Table of Contents
Issues in the Market
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- Main themes
- Financial definitions
- Abbreviations
Future Opportunities
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- The new clothing norm – inflation and low growth
- Offline online - blending the best of both worlds
Market in Brief
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- Future
- Clothing sales
- Channels of distribution
- Consumer context
- Competitive context
Internal Market Environment
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- Key points
- Shoppers still cutting back on clothing
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- Figure 1: UK: Consumer spending priorities over the past year (indicative score), May 2010
- Uncertainty replaces fear
- E-commerce trends
- Internet sales set to slow from historically high levels
- Significant potential remains
- Pros and cons
- Auction sites may have boosted sales in the downturn
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- Figure 2: UK: Top websites purchased from in last three months, April 2008-10
- Internet usage
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- Figure 3: UK: Clothing website visitors, August 2010
- Lifestyle statements
- Has the disposable fashion trend peaked?
- A mismatch between preference and provision?
- Jeans and homemade clothes on the up
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- Figure 4: GB: Agreement with selected lifestyle statements, 2005-09
- Interest drops off from mid-30s
- Seismic shift in womenswear
Broader Market Environment
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- Key points
- Implications for clothing retailers
Competitive Context
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- Key points
- Spending on clothing, footwear and other personal adornment
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- Figure 5: Consumer spend on clothing, footwear and other personal adornment at current prices, 2005-09
- Clothing deflation much deeper than footwear
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- Figure 6: Clothing and footwear inflation, 1997-2009
- …leads to strong volume growth
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- Figure 7: Consumer spending on clothing, footwear and other personal adornment at constant 2006 prices, 2005-09
- Deflation for over a decade ….
- ….finally starts to ease
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- Figure 8: UK: Clothing price deflation, 2007-May 2010
- Volume sales contract in 2010 second quarter
Who’s Innovating
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- Tapping into the plus size market
- Very.co.uk targets mums
- The real McCoy
- Written communication
- A right chocolaty partnership
- E-tailing becomes more sophisticated
- Vogue’s fashion night in
- Mobilising the smart phone
Strengths and Weaknesses
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- Strengths
- Weaknesses
Sector Size and Forecast
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- Key points
- Retail forecasts
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- Figure 9: UK: Clothing specialists sales, 2005-15
- Figure 10: UK: Clothing specialists sales as % of non-food and all retail sales, 2005-15
- Factors used in the forecast
- Economic and consumer outlook
- Outlook for retailing…
- …and clothing specialists
- Past trends
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- Figure 11: UK: Clothing specialists sales, 2005-09
- Figure 12: UK: Clothing specialists as % of all retail sales, 2000-09
- Outlets and enterprises
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- Figure 13: UK: Footwear retailers, number of outlets and enterprises, 2003-08
Channels of Distribution
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- Figure 14: UK: Clothing market – channels of distribution, 2009
- Specialists cling on
- Department stores face a tough challenge ahead
- Sainsbury’s takes up the running
- Home shopping
- Others
- Competition from non-specialists
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- Figure 15: Clothing specialists as % of all spending on clothing and footwear, 2002-09
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Retailer Competitor Analysis
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- Key points
- Leading specialists
- What constitutes Value?
- The young – old divide
- Targeting the older customer
- That leaves Arcadia
- Where next?
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- Figure 16: Leading clothing retailers, 2009/10
- Market shares
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- Figure 17: UK: Leading clothing retailers, market shares, 2009
Retail Advertising and Promotion
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- Key points
- Recession hits advertising spend
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- Figure 18: Main media advertising spend, by leading clothing retailers, 2006/07-2009/10
- M&S leads the way
- Next’s spend remains steady
- Spending by media
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- Figure 19: Main media advertising spend, by leading clothing retailers, by media, 2010
Brand Elements
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- Key points
- Brand map
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- Figure 20: Attitudes towards and visitation of clothing retail stores, July 2010
- Brand qualities of clothing retail stores
- Accessibility and style most important
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- Figure 21: Personalities of various clothing retail stores, July 2010
- Experience of clothing retail stores
- General stores most visited
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- Figure 22: Consumer usage of various clothing retail stores, July 2010
- Brand consideration for clothing retail stores
- Affordability a major draw
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- Figure 23: Consideration of various clothing retail stores, July 2010
- Brand satisfaction for clothing retail stores
- Value-for-money most satisfactory, not pure value
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- Figure 24: Satisfaction with various clothing retail stores, July 2010
- Brand commitment to clothing retail stores
- Accessibility aids loyalty
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- Figure 25: Commitment to various clothing retail stores, July 2010
- Brand intentions for clothing retail stores
- Generalists have best retention
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- Figure 26: Future visiting intentions for various clothing retail stores, July 2010
- Brand recommendation for clothing retail stores
- M&S and Asda most recommended – established accessibility
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- Figure 27: Recommendation of various clothing retail stores, July 2010
- Next
- What the consumer thinks
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- Figure 28: Attitudes towards the Next brand, July 2010
- Primark
- What the consumer thinks
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- Figure 29: Attitudes towards the Primark brand, July 2010
- Asda/George
- What the consumer thinks
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- Figure 30: Attitudes towards the Asda/George brand, July 2010
- Debenhams
- What the consumer thinks
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- Figure 31: Attitudes towards the Debenhams brand, July 2010
- Burton
- What the consumer thinks
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- Figure 32: Attitudes towards the Burton brand, July 2010
- New Look
- What the consumer thinks
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- Figure 33: Attitudes towards the New Look brand, July 2010
- H&M
- What the consumer thinks
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- Figure 34: Attitudes towards the H&M brand, July 2010
- Marks & Spencer
- What the consumer thinks
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- Figure 35: Attitudes towards the Marks & Spencer brand, July 2010
The Consumer – Where They Buy Clothing
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- Key points
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- Figure 36: UK: Where they buy clothes, August 2010
- The changing face of ‘bricks and mortar’
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- Figure 37: UK: Outlets used for purchasing clothing in the last 12 months, 2005-10
- Home shopping gained the most ground
- Retailer market positioning
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- Figure 38: UK: Market positioning of leading retailers/channels, August 2010
- The changing face of home shopping
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- Figure 39: UK: Online channel, by socio-eonomic group, July 2009 and August 2010
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- Figure 40: UK: Online channel, by age group, July 2009 and August 2010
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- Figure 41: UK: Online and mail order channels, by age group, August 2010
- M&S customer base is ageing fast
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- Figure 42: UK: M&S, by age group, April 2005 and August 2010
The Consumer – How They Shop For Clothing
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- Key points
- Shopping habits
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- Figure 43: UK: How they shop for clothing compared to previous year, August 2010
- Patterns of behaviour by age and affluence
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- Figure 44: UK: how they shop for clothing, by age and affluence, August 2010
- Shopping habits at the most popular stores
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- Figure 45: Attitudes towards clothes purchasing, by most popular outlet where they buy clothes, August 2010
The Consumer – Clothing Shopping Attitudes
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- Key points
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- Figure 46: Attitudes towards clothes purchasing, August 2010
- Cross channel shopping and the gender divide
- Women are
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- Figure 47: Difference in attitudes to clothes shopping, by gender, August 2010
- Young people like web-based ideas
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- Figure 48: Difference in attitudes to clothes shopping among under 25s, August 2010
- Hard pressed families
- Families are
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- Figure 49: Difference in attitudes to delivery charges, by lifestage, August 2010
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- Figure 50: Difference in attitudes to ‘click and collect’, by lifestage, August 2010
- M-commerce – how will it emerge?
- Attitudes of shoppers by outlets used
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- Figure 51: Attitudes towards clothes purchasing, by where they buy clothes, August 2010
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- Figure 52: Attitudes towards clothes purchasing, by where they buy clothes, August 2010
The Consumer – Target Groups
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- Key points
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- Figure 53: Clothing consumer typologies, August 2010
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- Figure 54: Attitudes towards clothes purchasing, by target groups, August 2010
- Group 1: Unchanged (61%)
- Group 2: Lower Spenders (18%)
- Group 3: Higher Spenders (12%)
- Group 4: Savvy Frugals (9%)
- Where target groups shop
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- Figure 55: Where they buy clothes, by target groups, August 2010
Alexon Group Plc
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- Figure 56: Alexon Group Plc: Sales as share of clothing, retailers in UK, 2006-10
- Recent history
- Financial performance
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- Figure 57: Alexon Group Plc: Group financial performance, 2006-10
- Store portfolio
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- Figure 58: Alexon Group Plc: Outlet data, 2005-10
- Retail offering
- e-commerce
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Arcadia Group
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- Figure 59: Arcadia Group: Sales as share of clothing in UK, 2005-09
- Strategic evaluation
- The Bhs house of brands
- Focus on Topshop
- International markets
- Recent history
- Financial performance
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- Figure 60: Arcadia Group: Group financial performance, 2004/05-2008/09
- Store portfolio
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- Figure 61: Arcadia Group: Outlet data, 2005-09
- Retail offering
- Bhs
- Topshop
- Topman
- Dorothy Perkins
- Burton
- Miss Selfridge
- Evans
- Wallis
- Outfit
- e-commerce and home shopping
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- Figure 62: Arcadia Group: Websites, 2010
- Bhs
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- Figure 63: Bhs Plc: Sales as share of Clothing in UK, 2004-2008/09
- Recent history
- Financial performance
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- Figure 64: Bhs Plc: Group financial performance, 2004/05-2008/09
- Store portfolio
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- Figure 65: Bhs Plc: Outlet data, 2005-09
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Aurora Fashions
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- Figure 66: Aurora Fashions: Sales as share of clothing, footwear & textiles in Europe, 2004-09
- Strategic evaluation
- Collective strength rationale yet to be proven
- Structure designed to create dynamism has produced inertia
- Profitability an issue
- International sales propping up under performing UK
- Recent history
- Financial performance
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- Figure 67: Aurora Fashions: Group financial performance, 2005-10
- Store portfolio
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- Figure 68: Aurora Fashions: Outlet data, 2005-10
- Retail offering
- e-commerce
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Benetton (UK) Ltd
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- Figure 69: Benetton (UK) Ltd: Sales as share of clothing, footwear & textiles in UK, 2004-08
- Strategic evaluation
- Still struggling in the UK fashion market
- Growth opportunities mostly outside Europe
- Competition increasing
- Vertical integration still a strength
- Lack of internet strategy worrying
- Recent history
- Financial performance
- Performance in the UK
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- Figure 70: Benetton (UK) Ltd: Group financial performance, 2005-09
- Store portfolio
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- Figure 71: Benetton (UK) Ltd: Outlet data, 2005-09
- Retail offering
- Advertising and marketing
- e-commerce and home shopping
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Gap (Europe)
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- Figure 72: Gap (Europe): Sales as share of clothing, footwear & textiles in Europe, 2004-09
- Recent history
- Financial performance
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- Figure 73: Gap (Europe): Group financial performance, 2006-10
- Store portfolio
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- Figure 74: Gap (Europe): Outlet data, 2005-10
- Retail offering
- e-commerce
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Grupo Inditex
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- Figure 75: Grupo Inditex: Sales as share of clothing, footwear & textiles specialists’ sales in UK, 2005-09
- Strategic evaluation
- Giving customers what they want
- Response to the recession
- Widespread expansion
- Potential for other brands
- E-commerce
- Recent history
- Financial performance
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- Figure 76: Grupo Inditex: Group financial performance, 2005/06-2009/10
- Estimated sales by country
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- Figure 77: Grupo Inditex: Estimated sales in key European markets, 2005/06-2009/10
- Sales by brand
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- Figure 78: UK: Grupo Inditex: Sales by retail brand, 2006/07-2009/10
- Store portfolio
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- Figure 79: Grupo Inditex: Outlet data, 2006-10
- UK outlet data
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- Figure 80: Grupo Inditex UK: Outlet data, 2006-10
- Retail offering
- Zara
- Massimo Dutti
- Bershka
- Pull&Bear
- Stradivarius
- Oysho
- Uterqüe
- e-commerce and home shopping
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H&M Hennes & Mauritz
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- Figure 81: H&M Hennes & Mauritz: UK sales as share of total clothing specialists’ sales in the UK, 2005-09
- Strategic evaluation
- Core values underpin corporate ambition
- Design and fashion credentials of paramount importance
- Growth being delivered at very high levels of profitability
- Multi-brand strategy adds impetus to growth
- Online potential not fully realised
- Recent history
- Financial performance
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- Figure 82: H&M Hennes & Mauritz: Group financial performance, 2004/05-2008/09
- Figure 83: H&M Hennes & Mauritz: UK financial performance, 2004/05-2008/09
- First half 2009/10
- Store portfolio
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- Figure 84: H&M Hennes & Mauritz: Outlet data, 2005-09
- Retail offering
- e-commerce
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Mango Group
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- Figure 85: Mango UK: Sales as share of clothing specialists’ sales in the UK, 2005-09
- Strategic evaluation
- Global presence – too big?
- Distinct from its competitors and staying true to the core brand message
- Developing a multi-brand strategy?
- Recent history
- Financial performance
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- Figure 86: Mango Group: Group sales performance, 2005-09
- UK performance
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- Figure 87: MNG-Mango UK: Group financial performance, 2005-09
- Store portfolio
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- Figure 88: Mango Group: Outlet data, 2005-09
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- Figure 89: MNG-Mango UK: Outlet data, 2005-09
- Store design
- Retail offering
- e-commerce and home shopping
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Marks & Spencer (M&S)
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- Figure 90: Marks & Spencer: Sales as share of clothing, footwear & textiles in UK, 2005-09
- Strategic evaluation
- M&S and the older customer
- Consumers recover in clothing
- M&S continues with core values
- Pricing architecture appeals to different budgets
- Clothing stronger but are sub-brands confusing?
- Recent history
- Financial performance
- Year to end March 2010
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- Figure 91: Marks & Spencer: Group financial performance, 2005/06-2009/10
- Figure 92: Marks & Spencer (UK): UK sales and like-for-like growth, 2004/05-2009/10
- Investing for the future
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- Figure 93: M&S: UK retail sales by product category, 2005-10
- Financial Year 2010/11 Q1
- Financial Year 2010/11 Q2
- Store portfolio
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- Figure 94: Marks & Spencer: Outlet data, 2006-10
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- Figure 95: M&S: UK Outlets not specialising in food, by type, 2008-10
- International store developments
- Operational issues
- Retail offering
- Market positioning
- Womenswear
- Lingerie
- Menswear
- Childrenswear
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- Figure 96: Marks & Spencer: Clothing own brand portfolio, 2010
- Advertising and marketing
- e-commerce & home shopping
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- Figure 97: M&S: M&S Direct sales, 2006/07-2009/10
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Matalan Ltd
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- Figure 98: Matalan Ltd: Sales as share of clothing, footwear & textiles in UK, 2005-09
- Strategic evaluation
- Loss of momentum in the latter plc years
- Private control revitalises Matalan
- Renewed expansion in the UK
- International growth opportunities
- Online also a growth area
- Recent history
- Financial performance
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- Figure 99: Matalan Ltd: Group financial performance, 2006-10
- Store portfolio
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- Figure 100: Matalan Ltd: Outlet data, 2006-10
- Retail offering
- e-commerce
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Monsoon
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- Figure 101: Monsoon Plc: Sales as share of clothing, footwear & textiles in UK, 2004-09
- Recent history
- Financial performance
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- Figure 102: Monsoon: Group financial performance, 2005-09
- Store portfolio
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- Figure 103: Monsoon: Outlet data, 2005-09
- Retail offering
- e-commerce
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New Look Retail Group Ltd
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- Figure 104: New Look Group Plc: Sales as share of clothing, footwear & textiles in UK, 2005-09
- Strategic evaluation
- Can New Look really double in size?
- Strength of value fashion proposition is key
- Widening range offers growth
- Ambitious multi-channel expansion plans
- International expansion opportunities
- Recent history
- Financial performance
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- Figure 105: New Look Group Plc: Group financial performance, 2006-10
- Store portfolio
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- Figure 106: New Look Group Plc: Outlet data, 2005-09
- Retail offering
- e-commerce
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Next Group
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- Figure 107: Next: UK sales as share of clothing specialists’ sales in UK, 2005-09
- More fashion-led
- Next international goes online
- UK opportunities for growth
- Brand diversification
- Trouble ahead?
- Recent history
- Financial performance
- Home shopping star performer
- Like-for-like growth at Next Retail
- Challenges contained
- Recession hits in Central Europe
- Lipsy
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- Figure 108: Next Group: Group financial performance, 2005/06-2009/10
- First half 2010/11
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- Figure 109: Next Group: Group interim financial performance, 2009-10
- Store portfolio
- Bigger still better
- Profitable new space
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- Figure 110: Next Group: Next Retail like-for-like sales performance, 2006/07-2009/10
- Next at Home
- Makeover
- Sportswear
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- Figure 111: Next Group: Outlet data, 2006-10
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- Figure 112: Next: International outlets, 2008-10
- Retail offering
- E-commerce and home shopping
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Peacock Group
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- Figure 113: Peacock Group: Sales as share of clothing, retailers in UK, 2004-09
- Recent history
- Financial performance
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- Figure 114: Peacock Group: Group financial performance, 2005-09
- Store portfolio
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- Figure 115: Peacock Group: Outlet data, 2005-10
- Retail offering
- e-commerce
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Primark/Penneys
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- Figure 116: Primark: Sales as share of UK clothing, footwear & textiles in UK, 2005-09
- Strategic evaluation
- Plenty of soft targets
- Bigger is better
- Continental European growth a key objective
- Holding back on online
- Ensuring ethics are not an issue
- Recent history
- Financial performance
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- Figure 117: Primark/Penneys: Group financial performance, 2005-09
- Store portfolio
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- Figure 118: Primark/Penneys: Outlet data, 2005-09
- Retail offering
- e-commerce
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River Island Clothing Co Ltd
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- Figure 119: River Island Clothing Co Ltd: Sales as share of clothing, footwear & textiles in UK, 2005-09
- Recent history
- Financial performance
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- Figure 120: River Island Clothing Co Ltd: Group financial performance, 2005-09
- Store portfolio
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- Figure 121: River Island Clothing Co Ltd: Outlet data, 2005-09
- Retail offering
- e-commerce
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TK Maxx
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- Figure 122: TK Maxx UK: Sales as share of clothing, footwear & textiles in UK, 2005-09
- Recent history
- Financial performance
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- Figure 123: TJX (TK Maxx - Europe): Group financial performance, 2006-10
- Store portfolio
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- Figure 124: TJX (TK Maxx - Europe): Outlet data, 2006-10
- Retail offering
- e-commerce
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Appendix – Internal Market Environment
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- Figure 125: GB agreement with selected lifestyle statements, 2009
- Figure 126: GB agreement with selected lifestyle statements, 2009 (continued)
- Figure 127: GB agreement with selected lifestyle statements , 2009 (continued)
- Figure 128: GB agreement with selected lifestyle statements, 2009 (continued)
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Appendix – Broader Market Environment
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- Population
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- Figure 129: Europe Top 5: Population breakdown, by age group, 2005
- Figure 130: Europe Top 5: Population breakdown, by age group, 2010
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- Figure 131: Europe Top 5: Population breakdown, by age group, 2015
- Figure 132: Europe Top 5: Population breakdown, by age group, 2020
- GDP
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- Figure 133: Europe Top 5: GDP (in current prices) 2000-Q2 2010
- Figure 134: Europe top 5: GDP growth rates (in constant prices), 2000-Q2 2010
- Consumer spending
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- Figure 135: Europe Top 5: Consumer spending (in current prices), 2001-Q2 2010
- Figure 136: Europe Top 5: Consumer spending growth rates (in constant prices), 2001-Q2 2010
- Consumer prices
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- Figure 137: Europe Top 5: Consumer prices, 2001-Q3 2010
- Unemployment
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- Figure 138: Europe Top 5: Average rate of unemployment, 2001-Q2 2010
- Interest rates
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- Figure 139: UK and Eurozone: Interest rates, 2004-Q2 2010
- Consumer confidence
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- Figure 140: Europe top 5: Consumer confidence, January 2009-Sept 2010
Appendix – Where They Buy Clothing
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- Figure 141: Most popular outlets where they buy clothes, by demographics, August 2010
- Figure 142: Next most popular outlets where they buy clothes, by demographics, August 2010
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- Figure 143: Popular outlets where they buy clothes, by demographics, August 2010
- Figure 144: Other outlets where they buy clothes, by demographics, August 2010
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- Figure 145: Least popular outlets where they buy clothes, by demographics, August 2010
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Appendix – How They Shop For Clothing
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- Figure 146: Most popular attitudes towards clothes purchasing, by demographics, August 2010
- Figure 147: Next most popular attitudes towards clothes purchasing, by demographics, August 2010
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- Figure 148: Other attitudes towards clothes purchasing, by demographics, August 2010
- Figure 149: Attitudes towards clothes purchasing, by most popular outlet where they buy clothes, August 2010
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- Figure 150: Attitudes towards clothes purchasing, by next most popular outlet where they buy clothes, August 2010
- Figure 151: Attitudes towards clothes purchasing, by next popular outlet where they buy clothes, August 2010
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- Figure 152: Attitudes towards clothes purchasing, by popular outlet where they buy clothes, August 2010
- Figure 153: Attitudes towards clothes purchasing, by other outlet where they buy clothes, August 2010
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- Figure 154: Attitudes towards clothes purchasing, by least popular outlet where they buy clothes, August 2010
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Appendix – Clothing Shopping Attitudes
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- Figure 155: Most popular attitudes towards clothes purchasing, by demographics, August 2010
- Figure 156: Next most popular attitudes towards clothes purchasing, by demographics, August 2010
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- Figure 157: Attitudes towards clothes purchasing, by most popular outlet where they buy clothes, August 2010
- Figure 158: Attitudes towards clothes purchasing, by next most popular outlet where they buy clothes, August 2010
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- Figure 159: Attitudes towards clothes purchasing, by next most popular outlet where they buy clothes, August 2010
- Figure 160: Attitudes towards clothes purchasing, by popular outlet where they buy clothes, August 2010
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- Figure 161: Attitudes towards clothes purchasing, by other outlet where they buy clothes, August 2010
- Figure 162: Attitudes towards clothes purchasing, by least popular outlet where they buy clothes, August 2010
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Appendix – Consumer Target Groups
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- Figure 163: Target groups, by demographics, August 2010
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