2020
9
UK Clothing Retailing Market Report 2020
2020-11-20T03:06:36+00:00
OX989478
2195
127789
[{"name":"Fashion","url":"https:\/\/store.mintel.com\/industries\/fashion"},{"name":"Retail","url":"https:\/\/store.mintel.com\/industries\/retail"}]
Report
en_GB
“Appetite for clothing has dropped dramatically since the first lockdown and will be dealt a further blow with the second national lockdown during peak trading season, making it one of…

UK Clothing Retailing Market Report 2020

£ 2,195 (Excl.Tax)

Description

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Clothing Retailing UK market including the behaviours, preferences and habits of the consumer.

Focus of this report

This report examines the UK clothing and accessories market, covering detailed sections on UK clothing brands, as well as:

  • The impact of COVID-19 and the second national lockdown on the clothing market.
  • How consumers’ clothes shopping behaviours and attitudes have changed since COVID-19.
  • Where people have bought clothes in the last 12 months in-store and online.
  • How consumers have reacted to the reopening of fashion stores following the lockdown.

Products covered in this report

This Report examines the UK clothing and accessories market. It includes two streams of data relating to the clothing market: consumer spending and retail sales.

  • Consumer spending forms our market size. This comprises of men’s, women’s and children’s clothing through all retail outlets. It includes outerwear, underwear and fashion accessories, but excludes footwear and jewellery.
  • Retail sales form our sector size. This comprises of all retail sales through clothing specialists. It includes spending on nonclothing categories, such as footwear and beauty. It excludes retail sales through online-only clothing specialists.

To give further context to the market, we also provide data for clothing and accessory sales through specialist retailers, excluding footwear and other categories that are increasingly becoming an important part of the clothing specialists’ assortment.

The Report also includes an online fashion market size. This comprises of all online consumer spending on clothing and accessories. It includes sales through both specialist and nonspecialist retailers.

Read on to discover more, or alternatively take a look at who has climbed and fallen across the retail industry this year in our UK Retail Rankings market report.

Expert analysis from a specialist in the field

Written by Tamara Sender, a leading analyst in the Retail sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Appetite for clothing has dropped dramatically since the first lockdown and will be dealt a further blow with the second national lockdown during peak trading season, making it one of the hardest-hit retail sectors in 2020. As online shopping for fashion increases and the shift away from stores creates a longer-lasting legacy, this will accelerate the pace of digitisation of the clothing retail sector. Retailers that are able to be agile and flexible in order to adapt to the new reality are most likely to succeed.


Tamara Sender
Retail Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on clothing category
      • Figure 1: Short, medium and long-term impact of COVID-19 on clothing, 3 November 2020
    • The market
    • Appetite for clothing declines dramatically
      • Figure 2: Consumer spending on clothing and accessories, 2015-25 (prepared on 5 November 2020)*
    • Specialists see deepest declines
      • Figure 3: Retail sales through specialist clothing retailers, 2015-25 (prepared on 3 November 2020)
    • Online clothing sales jump in 2020
      • Figure 4: Online sales of clothing and accessories, 2015-20
    • Companies and brands
    • Next remains leading specialist
      • Figure 5: Leading specialist retailers: compound annual growth in revenues, 2015-19
    • M&S loses trust, while Next and Primark seen as innovative
      • Figure 6: Attitudes towards and usage of selected clothing brands, February-September 2020
    • Adspend revives following lockdown slump
    • The consumer
    • People feel uncomfortable trying on clothes in-store
      • Figure 7: Changing priorities since COVID-19, 10-17 September 2020
    • Surge in sportswear purchasing
      • Figure 8: Outerwear items purchased in the last three months, June 2019-September 2020
    • Consumers more likely to have bought online than in-store
      • Figure 9: How consumers have bought clothes for themselves in the last 12 months, August 2020
    • Amazon competes for lead with M&S
      • Figure 10: Retailers used to purchase clothing in the last 12 months, net of retailers used to purchase in-store and/or online, August 2020
    • Buying new clothes becomes less of a priority
      • Figure 11: Changes in clothes shopping behaviour since COVID-19, August 2020
    • Value for money dominates
      • Figure 12: Most important factors when choosing which clothes to buy, August 2020
    • Young prefer to buy from brands that promote diversity
      • Figure 13: Clothes shopping behaviour, August 2020
    • Adapting stores in a time of COVID
      • Figure 14: Clothes shopping behaviour in-store once clothes stores have reopened following COVID-19 lockdown, August 2020
  3. Issues and Insights

    • Impact of COVID-19 on the clothing market
    • Who are the winners and losers in clothing?
    • Adapting to a new fashion retail reality
  4. The Market – Key Takeaways

    • Dramatic decline in clothing sales in 2020
    • Gradual recovery
    • Specialists see deepest declines
    • Consumer confidence remains volatile
  5. Market Size and Forecast

    • COVID-19 leads to a drop in appetite for clothing
      • Figure 15: Short, medium and long-term impact of COVID-19 on clothing, 3 November 2020
    • Lockdown
    • Re-emergence
    • Recovery
    • Dramatic decline in clothing sales in 2020
      • Figure 16: Consumer spending on clothing and accessories, 2015-25 (prepared on 5 November 2020)*
      • Figure 17: Consumer spending on clothing and accessories, at current prices, 2015-25
    • Continued anxiety impacts footfall
    • Gradual recovery
    • Market drivers and assumptions
    • Learnings from the last recession
      • Figure 18: Consumer spending on clothing and accessories, 2008-12
    • Forecast methodology
  6. Market Segmentation

    • Underwear market gains share
      • Figure 19: Estimated breakdown of consumer spending on clothing and accessories, 2020
      • Figure 20: Estimated % breakdown of consumer spending on clothing and accessories, 2018-20
  7. Sector Size and Forecast

    • Specialists see deepest declines
      • Figure 21: Retail sales through specialist clothing retailers, 2015-25 (prepared on 3 November 2020)
      • Figure 22: Retail sales through specialist clothing retailers, at current prices, 2015-25
    • Polarised recovery
    • Market drivers and assumptions
    • Clothing sales through specialist clothing retailers
      • Figure 23: Sales of clothing and accessories through clothing retailers, 2015-20
      • Source: ONS/Mintel
  8. Channels of Distribution

    • COVID-19 increases shifts in where people shop for clothing
    • Specialists hardest-hit sector of COVID-19 pandemic
    • Department stores also underperforming
    • Growing sectors
      • Figure 25: Estimated distribution of consumer spending on clothing, by type of retailer, 2019
      • Figure 26: Estimated distribution of consumer spending on clothing, by type of retailer, 2015-19
  9. Market Drivers

    • Clothing falls into deflation
      • Figure 27: Consumer price inflation, 2009-19
    • Footwear inflation drops further in September 2020
      • Figure 28: Consumer price inflation, August 2019-September 2020
    • Real wage growth falling
      • Figure 29: Real wages growth: wages growth vs inflation, January 2016-August 2020
    • Consumer confidence remains volatile
      • Figure 30: Mintel financial confidence tracker, January 2018-August 2020
    • Consumers saving more
      • Figure 31: Trends in what extra money is spent on, September 2019 and September 2020
    • Rates of obesity high among women
      • Figure 32: Overweight and obesity prevalence in UK population, by gender, 2014-18
    • Increase in young will benefit clothing market
      • Figure 33: Trends in the age structure of the UK population, 2019-29
    • Consumers spending more time online due to COVID-19
      • Figure 34: Online activities done in the last three months on any device, June 2019 and June 2020
  10. Online

    • Online clothing sales grow by 26% in 2020
      • Figure 35: Online sales of clothing and accessories, 2015-20
    • Where they shop online
      • Figure 36: Retailers used to purchase clothing online in the last 12 months, August 2020
  11. Companies and Brands – Key Takeaways

    • Next remains leading specialist but Primark surpasses M&S
    • Online players benefit from shift online
    • Face masks present new category for retailer
    • ASOS stands out as the most trusted pureplay
  12. Leading Specialists

    • Next remains leading specialist but Primark surpasses M&S
      • Figure 37: Leading specialist retailers: net revenues, 2015-19
    • Clothing specialists show polarised performance over the past five years
      • Figure 38: Leading specialist retailers: compound annual growth in revenues, 2015-19
    • COVID-19 forced struggling retailers to close stores
      • Figure 39: Leading specialist retailers: Outlet numbers, 2015-19
    • Sales per outlet
      • Figure 40: Leading specialist retailers: estimated annual sales per outlet, 2015-19
    • Sales area and sales densities
      • Figure 41: Leading specialist retailers: total sales area, 2015-19
      • Figure 42: Leading specialist retailers: estimated annual sales per square metre, 2015-19
    • Operating profit and margins
      • Figure 43: Leading specialist retailers: operating profits, 2015-19
      • Figure 44: Leading specialist retailers: operating margins, 2015-19
  13. Leading Non-specialists

    • Sports retailers
    • Department stores
    • Supermarkets are major players
    • Online retailers
      • Figure 45: Leading non-specialists: estimated clothing and footwear revenues, 2015-19
  14. Market Shares

      • Figure 46: Leading retailers’ estimated share of spending on clothing and footwear, 2015-19
    • Change in market shares
      • Figure 47: Leading clothing retailers, change in share of clothing spending, 2015-19
  15. Launch Activity and Innovation

    • Retailers strengthen ecommerce
    • Hush reveals new ecommerce website with mobile-first design
    • Mango launches virtual chatbot
    • Morrisons launches dedicated website for own clothing brand Nutmeg
    • Retailers help consumers shop safely
    • Missguided teams up with InPost UK to offer contact-free click-and-collect service
    • Phase Eight offers in-store personal styling appointments
    • ASOS accelerates AR clothes fitting service
    • Diesel unveils digital showroom Hyperoom
      • Figure 48: Diesel’s digital selling platform and showroom, 2020
    • Sustainability
    • Timberland’s first sustainability concept store
      • Figure 49: Timberland’s sustainability store on Carnaby Street, 2020
    • Selfridges launches Project Earth
      • Figure 50: The Restory at Selfridges, 2020
    • Connolly launches upcycled collection pop-up at Portobello Market
    • Puma unveils new Dope Dye Technology
      • Figure 51: The Puma X CSM collection, 2020
    • Resale and rental fashion
    • Liberty enters rental market in collaboration with My Wardrobe HQ
      • Figure 52: My Wardrobe HQ pop-up at Liberty, 2020
    • Selfridges partners with HURR Collective in first designer fashion rental collection
    • Oxfam opens second-hand shop in Selfridges for #SecondHandSeptember
      • Figure 53: Oxfam pop-up at Selfridges, 2020
    • Pop-ups
    • Lone Design Club reveals shoppable window
      • Figure 54: Lone Design Club shoppable window, 2020
    • Burberry launches digital and in-store ‘Animal Kingdom’ pop-ups
      • Figure 55: Burberry’s Animal Kingdom collection, 2020
    • Ted Baker teams up with Creative Mentor Network to celebrate store reopening
      • Figure 56: Ted Baker ‘Nice To See You, To See You Nice’ slogan, 2020
    • Face-covering launches
    • Burberry to launch luxury face masks costing £90
      • Figure 57: Burberry’s face masks, 2020
    • Sainsbury’s Tu sells face coverings for adults and children
      • Figure 58: Sainsbury’s Tu family pack of face masks, 2020
    • Christopher Kane launches free face mask craft packs
      • Figure 59: Christopher Kane free face masks, 2020
    • Brands launch matching masks for outfits
      • Figure 60: Designer Samantha Cameron’s matching dress and face mask for brand Cefinn, 2020
    • Retailers repurpose factories as part of COVID-19 relief effort
    • Mulberry delivers PPE to hospitals
    • Reiss repurposes supply chain to produce face masks
    • Mackintosh uses factory in Nelson to produce nurse uniforms
    • Primark donates to NHS
    • M&S providing pyjamas for NHS workers
    • Kurt Geiger donates shoes to NHS staff and first month of store profits from 15 June
    • Net-A-Porter helps deliver essentials to those in need
    • Launches and store openings
    • Morrisons opens Nutmeg clothing standalone store
    • Morrisons launches website for Nutmeg
      • Figure 61: Morrisons Nutmeg store, 2020
    • Forever 21 enters UK with online store
    • Missguided launches lockdown-inspired range
      • Figure 62: Missguided lockdown-inspired range, 2020
  16. Advertising and Marketing Activity

    • Sector advertising spend down 8.5% year-on-year in 2019
      • Figure 63: Total recorded above-the-line advertising expenditure on clothing and accessories, 2015-19
    • Advertising spend back to pre-pandemic level following COVID-19 lockdown slump
      • Figure 64: Total recorded above-the-line advertising expenditure on clothing and accessories, by month, January-July 2019 and 2020
    • Shein is the biggest spender despite spending half of what it did in 2018
      • Figure 65: Total recorded above-the-line, online, display and direct mail total advertising expenditure on clothing and accessories, by leading spenders, 2015-19
    • Outdoor and TV share of advertising spend increasing as dominant digital begins to decline
      • Figure 66: Total recorded above-the-line advertising expenditure percentage on clothing, by media type, total market, 2019
    • 2020 campaign highlights
    • Shein’s first out-of-home advertising campaign
    • Marks & Spencer digitally focused athleisure campaign and first ever denim TV advert
    • Matalan new brand positioning campaign
    • Freemans’ new website, app and exclusive clothing collection
    • John Lewis advertises its spring/summer season on TV for the first time ever
  17. Brand Research

    • Brand map
      • Figure 67: Attitudes towards and usage of selected brands, February-September 2020
    • Key brand metrics
      • Figure 68: Key metrics for selected brands, February-September 2020
    • Brand attitudes: ASOS seen as innovative
      • Figure 69: Attitudes, by brand, February-September 2020
    • Supermarket clothing brands seen as accessible
      • Figure 70: Brand personality – Macro image, February-September 2020
    • JD Sports viewed as stylish and responsive
      • Figure 71: Brand personality – Micro image, February-September 2020
    • Brand analysis
    • M&S loses trust, while Next and Primark seen as innovative
    • Supermarket clothing brands seen as offering good value
    • ASOS stands out as the most trusted pureplay
    • Gap seen as overrated
  18. The Consumer – Key Takeaways

    • People are spending less on fashion
    • Younger generations favour buying online, but also visit stores
    • Amazon competes for lead with M&S
    • New clothes and fashion trends become less of a priority
    • Value for money dominates
  19. Impact of COVID-19 on Consumer Behaviour

    • Over a quarter are worse off since COVID-19…
      • Figure 72: Change in financial situation since COVID-19 outbreak, 25 June-7 August 2020
    • …with women most concerned
      • Figure 73: Fears around the negative impact COVID-19 will have on people’s lives, by gender, 18-24 June 2020
    • People are spending less on fashion…
      • Figure 74: Consumer spending habits since COVID-19, 10-17 September 2020
    • …but there has been a notable increase in online purchases
      • Figure 75: People shopping more online since COVID-19, 16 April-17 September 2020
    • People feel uncomfortable trying on clothes in-store
      • Figure 76: Changing priorities since COVID-19, 10-17 September 2020
    • Growing usage of face masks
      • Figure 77: Face masks and scrunchies, September 2020
      • Figure 78: Agreement with usage of face masks/coverings in different situations, 10-17 September 2020
  20. What They Buy

    • Appetite for fashion falls
      • Figure 79: Fashion items purchased in the last three months, June 2019-September 2020
    • Surge in sportswear purchasing
      • Figure 80: Outerwear items purchased in the last three months, June 2019-September 2020
    • Most consumers only buy one or two items
      • Figure 81: Number of clothing items purchased on most recent shopping trip, June 2019-September 2020
    • Big decline in consumers spending £75 and over
      • Figure 82: Trends in amount spent on clothing, June 2019-September 2020
  21. How They Shop

    • Consumers more likely to have bought online than in-store
      • Figure 83: How consumers have bought clothes for themselves in the last 12 months, August 2020
    • Younger generations favour buying online, but also visit stores
      • Figure 84: How consumers have bought clothes for themselves in the last 12 months, by generation, August 2020
    • Young women continue to shop, while young men cut back
      • Figure 85: People who have bought clothes for themselves in-store and/or online or have not bought clothes in the last 12 months, by gender and age, August 2020
  22. Where They Shop

    • Specialists most popular, but pureplays growing
      • Figure 86: Types of retailers used to purchase clothing in the last 12 months, by channel, August 2020
    • Amazon competes for lead with M&S
      • Figure 87: Retailers used to purchase clothing in the last 12 months, net of retailers used to purchase in-store and/or online, August 2020
    • Primark retains popularity despite lack of online site
      • Figure 88: Retailers used to purchase clothing in the last 12 months, by channel, August 2020
    • People shop at fewer retailers
      • Figure 89: Repertoire of retailers used to purchase clothing in the last 12 months, by channel, August 2020
  23. Customer Profiles

    • Next sees increase in male customer base
      • Figure 90: Retailer customer profile, by gender, August 2020
    • ASOS loses youngest shoppers
      • Figure 91: Retailer customer profile, by age, August 2020
      • Figure 92: Retailer customer profile, by socio-economic group, August 2020
  24. Changes to Clothes Shopping since COVID-19

    • Buying new clothes becomes less of a priority
      • Figure 93: Changes in clothes shopping behaviour since COVID-19, August 2020
    • Younger Millennials shun trendy fashion
      • Figure 94: Changes in clothes shopping behaviour since COVID-19, by generation, August 2020
    • Baby Boomers worry about visiting stores
      • Figure 95: Changes in clothes shopping behaviour since COVID-19, by generation, August 2020
  25. Most Important Factors when Buying Clothes

    • Value for money dominates
      • Figure 96: Most important factors when choosing which clothes to buy, August 2020
    • Young online shoppers want more inclusive and diverse models
      • Figure 97: Most important factors when choosing which clothes to buy, by how people have bought clothes in the last 12 months, August 2020
  26. Clothes Shopping Behaviour

    • Younger generations cut back the most…
      • Figure 98: Clothes shopping behaviour, August 2020
      • Figure 99: Agreement with statement ‘Concerns about money in the last 12 months have caused me to cut back on buying clothes’, by generation, August 2020
    • …but prefer to buy from brands that support causes and promote diversity
      • Figure 100: Agreement with statements ‘I prefer to buy clothes from brands that support important causes than those that don’t’ and ‘I would be put off buying clothes from a retailer that doesn’t promote diversity’, by generation, August 2020
    • Young buy clothes to look good online
    • Parents of under-18s buy more clothes on discount
      • Figure 101: Clothing Retailing – CHAID – Tree output, August 2020
    • Methodology
      • Figure 102: Clothing retailing – CHAID – Table output, August 2020
  27. Clothes Shopping In-store at a Time of COVID-19

    • Comfort with in-store shopping depends on age
      • Figure 103: Clothes shopping behaviour in-store once clothes stores have reopened following COVID-19 lockdown, August 2020
    • Adapting stores in a time of COVID
      • Figure 104: Agreement with statements ‘I have visited a clothing store’, ‘I feel comfortable going shopping for clothes in-store’ and ‘I think social distancing is being done properly in stores’ now that stores have reopened, by age, August 2020
    • Women think it is pointless to visit stores without fitting rooms
  28. Arcadia

    • What we think
    • Arcadia closes more stores and plans restructure post-COVID-19…
    • …Westfield Stratford is to close after lease expires…
    • …but Topshop on Oxford Street to remain open after £310 million refinancing
    • Arcadia furloughs 14,500 staff and execs face 50% pay cuts
    • Snapchat teams up with adidas and Topshop in new ecommerce initiative
    • Company background
    • Company performance
      • Figure 105: Arcadia Group: Group financial performance, 2014/15-2018/2019
      • Figure 106: Arcadia: Outlet data, 2014/15-2018/19
    • Retail offering
  29. Grupo Inditex

    • What we think
    • A global business
    • Upsizing stores
    • Online a big opportunity for growth
    • Technology at the heart of the business
    • Flexible and responsive approach to production helped it cope with COVID
    • Sustainability is key to future
    • Where now?
    • Company background
    • Company performance
      • Figure 107: Grupo Inditex: Group financial performance, 2015/16-2019/20
      • Figure 108: Grupo Inditex: Sales by brand, 2019/20
      • Figure 109: Grupo Inditex: Outlet data, 2015/16-2019/20
      • Figure 110: Grupo Inditex: Outlet numbers by brand, 2019/20
    • Retail offering
  30. H&M Hennes & Mauritz

    • What we think
    • New hyper-local store concept
    • Custom-made perfect fit jeans
    • Online expansion giving more customers more options to access its brands
    • Livestreaming shopping events
    • Fashion rental and re-sale point towards an increased focus on sustainability
    • Company background
    • Company performance
      • Figure 111: H&M Hennes & Mauritz: Group financial performance, 2014/15-2018/19
      • Figure 112: H&M Hennes & Mauritz: Outlet data, 2014/15-2018/19
    • Retail offering
  31. Marks & Spencer

    • What we think
    • Clothing delivered with groceries
    • Drive-through fashion service
    • Online instalment payment option to help spread the cost of buying fashion
    • Wider choice of brands to broaden customer appeal
    • Shifting focus away from formalwear range to contemporary everyday fashions
    • Eradicates alpaca wool from products
    • Company background
    • Company performance
      • Figure 113: Marks & Spencer: Group financial performance, 2015/16-2019/20
      • Figure 114: Marks & Spencer: Outlet data, 2015/16-2019/20
    • Retail offering
  32. Next Group

    • What we think
    • Location of stores has been key
    • Greater shift towards online
    • Product mix benefited from bias to sports and loungewear
    • Growing focus on beauty
    • Next ups its ante on underwear
    • Where next
    • Company background
    • Company performance
      • Figure 115: Next Group: Group financial performance, 2014/15-2019/20
      • Figure 116: Next Group: Outlet data, 2014/15-2019/20
    • Retail offering
  33. Primark/Penneys

    • What we think
    • Missing out on online sales costs the brand millions in lost revenue
    • A must-visit destination for consumers shopping for clothes in-store
    • Cut-price fashion
    • New eco-conscious fashion, homeware and beauty collection
    • First ever sportswear collaboration
    • Company background
    • Company performance
      • Figure 117: Primark/Penneys: Group financial performance, 2015/16-2019/20
      • Figure 118: Primark/Penneys: Outlet data, 2015/16-2019/20
    • Retail offering
  34. River Island

    • What we think
    • ‘Buy now, pay later’ online option
    • Needs to do more to get customers back through the door
    • Commits to being more transparent
    • Exclusive childrenswear collaboration with TV star and personality Samantha Faiers
    • Own-brand beauty offering
    • Company background
    • Company performance
      • Figure 119: River Island Holdings Limited: Group financial performance, 2015-19
      • Figure 120: River Island Holdings Limited: Outlet data, 2015-19
    • Retail offering
  35. TK Maxx UK

    • What we think
    • A mountain of unsold stock to choose from
    • Knockdown prices
    • Giving clothes a second chance
    • Company background
    • Company performance
      • Figure 121: TK Maxx UK: Group sales performance, 2015/16-2019/20
      • Figure 122: TK Maxx UK: Outlet data, 2015/16-2019/20
    • Retail offering
  36. Appendix – Data Sources, Abbreviations and Supporting Information

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

    • Forecast methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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