Clothing Retailing: Brand vs Own Label - Ireland - November 2007

Table of Contents

• Issues in the Market
• Key themes of the report:
• Market in Brief
• Key Points
• Confidence is slowing down the consumer boom
• Minor increases keeping the overall market stable
• Young no longer the principal target
• UK picture sets a familiar scene?
  • Figure 1: UK clothing specialists, market positioning, 2006
• M&S customer base going grey
• Value retailers not just for less affluent
• Value market crowded
• Dunnes is leading the market
• Is there a future for Matalan' s out-of-town outlets?
• Who' s innovating?
• Internal Market Environment
• Key Points
• Falling prices across the market
  • Figure 2: UK: Inflation on clothing and footwear, 2001-05
• Will this continue?
• Profit margins squeezed
• NI and RoI textile companies have suffered
• Impact of widening waistlines
• Buying into the celebrity lifestyle
• Any press is good press?
• Take That -- the new face of M&S
• A-Wear using Irish Celebrities
• Broader Market Environment
• Key Points
• RoI forecast economic downturn affects consumer confidence
  • Figure 3: RoI, health of the economy Sept 2007
• Consumers thinking twice before spending
• Interest rates affecting NI industry
  • Figure 4: UK and Eurozone interest rates, 1998 to 2007
• The Stormont ' feel-good' factor -- economic myth?
• Danger of the weak dollar
  • Figure 5: Dollar exchange rate versus UK pound, 2003-07
• Online retailing: the new frontier?
• Winning older customers -- the new challenge
  • Figure 6: Population change by age group, NI, 2000-2020
  • Figure 7: Population change by age group, RoI, 2000-2020
• Tomorrow' s 35-54-year-olds are today' s 15-34s
• The disastrous summer of 2007
• Strengths and Weaknesses
• Strengths
• Weaknesses
• Competitive Context
• Clothing sales outstrip other markets in
  • Figure 8: UK breakdown of sales through clothing, footwear and textile retailers, by sub-sector shown as a percentage of total sales, 1994-2006
  • Figure 9: Annual UK percentage change in retail price index for selected product groups: Jun 2006-Jun 2007
• Clothing competing well in Republic of Ireland market
  • Figure 10: Consumer spending on clothing, Ireland, 2001-05
  • Figure 11: RoI, percentage of total consumer spending, by sector, 2001-05
• Market Value and Forecast
• Key Points
• Irish clothing retail market is still reasonably healthy
  • Figure 12: All-Ireland clothing retail market, by value, 2001-12
  • Figure 13: Indexed growth in retail clothing market, 2001-12
• Supermarket retailers to be winners
• E-commerce -- the future
• Market Segmentation
• Key Points
• Menswear market continuing to grow slowly in NI
  • Figure 14: Menswear retail market, by value, 2001-07
• NI womenswear growing very slowly but expected to fall again
  • Figure 15: Womenswear retail market, by value, 2001-07
• Industry Views
• Online opportunities
• Resisting the signs of ageing
• Supermarkets threatening traditional clothing powerhouses
• Irish consumers getting fuller figured
• The decline of brand loyalty and the rise of celebrity status
• Weather issues
• Ethical trading concerns
• Companies and Brands
• Key Points
• Figure 16: Profiled retailers
• Asda (NI only)
• Arcadia Group
• Market Positioning
• Arnotts (RoI only)
• Benetton
• Figure 17: Benetton group, outlet data, 2001-05
• Bhs (NI only)
• The Bhs brand
• Brown Thomas
• Clerys
• Debenhams
  • Figure 18: Debenhams Product Mix (as % of turnover), 2006
• Third-party brands
• Dunnes Stores
  • Figure 19: Dunnes: Group financial performance, 2001-07
• Gap Inc
  • Figure 20: GAP Inc group financial performance, 2002-06
• H&M Hennes & Mauritz
• Heaton' s
• Matalan (NI only)
• Marks & Spencer
  • Figure 21: M&S turnover and net profit in the UK 2001-06
• Next
  • Figure 22: Next retail UK and RoI outlet data, 2002-06
• Primark/Penneys
  • Figure 23: Primark own brand portfolio
• River Island
  • Figure 24: Comparison of operations between tesco in UK and RoI
  • Figure 25: Tesco UK sales and profit figures 2001-06
• TK Maxx
  • Figure 26: TK Maxx: Group financial performance, 2001/02-2005/06
• The Consumer
• Key Points
• Where are people buying their clothes in NI and RoI?
  • Figure 27: Where people are buying their clothes from in NI and RoI
• Dunnes cornering the older market
• Primark takes second place with M&S not far behind
• Supermarket chains eating into specialists' sales
• Sports casualwear very popular in Greater Belfast
• Mail order catalogues fail to penetrate
  • Figure 28: Where clothes have been purchased in the last 12 months, by social class, NI, July 2007
• Debenhams fails to attract less affluent
• Primark attracts all economic backgrounds
• Loyalty to Dunnes and Primark among lower economic backgrounds
• Clerys failing to attract young consumers
• Low take-up rate for online retailing
• Arnotts and Clerys failing to attract custom from beyond Dublin
• Penneys failing to dominate the less affluent market
• Appendix
  • Figure 32: Clothing inflation, UK, 1995-2005
  • Figure 33: UK: Inflation on clothing and footwear, 2001-05
  • Figure 34: Sterling to euro conversion rates
  • Figure 35: Dunnes: Outlet data, 2002-06
  • Figure 36: RoI, Leading clothing specialists, estimated market shares, 2005
• The Consumer
  • Figure 37: Where clothes have been purchased in the last 12 months, NI, July 2007
  • Figure 38: Where clothes have been purchased in the last 12 months, NI, July 2007
  • Figure 39: Where clothes have been purchased in the last 12 months, by age, RoI, July 2007
  • Figure 40: Where clothes have been purchased in the last 12 months segmented by social class, RoI, July 2007
  • Figure 41: Where clothes have been purchased in the last 12 months segmented by social class, RoI, July 2007
  • Figure 42: Shopping preferences, NI, July 2007
  • Figure 43: Shopping preferences, NI, July 2007
  • Figure 44: Shopping preferences, NI, July 2007
  • Figure 45: Shopping preferences, NI, July 2007
  • Figure 46: Attitudes towards clothes shopping, by gender, RoI, July 2007
  • Figure 47: Agreement with attitudes towards clothes shopping, by age, RoI 2007
  • Figure 48: Agreement with attitudes towards clothes shopping, by socio-economic group, RoI 2007
  • Figure 49: Agreement with attitudes towards clothes shopping, by region, RoI 2007
• NI clusters by demographics
  • Figure 50: Consumer typologies relating to attitudes towards shopping for clothes, NI, July 2007
  • Figure 51: Consumer typologies, by shopping attitudes, NI, July 2007
  • Figure 52: Consumer typologies, by shops bought clothes in for self/partner, NI, July 2007
• RoI clusters by demographics
  • Figure 53: Consumer typologies relating to attitudes towards shopping for clothes, RoI, July 2007
  • Figure 54: typologies according to shops bought clothes in for self/partner, RoI, July 2007
  • Figure 55: Consumer typologies according to shops bought clothes in for self/partner, RoI, July 2007