Mintel Retail Intelligence last reviewed the menswear retailing market in August 2001 in Menswear Mainstream Retailing. At that time many retailers in the sector had witnessed an extremely difficult year, with the highest profile of these being market leader Marks & Spencer. Other major menswear retailers experiencing difficulties included Ciro Citterio, Arcadia and Moss Bros, while C&A took the decision to close its entire UK network of stores and exit the market completely.

Mintel Retail Intelligence last reviewed the menswear retailing market in August 2001 in Menswear Mainstream Retailing. At that time many retailers in the sector had witnessed an extremely difficult year, with the highest profile of these being market leader Marks & Spencer. Other major menswear retailers experiencing difficulties included Ciro Citterio, Arcadia and Moss Bros, while C&A took the decision to close its entire UK network of stores and exit the market completely.

The latest year has seen a pronounced change in the sector. On the surface the market has been fairly static, but underneath it has literally fizzled with activity and competition, with vast jockeying for position in this mature market, in an attempt to capture the spend of consumers driven by increasing affluence and a confident attitude towards spending. It has seen Marks & Spencer effecting a turnaround in its fortunes, driven by a strategy of segmentation and sub-branding, and an increased focus on casualwear. Also, Arcadia has re-emerged as a leaner and fitter operation, achieving particularly buoyant sales in Top Man, having offloaded its less successful businesses into an MBO, Rubicon. Bhs has also made massive strides forward under its owner Phillip Green, while Next continues to impress. Burberry, the luxury label owned by GUS, became the UK's first quoted luxury goods company in July 2002. However, menswear specialists as a whole, both multiples and independents, have lost share to the up-and-coming value retailers and supermarkets.

Value/discount operators Matalan and The Officer's Club have put in strong performances, and the value sector as a whole has taken considerable share from other sectors. Supermarkets are also increasingly making their presence felt, driven by George at Asda. Both George and Sainsbury's have recently launched value 'essentials' ranges, to take on the value operators. Tesco is about to make history by launching the fast-growing American Cherokee brand, the first time a major clothing brand has entered the British fashion market using a supermarket chain's outlets to take on the established designer and high street brands.

While some middle-market operators are struggling as a result of the success of the value sector, others, such as department stores Debenhams, House of Fraser and Selfridges, have successfully repositioned themselves as destination retailers for branded products, as well as increasingly developing private-label ranges.

This report considers the hypothesis that:

"The inexorable rise of value players in the marketplace is turning the traditional retail format for menswear on its head, putting a squeeze on luxury goods companies and middle-market retailers. However, while distribution is becoming ever wider and more diverse, leading to continued consolidation and contraction in the specialist sector, there continues to be a role for players at every level of the spectrum, from luxury, through mainstream, to value and discount."

Other Mintel reports of relevance include:

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- Men's Underwear, Market Intelligence - UK Report, March 2002

- Men's Shirts, Market Intelligence - UK Report, November 2001

- Men's Designerwear Retailing, Retail Intelligence - UK Report, September 2001

- Menswear Discount Retailing, Retail Intelligence - UK Report, July 2001.