UK Womenswear Retailers 2010
Report description
Introduction
Verdict Research: 2011 looks set to be another difficult year for womenswear retailers as inflation drives prices up and consumers feel the impact of higher taxes, weak wage growth and public sector job cuts. UK Womenswear Retailers 2010, ensures retailers are best prepared for the coming year, with comprehensive analysis of the issues they are facing and how best to overcome them.Features and benefits
- Spending trends in clothing, womenswear, menswear, childrenswear and accessories 2001-2011e
- Comprehensive profiles and outlooks for the ten largest operators across clothing specialists, grocers and department stores
- Analysis of a selection of small but influential womenswear retailers and the impact they are having on the marketHighlights
After slipping into negative territory in 2009 we expect growth of 5.4% for womenswear in 2010 to £20.2bn. While on paper this is a good performance, it has still been a difficult year with economic concerns far from over and growth mainly driven by inflation.Both M&S and Primark made gains of 0.3 percentage points in the womenswear market in 2010, the highest apart from Arcadia whose share grew 0.6 percentage points, mainly due to absorbing Bhs. M&S has had a challenging few years and, though it appears to have turned a corner, its 2010 womenswear market share of 11.9% is still below its 2006 level.As opportunities for growth become more difficult we have seen more womenswear retailers diversifying into other product sectors. Though a big impact on footfall and sales will take time, expanding into other sectors such as health & beauty and homewares will encourage customers to spend more time instore and push up average spend.Your key questions answered
- Use Verdict’s practical and actionable analysis to shape future business strategy
- Reduce risk and maximise opportunities, through understanding the key issues set to impact on the market in 2011
- Benchmark your performance against the 10 leading womenswear retailers’ key operating statistics and growth plans
Table of contents
Executive Summary
Main conclusions
OVERVIEW
Inflation helps drive strongest growth in eight years
Womenswear market up 5.4% to £20.2bn in 2010, the highest growth since 2002;
M&S and Primark are 2010 winners;
Inflation to remain in 2011 … … to the advantage of midmarket retailers;
Regional variations in store performance a risk;
New product areas drive up average spend;
Multichannel is a new focus – rather than online;
Retailer partnerships to become more common
MARKET ANALYSIS
Market definition and analysis
Clothing market spending trends Growth returns in 2010
Womenswear in context of clothing market
Womenswear to outperform total clothing in 2010 and 2011
Womenswear spending trends Inflation boosts growth in 2010
Inflation hits hard in 2010 and remains an issue in 2011
Retail distribution Grocers and department stores see largest gains
Sainsbury and John Lewis make main gains in womenswear
COMPANY DATA ANALYSIS
Clothing market shares Grocers and department stores grow share
Womenswear market shares Primark makes huge gains
Winners and losers
Arcadia gains clothing and womenswear market share
Key operating statistics
Competitors begin to catch up with M&S
Sales vs space growth
Matalan drives big sales gains with little new space in 2010
Womenswear sales densities
Asda holds top position
Space allocation
Advertising media expenditure
OUTLOOK
Womenswear market growth to 2014
Outperforms clothing
Inflation
Will remain an issue in 2011 and beyond
Midmarket can use inflation to advantage
Customers will cut back on volume
Regional variations in performance
North worst hit
Public sector cuts will impact across England – but the north-west in particular
UK store expansion
Womenswear retailers demand bigger sites …
International expansion International expansion strategies
Building loyalty in womenswear
Keeping customers is vital
Premium sub brands and celebrity collaborations
Benefit retailers …
New product sectors
Diversify into health & beauty and homewares
Exploring new channels Multichannel, not online
Third party operators
Increase routes to market
Strategies for success
ARCADIA GROUP
Bhs adds scale to Arcadia
Recent key events
Topshop very much the focus
Propositions
Financials
Profitability stays high despite recession
Bhs merger boosts operating profits, but margins down
Space
Bhs merger adds four million sq ft Space allocation
Sector performance - womenswear
Bhs boost to womenswear sales
Bhs merger drives share up
Outlook
Further gains in efficiency on the cards
ASDA
Work to do as womenswear competitors advance
Recent key events
Initiatives for growth
Proposition
Financials
Profits grow despite sluggish sales
Sales growth slows down once more in 2010
Space
Growth from Asda Living – before including Netto Space allocation
Sector performance – womenswear
Sales densities sink back for second consecutive year
Market shares
Outlook
Value price points and good choice no longer enough
DEBENHAMS
Womenswear outperforms total UK sales
Recent key events
Own brands, multichannel and international main growth pillars
Proposition
Financials
Sales boosted by acquisition
Online speeds ahead with multichannel services expanding
UK resilient despite tough trading conditions
Space
Presses on with expansion programme
Space allocation Sector performance – womenswear
Womenswear sales continue to grow
Market shares
Outlook
Own brand strategy produces a distinctive growth proposition
MARKS & SPENCER
New strategy forces change in womenswear
Recent key events
New chief executive to give momentum
Proposition
Financials
Sales performance improves but margins down
Space
Steady rise in floorspace
Space allocation Sector performance - womenswear
Womenswear sales rise for the second consecutive year
Market share
Outlook
Business shake up should benefit performance of womenswear
MATALAN
Benefits from cash strapped shoppers trading down
Recent key events
Pulls sale of company
Proposition
Financials
Growth to slow in 2010/11 against strong comparatives
Growth slows but sales remain positive in 2010/11
Space
Expansion increases in 2011
Space allocation
Sector performance – womenswear
Clothing a star performer in 2010
Market shares
Outlook
Revival and expansion but also tough competition
NEW LOOK
Growth to become tougher
Recent key events
Initiatives to drive presence in value clothing market
Proposition
Financials
Value proposition and fashion credentials boost sales
Online sales steam ahead
Space
Refurbishment programme is rolled out as new space slows
International space
Space allocation Sector performance – womenswear
Womenswear sales expected to slow in 2011
Market shares
Outlook
Upward pressure on prices could hinder competitiveness in the womenswear market
NEXT
Revamp of retail brand pulls in new customers
Recent key events
Finds new ways to grow
Proposition
Financials
We expect sales to remain strong in 2011
Operating margins improve once more
Directory outperforms retail
Space
Growth in space slows, but larger sites are targeted
Space allocation
Sector performance – womenswear
Womenswear remains strong
Market shares
Outlook
Well positioned despite strong competition
PRIMARK
Value star
Recent key events
Maintains momentum
Proposition
Financials
Trading performance provides positive outlook
Sales rocket over a decade
Space
Store growth in UK slows dramatically
Space allocation
Sector performance – womenswear
Womenswear remains strong
Market shares
Outlook
Primark well prepared for future growth
TESCO
Develops womenswear offer further Recent key events
Womenswear offer is broadened as new brands are launched
Proposition
Financials
Lower space growth reflected in sales
Consistent sales and profit growth
Space
Space allocation
Sector performance – womenswear
Market shares
Outlook
Focus on womenswear as new brands are launched
TK MAXX
Expansion plans shifting to Europe
Recent key events
Aggressive expansion plans shift focus to rest of Europe
Proposition
Financials
Downturn sustains growth
Space
UK space increase slows
Space allocation
Sector performance – womenswear
Market shares
Outlook
Focus moves away from UK clothing
SMALLER PLAYERS
ASOS Online pureplay achieves exceptional growth
Laura Ashley Fashion sales improve
M&Co. Store rollout boosts sales in 2010
Monsoon Strong profits put it in good stead
N Brown Acquisitions drive growth
Shop Direct Online increasingly important
Uniqlo Relaunches and seeks bigger stores
APPENDIX
Financial Statistics – VAT
Trading Profile
Key Operating Ratios
Physical Development
Abbreviations
Methodology
Main conclusions
OVERVIEW
Inflation helps drive strongest growth in eight years
Womenswear market up 5.4% to £20.2bn in 2010, the highest growth since 2002;
M&S and Primark are 2010 winners;
Inflation to remain in 2011 … … to the advantage of midmarket retailers;
Regional variations in store performance a risk;
New product areas drive up average spend;
Multichannel is a new focus – rather than online;
Retailer partnerships to become more common
MARKET ANALYSIS
Market definition and analysis
Clothing market spending trends Growth returns in 2010
Womenswear in context of clothing market
Womenswear to outperform total clothing in 2010 and 2011
Womenswear spending trends Inflation boosts growth in 2010
Inflation hits hard in 2010 and remains an issue in 2011
Retail distribution Grocers and department stores see largest gains
Sainsbury and John Lewis make main gains in womenswear
COMPANY DATA ANALYSIS
Clothing market shares Grocers and department stores grow share
Womenswear market shares Primark makes huge gains
Winners and losers
Arcadia gains clothing and womenswear market share
Key operating statistics
Competitors begin to catch up with M&S
Sales vs space growth
Matalan drives big sales gains with little new space in 2010
Womenswear sales densities
Asda holds top position
Space allocation
Advertising media expenditure
OUTLOOK
Womenswear market growth to 2014
Outperforms clothing
Inflation
Will remain an issue in 2011 and beyond
Midmarket can use inflation to advantage
Customers will cut back on volume
Regional variations in performance
North worst hit
Public sector cuts will impact across England – but the north-west in particular
UK store expansion
Womenswear retailers demand bigger sites …
International expansion International expansion strategies
Building loyalty in womenswear
Keeping customers is vital
Premium sub brands and celebrity collaborations
Benefit retailers …
New product sectors
Diversify into health & beauty and homewares
Exploring new channels Multichannel, not online
Third party operators
Increase routes to market
Strategies for success
ARCADIA GROUP
Bhs adds scale to Arcadia
Recent key events
Topshop very much the focus
Propositions
Financials
Profitability stays high despite recession
Bhs merger boosts operating profits, but margins down
Space
Bhs merger adds four million sq ft Space allocation
Sector performance - womenswear
Bhs boost to womenswear sales
Bhs merger drives share up
Outlook
Further gains in efficiency on the cards
ASDA
Work to do as womenswear competitors advance
Recent key events
Initiatives for growth
Proposition
Financials
Profits grow despite sluggish sales
Sales growth slows down once more in 2010
Space
Growth from Asda Living – before including Netto Space allocation
Sector performance – womenswear
Sales densities sink back for second consecutive year
Market shares
Outlook
Value price points and good choice no longer enough
DEBENHAMS
Womenswear outperforms total UK sales
Recent key events
Own brands, multichannel and international main growth pillars
Proposition
Financials
Sales boosted by acquisition
Online speeds ahead with multichannel services expanding
UK resilient despite tough trading conditions
Space
Presses on with expansion programme
Space allocation Sector performance – womenswear
Womenswear sales continue to grow
Market shares
Outlook
Own brand strategy produces a distinctive growth proposition
MARKS & SPENCER
New strategy forces change in womenswear
Recent key events
New chief executive to give momentum
Proposition
Financials
Sales performance improves but margins down
Space
Steady rise in floorspace
Space allocation Sector performance - womenswear
Womenswear sales rise for the second consecutive year
Market share
Outlook
Business shake up should benefit performance of womenswear
MATALAN
Benefits from cash strapped shoppers trading down
Recent key events
Pulls sale of company
Proposition
Financials
Growth to slow in 2010/11 against strong comparatives
Growth slows but sales remain positive in 2010/11
Space
Expansion increases in 2011
Space allocation
Sector performance – womenswear
Clothing a star performer in 2010
Market shares
Outlook
Revival and expansion but also tough competition
NEW LOOK
Growth to become tougher
Recent key events
Initiatives to drive presence in value clothing market
Proposition
Financials
Value proposition and fashion credentials boost sales
Online sales steam ahead
Space
Refurbishment programme is rolled out as new space slows
International space
Space allocation Sector performance – womenswear
Womenswear sales expected to slow in 2011
Market shares
Outlook
Upward pressure on prices could hinder competitiveness in the womenswear market
NEXT
Revamp of retail brand pulls in new customers
Recent key events
Finds new ways to grow
Proposition
Financials
We expect sales to remain strong in 2011
Operating margins improve once more
Directory outperforms retail
Space
Growth in space slows, but larger sites are targeted
Space allocation
Sector performance – womenswear
Womenswear remains strong
Market shares
Outlook
Well positioned despite strong competition
PRIMARK
Value star
Recent key events
Maintains momentum
Proposition
Financials
Trading performance provides positive outlook
Sales rocket over a decade
Space
Store growth in UK slows dramatically
Space allocation
Sector performance – womenswear
Womenswear remains strong
Market shares
Outlook
Primark well prepared for future growth
TESCO
Develops womenswear offer further Recent key events
Womenswear offer is broadened as new brands are launched
Proposition
Financials
Lower space growth reflected in sales
Consistent sales and profit growth
Space
Space allocation
Sector performance – womenswear
Market shares
Outlook
Focus on womenswear as new brands are launched
TK MAXX
Expansion plans shifting to Europe
Recent key events
Aggressive expansion plans shift focus to rest of Europe
Proposition
Financials
Downturn sustains growth
Space
UK space increase slows
Space allocation
Sector performance – womenswear
Market shares
Outlook
Focus moves away from UK clothing
SMALLER PLAYERS
ASOS Online pureplay achieves exceptional growth
Laura Ashley Fashion sales improve
M&Co. Store rollout boosts sales in 2010
Monsoon Strong profits put it in good stead
N Brown Acquisitions drive growth
Shop Direct Online increasingly important
Uniqlo Relaunches and seeks bigger stores
APPENDIX
Financial Statistics – VAT
Trading Profile
Key Operating Ratios
Physical Development
Abbreviations
Methodology
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