UK Childrenswear Retailers 2009
Introduction
Verdict Research: The childrenswear market is proving to be resilient in the face of tough economic headwinds and in 2008 is forecast to grow an estimated 2.4%. By volume it is the fastest growing clothing category, but deflation continues to drag down total growth as value clothing specialists and grocers continue to build share of the market.
Scope
In-depth market coverage provides 10 years' expenditure on childrenswear, split by girls, boys and infants' clothingComprehensive profiles of the 16 largest childrenswear retailers in the UK including five year trading record, space, store numbers and outlooksKey operating statistics for each retailer, including market shares, operating profit and margins, sales per sq ft, and space allocationHighlights
The growth of value retailers in childrenswear over the last 10 years has spurred additional volume sales but kept down average prices. Price deflation in the childrenswear sector is greater than in the total clothing market, averaging -3.0% over the past five years, compared with -2.5% for clothing overallIn 2008 grocers will hold 18.9% of the childrenswear market, representing a gain of £368m since 2003. Grocers have been more successful with their childrenswear offers, and have a far deeper penetration of this market, than menswear and womenswear where we estimate that they hold 7.8% and 6.9% market share respectivelyWoolworths' collapse at the end of 2008 provides competitors with a substantial share of spend to fight for we estimate 5.4% in 2008. The grocers are in a key position to pick up a share of this, (along with the value retailers) because Woolworths' shoppers will be using them for food & grocery shopping alreadyReasons to Purchase
Understand the dynamics of the childrenswear market and the threats and opportunities retailers face going into 2009Identify growth prospects in the market with our detailed split of the key market sectors and changes in the channels of distributionBenchmark your own businesses against market growth and key performance measures of the leading retailers to assess performance and growth potential
TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 24
Key Findings 24
Main Conclusions 26
CHAPTER 2 MARKET ANALYSIS 30
Market Definition 30
Market Trends 31
Trends by Sub Categories 34
Demographics 38
Channels of Distribution 39
CHAPTER 3 COMPANY DATA ANALYSIS 42
Top Childrenswear Retailers 42
Market Shares 45
Market Shares – Winners & Losers 46
Sales Densities 50
Key Operating Statistics 52
Space Allocation 54
Advertising Media Expenditure 55
CHAPTER 4 OUTLOOK 58
Key Issues 58
Challenging Conditions Will Keep Market Growth in Check 59
Frugality Will Hold Back Childrenswear Value and Volumes 59
Value Segment Deflates Retail Prices 60
Market Casualties 62
Childrenswear Retailers That Entered Administration in 2008 64
Restrained Investment 67
Favourable Attributes to Keep Market Positive 68
Non-discretionary Spend 70
Repeat Purchases 70
Retailer Focus 71
Online Growth 71
CHAPTER 5 ADAMS 73
Company Overview 73
Market Shares 75
Trading Record 76
Year to January 2008 76
Current Trading 77
Store Portfolio 79
Retail Proposition 81
Space Allocation 82
Management, Marketing & Operations 83
Outlook 84
CHAPTER 6 BHS 86
Company Overview 86
Market Shares 87
Trading Record 88
Year to March 2008 88
Current Trading 89
Childrenswear Sales 90
Store Portfolio 91
Retail Proposition 92
Space Allocation 93
Outlook 95
CHAPTER 7 DEBENHAMS 97
Company Overview 97
Market Shares 99
Trading Record 100
Year to August 2008 100
Current Performance 101
Childrenswear Sales 102
Store Portfolio 103
Space Allocation 106
Management, Marketing and Operations 108
Outlook 109
CHAPTER 8 GAP 111
Company Overview 111
Market Shares 113
Trading Record 114
Year to January 2008 114
Current Trading 114
Childrenswear Sales 116
Store Portfolio 117
Retail Proposition 119
Space Allocation 120
Management, Marketing & Operations 121
Outlook 123
CHAPTER 9 ASDA (GEORGE) 125
Company Overview 125
Market Shares 127
Trading Record 128
Year to December 2007 128
Current Trading 128
Childrenswear Sales 129
Store Portfolio 129
Retail Proposition 132
Space Allocation 133
Management & Marketing 134
Outlook 136
CHAPTER 10 H&M 138
Company Overview & Market Shares 138
Trading Record 140
Year to November 2007 140
Year to November 2008e 141
Store Portfolio 143
Space Allocation 144
Marketing & Operations 146
Outlook 147
CHAPTER 11 JJB SPORTS 148
Company Overview 148
Market Shares 150
Trading Record 151
Year to January 2008 151
Six months to July 2008 152
Current Trading 152
Store Portfolio 154
Retail Proposition 156
Space Allocation 157
Recent Developments 159
Outlook 160
CHAPTER 12 JOHN LEWIS 162
Company Overview 162
Market Shares 163
Trading Record 164
Year to January 2008 164
Current Trading 165
Childrenswear Sales 166
Store Portfolio 167
Retail Proposition 170
Space Allocation 171
Management, Marketing & Operations 172
Outlook 174
CHAPTER 13 MARKS & SPENCER 175
Company Overview 175
Market Shares 176
Trading Record 177
Year to March 2008 177
Half year to September 2008 178
Childrenswear Sales 180
Store Portfolio 181
Retail Proposition 183
Space Allocation 184
Management, Marketing & Operations 185
Operations 186
Marketing 187
Outlook 189
CHAPTER 14 MATALAN 190
Company Overview 190
Market Shares 191
Trading Record 192
Year to February 2009e 192
Childrenswear Sales 194
Store Portfolio 195
Retail Proposition 197
Space Allocation 198
Management, Marketing & Operations 199
Outlook 201
CHAPTER 15 MOTHERCARE 203
Company Overview 203
Market Shares 204
Trading Record 206
Year to March 2008 206
Current Trading 207
Childrenswear Sales 208
Store Portfolio 209
Retail Proposition 211
Space Allocation 212
Management, Marketing & Operations 213
Outlook 214
CHAPTER 16 NEW LOOK 216
Company Overview 216
Market Shares 218
Trading Record 219
Childrenswear Sales 221
Store Portfolio 222
Retail Proposition 224
Retail Proposition 224
Space Allocation 225
Management, Marketing & Operations 226
Outlook 228
CHAPTER 17 NEXT 230
Company Overview 230
Market Shares 232
Trading Record 233
Year to January 2008 233
Current Trading 234
Childrenswear Sales 235
Store Portfolio 237
Retail Proposition 239
Space Allocation 240
Management, Marketing and Operations 242
Outlook 243
CHAPTER 18 PEACOCKS 244
Company Overview 244
Market Shares 245
Trading Record 246
Year to March 2008 246
Current Trading 247
Childrenswear Sales 247
Store Portfolio 248
Retail Propositions 250
Space Allocation 251
Outlook 253
CHAPTER 19 PRIMARK 255
Company Overview 255
Market Shares 257
Trading Record 258
Year to September 2008 258
Childrenswear Sales 259
Store Portfolio 260
Retail Proposition 261
Space Allocation 262
Management, Marketing and Operations 264
Outlook 265
CHAPTER 20 TESCO 267
Company Overview 267
Market Shares 269
Trading Record 270
Year to February 2008’ 270
Current Trading 271
Childrenswear Sales 272
Store Portfolio 273
Retail Proposition 275
Space Allocation 277
Space Allocation 277
Marketing & Operations 279
Outlook 280
CHAPTER 21 GLOSSARY 282
Financial Statistics – VAT 282
Trading Profile 282
Key Operating Ratios 282
Physical Development 283
Abbreviations 283
LIST OF TABLES
Table 1: Childrenswear market definition 2009 30
Table 2: Childrenswear and total clothing market trends 1998-2008e 31
Table 3:: Childrenswear market trends by sub category 1998-2008e 35
Table 4: Childrenswear channels of distribution by value 2003-2008e 40
Table 5: Childrenswear channels of distribution breakdown 2003-2008e 40
Table 6: Childrenswear market shares 2003-2008e 45
Table 7: Clothing retailers key UK operating statistics 2007/08 52
Table 8: Childrenswear retailers space allocation 2008 54
Table 9: Leading clothing retailers advertising media expenditure total 2003-2007 55
Table 10: Leading clothing retailers advertising media expenditure by media type 2007 56
Table 11: National Schoolwear Centres overview 2008 64
Table 12: Woolworths overview 2008 65
Table 13: Ethel Austin overview 2008 66
Table 14: Mark One (Mkone) overview 2008 67
Table 15: Adams company overview 2009 73
Table 16: Adams UK key operating statistics 2003-2009e 74
Table 17: Adams trading record 1999-2009e 76
Table 18: Adams UK store portfolio 1998-2009e 79
Table 19: Adams retail proposition 2009 81
Table 20: Adams childrenswear space allocation vs average 2008 82
Table 21: Bhs company overview 2009 86
Table 22: Bhs key operating statistics 2003-2008e 87
Table 23: Bhs trading record 1998-2008e 88
Table 24: Bhs store portfolio 1997-2008e 91
Table 25: Bhs retail proposition 2009 92
Table 26: Bhs childrenswear space allocation vs average 2008 93
Table 27: Debenhams company overview 2009 97
Table 28: Debenhams UK key operating statistics 2003e-2008e 98
Table 29: Debenhams trading record 1998-2008e 100
Table 30: Debenhams UK store portfolio 1998-2008e 103
Table 31: Debenhams retail proposition 2008 105
Table 32: Debenhams childrenswear space allocation vs average 2008 107
Table 33: Gap company overview 2009 111
Table 34: Gap UK key operating statistics 2003e-2009e 112
Table 35: Gap UK trading record 1999-2009e 114
Table 36: Gap UK store portfolio 1999-2009e 117
Table 37: Gap retail proposition 2008 119
Table 38: Gap childrenswear space allocation vs average 2008 120
Table 39: Asda (George) company overview 2009 125
Table 40: Asda key operating statistics 2003-2008e 126
Table 41: Asda trading record 1999-2008e 128
Table 42: Asda store profile 1999-2008e 130
Table 43: Asda Living openings 2004-2008 131
Table 44: George retail proposition 2008 132
Table 45: Asda childrenswear space allocation vs average 2008 133
Table 46: H&M company overview 2009 138
Table 47: H&M key operating statistics 2003-2008e 139
Table 48: H&M UK trading record 1998-2008e 140
Table 49: H&M UK store portfolio 1998-2008e 143
Table 50: H&M childrenswear space allocation vs average 2008 144
Table 51: JJB Sports company overview 2009 148
Table 52: JJB key operating statistics 2003-2009e 149
Table 53: JJB Sports trading record 2002-2009e 151
Table 54: JJB Sports store portfolio 2003-2009e 154
Table 55: JJB store analysis by format 2003-2008 154
Table 56: JJB Sports retail proposition 2008 156
Table 57: JJB Sports childrenswear space allocation vs average 2008 158
Table 58: John Lewis company overview 2009 162
Table 59: John Lewis key operating statistics 2003-2009e 163
Table 60: John Lewis Stores trading record 1998-2009e 164
Table 61: John Lewis store portfolio 1998-2009e 167
Table 62: John Lewis opening plans 2009-2014 169
Table 63: John Lewis relocation plans 2009-2011 169
Table 64: John Lewis retail proposition 2009 170
Table 65: John Lewis childrenswear space allocation vs average 2008 171
Table 66: Marks & Spencer company overview 2009 175
Table 67: Marks & Spencer UK key operating statistics 2003-2009e 176
Table 68: Marks & Spencer UK trading record 1998-2009e 177
Table 69: Marks & Spencer store portfolio 1998-2009e 181
Table 70: Marks & Spencer retail proposition 2008 183
Table 71: M&S childrenswear space allocation vs average 2008 184
Table 72: Matalan company overview 2009 190
Table 73: Matalan key operating statistics 2003-2009e 191
Table 74: Matalan trading record 1999-2009e 192
Table 75: Matalan store portfolio 1998-2009e 195
Table 76: Matalan retail proposition 2008 197
Table 77: Matalan childrenswear space allocation vs average 2008 198
Table 78: Mothercare company overview 2009 203
Table 79: Mothercare UK key operating statistics 2003-2008 204
Table 80: Mothercare trading record 1998-2008 206
Table 81: Mothercare UK store portfolio 1998-2008 209
Table 82: Mothercare retail proposition 2008 211
Table 83: Mothercare childrenswear space allocation vs average 2008 212
Table 84: New Look company overview 2009 216
Table 85: New Look UK key operating statistics 2003-2008 217
Table 86: New Look Group trading record 1998-2008e 219
Table 87: New Look UK store portfolio 1998-2008 222
Table 88: New Look retail proposition 2009 224
Table 89: New Look space allocation vs average 2008 225
Table 90: Next company overview 2009 230
Table 91: Next key operating statistics 2003-2009e 231
Table 92: Next Group trading record 1998-2009 233
Table 93: Next Brand turnover and profits 2002-2009e 236
Table 94: Next UK store profile 1998-2009e 237
Table 95: Next retail proposition 2008 239
Table 96: Next childrenswear space allocation vs average 2008 241
Table 97: Peacocks company overview 2009 244
Table 98: Peacocks key operating statistics 2002-2007e 245
Table 99: Peacocks trading record 1999-2009e 246
Table 100: Peacocks store portfolio 1998-2008e 248
Table 101: Peacocks retail proposition 2008 250
Table 102: Peacocks childrenswear space allocation vs average 2008 251
Table 103: Primark company overview 2009 255
Table 104: Primark UK key operating statistics 2003-2008 256
Table 105: Primark UK trading record 1998-2008 258
Table 106: Primark UK store portfolio 1998-2008e 260
Table 107: Primark retail proposition 2008 261
Table 108: Primark childrenswear space allocation vs average 2008 263
Table 109: Tesco company overview 2009 267
Table 110: Tesco UK key operating statistics 2003-2009e 268
Table 111: Tesco UK trading record 1998-2009e 270
Table 112: Tesco UK store portfolio 1998-2009e 273
Table 113: Tesco retail proposition 2008 275
Table 114: Tesco childrenswear space allocation vs average 2008 278
LIST OF FIGURES
Figure 1: Childrenswear and clothing sales index 1998-2008e (Index 1998 = 100) 30
Figure 2: Childrenswear as % of total clothing sales 1998-2008e 32
Figure 3: Deflation in childrenswear and clothing 2003-2008e 33
Figure 4: Sales split in childrenswear 1998 and 2008e 36
Figure 5: Forecast breakdown of UK population of 0-14 year olds 2008-2013 38
Figure 6: Forecast UK population of 0-14 children 2008-2013 38
Figure 7: Top childrenswear retailers market shares 2003 and 2008e 42
Figure 8: Winners & losers in the childrenswear market 2008e on 2007 46
Figure 9: Estimated childrenswear sales densities 2007/08 50
Figure 10: Childrenswear market issues 2009 58
Figure 11: Value retailers share of childrenswear market 2003-2008e 61
Figure 12: Childrenswear market growth 2004-2009e 69
Figure 13: Adams childrenswear and clothing market shares 2003-2008e 75
Figure 14: Adams UK children’s clothing sales and year-on-year growth – years to July 2002-2006 and January 2008e-2009e 78
Figure 15: Adams childrenswear space allocation 2008 82
Figure 16: Bhs childrenswear and clothing market shares 2003-2008e 87
Figure 17: Bhs childrenswear sales and year-on-year growth – years to March 2003-2008e 90
Figure 18: Bhs clothing space allocation 2004-2008 93
Figure 19: Bhs childrenswear space allocation 2008 94
Figure 20: Debenhams UK clothing & childrenswear market shares 2003-2008e 99
Figure 21: Debenhams childrenswear sales and year-on-year growth – years to August 2003-2008e 102
Figure 22: Debenhams clothing space allocation 2004-2008 106
Figure 23: Debenhams clothing space allocation 2008 107
Figure 24: Gap childrenswear and clothing market shares 2003-2008e 113
.Figure 25: Gap UK children’s clothing sales and year-on-year growth – years to Jan 2004e-2009e 116
Figure 26: Gap clothing space allocation 2004-2008 120
Figure 27: Gap childrenswear space allocation 2008 121
Figure 28: Asda childrenswear and clothing market shares 2003-2008e 127
Figure 29: George Childrenswear sales and year-on-year growth – years to December 2003-2008e 129
Figure 30: Asda clothing space allocation 2004-2008 133
Figure 31: Asda childrenswear space allocation 2008 134
Figure 32: H&M UK childrenswear and clothing market shares 2003-2008e 139
Figure 33: H&M UK children’s clothing sales and year-on-year growth – years to November 2003-2008e 142
Figure 34: H&M childrenswear space allocation 2008 145
Figure 35: H&M clothing space allocation 2004-2008 145
Figure 36: JJB childrenswear and clothing market share 2003-2008e 150
Figure 37: JJB childrenswear sales years ending January 2003-2009e 153
Figure 38: JJB Sports clothing space allocation 2005-2008 157
Figure 39: JJB Sports clothing space allocation 2005 - 2008 158
Figure 40: John Lewis childrenswear & clothing market shares 2003-2008e 163
Figure 41: John Lewis childrenswear sales & year-on-year growth – years to January 2004-2009e 166
Figure 42: John Lewis clothing space allocation 2004-2008 171
Figure 43: John Lewis childrenswear space allocation 2008 172
Figure 44: M&S clothing and childrenswear market shares 2003-2008e 176
Figure 45: Marks & Spencer childrenswear sales and year-on-year growth – years to March 2003-2009e 180
Figure 46: M&S clothing space allocation 2004-2008 184
Figure 47: M&S childrenswear space allocation 2008 185
Figure 48: Matalan childrenswear and clothing market shares 2003-2008e 191
Figure 49: Matalan childrenswear sales to year end February 2003-2008e 194
Figure 50: Matalan clothing space allocation 2004-2008 198
Figure 51: Matalan childrenswear space allocation 2008 199
Figure 52: Mothercare childrenswear & clothing market share 2003-2008e 204
Figure 53: Mothercare childrenswear sales and year-on-year growth – years to March 2003-2008e 208
Figure 54: Mothercare childrenswear space allocation 2008 212
Figure 55: New Look clothing & childrenswear market shares 2003-2008e 218
Figure 56: New Look childrenswear sales & year-on-year growth – years to March 2003-2008e 221
Figure 57: New Look clothing space allocation 2004-2008 225
Figure 58: New Look childrenswear space allocation 2008 226
Figure 59: Next childrenswear and clothing market shares 2003-2008e 232
Figure 60: Next UK childrenswear sales & growth to January 2003-2008e 235
Figure 61: Next clothing space allocation 2004-2008 240
Figure 62: Next childrenswear space allocation 2008 241
Figure 63: Peacocks childrenswear & clothing market shares 2003-2008e 245
Figure 64: Peacocks childrenswear sales & year-on-year growth – years to March 2003-2008e 247
Figure 65: Peacocks clothing space allocation 2004-2008 251
Figure 66: Peacocks childrenswear space allocation 2008 252
Figure 67: Primark childrenswear and clothing market shares 2003-2008e 257
Figure 68: Primark childrenswear sales and year-on-year growth – years to September 2003-2008e 259
Figure 69: Primark clothing space allocation 2004-2008 262
Figure 70: Primark childrenswear space allocation 2008 263
Figure 71: Tesco childrenswear and clothing market shares 2003-2008e 269
Figure 72: Tesco childrenswear sales and year-on-year growth – years to February 2003-2008e 272
Figure 73: Tesco clothing space allocation 2004-2008 277
Figure 74: Tesco childrenswear space allocation 2008 278
