Clothing Retailing - Ireland - January 2009

Table of Contents

• Issues in the MarketKey themes of the report
• Definition
• Abbreviations
• Market in Brief
• IoI clothing retail market contracted by 3% in 2008 to €3.9 billion
• NI market continues to expand
• Womenswear continues to outperform menswear
• Value retailers reaping the benefits as consumers trade down
• Weak Sterling boosts NI sales...
• ...but hides underlying threat
• Is ethical still on the agenda?
• Department stores remain favourite channel to market
• Catalogue vs. computer
• Growing demand for both larger and smaller sizes
• Retailers' growth despite difficult market conditions
• Internal Market Environment
• Key points
• Fashion exposure
• Green is the new black
• Affordable values?
• Can disposable fashion continue?
• Room for fair trade clothing during downturn?
  • Figure 1: Agreement with the statement ' I buy fair trade products when available' , NI and RoI, 2003-08
• How will financial difficulties affect the clothing retail market?
  • Figure 2: Consumer responses to statement ' When feeling the pinch, which of these are you most likely to do when trying to cut back your personal spending?' , NI and RoI*, January 2008
• Retail parks versus high street shopping
  • Figure 3: Retail rents per sq ft, 2008
• Retailers' response to the growth of out-of-town shopping
• Size zero gives new meaning to term ' fashion victim'
• Demand-led retailing
• Demand for larger sizes has also increased
  • Figure 4: Changing female body shapes, UK
• Speciality store market for ' size zero' ?
• Plus-size specialists holding their own
• Getting the celebrity look
• Celebrity cheap?
• Broader Market Environment
• Key points
• Recession strikes RoI pockets
  • Figure 5: RoI economic outlook, 2006-09
• How will NI fare?
  • Figure 6: NI economic outlook, 2007-09
• Unemployment levels higher than anticipated
• Tightening the designer belt
• Retail therapy
• The impact of the strong euro
  • Figure 7: Sterling rate against the euro, 2007-08
• Border hopping shopping
• Cross-border trade to NI booming...
• ...while RoI traders report doom and gloom
• A wolf in sheep' s clothing
• Retailers to target young people in the short term
• Washout summer sees poor sales
• Strengths and Weaknesses
• Strengths
• Weaknesses
• Competitive Context
• Key points
• What are consumers spending their income on?
  • Figure 8: Average UK weekly household expenditure (%) 2001/02-2006/07
  • Figure 9: Average weekly household expenditure, RoI, 1999-2000 and 2004-05
• Recession -- How do consumers cut back?
  • Figure 10: Top consumer responses to statement ' When feeling the pinch, which of these are you most likely to do when trying to cut back your personal spending?' , by age, RoI, January 2008
  • Figure 11: Top consumer responses to statement ' When feeling the pinch, which of these are you most likely to do when trying to cut back your personal spending?' , by age, NI, January 2008
• Leisure activities
  • Figure 12: Participation in leisure activities, NI and RoI, June 2007
• Market Value and Forecast
• Key points
  • Figure 13: Market value and forecast, IoI, RoI and NI, 2003-13
• Cross-border trade helps NI sales grow
  • Figure 14: Indexed growth in retail clothing market, IoI, RoI and NI, 2003-13
• Footfall levels recovering after some decline
• Market Segmentation
• Key points
• Womenswear continues to dominate
  • Figure 15: Estimated retail sales of womenswear, IoI, RoI and NI, 2003-13
• Cheap chic -- consumers flock to value retailers
• Thrifty shoppers choosing charity clothing
• Menswear welcomes new entrants to the market
  • Figure 16: Estimated retail sales of menswear, IoI, RoI and NI, 2003-13
• Mid-range retailers worst hit
• Companies and Brands
• Key points
• Arcadia Group
  • Figure 17: Arcadia Group financial performance, 2003-07
• Burton
• Dorothy Perkins
• Evans
• Miss Selfridge
• Topshop/Topman
• Wallis
• ASOS
  • Figure 18: Financial information, Asos, 2003/04-2007/08
• Arnotts
• Asda
• Benetton Group
  • Figure 19: Benetton Group financial performance, 2003-07
• Bhs
  • Figure 20: Bhs Group financial performance, 2003-07
• Brown Thomas
• Clerys
• Debenhams
• Dunnes Stores
  • Figure 21: Dunnes financial performance, 2001-07
• Gap
  • Figure 22: Gap financial performance, 2004-08
• H&M
  • Figure 23: H&M Hennes & Mauritz financial performance, 2003-07
  • Figure 24: H&M Hennes & Mauritz sales, by UK and Ireland, 2003-07
• Heatons
• Marks & Spencer
  • Figure 25: M&S: International sales performance, 2006-08
  • Figure 26: Marks & Spencer 2008 half-year results
• Matalan
  • Figure 27: Matalan financial and outlet information, 2002/03-2007/08
• Next
  • Figure 28: Next Group financial information, 2004-08
• Primark/Penneys
  • Figure 29: Primark/Penneys financial performance, 2003-08
• Tesco
  • Figure 30: Tesco UK financial information, 2003/04-2007/08
  • Figure 31: Tesco Ireland financial information, 2003/04-2007/08
• The Shopping Channel
• Key points
• Swapping catalogue for computer -- the rise of e-tail
  • Figure 32: Online sales of clothing and footwear, (inc. VAT), UK 2003-08
• Limitations to online growth
• Irish are catching up
  • Figure 33: Broadband connection, NI and RoI, 2004 and 2007
• Online clothing shopping popular with NI consumers
• Reserve online, try in-store
• Popularity of department stores remains
  • Figure 34: Shopped orlooked around a department store in last three months, by gender, NI and RoI, 2008
• Just browsing, thanks
  • Figure 35: Frequency of looking around in department store, NI and RoI, 2008
• Still a place for mail order among over-55s
  • Figure 36: Ordered from a mail order catalogue in the last 12 months, NI and RoI, 2003-08
• Tailoring retail to meet the demands of an ageing population
  • Figure 37: Population estimate and projection, by age, NI, 2000 and 2020
  • Figure 38: Population estimate and projection, by age, RoI, 2000 and 2020
  • Figure 39: Agreement with the statement ' It is important to be attractive to the opposite sex' , by age, NI and RoI, 2008
• In search of the Holy Grail
  • Figure 40: Agreement with the statement ' I dress in a young style' , by gender, NI and RoI, 2008
• The Style versus Budget Debate
• Key points
• Looking good: Irish consumers are image-conscious
  • Figure 41: Agreement with personal appearance statements, NI and RoI, 2008
• The Lynx effect
  • Figure 42: Agreement with the statement ' It is important to be attractive to the opposite sex' , by gender, NI and RoI, 2008
• Over half of Irish consumers feel it is important to dress well
  • Figure 43: Agreement with personal appearance statement ' I like to keep up with the latest fashions' , by gender, NI and RoI, 2008
• ' Tis the season
  • Figure 44: Agreement with the statement ' Every season I buy some new clothes' , by gender, NI and RoI, 2008
• Quality not an issue for some
  • Figure 45: Agreement with the statement ' When purchasing clothes I care more about style and attractiveness than quality' , by gender, NI and RoI, 2008
• It' s all about the money
  • Figure 46: Agreement with statement ' I look for the lowest possible prices when I go shopping' , NI and RoI, 2003-08
• Fashionable crime
  • Figure 47: Agreement with the statement ' I buy my clothes only in high-class boutiques' , by socio-economic group, NI and RoI, 2008
• Appendix
• Consumer typologies -- demographics
• Statements used to create consumer typologies
  • Figure 50: NI consumer typologies, by demographics, 2008
  • Figure 51: NI consumer typologies, characteristics and demographic pattern, 2008
  • Figure 52: RoI consumer typologies, by demographics, 2008
  • Figure 53: RoI consumer typologies, characteristics and demographic patterns, 2008
  • Figure 54: M&S UK retail sales, by product category, 2006-08
  • Figure 55: M&S financial information, 2003-08