UK Fashion Multiples 2010

• Publication date: February 2010

Introduction Verdict Research: UK Fashion Multiples 2010 delivers comprehensive analysis of the key issues facing retailers in the clothing sector. It examines a set of small dynamic retailers, including key operating statistics, clothing market shares, store and space data and analyses opportunities in the market for individual retailers. Scope *Spending trends in clothing, split down into men's, women's, child...

Introduction

Verdict Research: UK Fashion Multiples 2010 delivers comprehensive analysis of the key issues facing retailers in the clothing sector. It examines a set of small dynamic retailers, including key operating statistics, clothing market shares, store and space data and analyses opportunities in the market for individual retailers.

Scope

*Spending trends in clothing, split down into men's, women's, children's and accessories

*Comprehensive profiles and outlooks for seven clothing retailers as well as concise profiles on eight smaller players

*Includes: Aurora, French Connection, H&M, Inditex, Republic, River Island,Ted Baker, Fenn Wright Manson, Hobbs, Jaeger, Reiss, Supergroup and others

*The clothing market is analysed in detail and includes market share information on the leading operators and the main channels of distribution

Highlights

2010 will continue to be a challenging year, however faced with weak comparatives and higher levels of inflation we forecast growth to return to the clothing market in 2010. Rising just 1.8%, higher taxes and weak wage growth will result in consumers being reluctant to spend despite feeling a little more confident in making discretionary purchases.

Smaller retailers including Republic, Ted Baker and H&M have outperformed the clothing market and have managed to grow their market shares through 2009, despite the economic climate. While they are not the cheapest fashion retailers, offering good value for money through range, service and store environment has helped drive their success.

Smaller clothing retailers are often unable to compete on price with their larger competitors so must offer customers a clear reason to make a purchase. Developing a unique design handwriting or investing in own label ranges are ways of doing this.

Reasons to Purchase

*Use Verdict's analysis of key market issues to guide future strategies, while exploiting opportunities and minimising risk

*Benchmark your performance against the seven leading fashion multiple retailers' key operating statistics and growth plans

*Comprehensive consumer spending information of all clothing sectors sets the context for the market

Women's Clothing Industry in the United Kingdom

TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 3
Key findings 3
Main conclusions 3
Despite the recession clothing retailers prove small can still be beautiful 3
CHAPTER 2 MARKET ANALYSIS 3
Clothing market definitions 3
Clothing market growth 3
Inflation will establish itself across all sectors in 2010 3
Retail distribution of clothing 3
CHAPTER 3 COMPANY DATA ANALYSIS 3
Fashion multiples clothing market shares 3
Fashion multiples continue to grow share across all sectors 3
Winners and losers 3
Key operating statistics 3
Clothing sales growth 3
Operating margins 3
Sales densities 3
Space growth 3
Space allocation 3
CHAPTER 4 OUTLOOK 3
Issues for fashion multiples 2010 3
Market growth 3
Growth slows as saturation levels increase 3
Price inflation 3
Inflation shows in the clothing market once more 3
Keeping customers and attracting new ones 3
Retaining customers 3
New fashion multiple entrants 3
International brands head to UK 3
Multi-channel offer 3
Next steps for online 3
Strategies for success … 2010 and beyond 3
Know your customer 3
Offer reasons to buy 3
Growth opportunities in a mature market 3
CHAPTER 5 AURORA FASHIONS 3
International opportunities abundant 3
Recent key events 3
Brands back on track after difficult year 3
Propositions 3
Strong design ethos 3
Financials 3
A firmer financial footing to build on 3
Space 3
UK presence well established, international the focus 3
Space allocation 3
Sector performance – clothing 3
Coast and Karen Millen top performers 3
Aurora market share to rise 3
Outlook 3
Recovery, after a difficult year 3
CHAPTER 6 FRENCH CONNECTION 3
Strong brand drives success in womenswear 3
Recent key events 3
Improved brand marketing should help new product launches 3
Proposition 3
Strong brand used across large range of product categories 3
Financials 3
Sales continue to grow 3
Space 3
Expansion picks up in 2009/10 3
Space allocation 3
Sector performance – clothing 3
Womenswear strong while menswear continues to struggle 3
Market Share 3
Womens market share grows in 2009 3
Outlook 3
Brand values need to be reflected across all departments 3
CHAPTER 7 H&M 3
Value stance continues to succeed in the UK 3
Recent key events 3
Expands customer base to drive growth 3
Proposition 3
Strong fashion offer at value prices attracts 3
Financials 3
Trading performance continues to impress 3
Space 3
Strong growth continues 3
Space allocation 3
Sector performance – clothing 3
Sales growth is achieved across all sectors 3
Market Share 3
Market share grows across all sectors 3
Outlook 3
Opportunities for further targeted stores 3
CHAPTER 8 INDITEX 3
Strong brand identity helps Inditex to grow in the UK 3
Recent key events 3
Inditex continues to diversify to build share 3
Proposition 3
Brands appeal to a diverse customer base 3
Financials 3
Sales impress but losses may be a cause for concern 3
Space 3
Space growth slows as store openings are approached more cautiously 3
Space allocation 3
Sector performance – clothing 3
Womenswear still takes largest proportion of sales 3
Market shares 3
Market shares gradually rise across sectors 3
Outlook 3
Growth opportunities in newer fascias and online 3
CHAPTER 9 REPUBLIC 3
Branded offer proves popular in downturn 3
Recent key events 3
Proposition 3
Own label and third party brands provide a wide price architecture 3
Financials 3
Strong trading performance continues to impress 3
Space 3
Keeps expanding in recession 3
Space allocation 3
Sector performance – clothing 3
Sales in menswear and womenswear continue to perform equally well 3
Market Share 3
Menswear market share outperforms womenswear 3
Outlook 3
Successful base from which to grow 3
CHAPTER 10 RIVER ISLAND 3
Well differentiated product drives success 3
Recent key events 3
New ranges and new websites 3
Proposition 3
Widens price architecture with higher quality product 3
Financials 3
Sales continue to grow in spite of midmarket struggle 3
Space 3
Continues to expand 3
Space allocation 3
Sector performance – clothing 3
Womenswear grows marginally ahead of menswear 3
Marke Share 3
Clothing market share remains stable 3
Outlook 3
Drives sales through clearer customer segmentation 3
CHAPTER 11 TED BAKER 3
Widens customer base 3
Recent key events 3
Widens price architecture 3
Proposition 3
Strong brand used across large range of product categories 3
Financials 3
Sales continue to grow 3
Space 3
Expansion slows in 2009/10 3
Space allocation 3
Sector performance – clothing 3
Strong growth continues 3
Market Share 3
Market share gains 3
Outlook 3
Successfully targets customer segments 3
CHAPTER 12 SMALLER RETAILERS 3
Produce sales growth of up to 95.0% 3
Fenn Wright Manson 3
Grows offer and space 3
Recent key events 3
New sub brand to broaden appeal 3
Financials 3
Sales boosted by new stores and mail order service 3
Space 3
Takes advantage of weak property market 3
Outlook 3
Range opportunities 3
Hobbs 3
Retailer is refreshed with new sub brand 3
Recent key events 3
Hobbs adapts to a competitive market 3
Financials 3
Sales growth slows 3
Space 3
Expansion continues despite economic climate 3
Outlook 3
Work to be done to maximise potential 3
Jaeger 3
Celebrates 125 years of British fashion 3
Recent key events 3
125 years and still going strong 3
Financials 3
Sales continue to grow, while profits slip 3
Space 3
Jaeger continues to expand 3
Outlook 3
After 125 years, Jaeger can expand further 3
Mango 3
Efforts to improve start to pay off 3
Recent key events 3
Range launches bring newness to the brand 3
Financials 3
Sales pick up after a decline since 2002 3
Space 3
Store openings continue, but should be approached with caution 3
Outlook 3
Further local tailoring to UK market required 3
Reiss 3
Design, quality and service create exclusive feeling 3
Recent key events 3
Expansion from all angles 3
Financials 3
Sales grow both internationally and in UK 3
Space 3
Opportunities to expand remain 3
Outlook 3
Base established for international growth 3
Supergroup 3
Retail success of 2009 3
Recent key events 3
Business continues to thrive ahead of stock market flotation 3
Financials 3
Outstanding sales performance continues 3
Space 3
Store portfolio set for more growth 3
Outlook 3
Base established for short term growth 3
Whistles 3
New management refreshes brand image 3
Recent key events 3
A change in direction revitalises the brand 3
Financials 3
Sales growth slows 3
Space 3
Plenty of opportunity for growth on the Continent 3
Outlook 3
Will take time to draw in new customers – but long term prospects bright 3
White Stuff 3
Strong brand identy is key to White Stuff’s success 3
Recent key events 3
White Stuff yet to put a foot wrong 3
Financials 3
Sales continue to grow despite struggling economy 3
Space 3
Plenty of UK and international growth opportunities remain 3
Outlook 3
White Stuff will see further growth in 2010 3
CHAPTER 13 GLOSSARY 3
Financial Statistics – VAT 3
Trading Profile 3
Key Operating Ratios 3
Physical Development 3
Abbreviations 3


LIST OF TABLES
Table 1: Womenswear clothing market definition 2010 3
Table 2: Menswear clothing market definition 2010 3
Table 3: Childrenswear market definition 2010 3
Table 4: Accessories market definition 2010 3
Table 5: Clothing market spending trends 2000-2010e 3
Table 6: Clothing consumer spending trends 2000-2010e 3
Table 7: Clothing market deflation/inflation 2000-2010e 3
Table 8: Retail distribution of clothing expenditure 2009 and 2010e 3
Table 9: Fashion multiples UK clothing market shares 2005-2010e 3
Table 10: Fashion multiples UK womenswear market shares 2005-2010e 3
Table 11: Fashion multiples UK menswear market shares 2005-2010e 3
Table 12: Fashion multiples UK childrenswear market shares 2005-2010e 3
Table 13: Fashion multiples UK operating statistics 2009/10 3
Table 14: Space allocation 2009 3
Table 15: Percentage of stores closed across clothing retailers 2009 3
Table 16: Aurora Fashions overview 2010 3
Table 17: Coast retail proposition 2010 3
Table 18: Karen Millen retail proposition 2010 3
Table 19: Oasis retail proposition 2010 3
Table 20: Warehouse retail proposition 2010 3
Table 21: Aurora Fashions key operating statistics 2005-2010e 3
Table 22: * Mosaic Fashions UK key operating statistics 2005-2010e 3
Table 23: Mosaic Fashions store portfolio 2005-2009e 3
Table 24: Aurora Fashions store portfolio 2009e-2010e 3
Table 25: UK outlet numbers by retail brand 2006-2010e 3
Table 26: Store openings 2010/11 3
Table 27: Coast clothing space breakdown 2009 3
Table 28: Coast concession clothing space breakdown 2009 3
Table 29: Karen Millen clothing space breakdown 2009 3
Table 30: Karen Millen concession space breakdown 2009 3
Table 31: Oasis clothing space breakdown 2009 3
Table 32: Oasis concession clothing space breakdown 2009 3
Table 33: Warehouse clothing space breakdown 2009 3
Table 34: Warehouse concession clothing space breakdown 2009 3
Table 35: French Connection overview 2010 3
Table 36: French Connection retail proposition 2010 3
Table 37: Nicole Farhi retail proposition 2010 3
Table 38: Toast retail proposition 2010 3
Table 39: Great Plains retail proposition 2010 3
Table 40: French Connection UK key operating statistics 2005-2010e 3
Table 41: French Connection UK and international retail sales 2005-2010e 3
Table 42: French Connection UK store portfolio 2005-2010e 3
Table 43: French Connection clothing space breakdown 2009 3
Table 44: French Connection concession space breakdown 2009 3
Table 45: H&M overview 2010 3
Table 46: H&M retail proposition 2010 3
Table 47: H&M UK key operating statistics 2004-2009e 3
Table 48: H&M UK store portfolio 1999-2009e 3
Table 49: H&M Space Allocation 2009 3
Table 50: Inditex overview 2010 3
Table 51: Bershka retail proposition 2010 3
Table 52: Massimo Dutti retail proposition 2010 3
Table 53: Pull and Bear retail proposition 2010 3
Table 54: Zara retail proposition 2010 3
Table 55: Inditex UK key operating statistics 2005-2010e 3
Table 56: Bershka trading record 2005-2010e 3
Table 57: Massimo Dutti trading record 2004-2010e 3
Table 58: Pull and Bear trading record 2008-2010e 3
Table 59: Zara trading record 2000-2010e 3
Table 60: Inditex UK store portfolio 2000-2010e 3
Table 61: Inditex UK store numbers by brands 2000-2010e 3
Table 62: Bershka clothing space breakdown 2009 3
Table 63: Massimo Dutti clothing space breakdown 2009 3
Table 64: Pull & Bear clothing space breakdown 2009 3
Table 65: Zara clothing space breakdown 2009 3
Table 66: Republic overview 2010 3
Table 67: Republic retail proposition 2010 3
Table 68: Republic UK key operating statistics 2005-2010e 3
Table 69: Republic UK store portfolio 2000-2010e 3
Table 70: Republic clothing space breakdown 2009 3
Table 71: River Island overview 2010 3
Table 72: River Island retail proposition 2010 3
Table 73: River Island UK key operating statistics 2004-2009e 3
Table 74: River Island UK store portfolio 2004-2009e 3
Table 75: River Island clothing space breakdown 2009 3
Table 76: Ted Baker Company Overview 2010 3
Table 77: Ted Baker retail proposition 2010 3
Table 78: Ted Baker UK & Europe key operating statistics 2005-2010e 3
Table 79: Ted Baker UK & Europe store portfolio 2005-2010e 3
Table 80: Ted Baker clothing space breakdown 2009 3
Table 81: Ted Baker concession space breakdown 2009 3
Table 82: Smaller fashion multiples key operating statistics 2008-09 3
Table 83: Fenn Wright Manson key facts 2010 3
Table 84: Fenn Wright Manson clothing space allocation 2009 3
Table 85: Hobbs key facts 2010 3
Table 86: Hobbs clothing space allocation 2009 3
Table 87: Jaeger key facts 2010 3
Table 88: Jaeger clothing space allocation 2009 3
Table 89: Mango key facts 2010 3
Table 90: Mango clothing space allocation 2009 3
Table 91: Reiss key facts 2010 3
Table 92: Reiss clothing space allocation 2009 3
Table 93: Supergroup key facts 2010 3
Table 94: Whistles key facts 2010 3
Table 95: Whistles clothing space breakdown 2009 3
Table 96: White Stuff key facts 2010 3
Table 97: White Stuff space breakdown 2009 3


LIST OF FIGURES
Figure 1: Clothing market share five year change 2010e on 2005 3
Figure 2: Clothing market share change 2010e on 2009 3
Figure 3: Womenswear market share change 2010e on 2009 3
Figure 4: Menswear market share change 2010e on 2009 3
Figure 5: Childrenswear market share change 2010e on 2009 3
Figure 6: Fashion multiples clothing sales growth 2009/10e on 2008/09 3
Figure 7: Fashion multiples UK operating margins 2003/04 and 2008/09 3
Figure 8: Fashion multiples UK sales densities 2007/08 & 2008/09e 3
Figure 9: Fashion multiples space growth 2009/10e on 2008/09 3
Figure 10: Key issues for fashion multiples 2010 3
Figure 11: Clothing market growth 2002-2011e 3
Figure 12: Clothing volume growth 2002-2011e 3
Figure 13: Clothing deflation/inflation 1994-2013e 3
Figure 14: Average number of other stores used 2005-2010 3
Figure 15: Average number of other stores used, by age 2010 3
Figure 16: Recent and imminent entrants – positioning map 2010 3
Figure 17: H&M online fashion styling 2010 3
Figure 18: Pro’s and con’s of reserve & collect 2010 3
Figure 19: Developing communication channels 2010 3
Figure 20: Fashion multiples growth strategies 2010 3
Figure 21: Coast womenswear space breakdown 2009 3
Figure 22: Coast concession womenswear space breakdown 2009 3
Figure 23: Karen Millen womenswear space breakdown 2009 3
Figure 24: Karen Millen concession womenswear space breakdown 2009 3
Figure 25: Oasis womenswear space breakdown 2009 3
Figure 26: Oasis concession womenswear space breakdown 2009 3
Figure 27: Warehouse womenswear space breakdown 2009 3
Figure 28: Warehouse concession womenswear space breakdown 2009 3
Figure 29: Aurora to Mar 2010 (Mosaic to Jan) UK womens sales 2005-10e 3
Figure 30: Aurora Fashions womenswear and clothing shares 2005-2010e 3
Figure 31: French Connection UK retail sales & growth to Jan 2005-2010e 3
Figure 32: French Connection UK/Europe retail op profit to Jan 2004-2009 3
Figure 33: French Connection clothing space allocation 2007-2009 3
Figure 34: French Connection concession space allocation 2007-2009 3
Figure 35: French Connection UK womenswear sales to Jan 2005e-2010e 3
Figure 36: French Connection UK menswear sales to Jan 2005-2010e 3
Figure 37: French Connection clothing, women & mens shares 2005-2010e 3
Figure 38: H&M UK sales and growth to November 2004-2009e 3
Figure 39: H&M UK operating profit to November 2004-2009e 3
Figure 40: H&M clothing space allocation, as % of total store space 2007-2009 3
Figure 41: H&M womenswear sales (ex VAT) to November 2004-2009e 3
Figure 42: H&M childrenswear sales (ex VAT) to November 2004-2009e 3
Figure 43: H&M UK menswear sales (ex VAT) to November 2004-2009e 3
Figure 44: H&M clothing, women, men and childrenswear shares 2004-09e 3
Figure 45: Inditex UK sales and growth to year end January 2005-2010e 3
Figure 46: Bershka clothing space allocation 2007-2009 3
Figure 47: Massimo Dutti clothing space allocation 2007-2009 3
Figure 48: Pull & Bear clothing space allocation 2009 3
Figure 49: Zara clothing space allocation 2007-2009 3
Figure 50: UK womenswear sales of four Inditex fascias to Jan 2005-2010e 3
Figure 51: UK menswear sales of four Inditex fascias to Jan 2005-2010e 3
Figure 52: Zara UK childrenswear sales to January 2005-2010e 3
Figure 53: Inditex UK clothing category market shares 2005-2010e 3
Figure 54: Republic UK sales and growth to January 2005-2010e 3
Figure 55: Republic UK operating profit to January 2004-2009 3
Figure 56: Republic clothing space allocation 2009 3
Figure 57: Republic UK womenswear sales to January 2005e-2010e 3
Figure 58: Republic UK menswear sales to January 2005e-2010e 3
Figure 59: Republic clothing, mens and womens market shares 2005-2010e 3
Figure 60: River Island UK sales and growth to December 2004-2009e 3
Figure 61: River Island group operating profit to December 2003-2008 3
Figure 62: River Island clothing space allocation 2007-2009 3
Figure 63: River Island UK womenswear sales to December 2004e-2009e 3
Figure 64: River Island UK menswear sales to December 2004e-2009e 3
Figure 65: River Island clothing, men and women’s market shares 2005-10e 3
Figure 66: Ted Baker UK & Europe sales and growth to January 2005-10e 3
Figure 67: Ted Baker group operating profit to January 2004-2009 3
Figure 68: Ted Baker clothing space allocation 2007-2009 3
Figure 69: Ted Baker concession space allocation 2007-2009 3
Figure 70: Ted Baker UK & Europe menswear sales to Jan 2005-2010e 3
Figure 71: Ted Baker UK & Europe womenswear sales to Jan 2005e-2010e 3
Figure 72: Ted Baker clothing, men and women’s market shares 2005-2010e 3
Figure 73: Fenn Wright Manson womenswear space breakdown 2009 3
Figure 74: Hobbs womenswear space breakdown 2009 3
Figure 75: Jaeger clothing space breakdown 2008-2009 3
Figure 76: Mango womenswear space breakdown 2009 3
Figure 77: Reiss clothing space breakdown 2007-2009 3
Figure 78: Whistles womenswear space breakdown 2009 3
Figure 79: White Stuff clothing space allocation 2008-2009 3