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Clothing Retailing - UK - October 2009

There is more choice than ever before in the UK’s clothing mass-market. But it has been dominated by price for much of the last ten years, as cheaper sourcing from the Far East has facilitated the growth of value retailers.

This has increased competition and squeezed the middle-market players. And with youth unemployment rising fast, competition looks set to continue revolving around price for the foreseeable future.

This will exert further downward pressure on retailers’ margins and inhibit their ability to invest in new initiatives and stores. Not only that but it will make it hard for retailers to pass on the full price increases on imported goods.

But there is a glimmer of hope for the mid/upper mass market players. Over one in ten people in a survey commissioned especially for this report say they will spend more on clothing in the year ahead. But this figure rises to 22% of the ABC1 pre-/no family lifestage – a group that is less economically challenged and is more likely to be influenced by quality rather than low prices.

Main themes

  • How has the recession changed consumers’ shopping habits for clothing and are there key differences by demographic group?

  • Who have the retail winners and losers been as a result?

  • How have the under 25s, a key group for fashion, responded to the downturn and will their shopping habits change as youth unemployment rises.

  • How are the UK’s future demographic trends likely to impact the clothing market?

  • What are consumer’s future spending intentions on clothes?

  • How have clothing specialists performed relative to non-specialist competition and what part did the Internet play in this?

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Table of contents

  1. Issues in the Market

      • Main themes
        • Definitions
          • Abbreviations
          • Future Opportunities

            • Trading down but what next?
              • The middle market must fight back
              • Market in Brief

                • Future
                  • Deflation pervades
                    • Consumer context
                      • Competitive landscape
                      • Internal Market Environment

                        • Key points
                          • Clothing takes the biggest hit among those cutting back
                            • Figure 1: The items adults are cutting back on in the recession, February 2009
                          • The price dilemma for retailers
                              • Figure 2: UK clothing price deflation, 2005-Q2 2009
                            • The young – in denial?
                              • Less concerned about their finances
                                • Figure 3: UK: Concern over finances, % point change, Feb 2008-Jun 2009
                              • But have they reached the tipping point?
                                • Figure 4: UK: Concern over job prospects, 18-25s, February 2008-June 2009
                              • Changing allegiances
                                  • Figure 5: Selected retailers where the 18-25s buy clothes, May 2008 and July 2009
                                • Competition from non-specialists
                                  • Figure 6: Clothing specialists as % of all spending on clothing and footwear, 2001-08
                                • The power of the internet
                                • Broader Market Environment

                                  • Key points
                                    • Mixed impact of changing demographics
                                      • Figure 7: Implications of changing demographics of the UK population for clothing market, 2009-14
                                    • Late 2008 – the economy moves into recession
                                        • Figure 8: UK: GDP real growth, 1999-Q2 2009
                                      • 2008 – consumer confidence in freefall…but retail sales robust
                                        • Figure 9: Nationwide Consumer Confidence Index, Jan 2006-July 2009
                                      • 2009 – confidence starts to recover…will retail sales follow?
                                          • Figure 10: UK: Retail sales value growth, 2007-09 (August)
                                        • Implications for clothes retailing
                                        • Competitive Context

                                          • Key points
                                            • Clothing performance held back by deflation
                                              • Figure 11: Consumer spending on clothing and other fashion-influenced product markets, 2004-08
                                              • Figure 12: Growth in spending on clothing and other fashion-influenced product markets, 2004-08
                                            • Spending patterns change in the recession
                                                • Figure 13: Growth in spending on clothing and other fashion-influenced product markets, 2007-09
                                              • And men cut back more
                                                • Figure 14: Clothing spending breakdown, 2004 vs 2008
                                              • Consumer prices
                                                • Figure 15: Consumer prices on select fashion-influenced categories, 1996-2008
                                                • Figure 16: Consumer prices on select fashion-influenced categories, 1996-2008
                                            • Who’s Innovating?

                                              • The internet – a key battleground for innovation
                                                • Brand building
                                                  • New forms of collaboration
                                                  • Strengths and Weaknesses in the Market

                                                    • Strengths
                                                      • Weaknesses
                                                      • Sector Size and Forecast

                                                        • Key points
                                                          • Economic and consumer outlook
                                                            • Retail forecasts
                                                              • Improving short term outlook for retail
                                                                • Clothing specialists should maintain retail market share in 2009
                                                                  • Longer term they should outperform all retail
                                                                      • Figure 17: UK: Clothing specialists sales, 2004-14
                                                                    • Past trends
                                                                      • Clothing specialists struggle to hold onto retail market share
                                                                          • Figure 18: UK: Clothing specialists sales, 2004-08
                                                                          • Figure 19: UK: Clothing specialists as % of all retail sales, 1999-2008
                                                                      • Channels of Distribution

                                                                          • Figure 20: UK: Clothing market – channels of distribution, 2006 and 2008
                                                                        • Specialists
                                                                          • Department stores struggle to maintain market share
                                                                            • Grocers catch up with department stores
                                                                              • Home shopping
                                                                                • Others
                                                                                • Retailer Competitor Analysis

                                                                                  • Key points
                                                                                    • Leading specialists
                                                                                      • Value retailers make significant gains
                                                                                        • Young fashion holds up too
                                                                                          • But the mid-market has been seriously squeezed
                                                                                            • Rebuilding for the future
                                                                                                • Figure 21: Leading clothing retailers, 2008/09
                                                                                              • Evaluation
                                                                                                • Figure 22: Selected UK clothing retailers, evaluation, 2009
                                                                                              • Market shares
                                                                                                  • Figure 23: UK: Leading clothing retailers, market shares, 2008
                                                                                              • Retail Advertising and Promotion

                                                                                                • Key points
                                                                                                  • Cutting back in the downturn
                                                                                                      • Figure 24: Main media advertising spend, by leading clothing retailers, 2004/05-2008/09
                                                                                                    • M&S dominates
                                                                                                      • Next builds why Matalan contracts
                                                                                                        • Figure 25: Top three advertisers – spending index, 2004/05-2008/09
                                                                                                      • Spending by media
                                                                                                          • Figure 26: Main media advertising spend, by leading clothing retailers, by media, 2008/09
                                                                                                      • Brand Elements

                                                                                                          • Key points
                                                                                                            • Brand map
                                                                                                                • Figure 27: Attitudes towards and visitation of clothing retail brands, September 2009
                                                                                                              • Brand qualities of clothing retail brands
                                                                                                                • Authority and accessibility for M&S, but Next has style
                                                                                                                  • Figure 28: Personalities of various clothing retail brands, September 2009
                                                                                                                  • Figure 29: Personalities of various clothing retail brands, September 2009 (continued)
                                                                                                                • Experience of clothing retail brands
                                                                                                                  • Tesco and M&S most commonly visited, TJ Hughes lacks awareness
                                                                                                                    • Figure 30: Consumer visitation of various clothing retail brands, September 2009
                                                                                                                  • Brand intentions for clothing retail brands
                                                                                                                    • Bhs and Burton most considered
                                                                                                                      • Figure 31: Consideration of various clothing retail brands, September 2009
                                                                                                                    • Brand satisfaction for clothing retail brands
                                                                                                                      • Fashion specialists have the edge
                                                                                                                        • Figure 32: Satisfaction with various clothing retail brands, September 2009
                                                                                                                      • Brand commitment to clothing retail brands
                                                                                                                        • Value retailers lack engagement
                                                                                                                          • Figure 33: Commitment to various clothing retail brands, September 2009
                                                                                                                          • Figure 34: Commitment to various clothing retail brands, September 2009 (continued)
                                                                                                                        • Next
                                                                                                                          • What the consumer thinks
                                                                                                                            • Figure 35: Attitudes towards the Next brand, September 2009
                                                                                                                          • Bonmarché
                                                                                                                            • What the consumer thinks
                                                                                                                              • Figure 36: Attitudes towards the Bonmarché brand, September 2009
                                                                                                                            • Debenhams
                                                                                                                              • What the consumer thinks
                                                                                                                                • Figure 37: Attitudes towards the Debenhams brand, September 2009
                                                                                                                              • Topshop/Topman
                                                                                                                                • What the consumer thinks
                                                                                                                                  • Figure 38: Attitudes towards the Topshop/Topman brand, September 2009
                                                                                                                                • Tesco
                                                                                                                                  • What the consumer thinks
                                                                                                                                    • Figure 39: Attitudes towards the Tesco brand, September 2009
                                                                                                                                  • Primark
                                                                                                                                    • What the consumer thinks
                                                                                                                                      • Figure 40: Attitudes towards the Primark brand, September 2009
                                                                                                                                    • Zara
                                                                                                                                      • What the consumer thinks
                                                                                                                                        • Figure 41: Attitudes towards the Zara brand, September 2009
                                                                                                                                      • Asda/George
                                                                                                                                        • What the consumer thinks
                                                                                                                                          • Figure 42: Attitudes towards the Asda/George brand, September 2009
                                                                                                                                        • Marks & Spencer
                                                                                                                                          • What the consumer thinks
                                                                                                                                            • Figure 43: Attitudes towards the Marks & Spencer brand, September 2009
                                                                                                                                        • The Consumer – Where They Buy Clothing

                                                                                                                                            • Key points
                                                                                                                                              • Where they buy clothing
                                                                                                                                                  • Figure 44: Where they buy clothes, July 2009
                                                                                                                                                • The changing face of the UK high street
                                                                                                                                                    • Figure 45: Outlets used for purchasing clothing in the last 12 months, 2004-09
                                                                                                                                                  • Who buys where
                                                                                                                                                    • Women far more enthusiastic shoppers than men
                                                                                                                                                        • Figure 46: Where they buy clothes – top 10, by gender, July 2009
                                                                                                                                                      • Next corners the 25-44-year-old market
                                                                                                                                                          • Figure 47: Where they bought clothes in the last 12 months – top 10, by select age bands, July 2009
                                                                                                                                                        • And e-commerce grabs the attention of the young
                                                                                                                                                            • Figure 48: Internet shoppers, by age, July 2009
                                                                                                                                                          • M&S dominates the older end of the market
                                                                                                                                                              • Figure 49: Where they bought clothes in the last 12 months – top 10, by select age bands, July 2009
                                                                                                                                                            • M&S and department stores well placed to benefit from socio-economic shift
                                                                                                                                                                • Figure 50: Selected retailers where they buy clothes, by socio-economic group, July 2009
                                                                                                                                                              • Cross category shopping
                                                                                                                                                                  • Figure 51: Where they bought clothes in last 12 months, by grocery stores used, July 2009
                                                                                                                                                                  • Figure 52: Where they bought clothes in last 12 months, by grocery stores used, July 2009
                                                                                                                                                              • The Consumer – The Way They Shop For Clothing

                                                                                                                                                                  • Key points
                                                                                                                                                                    • Consumers cutting back
                                                                                                                                                                        • Figure 53: Way in which they shop for clothing compared to previous year, July 2009
                                                                                                                                                                      • Volume versus value – the gender divide
                                                                                                                                                                          • Figure 54: Way in which they shop for clothing compared to previous year, by gender, July 2009
                                                                                                                                                                        • Older consumers stick with same habits
                                                                                                                                                                            • Figure 55: Those with unchanged shopping habits and those shopping around more, by age, July 2009
                                                                                                                                                                          • But the 25-54s trade down most
                                                                                                                                                                              • Figure 56: Those mostly buying on sale etc and those buying more from value retailers, by age, July 2009
                                                                                                                                                                            • Consumers shopping habits by where they’ve shopped
                                                                                                                                                                              • Familiarity and trust
                                                                                                                                                                                  • Figure 57: Where they bought clothing, by those buying more from familiar brands/shops they trust, July 2009
                                                                                                                                                                                  • Figure 58: Where they bought clothing, by those shopping around more compared to previous year, July 2009
                                                                                                                                                                                • Favouring value retailers
                                                                                                                                                                                    • Figure 59: Where they bought clothing, buying more from value retailers compared to previous year, July 2009
                                                                                                                                                                                    • Figure 60: Where they bought clothing, by way in which shop for clothing compared to previous year, July 2009
                                                                                                                                                                                  • Future intentions
                                                                                                                                                                                    • More pessimistic than optimistic overall
                                                                                                                                                                                        • Figure 61: Future spending intentions, by gender, July 2009
                                                                                                                                                                                      • The optimism of youth or the realism of experience?
                                                                                                                                                                                          • Figure 62: Those intending to spend more on clothing in the coming year, by age, July 2009
                                                                                                                                                                                          • Figure 63: Future spending intentions, by demographics, July 2009
                                                                                                                                                                                        • Other findings
                                                                                                                                                                                        • Consumer Typologies

                                                                                                                                                                                            • Key points
                                                                                                                                                                                                • Figure 64: Clothing consumer typologies, July 2009
                                                                                                                                                                                              • Group 1: Unchanged (62%)
                                                                                                                                                                                                • Group 2: Fickle (16%)
                                                                                                                                                                                                  • Group 3: Price Led (13%)
                                                                                                                                                                                                    • Group 4: Familiar & Trusted (9%)
                                                                                                                                                                                                      • Where people shop by typology
                                                                                                                                                                                                          • Figure 65: Where they bought clothing, by consumer typology, July 2009
                                                                                                                                                                                                      • Alexon Group

                                                                                                                                                                                                          • Figure 66: Alexon Group Plc: Sales as share of clothing retailers’ sales in UK, 2004-08
                                                                                                                                                                                                        • Recent history
                                                                                                                                                                                                          • Financial performance
                                                                                                                                                                                                              • Figure 67: Alexon Group Plc: Group financial performance, 2004/05-2008/09
                                                                                                                                                                                                            • Store portfolio
                                                                                                                                                                                                              • Figure 68: Alexon Group Plc: Outlet data, 2005-09
                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                              • Market positioning
                                                                                                                                                                                                                • Brands
                                                                                                                                                                                                                  • Figure 69: Alexon Group: List of brands, 2008/09
                                                                                                                                                                                                                • e-commerce and home shopping
                                                                                                                                                                                                                • Arcadia Group

                                                                                                                                                                                                                    • Figure 70: Arcadia Group Brands Ltd: Sales as share of clothing specialists in the UK, 2004-08
                                                                                                                                                                                                                  • Strategic evaluation
                                                                                                                                                                                                                    • Recent history
                                                                                                                                                                                                                      • Financial performance
                                                                                                                                                                                                                        • Figure 71: Arcadia Group: Group financial performance, 2003/04-2007/08
                                                                                                                                                                                                                      • Store portfolio
                                                                                                                                                                                                                          • Figure 72: Arcadia Group Brands Ltd: Outlet data, 2004-08
                                                                                                                                                                                                                          • Figure 73: Arcadia Group: Breakdown of international outlets, September 2009
                                                                                                                                                                                                                          • Figure 74: Arcadia Group: Breakdown of European outlets, by fascia, September 2009
                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                          • Topshop
                                                                                                                                                                                                                            • Market positioning
                                                                                                                                                                                                                              • Brands/product offer
                                                                                                                                                                                                                                • Pricing
                                                                                                                                                                                                                                  • Topman
                                                                                                                                                                                                                                    • Market positioning
                                                                                                                                                                                                                                      • Brands/product offer
                                                                                                                                                                                                                                        • Pricing
                                                                                                                                                                                                                                          • Dorothy Perkins
                                                                                                                                                                                                                                            • Market positioning
                                                                                                                                                                                                                                              • Brands/product offer
                                                                                                                                                                                                                                                • Pricing
                                                                                                                                                                                                                                                  • Burton
                                                                                                                                                                                                                                                    • Market positioning
                                                                                                                                                                                                                                                      • Brands/product offer
                                                                                                                                                                                                                                                        • Pricing
                                                                                                                                                                                                                                                          • Miss Selfridge
                                                                                                                                                                                                                                                            • Market positioning
                                                                                                                                                                                                                                                              • Brands/product offer
                                                                                                                                                                                                                                                                • Pricing
                                                                                                                                                                                                                                                                  • Evans
                                                                                                                                                                                                                                                                    • Market positioning
                                                                                                                                                                                                                                                                      • Brands/product offer
                                                                                                                                                                                                                                                                        • Pricing
                                                                                                                                                                                                                                                                          • Wallis
                                                                                                                                                                                                                                                                            • Market positioning
                                                                                                                                                                                                                                                                              • Brands/product offer
                                                                                                                                                                                                                                                                                • Pricing
                                                                                                                                                                                                                                                                                  • e-commerce and home shopping
                                                                                                                                                                                                                                                                                    • Figure 75: Arcadia Group: Websites, 2009
                                                                                                                                                                                                                                                                                • Aurora Fashions (formerly Mosaic Fashions)

                                                                                                                                                                                                                                                                                    • Figure 76: Aurora Fashions Ltd: Sales as share of clothing specialists’ sales in Europe, 2004-08
                                                                                                                                                                                                                                                                                  • Strategic evaluation
                                                                                                                                                                                                                                                                                    • Recent history
                                                                                                                                                                                                                                                                                      • Financial performance
                                                                                                                                                                                                                                                                                          • Figure 77: Mosaic Fashions: Group financial performance, 2004/05-2008/09
                                                                                                                                                                                                                                                                                        • Store portfolio
                                                                                                                                                                                                                                                                                            • Figure 78: Mosaic Fashions: Outlet data, 2004-09
                                                                                                                                                                                                                                                                                            • Figure 79: Mosaic Fashions: Outlets by country, August 2009
                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                            • Coast
                                                                                                                                                                                                                                                                                              • Market positioning
                                                                                                                                                                                                                                                                                                • Brands/Product offer
                                                                                                                                                                                                                                                                                                  • Pricing
                                                                                                                                                                                                                                                                                                    • Karen Millen
                                                                                                                                                                                                                                                                                                      • Market positioning
                                                                                                                                                                                                                                                                                                        • Brands/Product offer
                                                                                                                                                                                                                                                                                                          • Pricing
                                                                                                                                                                                                                                                                                                            • Oasis
                                                                                                                                                                                                                                                                                                              • Market positioning
                                                                                                                                                                                                                                                                                                                • Brands/Product offer
                                                                                                                                                                                                                                                                                                                  • Figure 80: Oasis: brands, 2009
                                                                                                                                                                                                                                                                                                                • Pricing
                                                                                                                                                                                                                                                                                                                  • Warehouse
                                                                                                                                                                                                                                                                                                                    • Market positioning
                                                                                                                                                                                                                                                                                                                      • Brands/Product offer
                                                                                                                                                                                                                                                                                                                        • Pricing
                                                                                                                                                                                                                                                                                                                          • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                          • Benetton Group

                                                                                                                                                                                                                                                                                                                              • Figure 81: Benetton (UK): Estimated retail sales as share of clothing specialists in the UK, 2004-08
                                                                                                                                                                                                                                                                                                                            • Strategic evaluation
                                                                                                                                                                                                                                                                                                                              • Recent history
                                                                                                                                                                                                                                                                                                                                • Figure 82: Benetton Group: Group financial performance, 2004-08
                                                                                                                                                                                                                                                                                                                                • Figure 83: Benetton UK: Financial performance, 2004-08
                                                                                                                                                                                                                                                                                                                              • Store portfolio
                                                                                                                                                                                                                                                                                                                                • Figure 84: Benetton Group: Outlet data, 2004-08
                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                • Market positioning
                                                                                                                                                                                                                                                                                                                                  • Product offer
                                                                                                                                                                                                                                                                                                                                    • Advertising and marketing
                                                                                                                                                                                                                                                                                                                                      • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                      • Bhs

                                                                                                                                                                                                                                                                                                                                          • Figure 85: Bhs Plc: Sales as share of clothing specialists’ sales in UK, 2003-07
                                                                                                                                                                                                                                                                                                                                        • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                          • History
                                                                                                                                                                                                                                                                                                                                            • Financial performance
                                                                                                                                                                                                                                                                                                                                                • Figure 86: Bhs Plc: Group financial performance, 2003/04-2007/08
                                                                                                                                                                                                                                                                                                                                              • Store portfolio
                                                                                                                                                                                                                                                                                                                                                  • Figure 87: Bhs Plc: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                  • Figure 88: Bhs: International franchises, number of outlets, 2003-08
                                                                                                                                                                                                                                                                                                                                                • Retail offering
                                                                                                                                                                                                                                                                                                                                                  • Market positioning
                                                                                                                                                                                                                                                                                                                                                    • Product offer
                                                                                                                                                                                                                                                                                                                                                      • Brands
                                                                                                                                                                                                                                                                                                                                                        • Figure 89: Bhs: Brands, 2009
                                                                                                                                                                                                                                                                                                                                                      • Pricing
                                                                                                                                                                                                                                                                                                                                                        • Operational issues
                                                                                                                                                                                                                                                                                                                                                          • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                          • Gap

                                                                                                                                                                                                                                                                                                                                                              • Figure 90: Gap Inc: UK sales as share of clothing specialists’ sales in UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                            • History
                                                                                                                                                                                                                                                                                                                                                              • Financial performance
                                                                                                                                                                                                                                                                                                                                                                  • Figure 91: Gap Inc: Group financial performance, 2004/05-08/09
                                                                                                                                                                                                                                                                                                                                                                  • Figure 92: Gap UK: Financial performance, 2004/05-08/09
                                                                                                                                                                                                                                                                                                                                                                • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                    • Figure 93: Gap Inc: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                  • Retail offering
                                                                                                                                                                                                                                                                                                                                                                    • Market positioning
                                                                                                                                                                                                                                                                                                                                                                      • Brands
                                                                                                                                                                                                                                                                                                                                                                        • Figure 94: Gap Inc: Brands, 2008
                                                                                                                                                                                                                                                                                                                                                                      • Product offer/Pricing
                                                                                                                                                                                                                                                                                                                                                                        • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                        • Grupo Inditex UK

                                                                                                                                                                                                                                                                                                                                                                            • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                              • Recent history
                                                                                                                                                                                                                                                                                                                                                                                • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                  • Figure 95: Grupo Inditex: Group financial performance, 2004/05-2008/09
                                                                                                                                                                                                                                                                                                                                                                                  • Figure 96: Grupo Inditex: Estimated sales in key European markets, 2004/05-2008/09
                                                                                                                                                                                                                                                                                                                                                                                  • Figure 97: Inditex brands: Sales in the UK, 2006/07-2008/09
                                                                                                                                                                                                                                                                                                                                                                                • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                  • Figure 98: Grupo Inditex: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                  • Figure 99: UK: Grupo Inditex: Stores by fascia, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                  • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                    • Zara
                                                                                                                                                                                                                                                                                                                                                                                      • Brands
                                                                                                                                                                                                                                                                                                                                                                                        • Product offer
                                                                                                                                                                                                                                                                                                                                                                                          • Massimo Dutti
                                                                                                                                                                                                                                                                                                                                                                                            • Product offer/pricing
                                                                                                                                                                                                                                                                                                                                                                                              • Bershka
                                                                                                                                                                                                                                                                                                                                                                                                • Product offer/pricing
                                                                                                                                                                                                                                                                                                                                                                                                  • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 100: Grupo Inditex: Company websites, 2009
                                                                                                                                                                                                                                                                                                                                                                                                • H&M Hennes & Mauritz

                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 101: H&M Hennes & Mauritz: Sales as share of clothing specialists’ sales in the UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                  • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                    • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                      • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 102: H&M Hennes & Mauritz: Group financial performance, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 103: H&M Hennes & Mauritz UK Ltd: Financial performance, 2003/04-2007/08
                                                                                                                                                                                                                                                                                                                                                                                                        • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 104: H&M Hennes & Mauritz: Outlet data, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                            • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                              • Product offer
                                                                                                                                                                                                                                                                                                                                                                                                                • Brands
                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 105: H&M: Own brand portfolio, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                • Pricing
                                                                                                                                                                                                                                                                                                                                                                                                                  • Operations
                                                                                                                                                                                                                                                                                                                                                                                                                    • COS
                                                                                                                                                                                                                                                                                                                                                                                                                      • Advertising and marketing
                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 106: H&M Hennes & Mauritz: Breakdown of UK advertising expenditure, 2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                      • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                      • Mackays Stores Group

                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 107: Mackays Stores Group Ltd: Sales as share of clothing specialists’ sales in UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                        • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                          • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 108: Mackays Stores Group Ltd: Group financial performance, 2004/05-2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                          • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 109: Mackays Stores Group Ltd: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                            • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                              • Product offer
                                                                                                                                                                                                                                                                                                                                                                                                                                • Pricing
                                                                                                                                                                                                                                                                                                                                                                                                                                  • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                  • Mango

                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 110: Mango UK: Sales as share of clothing specialists’ sales in the UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                    • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 111: Mango Group: Group financial performance, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                        • UK performance
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 112: Mango UK Ltd: financial performance, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 113: Mango Group: Outlet data, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                            • Brands
                                                                                                                                                                                                                                                                                                                                                                                                                                              • Product offer
                                                                                                                                                                                                                                                                                                                                                                                                                                                • Pricing
                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Advertising and marketing
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Marks & Spencer

                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 114: Marks & Spencer (UK): Sales as share of clothing specialists’ sales in the UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 115: Marks & Spencer (UK): Group financial performance, 2004/05-2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 116: Marks & Spencer (UK): UK sales and like-for-like growth, 2004/05-2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 117: M&S: UK retail sales by product category, 2004/05-2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 118: M&S: UK and ireland Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 119: M&S: Outlets not specialising in food, by type, 2008-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Brands/Product offer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 120: Marks & Spencer: Clothing own brand portfolio, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Pricing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 121: Marks & Spencer: Clothing price architecture, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Operational issues
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Advertising and marketing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 122: M&S: M&S Direct sales, 2006/07-2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Matalan

                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 123: Matalan: Sales as share of clothing specialists’ sales in UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 124: Matalan: Group financial performance, 2004/05-2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 125: Matalan: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Brands/product offer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 126: Matalan: Own-brand portfolio, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Pricing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Advertising and marketing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Monsoon

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 127: Monsoon Plc: Sales as share of clothing specialists’ sales in UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • History
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 128: Monsoon Plc: Group financial performance, 2003/04-2007/08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 129: Monsoon Plc: Outlet data, 2003-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Brands/Prices
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 130: Monsoon Plc: Brand ranges, 2008
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Product offer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • New Look

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 131: New Look Group Plc: Sales as share of clothing specialists’ sales in Europe, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 132: New Look Group Plc: Sales as share of clothing specialists’ sales in UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Recent history
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 133: New Look Group Plc: Group financial performance, 2004/05-2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 134: New Look Group Plc: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 135: New Look Group PLC: Outlet data, by country, 2008-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Brands/Product offer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 136: New Look: Womenswear own brand collections, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Pricing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Operational issues
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Advertising and marketing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 137: New Look Breakdown of advertising expenditure in the UK, 2008
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Next Group

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 138: Next Group: Sales as share of clothing specialists’ sales in the UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • History
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 139: Next Group: Group financial performance, 2004/05-2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 140: Next Group: Next Retail like-for-like sales performance, 2005/06-2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 141: Next Group: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 142: Next: International outlets, 2007-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Brands
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Product offer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Pricing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 143: Next: Change in average selling prices, by season, 2006-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Advertising and marketing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Peacock Group

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • History
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 144: Peacock Group: Group financial performance, 2004/05-2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 145: Peacock Group: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Product offer/brands
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 146: Peacocks and bonmarche sub-brands, 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Pricing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Primark/Penneys

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 147: Primark: Sales as share of Clothing specialists’ sales in the UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Strategic evaluation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • History
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 148: Primark Stores Ltd: Group financial performance, 2004-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 149: Primark Stores Ltd: Outlet data, 2004-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Brands/product offer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 150: Primark: Own brand portfolio, 2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Pricing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Operational issues
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Advertising and marketing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • River Island Clothing

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 151: River Island Clothing Co Ltd: Sales as share of clothing specialists’ sales in UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • History
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 152: River Island Clothing Co Ltd: Group financial performance, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 153: River Island Clothing Co Ltd: Outlet data, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 154: River Island Clothing Co Ltd: Breakdown of overseas outlets, by market, 2008
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Product offer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Pricing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • TK Maxx

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 155: TK Maxx: Sales as share of clothing specialists’ sales in UK, 2004-08
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • History
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Financial performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 156: TK Maxx: Group financial performance, 2004/05-2008/09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Store portfolio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 157: TK Maxx: Outlet data, 2005-09
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Market positioning
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Product offer/brands
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Pricing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • e-commerce and home shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Appendix – Internal Market Environment

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 158: Selected retailers where the 15-24s buy clothes, May 2008 and July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Appendix – Where They Buy Clothing

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 159: Where they bought clothing in last 12 months, by demographics, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 160: Where they bought clothing in last 12 months, by demographics, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 161: Where they bought clothing in last 12 months, by demographics, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 162: Where they bought clothing in last 12 months, by demographics, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Appendix – The Way They Shop For Clothing

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 163: Most popular way in which shop for clothing, compared to previous year, by demographics – All, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 164: Most popular way in which shop for clothing, compared to previous year, by demographics – All, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 165: Most popular bought clothing, by way in which shop for clothing compared to previous year – All, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 166: Most popular bought clothing, by way in which shop for clothing compared to previous year – All, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 167: Future spending intentions, by demographics, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 168: Where people bought clothing, by future spending intentions, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 169: Way in which shop for clothing compared to previous year, by consumer opinion on clothing spend for next year, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Appendix – Consumer Typologies

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 170: Way in which shop for clothing compared to previous year, by consumer typology, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 171: Consumer typology, by demographics, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 172: Where people bought clothing, by consumer typology, July 2009
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 173: Future spending intentions, by consumer typology, July 2009

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Clothing Retailing - UK - October 2009

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      US $2,693.85 (Excl.Tax)