales of clothing by clothing specialist retailers (incl VAT), 2012-17
Specialist sales of clothing spend declines
Figure 192: UK: Clothing specialists’ estimated share of spending on clothing, 2012-17
Key players – What you need to know
Next still in the lead despite declines
Innovative brands continue to outperform
Half of the top players are non-specialists
Online clothing market to reach £13.9 billion
Clothing retailers turn to visual search apps
Boohoo has highest level of recommendation
Leading specialist retailers
Next still in the lead despite declines
Figure 193: UK: Leading specialist retailers, net revenues. 2012-16
Innovative brands continue to outperform
Figure 194: UK: Leading specialist retailers: compound annual growth in revenues, 2012-16
Outlet numbers and sales per outlet
Figure 195: UK: Leading specialist retailers: outlet numbers, 2012-16
Sales per outlet
Figure 196: UK: Leading specialist retailers: annual sales per outlet, 2012-16
Sales area and sales densities
Figure 197: UK: Leading specialist retailers: total sales area, 2012-16
Figure 198: UK: Leading specialist retailers: annual sales per sq m, 2012-16
Operating profits and margins
Figure 199: UK: Leading specialist retailers: operating profits, 2012-16
Figure 200: UK: Leading specialist retailers: operating margins, 2012-16
Market shares
Half of the top players are non-specialists
Figure 201: UK: Leading retailers’ share of spending on clothing and footwear, 2014-16
Department stores lose share
M&S clothing share continues to drop
Figure 202: UK: M&S’s share of spending on clothing and footwear, 2009-16
Leading non-specialist retailers
Online-only retailers see strongest growth
JD Sports outperforms Sports Direct
Figure 203: UK: Leading non-specialist retailers: net clothing and footwear revenues, 2014-16
Channels of distribution
Pureplays gain share
Figure 204: UK: Estimated distribution of consumer spending on clothing by type of retailer, 2016 and 2017
Grocers grow focus on clothing
Figure 205: UK: Estimated distribution of consumer spending on clothing by type of retailer, 2015- 17
Specialists lose share further
Figure 206: UK: Clothing specialists’ estimated share of spending on clothing, 2012-17
Space allocation summary
Men’s, women’s and children’s wear overview
Figure 207: UK: Men’s, women’s and children’s wear overview, October 2017
Detailed category space allocation
Figure 208: UK: Specialist and non-specialist clothing retailers, estimated detailed space allocation by category, October 2017
Figure 209: UK: Specialist and non-specialist clothing retailers, estimated detailed space allocation by category, October 2017
Figure 210: UK: Specialist and non-specialist clothing retailers, estimated detailed space allocation by category, October 2017
Clothing versus non-clothing space
Figure 211: UK: Specialist and non-specialist clothing retailers, estimated clothing versus non-clothing space, October 2017
Retail product mix
Figure 212: UK: Leading clothing retailers, estimated sales by product, 2016
Figure 213: UK: Leading clothing retailers: share of clothing sales by product, 2016
Figure 214: UK: Leading clothing retailers, estimated sales density by product, 2016
Womenswear
Figure 215: UK: Leading clothing retailers, Estimated share of womenswear market, 2016
Menswear
Figure 216: UK: Leading clothing retailers, Estimated share of menswear market, 2016
Childrenswear
Figure 217: UK: Leading clothing retailers, Estimated share of Childrenswear market, 2016
Online
Online clothing and accessories market to reach £13.9 billion
Figure 218: UK: Estimated online sales of clothing and footwear (incl VAT), 2014-17
Online market shares
Figure 219: UK: Estimated market shares of online sales of clothing and footwear, 2015-16
Where do people shop online for clothes?
Figure 220: UK: Types of retailers where clothes were bought online in the last 12 months, July 2017
Figure 221: UK: Retailers where clothes were bought online in the last 12 months, July 2017
Launch activity and innovation
Clothing retailers turn to visual search apps
Figure 222: ASOS visual search option, 2017
Gender neutral clothing
John Lewis childrenswear goes genderless
Figure 223: John Lewis gender neutral range, 2017
Unisex adult clothing
Figure 224: LaneFortyFive unisex clothing, 2017
Modest fashion
Figure 225: Nike Pro Hijab, 2017
Personalisation
3D knitwear
Figure 226: Adidas 3D knitwear printing, 2017
Omnichannel approach
Missguided open first physical store
Figure 227: Missguided stores digital displays, 2017
Farfetch store of the future
Figure 228: Phone app for Farfetch ‘store of the future’, 2017
Next to open in-store restaurant
Sustainability
Figure 229: Oasis x ZSL collection, 2017
Try before you buy
Figure 230: The Chapar personal styling service offering try before you buy, 2017
Amazon Prime Wardrobe
Net-a-Porter – You Try, We Wait
Advertising and marketing activity
Increased advertising spend by major sports retailers
Figure 231: UK: Total above-the-line, online display, and direct mail advertising expenditure on clothing and accessories, top 30 spenders, 2013-17
M&S Spend It Well
H&M: She’s a lady
Figure 232: Video still from H&M’s she’s a lady campaign, 2016
‘Why would anyone shop at TK Maxx?’
Figure 233: TK Maxx Ridiculous Possibilities campaign, 2017
Press remains top medium for advertising spend
Figure 234: UK: Total above-the-line, online display and direct mail advertising expenditure on clothing, by media type, 2016
Nielsen Ad Intel coverage
Brand research
What you need to know
Brand map
Figure 235: UK: Attitudes towards and usage of selected brands, February, May and August 2017
Key brand metrics
Figure 236: UK: Key metrics for selected brands, February, May and August 2017
Brand attitudes: Supermarkets offer good value
Figure 237: UK: Attitudes, by brand, February, May and August 2017
Brand personality: M&S tired and boring, while Boohoo is fun and vibrant
Figure 238: UK: Brand personality – Macro image, February, May and August 2017
Young fashion brands seen as trendsetting and stylish
Figure 239: UK: Brand personality – Micro image, February, May and August 2017
Brand analysis
Mid-market retailers: M&S, Next, and Mango
Lifestyle retailers: Joules, Fat Face, and Cos
Supermarket retailers: F&F, Tu, George, and Nutmeg
Young fashion retailers: Topshop/Topman, H&M, New Look, Boohoo, and River Island
What fashion items people buy
Young men keen clothes shoppers
Figure 240: UK: Spending habits on clothes, footwear and accessories, June 2017
Jeans on trend
Figure 241: UK: Types of outerwear purchased in the last three months, June 2017
Retail customer profile comparison
Amazon grows female focus
Figure 242: UK: Customer profile, by gender, July 2017
Rise in 25-34s shopping for clothes
Figure 243: UK: Customer profile, by age, July 2017
Figure 244: UK: Customer profile, by socio-economic group, July 2017
Where people shop for clothes
Supermarkets become fashion destination
Figure 245: UK: Retailers from where clothes are bought both in-store and online, July 2017
Primark, M&S and Next all see declines
Sports shops lose out to non-specialists
Young women opt to shop at pureplays
Figure 246: UK: Retailers from where clothes are bought split by in-store and online, July 2017
Who is driving growth?
Figure 247: UK: 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 2017
Repertoire analysis
Figure 248: UK: Repertoire of retailers from which clothes are bought in-store or online, July 2017
Frequency of buying clothes
Most buy every few months or less
Figure 249: UK: How often consumers have bought clothes in the last 12 months, July 2017
Young men buy clothes less often
Figure 250: UK: Consumers who have bought clothes once a month or more, by gender and age, July 2017
Affluent buy clothes less often
Figure 251: UK: How often consumers have bought clothes in the last 12 months, by financial situation, July 2017
Interest in additional store services
Most interest in food and drink areas
Figure 252: UK: Interest in additional services at retailers’ stores, July 2017
High demand from under-35s for beauty services
Figure 253: UK: Interest in additional services at retailers’ stores, by gender and age, July 2017
Attracting older women with VIP events
Attitudes to shopping for clothes
Young women want newness
Figure 254: UK: Attitudes to shopping for clothes, July 2017
70% of 16-24s want more eco fashion
Women demand more diverse models
Figure 255: UK: Clothing retailing – CHAID – Tree output, August 2017
Methodology
ARCADIA GROUP
What we think
Topshop loses its appeal
Dorothy Perkins falls behind other retailers
Dealing with loss-making brands
Company background
Company performance
Figure 256: Arcadia Group: Group financial performance, 2011/12-2016/17
Figure 257: Arcadia Group: Outlet data, 2012/13-2016/17
Retail offering
ASDA GROUP
What we think
A major player in clothing retailing
Looking to become leaner
Toyou service continues to drive footfall into stores
Rumoured B&M deal would give Asda another outlet for clothing
Where now?
Company background
Company performance
Figure 258: Asda Group Ltd: Group financial performance, 2012-16
Figure 259: Asda Group Ltd: Outlet data, 2012-16
Retail offering
ASOS
What we think
Tapping into consumer demand for newness
Exclusivity differentiates the brand and gives consumers more reason to visit
M-commerce fuelling sales growth
Bolstering ethical and environmental credentials
Significantly enhancing its US proposition
Company background
Company performance
Figure 260: ASOS: Group financial performance, 2011/12-2015/16
Retail offering
C&A
What we think
Restructuring aims to return company to growth by 2021
New European boss brought in to develop omnichannel
Company background
Company performance
Figure 261: C&A: Group sales performance, 2012/13-2016/17
Figure 262: C&A: Outlet data, 2012/13-2016/17
Figure 263: C&A (Europe): Outlets by country, October 2017
Retail offering
GRUPO CORTEFIEL
What we think
New owners pledge to invest in Grupo Cortfefiel
Strong growth under new management
Expanded payment option to facilitate quicker customer transactions
Slower growth in Europe prompts expansion into new territories
Company background
Company performance
Figure 264: Grupo Cortefiel: Group sales performance, 2012/13-2016/17
Figure 265: Grupo Cortefiel: Outlet data, 2012/13-2016/17
Retail offering
DEBENHAMS
What we think
New strategy to lure shoppers back to its stores
Veteran designers could face the axe in own-fashion range shake-up
Extended lingerie offering
‘Mobile first’ strategy driving e-commerce sales
Innovative click-and-collect experience planned to encourage incremental business
Broadening its customer reach through third-party online partners
Company background
Company performance
Figure 266: Debenhams: Group financial performance, 2011/12-2015/16
Figure 267: Debenhams: Outlet data, 2011/12-2015/16
Retail offering
EDINBURGH WOOLLEN MILL
What we think
Another wave of acquisitions
On the lookout for more
Bringing a new department store to the market
Company background
Company performance
Figure 268: The Edinburgh Woollen Mill Group: Group financial performance, 2012/13-2016/17
Figure 269: The Edinburgh Woollen Mill Group: Outlet data, 2012/13-2016/17
Retail offering
EL CORTE INGLÉS
What we think
Merger between El Corte Inglés and Hipercor
Figure 270: El Corte Inglés/Hipercof store, 2017
Sfera continues its international expansion
Commitment to increased digitisation
Figure 271: El Corte Inglés and Samsung Pay partnership, 2017
Company background
Company performance
Figure 272: El Corte Inglés: Group financial performance, 2012/13-2016/17
Figure 273: El Corte Inglés: Outlet data, 2012/13-2016/17
Retail offering
ESPRIT
What we think
Downsizing is happening but slowly
Time for menswear exit?
Online pause hopefully a temporary blip
Where now?
Company background
Company performance
Figure 274: Esprit Europe: Group financial performance, 2012/13-2016/17
Figure 275: Esprit Europe: Outlet data, 2012/13-2016/17
Retail offering
ETAM GROUP
What we think
Market leader in lingerie in France
1.2.3
Problems in China
Digitally integrated
Company background
Company performance
Financial results
Figure 276: Etam Group: Group financial performance, 2012-16
H1 2017 results
Stores
Figure 277: Etam Group: Outlet data, 2012-16
Retail offering
H&M HENNES & MAURITZ
What we think
Looking beyond fast fashion
A more seamless shopping experience
New designer collection aims to appeal to fashion conscious male shoppers
New loyalty scheme with exclusive offers and brand experiences
Focusing on offering sustainable finishing processes and eco-friendly materials
Company background
Company performance
Figure 278: H&M Hennes & Mauritz: Group financial performance, 2011/12-2015/16
Figure 279: H&M Hennes & Mauritz: Outlet data, 2011/12-2015/16
Retail offering
HOUSE OF FRASER
What we think
Refreshing flagging womenswear offering
New fashion concept
Lifestyle-led in-store experiences to drive footfall and extend dwell time
£25 million upgrade of e-commerce platform to double online sales
Company background
Company performance
Figure 280: House of Fraser Plc: Group financial performance, 2012/13-2016/17
Figure 281: House of Fraser Plc: UK & Ireland outlet data, 2012/13-2016/17
Retail offering
GRUPO INDITEX
What we think
Inditex retains strong position but must continue to innovate
Brand extensions
Figure 282: Stradivarius menswear collection, 2017
Figure 283: Pull&Bear beauty range, 2017
Digital innovations
Company background
Company performance
Figure 284: Grupo Inditex: Group financial performance, 2012/13-2016/17
Figure 285: Grupo Inditex: % share of sales, by retail brand, 2015/16-2016/17
Figure 286: Grupo Inditex: Sales and operating profit, by major retail brand, 2012/13-2016/17
Figure 287: Grupo Inditex: Outlet data, by region, at January 2017
Figure 288: Grupo Inditex: Store numbers, by retail brand, at January 2016 and January 2017
Figure 289: Grupo Inditex: Outlet data, 2012/13-2016/17
Retail offering
JOHN LEWIS
What we think
A focus on exclusivity
Investment in experience-driven stores
Improved information to streamline the shopping experience
Company background
Company performance
Figure 290: John Lewis Plc (department store): Group financial performance, 2012/13-2016/17
Figure 291: John Lewis Plc (department store): Outlet data, 2012/13-2016/17
Retail offering
KIABI
What we think
Ambitious expansion plans
The threat of Primark
Company background
Company performance
Figure 292: Kiabi: Group financial performance, 2012-16
Figure 293: Kiabi: Outlet data, 2012-16
Retail offering
KIK
What we think
KiK17 store concept
Charles Vögele stores acquisition
Entering the US market in 2019
Bridging the gap between in-store and online shopping
Bolstering eco and social responsibility credentials
Company background
Company performance
Figure 294: KiK: Group sales performance, 2012-16
Figure 295: KiK: Outlet data, 2012-16
Retail offering
MARKS & SPENCER
What we think
Repositioning clothing
Reshaping its stores
Online
Company background
Company performance
Figure 296: Marks & Spencer: Group financial performance, 2012/13-2016/17
Figure 297: Marks & Spencer: Outlet data, 2012/13-2016/17
Retail offering
MATALAN
What we think
Investment in product quality driving full-price sales
Extensive store refurbishment programme
Exploring international sales growth opportunities
Bespoke fashion and style show enhances online presence
Influencer-generated content boosts fashion credentials
Parcel pick-up service is an opportunity to drive store footfall
Company background
Company performance
Figure 298: Matalan Ltd: Group financial performance, 2012/13-2016/17
Figure 299: Matalan Ltd: Outlet data, 2012/13-2016/17
Retail offering
NEW LOOK
What we think
Focused on delivering trends to market faster
Fewer discounts and promotions
Multichannel sales potential compromised by slumping website traffic and sales
Expanded menswear proposition
Tailored ranges and domestic sourcing helps boost business in China
Recruiting social media influencers to drive brand awareness and identify trends quicker
Company background
Company performance
Figure 300: New Look Group Plc: Group financial performance, 2012/13-2016/17
Figure 301: New Look Group Plc: Outlet data, 2012/13-2016/17
Retail offering
NEXT GROUP
What we think
Pushing too hard for flexibility?
A bold strategy…
…which could leave it exposed
Giving customers more reason to visit stores
Devaluation impact on prices is diminishing
Where now?
Company background
Company performance
Figure 302: Next Group: Group financial performance, 2012/13-2016/17
Figure 303: Next Group: Outlet data, 2012/13-2016/17
Retail offering
OVS
What we think
Conversion of Charles Vögele stores yielding positive results
Online sales triple in 2016
Proximity marketing to drive store footfall
New multichannel shopping service
Faster and simpler payment solution
New material procurement policy to reduce environmental impact
Company background
Company performance
Figure 304: OVS group: Group financial performance, 2012-16
Figure 305: OVS group: Outlet data, 2012-16
Retail offering
PRIMARK
What we think
Getting the product right
Competition intensifying from rivals
Brexit impact mitigated but price rises a possibility
Should Primark have a transactional website?
Where next?
Company background
Company performance
Figure 306: Primark/Penneys: Group financial performance, 2012/13-2016/17
Figure 307: Primark/Penneys: Outlet data, 2012/13-2016/17
Retail offering
RIVER ISLAND
What we think
Avoiding seasonal fashion marketing
Integrating influencer-generated content
Seamless cross-channel shopping experience
Customer-facing digital enhancements streamline the in-store shopping experience
Improved stock availability boosting store sales
Pushing for a bigger slice of the children’s clothing market
Cutting-edge canine fashion
Preparing to launch its own homewares
Company background
Company performance
Figure 308: River Island Clothing Co Ltd: Group financial performance, 2012-16
Figure 309: River Island Clothing Co Ltd: Outlet data, 2012-16
Retail offering
TESCO
What we think
Leading the pack with online innovations
Making stores work harder
Where next?
Company background
Company performance
Figure 310: Tesco Plc: Group financial performance, 2012/13-2016/17
Figure 311: Tesco Plc: Outlet data, 2012/13-2016/17
Retail offering
TJX INTERNATIONAL (TK MAXX EUROPE)
What we think
Room for growth
Attracting a broad demographic
Launching new loyalty scheme in the UK and Ireland
Company background
Company performance
Figure 312: TJX International (TK Maxx Europe): Group financial performance, 2012/13-2016/17
Figure 313: TJX International (TK Maxx Europe): Outlet data, 2012/13-2016/17
Retail offering
VIVARTE
What we think
Will the restructuring work?
Online
Company background
Company performance
Figure 314: Vivarte: Group sales performance, 2011/2-2015/16
Figure 315: Vivarte: Store numbers, 2011/12-2015/16
Retail offering
Figure 316: Vivarte: Clothing brands (unsold businesses only), October 2017
La Halle
YNAP GROUP
What we think
The future: more investment in technology
Company background
Company performance
Figure 317: YNAP group: Group financial performance, 2014-16
Retail offering
ZALANDO
What we think
Mobile is at the heart of the business
Prioritising delivery to drive customer loyalty
Geo-localised delivery being trialled
Moving from following to leading
Integrated commerce links up online and offline channels
Fulfilment service reaches out to brands
Company background
Company performance
Figure 318: Zalando: Group financial performance, 2012-16
Figure 319: Zalando: Key metrics, 2015-H1 2017
Retail offering

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