UK Menswear Retailers 2010
Report description
Introduction
Verdict Research: Menswear retailers have faced difficult times, and with inflation returning to the market in 2010 and margins being squeezed, the outlook remains challenging. This report looks at the key issues facing the sector as well as profiling the major retailers in the market including Marks & Spencer, Next, Asda and Tesco.
Scope
10 year value and growth trends in UK menswear expenditure, including sub sectors of men's outerwear and underwear
Outlook for the market including key issues and growth drivers and inhibitors
Detailed profiles on 12 of the major players in the market including menswear and clothing market shares for 2005 - 2010e
A further 9 concise profiles on smaller menswear retailers
Highlights
Menswear spending shrank by -1.3% in 2009. As we predicted it fell faster than womenswear and childrenswear as it was the first item to be cut from families' clothing budgets during the downturn.
We predict a return to growth, of 4.8%, in menswear spending in 2010 despite weak consumer optimism, fears about tax rises and public sector redundancies and falling real incomes. However, this will be driven by price inflation, which has returned to the menswear market after more than a decade of falling prices.
M&S remains the market leader in menswear with a share of 11.3% in 2010. Though it has improved menswear ranges, particularly in formalwear, it has been impacted by advances by grocers on entry price point merchandise and clothing basics, causing its market share to decline in 2010.
Reasons to Purchase
Identify the key trends and issues for menswear retailers to exploit opportunities and minimise risk
Comprehensive profiles provide essential information on business models and performance measures both crucial for benchmarking businesses
Understand key success drivers using Verdict's detailed insight on major market players
Scope
Highlights
Reasons to Purchase
Table of contents
EXECUTIVE SUMMARY
Key Findings
Menswear market returns to growth in 2010;
But sourcing prices cause inflation, hitting volume;
Value players worst hit by rising prices;
Midmarket better placed to respond with mix change;
M&S remains market leader;
Next revamps its retail brand but still loses share;
Arcadia moves into number three slot on Bhs merger;
Asda depends on Living stores for menswear growth;
Primark biggest share winner as it raises menswear profile;
TK Maxx completes UK growth and targets rest of Europe;
Debenhams refocuses on core customer and improving stores;
Matalan restarts its expansion plans as revival continues;
Sports Direct needs to develop its stable of product brands;
River Island new CEO puts brand image under scrutiny;
Tesco plans Extra space growth to catch up with Asda;
Moss Bros cashes in on revival for men's
Main conclusions
Menswear market to grow 4.8% in 2010
Sourcing prices cause inflation, hitting volumes
Value players will be worst hit
Midmarket retailers have room to respond
M&S menswear still market leader
Next revamps its retail brand but fails to advance
Arcadia Group has held onto number three slot with 5.4% market share
Asda places hopes for non-food in Living format
Primark biggest share winner as it raises menswear profile
TK Maxx completes UK growth and targets rest of Europe
Debenhams refocuses on core customers
Matalan restarts expansion plans
Sports Direct needs to develop its stable of product brands
River Island new CEO puts brand image under scrutiny
Tesco grows non-food sales through its core Extra format
Moss Bros enjoys suit market revival
MARKET ANALYSIS
Menswear market definition
Menswear market growth
Clothing market spending trends
Bounces back from downturn
Menswear spending in the context of clothing market
Menswear share carries on declining
Menswear spending trends
Volume growth peters out
Price inflation returns
Retail distribution
Grocers and department stores gain share in clothing overall
Grocers gain more slowly in menswear
COMPANY DATA ANALYSIS
Clothing market shares
Primark new challenger to Big Three specialists
Menswear market shares
M&S stronger in menswear
Winners and losers
Primark continues to march onwards
Arcadia reinforces position
Value players continue to gain
River Island main midmarket success
Space allocation
Moss Bros and M&S leaders in formalwear
Key operating statistics
Asda takes lead on menswear densities
Operating margins
River Island enjoys best growth
Value players outperform on sales growth
Space growth
Primark adds further menswear space
Menswear sales densities
Asda improves but River Island slips back
OUTLOOK
Preparing for inflation lift-off
Consumer spending recovery to lag rest of economy
Real incomes under pressure
Optimism slips back again
But unemployment not as bad as expected
Impact of public finances
Consumption expected to lag the rest of the economy
Return to clothing inflation
Cost increases to break through
Prospects for menswear
Volume contraction in prospect
Impact on lower end of the market
Midmarket relies on pricing power
Cost containment and reduction strategies
Rethinking logistics and IT
Concentrating the supplier base
Unlocking spending power
Quality more important but range and price still lead
Smart casualwear or casual fomalwear?
Mass customisation stretches midmarket upwards
Tackling a weighty problem: the under 45 obese male
Prospects for key menswear retailers
Marks & Spencer
Next
Arcadia Group
Asda
Primark
TK Maxx
Debenhams
Matalan
Sports Direct
River Island
Tesco
Moss Bros
ARCADIA GROUP
Bhs adds scale to Arcadia
Recent key events
Repositions brands and gears up for global growth
Premium Collection replaces Black Label at Burton
Rock and roll themed brand for TopMan
TopMan expands store
New storefit for Bhs
Burton MD takes over Bhs menswear
Bhs merged into Arcadia
TopMan in New York basement
Fashion performs well
Arcadia's other brands stick to franchising
Propositions
Financials
Profitability stays high despite recession
Operating profits may be helped by rising like-for-likes
Space
Bhs merger adds four million sq ft
Bhs pushes down densities
Space allocation
Sector performance - menswear
Sector performance - menswear
Bhs boost to menswear sales
Arcadia pushes into third place
Outlook
Major shift of strategy in managing Arcadia brand stable
Brings brands together rather than leaving them apart
Relocation strategy will help manage costs
International offers opportunities - but requires logistical support
Burton gains scale from Bhs but not risk-free
Bhs needs to keep its older customer base
New Bhs storefit a radical departure
TopMan still strong but could suffer from lower price rivalry
ASDA
Fast track for non-food growth
Recent key events
New initiatives support growth
Non-profit World Cup
Acquires 193 Netto stores
New chief executive appointed
New George MD targets value and Asda Living
George targets online development
Plans major growth in non-food standalones
Targets more quality conscious customers
Shakes up global sourcing
Store innovations will increase competitiveness
Proposition
Financials
Sales performance improves during recession
Sales slow down again in 2010
Space
Asda Living included in growth plans
Turnaround in density performance
Space allocation
Sector performance - menswear
Best year for George menswear since 2006
George at Asda maintains share
Outlook
Danger from growing competition and economic recovery
Market share gains instore will be boosted by expansion of Asda Living ...
... while George focuses on online expansion, too
Asda may suffer if consumer finances recover
Growing rivalry from a variety of sources
DEBENHAMS
Focus on profitability more than sales growth
Recent key events
Debt reduction clears way for investment in store estate
Introduces new younger menswear brand
Revamps Designers' storefits
New international and online opportunities for standalone brands
Reduction of debt
Buys Danish store chain
Restarts store refurbishments
Moves towards more own bought
Proposition
Financials
Profits grow despite sluggish sales
Online speeds ahead after relaunch
Margin begins a recovery
Space
Presses on with expansion
Densities continue to decline
Space allocation
Sector performance - menswear
Slowdown after improvement in 2008/09
Sector share recovery to stall
Outlook
Menswear sticks to safe territory in uncertain times
Newness and excitement could work better
Store refits badly needed
Store expansion still offers growth potential
International comes to the fore
Online catch up gathers pace
MARKS & SPENCER
Formal menswear back on track
Recent key events
New chief executive to give momentum
Former Morrison chief executive takes reins
More experience in food than clothing
Spruces up smarter menswear ranges
M&S Direct heads for full multichannel operation
Aims to be world's most sustainable retailer by 2015
M&S keeps up marketing momentum with new faces
Cashes in on World Cup
YouTube and m-commerce
Strategy to improve operations and grow market share
Project 2020 aims to improve supply chain
Proposition
Financials
Sales performance improves but margins down
Start of 2010/11 shows big improvement
Online on track for half billion target
Space
Steady rise in floorspace
Sales densities under pressure
Space allocation
Sector performance - menswear
Menswear sales see weak revival
Market share declines
Outlook
M&S menswear benefits from improved ranges
Menswear influenced by fortunes of womenswear
Needs to work on appeal to under 45s
Grocers pose an increasing threat
New management may be focused elsewhere
E-commerce stretches availability
International business can provide scale economies
Cost pressure worries for 2010/11
MATALAN
New wave of store openings begins
Recent key events
Pulls £1.5bn sale of company
Offers fall short
Refinances as ownertakes dividend
Returns to store expansion
Sponsors music show to boost younger audience
Proposition
Financials
Trading recovery remains on track
Sales start to grow strongly again
Space
New store openings show Matalan confidence
Store revamps help densities
Space allocation
Sector performance - menswear
Menswear underperforms womenswear
Recovery has a long way to go
Outlook
Revival and expansion but also tough competition
Pushes menswear in a more fashionable direction
More direct competition on the way
Refinances rather than selling company
Ambitious expansion plans
MOSS BROS
Strong recovery in trading raises hopes for future
Recent key events
New management team sharpens up trading
Launches made to measure tailoring stores
Fine tunes Cecil Gee offer and plans online launch
Loses Canali franchise
Management changes
Proposition
Financials
Improvement after long run of decline
Long term performance poor
Space
Temporary halt in expansion
Densities stabilise after slump
Space allocation
Sector performance - menswear
Sales contract for three years
Holds on to share after a fall
Outlook
Need for further repositioning
Moss Bros enjoys suit revival
Niche markets could hold potential
Moss needs more brand investment
Moss store refits an urgent priority
NEXT
Fights back with revamped brand and internet Sale
Recent key events
Focus on range development helps the brand turn a corner
Own label sports brand returns
Avoids price increases related to decline of pound
Upgrades and expands Directory online ...
... but axes separate brands website
Proposition
Financials
Sales recover growth in 2009/10
Operating margin improves once more
Directory outperforms retail
Space
Growth in space slows, but larger sites are targeted
Further slide in sales density
Space allocation
Sector performance - menswear
Returns to sales growth
Market share recovery peters out
Outlook
Performs well in exceptionally tough environment
Breaks out of run of rapidly declining like-for-like sales
Range improvement shines through in womenswear, but needs more focus on menswear
Next's online business faces serious rivalry
Branded offer needs further improvement
Develops in Germany and US
Low risk international strategy
PRIMARK
Advance into menswear market continues
Recent key events
Maintains momentum
Smooth management change
Pushes product development and merchandising
Settles copyright case with Superdry owner
Reiterates ethical policy and supports garment workers
Develops logistics
Proposition
Financials
Trading performance provides positive outlook
Sales rocket over a decade
Space
Store growth in UK slows dramatically
Sales densities bounce back
Space allocation
Sector performance - menswear
Menswear growth slows
Rapid menswear share growth sustained
Outlook
Primark well prepared for future growth
New management shifts focus to product
Quality improvements needed to prepare for upturn
Keeping true to value origins could be difficult
Menswear could be given more prominence
Online should be an immediate priority
RIVER ISLAND
Store expansion slows down
Recent key events
New ranges and website
Moves to sharpen brand image
Management succession
Launches community website
Celebrities promote ranges
New distribution centre
Exits Turkey
Proposition
Financials
Sales growth lags new space
Operating margins come under pressure
Space
Expansion reined in
Density high but declining
Space allocation
Sector performance - menswear
Slowdown from rapid growth
Steady progress in building share
Outlook
Cautious approach during economic downturn
Reins back on store expansion
Must continue to invest in design credentials
Format development needs to be maintained
Social website needs a push
SPORTS DIRECT INTERNATIONAL
Benefitting from weaker competition
Recent key events
On the lookout for further rivals to buy
Office of Fair Trading and Serious Fraud Office investigate
Purchase of 31 stores from rival JJB Sports cleared
Drops bid to take over rival Blacks Leisure ...
... though still a Blacks Leisure shareholder
Moves into TV advertising
Proposition
Financials
Margins slip as pound's fall hits
Operating margins likely to recover
Space
Moderate growth as store size rises
Densities revive after earlier slump
Space allocation
Sector performance - menswear
Revival after heavy decline
Clothing share fails to rise
Outlook
Needs to devise long term strategy
Revival of JJB Sports an uncertainty for the future
Drives online sales
Stores improvement has further to go
Acquisition trail goes cold for now
New strategy needed
Soccer World Cup will boost sales
TESCO
Extra store openings promise further growth
Recent key events
Continuous initiatives to ride out of the recession on top
Sir Terry Leahy to step down as chief executive
Former Sainsbury's TU man takes over from Terry Green
International expansion continues to be a focus
One off high street format
Launches ASOS-style website ...
... with 20 brands
Promotes online with discounts
Aims to strengthen fashion credentials
Clubcard relaunch includes double value vouchers when spent on clothing
Investment in price cuts help sales recover
Proposition
Financials
Lower space growth reflected in sales
Consistent sales and profit growth
Online sales growth slackens
Space
Space growth slows
Sales densities under pressure
Space allocation
Sector performance - menswear
Menswear growth comes to a halt
Menswear lags behind clothing performance
Outlook
Scope for further gains
Space growth crucial to clothing advance
Challenge from other value operators on the rise
Visual merchandising improves, but further to go
Online brands could improve fashion credentials instore
TK MAXX
Completion of UK expansion moves closer
Recent key events
Aggressive expansion plans shift focus to rest of Europe
Management changes in preparation for European push
Buying teams shaken up
Experiments with different store formats
Targets expansion both in UK and rest of Europe
Proposition
Financials
Downturn helps sustain growth
Profitability on the rise
Space
UK space increase slows
Steady density improvement since 2006
Space allocation
Sector performance - menswear
Sales boosted by downturn
Market share on steady upward trend
Outlook
Focus moves away from UK clothing
UK expansion nears completion
Online development promising
Flexibility will aid final growth spurt
Upturn in consumer confidence could hurt progress
SMALLER RETAILERS
ASOS
Growth focus switches to international
Recent key events
Carries on adding new product
Improves service proposition
Financials
Profitability improves as international takes off
Outlook
Reaps benefits of scale
International offers huge potential
Jack Wills
Embarks on international growth
Recent key events
Moves into the US Market
Launches Aubin & Wills concept store
Financials
Rapid growth and high profit margins
Outlook
Lifestyle fashion with an English accent
UK Growth continuing
International could be a success
JOHN LEWIS
Fashion sales take off
Recent key events
Targets online fashion development
Moves into younger market and improves own label
Financials
Booming sales make fashion a major category
Outlook
Online offers genuine incremental sales growth
Shifting younger with its customer mindset
N BROWN
Cornering larger men's market
Recent key events
Snaps up larger sizes specialist High & Mighty
New men's range and promotes Jacamo
Financials
Menswear leading growth category
Outlook
Leader in a niche market
Lack of real competition
NEW LOOK
Still struggling to break into menswear
Recent key events
Growth from international and online
Pushes development of online sales
Global expansion priority
Holds off £1.7bn stockmarket flotation
Menswear develops its presence and profile
Financials
Trading continues to impress
Outlook
Brand credibility still lacking in menswear
Will press on with product development
Will suffer from Primark advance
REPUBLIC
Strong own label boosts profits
Recent key events
New ownership could boost growth
Record Christmas trading
High profile brand Diesel launches in Republic stores
Transactional site is strong
Financials
Strong trading performance continues to impress
Outlook
Successful base from which to grow
Adding space could strengthen position on high street ...
... particularly in cities and university towns
Own brands provide differentiation and third party brands could offer exclusivity
Beginnings of branded upturn could provide extra impetus
Sainsbury
Targets clothing as non-food growth area
Recent key events
Needs to find extra store space for clothing
Non-food central to growth plans
Organisational changes highlight non-food focus
Tyler takes chair
Non-food offer launched online ... except clothing
Financials
Strong set of results for 2009/10
Outlook
Abundant opportunities
Realigns prices
Space expansion vital for clothing success
Value competitors up their game
TU would benefit from more publicity
Clothing online launch essential
Huge clothing potential if it can overcome space barriers
SUPERGROUP
Stock market float clears way for further growth
Recent key events
Stockmarket flotation gives expansion a boost
Expansion in Ireland
Launches new fascia
Financials
Outstanding sales performance continues
Outlook
Base established for short term growth
Expansion looks set to continue at a speedy rate
Stockmarket flotation will aid this growth
Supergroup must consider its future fashion direction carefully
TED BAKER
Needs new menswear momentum
Recent key events
Keeps to its tradition of quirky design
Shows off new flagship store format
International growth in India and US
Sub brands target market more effectively
Clearance website separates old stock from new
Financials
Sales continue to grow
Outlook
Menswear rising star comes to maturity
Problem of how grow menswear further
Risks devaluing brand
International an opportunity and a risk
APPENDIX
Definitions
Clothing & Footwear
Financial Statistics - VAT
Profiles
Physical Development
Abbreviations
Methodology
Market Sizing
Market Share
How we calculate sales densities
Inflation/deflation & volume
Further reading
Ask the analyst
Verdict consulting
Disclaimer
Key Findings
Menswear market returns to growth in 2010;
But sourcing prices cause inflation, hitting volume;
Value players worst hit by rising prices;
Midmarket better placed to respond with mix change;
M&S remains market leader;
Next revamps its retail brand but still loses share;
Arcadia moves into number three slot on Bhs merger;
Asda depends on Living stores for menswear growth;
Primark biggest share winner as it raises menswear profile;
TK Maxx completes UK growth and targets rest of Europe;
Debenhams refocuses on core customer and improving stores;
Matalan restarts its expansion plans as revival continues;
Sports Direct needs to develop its stable of product brands;
River Island new CEO puts brand image under scrutiny;
Tesco plans Extra space growth to catch up with Asda;
Moss Bros cashes in on revival for men's
Main conclusions
Menswear market to grow 4.8% in 2010
Sourcing prices cause inflation, hitting volumes
Value players will be worst hit
Midmarket retailers have room to respond
M&S menswear still market leader
Next revamps its retail brand but fails to advance
Arcadia Group has held onto number three slot with 5.4% market share
Asda places hopes for non-food in Living format
Primark biggest share winner as it raises menswear profile
TK Maxx completes UK growth and targets rest of Europe
Debenhams refocuses on core customers
Matalan restarts expansion plans
Sports Direct needs to develop its stable of product brands
River Island new CEO puts brand image under scrutiny
Tesco grows non-food sales through its core Extra format
Moss Bros enjoys suit market revival
MARKET ANALYSIS
Menswear market definition
Menswear market growth
Clothing market spending trends
Bounces back from downturn
Menswear spending in the context of clothing market
Menswear share carries on declining
Menswear spending trends
Volume growth peters out
Price inflation returns
Retail distribution
Grocers and department stores gain share in clothing overall
Grocers gain more slowly in menswear
COMPANY DATA ANALYSIS
Clothing market shares
Primark new challenger to Big Three specialists
Menswear market shares
M&S stronger in menswear
Winners and losers
Primark continues to march onwards
Arcadia reinforces position
Value players continue to gain
River Island main midmarket success
Space allocation
Moss Bros and M&S leaders in formalwear
Key operating statistics
Asda takes lead on menswear densities
Operating margins
River Island enjoys best growth
Value players outperform on sales growth
Space growth
Primark adds further menswear space
Menswear sales densities
Asda improves but River Island slips back
OUTLOOK
Preparing for inflation lift-off
Consumer spending recovery to lag rest of economy
Real incomes under pressure
Optimism slips back again
But unemployment not as bad as expected
Impact of public finances
Consumption expected to lag the rest of the economy
Return to clothing inflation
Cost increases to break through
Prospects for menswear
Volume contraction in prospect
Impact on lower end of the market
Midmarket relies on pricing power
Cost containment and reduction strategies
Rethinking logistics and IT
Concentrating the supplier base
Unlocking spending power
Quality more important but range and price still lead
Smart casualwear or casual fomalwear?
Mass customisation stretches midmarket upwards
Tackling a weighty problem: the under 45 obese male
Prospects for key menswear retailers
Marks & Spencer
Next
Arcadia Group
Asda
Primark
TK Maxx
Debenhams
Matalan
Sports Direct
River Island
Tesco
Moss Bros
ARCADIA GROUP
Bhs adds scale to Arcadia
Recent key events
Repositions brands and gears up for global growth
Premium Collection replaces Black Label at Burton
Rock and roll themed brand for TopMan
TopMan expands store
New storefit for Bhs
Burton MD takes over Bhs menswear
Bhs merged into Arcadia
TopMan in New York basement
Fashion performs well
Arcadia's other brands stick to franchising
Propositions
Financials
Profitability stays high despite recession
Operating profits may be helped by rising like-for-likes
Space
Bhs merger adds four million sq ft
Bhs pushes down densities
Space allocation
Sector performance - menswear
Sector performance - menswear
Bhs boost to menswear sales
Arcadia pushes into third place
Outlook
Major shift of strategy in managing Arcadia brand stable
Brings brands together rather than leaving them apart
Relocation strategy will help manage costs
International offers opportunities - but requires logistical support
Burton gains scale from Bhs but not risk-free
Bhs needs to keep its older customer base
New Bhs storefit a radical departure
TopMan still strong but could suffer from lower price rivalry
ASDA
Fast track for non-food growth
Recent key events
New initiatives support growth
Non-profit World Cup
Acquires 193 Netto stores
New chief executive appointed
New George MD targets value and Asda Living
George targets online development
Plans major growth in non-food standalones
Targets more quality conscious customers
Shakes up global sourcing
Store innovations will increase competitiveness
Proposition
Financials
Sales performance improves during recession
Sales slow down again in 2010
Space
Asda Living included in growth plans
Turnaround in density performance
Space allocation
Sector performance - menswear
Best year for George menswear since 2006
George at Asda maintains share
Outlook
Danger from growing competition and economic recovery
Market share gains instore will be boosted by expansion of Asda Living ...
... while George focuses on online expansion, too
Asda may suffer if consumer finances recover
Growing rivalry from a variety of sources
DEBENHAMS
Focus on profitability more than sales growth
Recent key events
Debt reduction clears way for investment in store estate
Introduces new younger menswear brand
Revamps Designers' storefits
New international and online opportunities for standalone brands
Reduction of debt
Buys Danish store chain
Restarts store refurbishments
Moves towards more own bought
Proposition
Financials
Profits grow despite sluggish sales
Online speeds ahead after relaunch
Margin begins a recovery
Space
Presses on with expansion
Densities continue to decline
Space allocation
Sector performance - menswear
Slowdown after improvement in 2008/09
Sector share recovery to stall
Outlook
Menswear sticks to safe territory in uncertain times
Newness and excitement could work better
Store refits badly needed
Store expansion still offers growth potential
International comes to the fore
Online catch up gathers pace
MARKS & SPENCER
Formal menswear back on track
Recent key events
New chief executive to give momentum
Former Morrison chief executive takes reins
More experience in food than clothing
Spruces up smarter menswear ranges
M&S Direct heads for full multichannel operation
Aims to be world's most sustainable retailer by 2015
M&S keeps up marketing momentum with new faces
Cashes in on World Cup
YouTube and m-commerce
Strategy to improve operations and grow market share
Project 2020 aims to improve supply chain
Proposition
Financials
Sales performance improves but margins down
Start of 2010/11 shows big improvement
Online on track for half billion target
Space
Steady rise in floorspace
Sales densities under pressure
Space allocation
Sector performance - menswear
Menswear sales see weak revival
Market share declines
Outlook
M&S menswear benefits from improved ranges
Menswear influenced by fortunes of womenswear
Needs to work on appeal to under 45s
Grocers pose an increasing threat
New management may be focused elsewhere
E-commerce stretches availability
International business can provide scale economies
Cost pressure worries for 2010/11
MATALAN
New wave of store openings begins
Recent key events
Pulls £1.5bn sale of company
Offers fall short
Refinances as ownertakes dividend
Returns to store expansion
Sponsors music show to boost younger audience
Proposition
Financials
Trading recovery remains on track
Sales start to grow strongly again
Space
New store openings show Matalan confidence
Store revamps help densities
Space allocation
Sector performance - menswear
Menswear underperforms womenswear
Recovery has a long way to go
Outlook
Revival and expansion but also tough competition
Pushes menswear in a more fashionable direction
More direct competition on the way
Refinances rather than selling company
Ambitious expansion plans
MOSS BROS
Strong recovery in trading raises hopes for future
Recent key events
New management team sharpens up trading
Launches made to measure tailoring stores
Fine tunes Cecil Gee offer and plans online launch
Loses Canali franchise
Management changes
Proposition
Financials
Improvement after long run of decline
Long term performance poor
Space
Temporary halt in expansion
Densities stabilise after slump
Space allocation
Sector performance - menswear
Sales contract for three years
Holds on to share after a fall
Outlook
Need for further repositioning
Moss Bros enjoys suit revival
Niche markets could hold potential
Moss needs more brand investment
Moss store refits an urgent priority
NEXT
Fights back with revamped brand and internet Sale
Recent key events
Focus on range development helps the brand turn a corner
Own label sports brand returns
Avoids price increases related to decline of pound
Upgrades and expands Directory online ...
... but axes separate brands website
Proposition
Financials
Sales recover growth in 2009/10
Operating margin improves once more
Directory outperforms retail
Space
Growth in space slows, but larger sites are targeted
Further slide in sales density
Space allocation
Sector performance - menswear
Returns to sales growth
Market share recovery peters out
Outlook
Performs well in exceptionally tough environment
Breaks out of run of rapidly declining like-for-like sales
Range improvement shines through in womenswear, but needs more focus on menswear
Next's online business faces serious rivalry
Branded offer needs further improvement
Develops in Germany and US
Low risk international strategy
PRIMARK
Advance into menswear market continues
Recent key events
Maintains momentum
Smooth management change
Pushes product development and merchandising
Settles copyright case with Superdry owner
Reiterates ethical policy and supports garment workers
Develops logistics
Proposition
Financials
Trading performance provides positive outlook
Sales rocket over a decade
Space
Store growth in UK slows dramatically
Sales densities bounce back
Space allocation
Sector performance - menswear
Menswear growth slows
Rapid menswear share growth sustained
Outlook
Primark well prepared for future growth
New management shifts focus to product
Quality improvements needed to prepare for upturn
Keeping true to value origins could be difficult
Menswear could be given more prominence
Online should be an immediate priority
RIVER ISLAND
Store expansion slows down
Recent key events
New ranges and website
Moves to sharpen brand image
Management succession
Launches community website
Celebrities promote ranges
New distribution centre
Exits Turkey
Proposition
Financials
Sales growth lags new space
Operating margins come under pressure
Space
Expansion reined in
Density high but declining
Space allocation
Sector performance - menswear
Slowdown from rapid growth
Steady progress in building share
Outlook
Cautious approach during economic downturn
Reins back on store expansion
Must continue to invest in design credentials
Format development needs to be maintained
Social website needs a push
SPORTS DIRECT INTERNATIONAL
Benefitting from weaker competition
Recent key events
On the lookout for further rivals to buy
Office of Fair Trading and Serious Fraud Office investigate
Purchase of 31 stores from rival JJB Sports cleared
Drops bid to take over rival Blacks Leisure ...
... though still a Blacks Leisure shareholder
Moves into TV advertising
Proposition
Financials
Margins slip as pound's fall hits
Operating margins likely to recover
Space
Moderate growth as store size rises
Densities revive after earlier slump
Space allocation
Sector performance - menswear
Revival after heavy decline
Clothing share fails to rise
Outlook
Needs to devise long term strategy
Revival of JJB Sports an uncertainty for the future
Drives online sales
Stores improvement has further to go
Acquisition trail goes cold for now
New strategy needed
Soccer World Cup will boost sales
TESCO
Extra store openings promise further growth
Recent key events
Continuous initiatives to ride out of the recession on top
Sir Terry Leahy to step down as chief executive
Former Sainsbury's TU man takes over from Terry Green
International expansion continues to be a focus
One off high street format
Launches ASOS-style website ...
... with 20 brands
Promotes online with discounts
Aims to strengthen fashion credentials
Clubcard relaunch includes double value vouchers when spent on clothing
Investment in price cuts help sales recover
Proposition
Financials
Lower space growth reflected in sales
Consistent sales and profit growth
Online sales growth slackens
Space
Space growth slows
Sales densities under pressure
Space allocation
Sector performance - menswear
Menswear growth comes to a halt
Menswear lags behind clothing performance
Outlook
Scope for further gains
Space growth crucial to clothing advance
Challenge from other value operators on the rise
Visual merchandising improves, but further to go
Online brands could improve fashion credentials instore
TK MAXX
Completion of UK expansion moves closer
Recent key events
Aggressive expansion plans shift focus to rest of Europe
Management changes in preparation for European push
Buying teams shaken up
Experiments with different store formats
Targets expansion both in UK and rest of Europe
Proposition
Financials
Downturn helps sustain growth
Profitability on the rise
Space
UK space increase slows
Steady density improvement since 2006
Space allocation
Sector performance - menswear
Sales boosted by downturn
Market share on steady upward trend
Outlook
Focus moves away from UK clothing
UK expansion nears completion
Online development promising
Flexibility will aid final growth spurt
Upturn in consumer confidence could hurt progress
SMALLER RETAILERS
ASOS
Growth focus switches to international
Recent key events
Carries on adding new product
Improves service proposition
Financials
Profitability improves as international takes off
Outlook
Reaps benefits of scale
International offers huge potential
Jack Wills
Embarks on international growth
Recent key events
Moves into the US Market
Launches Aubin & Wills concept store
Financials
Rapid growth and high profit margins
Outlook
Lifestyle fashion with an English accent
UK Growth continuing
International could be a success
JOHN LEWIS
Fashion sales take off
Recent key events
Targets online fashion development
Moves into younger market and improves own label
Financials
Booming sales make fashion a major category
Outlook
Online offers genuine incremental sales growth
Shifting younger with its customer mindset
N BROWN
Cornering larger men's market
Recent key events
Snaps up larger sizes specialist High & Mighty
New men's range and promotes Jacamo
Financials
Menswear leading growth category
Outlook
Leader in a niche market
Lack of real competition
NEW LOOK
Still struggling to break into menswear
Recent key events
Growth from international and online
Pushes development of online sales
Global expansion priority
Holds off £1.7bn stockmarket flotation
Menswear develops its presence and profile
Financials
Trading continues to impress
Outlook
Brand credibility still lacking in menswear
Will press on with product development
Will suffer from Primark advance
REPUBLIC
Strong own label boosts profits
Recent key events
New ownership could boost growth
Record Christmas trading
High profile brand Diesel launches in Republic stores
Transactional site is strong
Financials
Strong trading performance continues to impress
Outlook
Successful base from which to grow
Adding space could strengthen position on high street ...
... particularly in cities and university towns
Own brands provide differentiation and third party brands could offer exclusivity
Beginnings of branded upturn could provide extra impetus
Sainsbury
Targets clothing as non-food growth area
Recent key events
Needs to find extra store space for clothing
Non-food central to growth plans
Organisational changes highlight non-food focus
Tyler takes chair
Non-food offer launched online ... except clothing
Financials
Strong set of results for 2009/10
Outlook
Abundant opportunities
Realigns prices
Space expansion vital for clothing success
Value competitors up their game
TU would benefit from more publicity
Clothing online launch essential
Huge clothing potential if it can overcome space barriers
SUPERGROUP
Stock market float clears way for further growth
Recent key events
Stockmarket flotation gives expansion a boost
Expansion in Ireland
Launches new fascia
Financials
Outstanding sales performance continues
Outlook
Base established for short term growth
Expansion looks set to continue at a speedy rate
Stockmarket flotation will aid this growth
Supergroup must consider its future fashion direction carefully
TED BAKER
Needs new menswear momentum
Recent key events
Keeps to its tradition of quirky design
Shows off new flagship store format
International growth in India and US
Sub brands target market more effectively
Clearance website separates old stock from new
Financials
Sales continue to grow
Outlook
Menswear rising star comes to maturity
Problem of how grow menswear further
Risks devaluing brand
International an opportunity and a risk
APPENDIX
Definitions
Clothing & Footwear
Financial Statistics - VAT
Profiles
Physical Development
Abbreviations
Methodology
Market Sizing
Market Share
How we calculate sales densities
Inflation/deflation & volume
Further reading
Ask the analyst
Verdict consulting
Disclaimer
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