Womenswear Retailing in the UK Sample Pages


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The womenswear market has been the most resilient clothing sector over the last 10 years in terms of expenditure growth, with high levels of inflation forcing consumers to spend more on individual items, driving spend per head and supporting volume recovery.

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Womenswear Retailing in the UK Sample Pages

  1. 1. April 2014 Womenswear Retailing in the UK Womenswear spend per head Women will spend an extra £21.46 on clothing in 2014 Figure 1: Womenswear spend per head (£), 2009–14e 733.03 778.40 789.22 807.96 825.29 846.75 2009 2010 2011 2012 2013 2014e £ +£113.72 £ 733.03 778.40 789.22 807.96 825.29 846.75 2009 2010 2011 2012 2013 2014e £ +£113.72 733.03 778.40 789.22 807.96 825.29 846.75 2009 2010 2011 2012 2013 2014e £ +£113.72 £ Source: Verdict estimates V E R D I C T Note: based on ONS population estimates Inflation has had a positive impact on spend per head. We believe that expenditure on womenswear per adult female will grow by 2.6% in 2014, equivalent of £21.46, and will be up 14.0% between 2009 and 2014 – an extra £113.72 which has be incremental to those retailers achieving growth – though this has subsequently caused volume growth to be weaker throughout the downturn. The period of high volumes at low prices has been exchanged for fewer higher priced items with consumers seeking high quality and good value for money – causing spend per head to rise but volumes to be more muted. However, for the first time since 2009 volume growth will exceed the level of inflation in 2014, as consumers gradually start to feel more confident about spending on discretionary clothing pieces. Weaker growth in lingerie spend per head due to value retailers investing in the sector While women's outerwear spend per head will grow by 14.3% in the five years to 2014 reaching £701.02, we forecast consumer expenditure on women's underwear will rise by just 8.8% to £145.72. The likes of Primark and the grocers have vastly improved their ranges by providing more choice, interpreting more trends into designs and investing in fit and comfort which has lured consumers to trade down from retailers such as M&S and Debenhams. We expect this trend to continue, with consumers likely to purchase items more frequently due to regular newness and lower price points.
  2. 2. April 2014 Womenswear Retailing in the UK CHANNEL SHARES Grocers and home shopping specialists are the winners Figure 2: Channel summary, 2014–19e Source: Verdict V E R D I C T Online pureplays threaten multichannel players UK online clothing & footwear grew by over 165% between 2009 and 2014 The value of the UK online clothing & footwear market is forecast to grow at a rapid pace from 2014 to 2019, as spend continues to shift online from more traditional channels such as stores and catalogues. The likes of House of Fraser, Next and M&S continue to invest and update their online proposition and facilities to ensure they are maximising the channel's potential and protecting themselves from the growing competition.
  3. 3. April 2014 Womenswear Retailing in the UK H&M, New Look and Topshop threatened by Pretty Little Thing and Daisy Street While Boohoo and Missguided are currently the biggest threats to not only ASOS but also multichannel players such as New Look and H&M, there are two smaller players that will pose a threat to these retailers in the coming five years – Pretty Little Thing and Daisy Street. Both of these online pureplays launched in 2011, and while they may be a few years behind Boohoo and Missguided, they have the potential to reach their current level of sales. These players will be part of the next wave of online pureplays and are set to experience high growth rates – though retail sales and market share will remain small. As ASOS continues to invest in its transactional website, these two players must do the same, introducing new features, content and products to attract new customers and drive sales. Key aspects of their offers that need investment are the delivery and returns options, maintaining a consistent brand personality across editorial features and engaging consumers with regular editorial updates. By doing this, they will stand a better chance of attracting new visitors and stealing sales from established rivals. Figure 3: Strengths and opportunities for Pretty Little Thing and Daisy Street to grow sales, 2014 • Animation brings offer to life • Strong basics offer • Editorial trend-focused content • Easy website navigation • Customer engagement via social media • Customer support service well highlighted • Must improve delivery offer • Increase returns period • Ensure blog is kept up to date • Enhance filtering options • Blog should better reflect proposition • Increase returns period • Offer delivery via Collect+ Strengths Opportunities Will threaten Source: Verdict V E R D I C T
  4. 4. April 2014 Womenswear Retailing in the UK Opportunity for womenswear retailers across all price segments to grow sportswear sales Sports clothing and footwear expenditure will grow 21.3% in the five years to 2019 There is significant opportunity for womenswear retailers to place greater focus on introducing or growing their sportswear ranges, as consumers seek more fashion influences in products and sporting events such as the Olympics and World Cup drive footfall and purchases. Consumers are taking a greater interest in catwalk trends, and increasingly want to look fashionable while exercising following on from the likes of Alexander Wang and Lacoste using sporting influences in their runway shows, playing into the hands of clothing retailers. Womenswear players expand ranges to capitalise on the popularity of sports The fashion element in sportswear has become increasingly relevant, and womenswear retailers across all price segments of the market have succeeded in catering for this consumer demand, leaving some sports specialists lagging behind. Over the next five years, we expect high street clothing retailers, lifestyle brands and luxury players to steal share from sports specialists as they improve and widen ranges.
  5. 5. April 2014 Womenswear Retailing in the UK With fashion playing a greater role in sportswear, we believe that there are further opportunities for clothing retailers to develop sports ranges and expand within the market. They must take advantage of shoppers visiting their stores for core collections, and drive footfall to their sportswear ranges, boosting convenience for those shoppers that are time pressed and boosting average spend per head. Marketing instore, online and in editorial content will raise awareness of sports ranges More womenswear retailers such as Topshop and White Stuff should learn from these players within each segment of the market and widen sports ranges and sports performance credentials to increase their share of this robust and lucrative market. Dedicating an area to sports in stores or online and making it a standalone category will draw attention to ranges and allow shoppers to easily access products. Moreover, by promoting ranges in feature spreads in health magazines and on health websites, clothing specialists would be able to target a larger customer base outside of their core regular shoppers. Figure 4: Clothing specialists investing in sportswear, 2014 • Fat Face’s new Activ88 performance range provides sportswear products for running, jogging, walking, cycling and yoga • The capsule range focuses around the hobbies of its core customer base and still encompasses the brand’s design handwriting • In January 2014, Primark launched a new video campaign to raise awareness of its expanded women’s fitness range, Workout • Primark has an opportunity to add more fashion influences to its sports ranges, especially since H&M has upped the ante and targets a similar customer base • Hermès launched a new theme for its 2013 autumn/winter range called ‘a sporting life’, which uses sports influences • Hermès has researched the hobbies and lifestyle of its customer base and has tapped into sports growth areas where it can bring performance, style and ultimate luxury into its collections • Following the 2012 Olympics, H&M has rolled out a new sports concept across all of its UK stores • H&M Sport has dedicated performance-led ranges for different sporting activities such as running, tennis and yoga • Products incorporate fast-drying functional fabrics, but in a fashion- forward way by integrating the latest catwalk trends through prints and colours Source: H&M, Primark, Fat Face, Hermès, Verdict V E R D I C T
  6. 6. April 2014 Womenswear Retailing in the UK For more information on our Clothing & Footwear analysis please contact enquiries@verdictretail.com The full report is available to purchase in our store.