UK Fashion Multiples 2008

Abstract

Verdict Research: The clothing market is one of the most competitive and fragmented retail sectors, with operators battling for growth in a relatively low growth environment. UK Fashion Multiples 2008 profiles a representative sample of smaller, but influential, men' s and women' s fashion retail brands, and explores the dynamics, growth trends and drivers of the market and retailers responses.

• Market size, sales and growth rates for the clothing market 2002-2007 and retail distribution of clothing expenditure for 2006 and 2007.
• Six year market share records with key operating statistics and store portfolio analysis for the 10 fashion multiples profiled in the report.
• Men' s and women' s space allocation for each brand split across eight product categories.
• Total advertising spend in 2006 for each retailer.

Niche retailers are outperforming the clothing market. We estimate the premium segment grew by 13.9% in 2007 faster than either the value or middle market segments. The 10 specialists profiled highlight this trend collectively adding 0.3% points in 2007.

Proof that dynamism takes market share is evident in the performance of two retailers at very different stages of maturity River Island and Fat Face where sustained sales densities and profitability have underpinned gains in market share.

The growing internationalisation of fashion tastes has generated high potential for international growth for smaller fashion multiples. The retailers in this report are almost all in the process of developing networks of stores in overseas markets.

• Understand market drivers. Because of the fragmented nature of the clothing market, smaller fashion multiples are a key influence on market trends.
• Discover how retailers are reacting to the major trends and key influences on fashion multiples and what their responses are likely to be.
• Utilize the data and analysis in this report to formulate strategic planning