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Clothing Retailing - UK - October 2018

“The UK clothing market is going through a dramatic period of change. Online is not only capturing a greater share of consumer spending, but it is also highly influential in what consumers are choosing to buy – no matter where they are making the final purchase. Whilst the online-only retailers are outperforming at present, this is because they have a better understanding of their customers and are responding faster to changes in how people are shopping.”
– Samantha Dover, Senior Retail Analyst

This Report looks at the following areas:

  • The high-street vs online
  • Is the tide about to turn on fast fashion?
  • Rebuilding brand loyalty

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Consumer spending expected to grow 5.3% in 2018
              • Figure 1: Consumer spending on clothing and accessories, 2013-23
            • Retail sales through clothing specialists will only rise 1.0%
              • Figure 2: Retail sales through specialist clothing retailers, 2013-23
            • Leading players continue to lose market share
              • Figure 3: Estimated distribution of consumer spending on clothing, by type of retailer, 2018
            • Companies and brands
              • Inditex is the UK’s fastest growing multi-channel retailer
                • Figure 4: Leading specialist retailers: compound annual growth in revenues, 2013-17
              • Online fashion market set to reach £32.8 billion by 2023
                • Figure 5: Online sales of clothing, accessories and footwear, 2013-23
              • Despite declines, M&S still highly regarded amongst UK consumers
                • Figure 6: Attitudes towards and usage of selected brands, January-August 2018
              • The consumer
                • Store-based clothing retailers remain popular
                  • Figure 7: Types of retailers used to purchase clothing in the last 12 months, August 2018
                • Fashion consumers are shopping less frequently
                  • Figure 8: Frequency of clothing purchases in the last 12 months, August 2017 and August 2018
                • High satisfaction with quality and range of clothing
                  • Figure 9: Key drivers of overall satisfaction with clothing retailers, August 2018
                • The perception that shopping online is cheaper
                  • Figure 10: Why consumers shop online for clothing, August 2018
                • The ability to try clothes on ahead of purchase is important
                  • Figure 11: Why consumers don’t shop online for clothing, August 2018
                • Consumers want retailers to incentivise their sustainability efforts
                  • Figure 12: Clothing shopping behaviours, August 2018
                • What we think
                • Issues and Insights

                  • The high-street vs online
                    • The facts
                      • The implications
                        • Is the tide about to turn on fast fashion?
                          • The facts
                            • The implications
                              • Rebuilding brand loyalty
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • Womenswear drives consumers spending growth
                                      • Slow growth projected for the specialists
                                        • Online-only retailers capture greater share of spending
                                          • Inflation pressure has eased in 2018…
                                            • …but consumer confidence has taken a hit from ongoing economic uncertainty
                                            • Market Size and Forecast

                                              • Consumers remain willing to spend on clothing
                                                • Figure 13: Consumer spending on clothing and accessories, 2013-23
                                                • Figure 14: Consumer spending on clothing and accessories, at current and constant prices, 2013-23
                                              • What might Brexit mean for the UK clothing market?
                                                • Clothing takes increased share of total consumer spending
                                                  • Figure 15: Spending on clothing and accessories as percentage of all consumer spending, 2014-18
                                                • A renewed appetite for womenswear
                                                  • Figure 16: Estimated breakdown of consumer spending on clothing and accessories, 2018
                                                  • Figure 17: Estimated breakdown of consumer spending on clothing and accessories, 2016-18
                                                • Forecast methodology
                                                • Sector Size and Forecast

                                                  • Clothing specialists fail to sustain momentum gained in 2017
                                                    • Figure 18: Retail sales through specialist clothing retailers, 2013-23
                                                    • Figure 19: Retail sales through specialist clothing retailers, at current and constant prices, 2013-23
                                                  • Clothing sales through specialist clothing retailers
                                                    • Figure 20: Sales of clothing and accessories through specialist clothing retailers, 2013-18
                                                    • Figure 21: Clothing specialists share of consumer spending on clothing and accessories, 2013-18
                                                  • Forecast methodology
                                                  • Channels of Distribution

                                                    • Ongoing shifts in where people shop for clothing
                                                      • Specialists losing share
                                                        • Non-specialists also underperforming
                                                          • Growing sectors
                                                            • Figure 22: Estimated distribution of consumer spending on clothing, by type of retailer, 2018
                                                            • Figure 23: Estimated distribution of consumer spending on clothing, by type of retailer, 2016-18
                                                        • Market Drivers

                                                          • High inflation throughout 2017
                                                            • Figure 24: Consumer price inflation, 2007-17
                                                          • Garment price inflation eases
                                                            • Figure 25: Consumer price inflation, August 2017-August 2018
                                                          • Real wage showing signs of growth in 2018
                                                            • Figure 26: Real wage growth – Average weekly earnings vs inflation, January 2016-August 2018
                                                          • Consumer confidence dips end of spring/summer 2018
                                                            • Figure 27: Consumer financial confidence, September 2016-September 2018
                                                          • Clothing is still popular for disposable income spend
                                                            • Figure 28: Trends in what extra money is spent on, September 2017 and September 2018
                                                          • Catering to an ageing population
                                                            • Figure 29: Trends in the age structure of the UK population, 2016-26
                                                          • High obesity rates increase the demand for plus size ranges
                                                            • Figure 30: Overweight and obesity prevalence in the UK population, 2012-16
                                                          • Younger consumers ideal targets for online
                                                            • Figure 31: Online activities done in the last three months on any device*, June 2018
                                                          • Social media usage is on the rise
                                                            • Figure 32: Recent social media network usage, March 2017 and April 2018
                                                          • The gender pay gap is slowly closing
                                                            • Figure 33: Median gross hourly earnings (excluding overtime) for full-time employees, by sex, UK, 2011-17
                                                        • Companies and Brands – What You Need to Know

                                                          • Clothing specialists continue to struggle…
                                                            • …but non-specialists are also facing problems
                                                              • Online-only retailers continue to outperform
                                                                • Online consumer spending set to reach £32.8 billion by 2023
                                                                  • M&S most trusted, but Next wins on style
                                                                  • Leading Specialists

                                                                    • Next continues to lead although still in decline
                                                                      • Figure 34: Leading specialist retailers, net revenues. 2013-17
                                                                    • Retailers with strong lifestyle brands outperform
                                                                        • Figure 35: Leading specialist retailers: compound annual growth in revenues, 2013-17
                                                                      • Outlet numbers and sales per outlet
                                                                        • Figure 36: Leading specialist retailers: outlet numbers, 2013-17
                                                                      • Sales per outlet
                                                                        • Figure 37: Leading specialist retailers: estimated annual sales per outlet, 2013-17
                                                                      • Sales area and sales densities
                                                                        • Figure 38: Leading specialist retailers: total sales area, 2013-17
                                                                        • Figure 39: Leading specialist retailers: estimated annual sales per sq m, 2013-17
                                                                      • Operating profits and margins
                                                                        • Figure 40: Leading specialist retailers: operating profits, 2013-17
                                                                        • Figure 41: Leading specialist retailers: operating margins, 2013-17
                                                                    • Leading Non-specialists

                                                                        • Sports retailers
                                                                          • Department stores
                                                                            • Supermarkets major players
                                                                              • Online retailers
                                                                                • Figure 42: Leading non-specialists, estimated clothing and footwear revenues, 2015-17
                                                                            • Market Shares

                                                                                • Figure 43: Leading retailers’ estimated share of spending on clothing and footwear, 2015-17
                                                                              • Change in market share
                                                                                • Figure 44: Leading clothing retailers, change in share of clothing spending, 2014-17
                                                                            • Space Allocation Summary

                                                                                • Men’s, women’s and childrenswear overview
                                                                                  • Figure 45: Men’s, women’s and childrenswear overview, October 2018
                                                                                  • Figure 46: Men’s, women’s and childrenswear overview, October 2018
                                                                                • Detailed category space allocation
                                                                                  • Figure 47: Specialist and non-specialist clothing retailers, estimated detailed space allocation, by category, October 2018
                                                                                  • Figure 48: Specialist and non-specialist clothing retailers, estimated detailed space allocation, by category, October 2018
                                                                                  • Figure 49: Specialist and non-specialist clothing retailers, estimated detailed space allocation, by category, October 2018
                                                                                • In-store concessions giving shoppers a wider choice of fashion options
                                                                                  • Figure 50: Tesco Extra Next branded concession, October 2018
                                                                                  • Figure 51: Next 120-128 Oxford Street, London, Costa Coffee and Hema in-store concessions, October 2018
                                                                                  • Figure 52: Specialist and non-specialist clothing retailers, estimated clothing versus non-clothing space, October 2018
                                                                              • Retail Product Mix

                                                                                  • Figure 53: Leading clothing retailers, estimated sales, by product, 2017
                                                                                  • Figure 54: Leading clothing retailers: share of clothing sales, by product, 2017
                                                                                • Womenswear
                                                                                  • Figure 55: Leading clothing retailers estimated share of the womenswear market, 2017
                                                                                • Menswear
                                                                                  • Figure 56: Leading clothing retailers estimated share of the menswear market, 2017
                                                                                • Childrenswear
                                                                                  • Figure 57: Leading clothing retailers estimated share of the childrenswear market, 2017
                                                                              • Online

                                                                                • Online fashion growth continues to outperform
                                                                                  • Figure 58: Online sales of clothing, accessories and footwear, 2013-23
                                                                                  • Figure 59: Online sales of clothing, accessories and footwear, at current and constant prices, 2013-23
                                                                                • Online spending on clothing and accessories set to rise 8.2% in 2018
                                                                                  • Figure 60: Breakdown of online sales of clothing, accessories and footwear, 2013-23
                                                                                • Where they shop online
                                                                                  • Figure 61: Retailers used to purchase clothing online in the last 12 months, August 2018
                                                                                • Forecast methodology
                                                                                • Launch Activity and Innovation

                                                                                  • Inditex aiming to fully integrate online and offline
                                                                                    • In-store tech becomes mainstream
                                                                                      • The rise of lifestyle retailing
                                                                                          • Figure 62: H&M Fragrance Collection, 2018
                                                                                          • Figure 63: River Island Homeware Collection, 2018
                                                                                        • Own-label expansion
                                                                                          • Figure 64: Amazon Aurique Collection, 2018
                                                                                        • New fashion labels target young shoppers
                                                                                            • Figure 65: ASOS Collusion, 2018
                                                                                          • Social shopping
                                                                                            • This year’s big collaborations
                                                                                                • Figure 66: H&M x William Morris Collection, 2018
                                                                                              • In search of sustainability
                                                                                                  • Figure 67: H&M Paris Store, 2018
                                                                                                • Rejecting fabrics derived from animals
                                                                                                  • Improved order fulfilment
                                                                                                    • Try before you buy
                                                                                                    • Advertising and Marketing Activity

                                                                                                      • Advertising spend for the clothing market has increased
                                                                                                        • Figure 68: Recorded above-the-line advertising expenditure on clothing and accessories, total market, 2013-17
                                                                                                        • Figure 69: Recorded above-the-line, online, display and direct mail total advertising expenditure on clothing, by leading top 20 spenders in 2017, 2014-18
                                                                                                      • Key campaigns
                                                                                                        • Holly Willoughby for Marks & Spencer
                                                                                                          • Figure 70: M&S Holly Willoughby Campaign, 2018
                                                                                                        • The real winner of Love Island
                                                                                                          • Just Do It
                                                                                                            • Digital increasing its share of expenditure
                                                                                                              • Figure 71: Recorded above-the-line advertising expenditure percentage on clothing, by media type, total market, 2017
                                                                                                            • Nielsen Ad Intel coverage
                                                                                                            • Brand Research

                                                                                                                • What you need to know
                                                                                                                  • Brand map
                                                                                                                    • Figure 72: Attitudes towards and usage of selected brands, January-August 2018
                                                                                                                  • Key brand metrics
                                                                                                                    • Figure 73: Key metrics for selected brands, January-August 2018
                                                                                                                  • Brand attitudes: M&S offers great customer service
                                                                                                                    • Figure 74: Attitudes, by brand, January-August 2018
                                                                                                                  • Brand personality: Ted Baker seen as most exclusive
                                                                                                                    • Figure 75: Brand personality – Macro image, January-August 2018
                                                                                                                  • Primark perceived as basic
                                                                                                                    • Figure 76: Brand personality – Micro image, January-August 2018
                                                                                                                  • Brand analysis
                                                                                                                    • Mass market retailers: Next, M&S and Gap
                                                                                                                      • Premium lifestyle retailers: Superdry, Ted Baker and Reiss
                                                                                                                        • Home shopping retailers: Very, JD Williams and Boden
                                                                                                                          • Value retailers: Primark, New Look and Matalan
                                                                                                                            • Fast fashion retailers: Topshop/Topman, H&M and Zara
                                                                                                                            • Arcadia Group

                                                                                                                                • What we think
                                                                                                                                  • Topshop/Topman is priority for turnaround
                                                                                                                                    • Too many brands?
                                                                                                                                      • Dorothy Perkins, Evans and Wallis show signs of recovery
                                                                                                                                        • Company background
                                                                                                                                          • Company performance
                                                                                                                                            • Figure 77: Arcadia Group: group financial performance, 2012/13-2016/17
                                                                                                                                            • Figure 78: Arcadia Group: outlet data, 2012/13-2016/17
                                                                                                                                          • Retail offering
                                                                                                                                          • Asda Group

                                                                                                                                              • What we think
                                                                                                                                                • Proposed merger with Sainsbury’s will create one of the UK’s largest clothing groups
                                                                                                                                                  • Using digital technology to enhance the in-store clothes shopping experience
                                                                                                                                                    • 60-second click-and-collect
                                                                                                                                                      • Enhanced mobile experience with new progressive web app
                                                                                                                                                        • Combatting the use of microplastics in clothing
                                                                                                                                                          • Company background
                                                                                                                                                            • Company performance
                                                                                                                                                              • Figure 79: Asda Group Ltd: group financial performance, 2013-17
                                                                                                                                                              • Figure 80: Asda Group Ltd: outlet data, 2013-17
                                                                                                                                                            • Retail offering
                                                                                                                                                            • ASOS

                                                                                                                                                                • What we think
                                                                                                                                                                  • Highlighting inclusivity
                                                                                                                                                                    • Sustainability and welfare pledges
                                                                                                                                                                      • Collaboration and innovation
                                                                                                                                                                        • Try before you buy
                                                                                                                                                                          • Athleisure launches
                                                                                                                                                                            • Seamless shopping
                                                                                                                                                                              • Company background
                                                                                                                                                                                • Company performance
                                                                                                                                                                                  • Figure 81: ASOS: group financial performance, 2012/13-2016/17
                                                                                                                                                                                • Retail offering
                                                                                                                                                                                • Debenhams

                                                                                                                                                                                    • What we think
                                                                                                                                                                                      • A delicate financial balancing act
                                                                                                                                                                                        • Time to focus resources on the home market?
                                                                                                                                                                                          • Fewer, smaller stores in the future?
                                                                                                                                                                                            • Digital growth offers hope
                                                                                                                                                                                              • Clothing revitalisation also at heart of growth plans
                                                                                                                                                                                                • Company background
                                                                                                                                                                                                  • Company performance
                                                                                                                                                                                                    • Figure 82: Debenhams: group financial performance, 2012/13-2016/17
                                                                                                                                                                                                    • Figure 83: Debenhams: outlet data, 2012/13-2016/17
                                                                                                                                                                                                  • Retail offering
                                                                                                                                                                                                  • Edinburgh Woollen Mill Group

                                                                                                                                                                                                      • What we think
                                                                                                                                                                                                        • Building a multi-brand multi-price fashion conglomerate
                                                                                                                                                                                                          • Department store selling fashion brands rescued from collapse
                                                                                                                                                                                                            • New online checkout system helps increase conversion rate
                                                                                                                                                                                                              • Company background
                                                                                                                                                                                                                • Company performance
                                                                                                                                                                                                                  • Figure 84: Edinburgh Woollen Mill Group: group financial performance, 2012/13-2016/17
                                                                                                                                                                                                                  • Figure 85: Edinburgh Woollen Mill Group: outlet data, 2012/13-2016/17
                                                                                                                                                                                                                • Retail offering
                                                                                                                                                                                                                • H&M Hennes & Mauritz

                                                                                                                                                                                                                    • What we think
                                                                                                                                                                                                                      • A new fascia joins the stable
                                                                                                                                                                                                                        • Technology enhancing the customer experience
                                                                                                                                                                                                                          • A first in pet streetwear
                                                                                                                                                                                                                            • Localisation
                                                                                                                                                                                                                              • Making fashion circular
                                                                                                                                                                                                                                • COS expansion into China
                                                                                                                                                                                                                                  • Company background
                                                                                                                                                                                                                                    • Company performance
                                                                                                                                                                                                                                      • Figure 86: H&M Hennes & Mauritz: group financial performance, 2012/13-2016/17
                                                                                                                                                                                                                                      • Figure 87: H&M Hennes & Mauritz: outlet data, 2012/13-2016/17
                                                                                                                                                                                                                                    • Retail offering
                                                                                                                                                                                                                                    • House of Fraser

                                                                                                                                                                                                                                        • What we think
                                                                                                                                                                                                                                          • Administration
                                                                                                                                                                                                                                            • Positioning/repositioning
                                                                                                                                                                                                                                              • Own brands
                                                                                                                                                                                                                                                • Stores
                                                                                                                                                                                                                                                  • Will it work?
                                                                                                                                                                                                                                                    • Working practices
                                                                                                                                                                                                                                                      • Room for optimism
                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                            • Figure 88: House of Fraser Plc: group financial performance, 2012/13-2016/17
                                                                                                                                                                                                                                                            • Figure 89: House of Fraser Plc: outlet data, 2012/13-2016/17
                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                          • Grupo Inditex

                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                • Online
                                                                                                                                                                                                                                                                  • Where next
                                                                                                                                                                                                                                                                    • Company background
                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                        • Figure 90: Grupo Inditex, sales and outlets by format, 2017
                                                                                                                                                                                                                                                                        • Figure 91: Grupo Inditex, performance by brand, 2016-17
                                                                                                                                                                                                                                                                        • Figure 92: Grupo Inditex: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                        • Figure 93: Grupo Inditex: outlet data, 2013/14-2017/18
                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                      • John Lewis Partnership

                                                                                                                                                                                                                                                                          • What we think
                                                                                                                                                                                                                                                                            • Rebrand
                                                                                                                                                                                                                                                                              • Own brand expansion
                                                                                                                                                                                                                                                                                • Investment in product service and innovation
                                                                                                                                                                                                                                                                                  • Doing the right thing
                                                                                                                                                                                                                                                                                    • Company background
                                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                                        • Figure 94: John Lewis Partnership: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                        • Figure 95: John Lewis Partnership: outlet data, 2013/14-2017/18
                                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                                      • Marks & Spencer

                                                                                                                                                                                                                                                                                          • What we think
                                                                                                                                                                                                                                                                                            • Recent performance
                                                                                                                                                                                                                                                                                              • New CEO, new strategy
                                                                                                                                                                                                                                                                                                • Missing link – the merchandise
                                                                                                                                                                                                                                                                                                  • Must do better
                                                                                                                                                                                                                                                                                                    • Online
                                                                                                                                                                                                                                                                                                      • Where next?
                                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                                              • Figure 96: Marks & Spencer: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                              • Figure 97: Marks & Spencer: outlet data, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                            • Matalan

                                                                                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                                                                                  • Optimising existing store space and improving in-store customer experience
                                                                                                                                                                                                                                                                                                                    • New website and expanded multichannel capabilities driving online sales growth
                                                                                                                                                                                                                                                                                                                      • Influencer recommendation and celebrity endorsement
                                                                                                                                                                                                                                                                                                                        • Focusing on improving operational performance
                                                                                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                                                                                                              • Figure 98: Matalan Ltd: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                              • Figure 99: Matalan Ltd: UK outlet data, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                            • New Look Group

                                                                                                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                                                                                                  • Company Voluntary Agreement
                                                                                                                                                                                                                                                                                                                                    • Back to value fashion
                                                                                                                                                                                                                                                                                                                                      • Do consumers still want fast fashion?
                                                                                                                                                                                                                                                                                                                                        • Celebrity social media power
                                                                                                                                                                                                                                                                                                                                          • Backlash over pricing
                                                                                                                                                                                                                                                                                                                                            • Company background
                                                                                                                                                                                                                                                                                                                                              • Company performance
                                                                                                                                                                                                                                                                                                                                                • Figure 100: New Look Group: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                                • Figure 101: New Look Group: outlet data, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                              • Next Group

                                                                                                                                                                                                                                                                                                                                                  • What we think
                                                                                                                                                                                                                                                                                                                                                    • Unlimited delivery service launch
                                                                                                                                                                                                                                                                                                                                                      • Manchester Arndale experiment
                                                                                                                                                                                                                                                                                                                                                        • Credit incentives drive sales growth
                                                                                                                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                                                                                                                                                • Figure 102: Next Group: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                                                • Figure 103: Next Group: outlet data, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                              • Primark

                                                                                                                                                                                                                                                                                                                                                                  • What we think
                                                                                                                                                                                                                                                                                                                                                                    • Europe to remain focus of expansion
                                                                                                                                                                                                                                                                                                                                                                      • Can Primark continue without an e-commerce presence?
                                                                                                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                                                                                                            • Figure 104: Primark/Penneys: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                                                            • Figure 105: Primark/Penneys: outlet data, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                                                                                          • River Island

                                                                                                                                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                                                                                                                                • New concept store
                                                                                                                                                                                                                                                                                                                                                                                  • Branching into homewares
                                                                                                                                                                                                                                                                                                                                                                                    • Inclusive campaigning
                                                                                                                                                                                                                                                                                                                                                                                      • Like mother like daughter
                                                                                                                                                                                                                                                                                                                                                                                        • Extending the online offer
                                                                                                                                                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                                                                                                                                                                              • Figure 106: River Island Clothing Co Ltd: group financial performance, 2013-17
                                                                                                                                                                                                                                                                                                                                                                                              • Figure 107: River Island Clothing Co Ltd: outlet data, 2013-17
                                                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                            • Tesco

                                                                                                                                                                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                                                                                                                                                                  • Fewer ways to buy
                                                                                                                                                                                                                                                                                                                                                                                                    • Marketing support behind F&F helps lift brand awareness and sales
                                                                                                                                                                                                                                                                                                                                                                                                      • In-store clothing concessions to give shoppers a wider choice
                                                                                                                                                                                                                                                                                                                                                                                                        • Social media influencers to push clothing
                                                                                                                                                                                                                                                                                                                                                                                                          • Eliminating hazardous chemicals from its clothes
                                                                                                                                                                                                                                                                                                                                                                                                            • Company background
                                                                                                                                                                                                                                                                                                                                                                                                              • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 108: Tesco Plc: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 109: Tesco Plc: outlet data, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                              • TK Maxx UK

                                                                                                                                                                                                                                                                                                                                                                                                                  • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                    • UK still important but Europe is main focus of expansion
                                                                                                                                                                                                                                                                                                                                                                                                                      • Lack of top-drawer digital presence is hurting the brand
                                                                                                                                                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 110: TK Maxx UK: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 111: TK Maxx UK: outlet data, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                          • YNAP Group

                                                                                                                                                                                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                • Richemont takeover completed
                                                                                                                                                                                                                                                                                                                                                                                                                                  • YNAP focuses on m-commerce…
                                                                                                                                                                                                                                                                                                                                                                                                                                    • …and expands product range
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Sustainability commitments
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 112: YNAP group: group financial performance, 2014-17
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Zalando

                                                                                                                                                                                                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                • Expanding brand partnership scheme
                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Driving out friction in delivery, returns and payments
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Working towards delivering a truly personalised on-site experience
                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Head-to-toe fashion
                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Conversational commerce to tackle customer pain points
                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Dealing with excess and unwanted stock in a non-wasteful manner
                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 113: Zalando: group financial performance, 2013-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 114: Zalando: key metrics, 2016-H1 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • The Consumer – What You Need to Know

                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Despite high street woes, most still shop in-store
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Consumer are buying fashion less often
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Retailers need to prioritise in-store experience
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Consumers use online channel to access lower prices…
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • …but fit issues keep people coming back to stores
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Consumers want retailers to incentivise their sustainability efforts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • What They Buy

                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Slowing fashion purchasing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 115: Fashion items purchased in the last three months, September 2017 and September 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Weather impacts what people buy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 116: Outerwear items purchased in the last three months, September 2017 and September 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Demand for fast fashion highest amongst young
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 117: Number of clothing items purchased on most recent shopping trip, by age, September 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Men spend significantly more
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 118: Amount spent on most recent clothing shopping trip, by gender, September 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Where They Shop

                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • High-street fashion retailers continue to dominate
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 119: Types of retailers used to purchase clothing in the last 12 months, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Rising use of supermarket brands
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 120: Retailers used to purchase clothing in the last 12 months, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Two out of three now shop online for fashion
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 121: Types of retailers used to purchase clothing in the last 12 months, by channel, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • More retailer loyalty online
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 122: Repertoire of retailers used to purchase clothing in the last 12 months, by channel, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Customer Profiles

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Amazon and John Lewis more popular with men
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 123: Retailer customer profile, by gender, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Topshop and ASOS attract youngest customer base
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 124: Retailer customer profile, by age, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Primark and Asda appeal to less affluent
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 125: Retailer customer profile, by socio-economic group, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Online-only retailers attract more rural shoppers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 126: Retailer customer profile, by location type, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Frequency of Purchases

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • A possible shift away from fast fashion
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 127: Frequency of clothing purchases in the last 12 months, August 2017 and August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Women shop more frequently
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 128: Frequency of clothing purchases in the last 12 months, by gender, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Young consumers shop often
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 129: Frequency of clothing purchases in the last 12 months, by age, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Less affluent more likely to shop infrequently
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 130: Frequency of clothing purchases in the last 12 months, by socio-economic group, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Online has increased purchasing frequency
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 131: Frequency of clothing purchases in the last 12 months, by how they bought clothing, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Satisfaction with Clothing Retailers

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Most consumers happy with their experience
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 132: Satisfaction with retailer used most regularly to purchase clothing, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Department stores stand out for in-store experience
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 133: Satisfaction with retailer used most regularly to purchase clothing, by type of retailer used to purchase clothing, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • ASOS and Next outperform other specialists
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 134: Satisfaction with retailer used most regularly to purchase clothing, by specialist retailers used to purchase clothing, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Key Driver Analysis

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Methodology
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Retailers should promote clothing quality
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 135: Key drivers of overall satisfaction with clothing retailers, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 136: Overall satisfaction with clothing retailers - key driver output, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Reasons for Shopping Online

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Lower prices are driving people online
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 137: Why consumers shop online for clothing, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Product reviews are important to young shoppers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 138: Why consumers shop online for clothing, by age, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Reasons against Shopping Online

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Trying on clothing remains important
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 139: Why consumers don’t shop online for clothing, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Delivery costs are a deterrent for young shoppers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 140: Why consumers don’t shop online for clothing, by age, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Clothing Shopping Behaviours

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Brand loyalty is low
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 141: Clothing shopping behaviours, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Older shoppers less interested in fashion sustainability
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 142: Clothing shopping behaviours: agreement with sustainability statements, by age, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Young seek out inspiration from a variety of different sources
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 143: Clothing shopping behaviours: agreement with purchasing influence statements, by age, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Women feel pressured when receiving personal styling advice
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 144: Clothing shopping behaviours: agreement with retailer advice statements, by gender, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Fashion campaigns make women feel more self-conscious
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 145: Clothing shopping behaviours: agreement with fashion advertising statement, by age and gender, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Young most likely to buy lifestyle products from fashion retailers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 146: Clothing shopping behaviours: agreement with customer loyalty statements, by age, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Abbreviations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Consumer research methodology
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Appendix – Market/Sector Size and Forecast

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Forecast methodology
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Best and worst case forecasts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 147: Consumer spending on clothing and accessories, best and worst case forecast, 2018-23
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 148: Retail sales through specialist clothing retailers, best and worst case forecast, 2018-23
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 149: Online sales of clothing, accessories and footwear, best and worst case forecast, 2018-23
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Appendix – Key Driver Analysis

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Interpretation of results
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 150: Overall satisfaction with clothing retailers – Key driver output, August 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 151: Satisfaction with clothing retailers, August 2018

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Clothing Retailing - UK - October 2018

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                US $2,552.20 (Excl.Tax)