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Summary
The UK value clothing market has experienced 10 years of impressive growth, outperforming the total UK clothing market for more than 15 years. We forecast a 5.3% rise in value clothing expenditure in 2015, as retailers broaden their ranges, invest in multichannel operations and engage with shoppers via personalised initiatives.

Key Findings
- Provides data and insight on market size, sales and growth rates for value clothing overall and at sub-sector level, helping to plan range development

- Provides expenditure breakdown across the value, midmarket and premium clothing sectors highlighting the areas which offer the most growth potential

- Market issues are examined; multichannel development, consumer analysis, online growth prospects, international expansion opportunities

- Value clothing expenditure forecast to 2020 and analysis of overall clothing volume growth and value clothing drivers in the next five years

Synopsis
59.2% of consumers agree that they look for low prices when buying into short-term fashion trends, according to Verdict's 2015 UK clothing and footwear survey. Value players such as HandM and New Look have focused on developing their fashion-led offers throughout 2015 to cater to demands, boosting the frequency of shopper visits and spend per head.

The shift in the customer base and consumer willingness to buy across the value segment as well as the mid and premium markets means that value retailers now have a far more varied shopper base to satisfy. ABC1 shoppers now account for over 45% of value clothing shoppers, causing players to place more focus on fashion, style and product quality.

The online channel will also fuel sales growth, and in the coming five years we expect to see online sales rise among all major players, and in particular at TK Maxx, Matalan, HandM and New Look, where greater editorial content, and enhanced online functionality will make their offers more accessible and the online purchasing process more enjoyable.

Reasons To Buy
- What proportion of value clothing sales will come from online in 2015? What must value players do to further capitalise on this growing channel?

- How will growth in the value clothing market differ in the five years to 2020 from the previous five years? What must I do to ensure sales growth?

- Which segments of the market offer the best growth potential? How is the mid market/premium sector performing following the recessionary period?

- Which value clothing retailers will gain the most market share in 2015, and who are expected to be the greatest share losers and why?

Table Of Contents

Value Clothing Retail in the UK | Verdict Market Report, Verdict Retail
Table of Contents
1 Outlook
1.1 Overview
1.2 Main Conclusions
1.2.1 Value clothing expenditure to grow 5.3% in 2015
1.2.2 Continued focus on fast-fashion is essential for growth
1.2.3 Growth in the value segment will slow in the five years to 2020
1.2.4 Opportunities to target underserved 65+ consumers
1.2.5 A focus on loyalty drivers other than price is essential
1.2.6 Menswear offers value retailers the most growth opportunities
1.2.7 Primark, HandM and TK Maxx make the greatest market share gains
1.2.8 Online value clothing market will grow by 111.2% in five years to 2020
1.2.9 Launching into new sectors will enhance destination appeal and improve differentiation
1.2.10 Value retailers have only dipped their toe when it comes to international opportunities
2 Recommendations
2.1 Overview
2.2 Value Players Must Broaden Proposition
2.2.1 Target new customers
2.2.2 Value retailers must satisfy a very broad customer base
2.2.3 Maximise spend opportunities in non-core sectors
2.2.4 Online value players must seize multichannel spend
2.2.5 Value online pureplays must build destination appeal to drive visits and loyalty
2.2.6 International expansion is essential for future growth
3 Market Size
3.1 Overview
3.2 Market Definition
3.3 Clothing Market Sector Breakdown
3.4 Value Clothing in Context of Clothing Market
3.5 Sector Segmentation
4 Market Forecast
4.1 Overview
4.2 Value Clothing in Context of Clothing Market
4.3 Sector Segmentation
5 Channel Shares
5.1 Overview
5.2 Value Clothing Channel Shares
6 Market Shares
6.1 Overview
6.2 Market Shares
6.2.1 Value clothing market shares
6.3 Winners and Losers
6.4 Subsector Market Shares
6.5 Key Operating Statistics
7 Sector Trends
7.1 Overview
7.2 New Sectors to Target
7.2.1 Grow sales via complementary product areas
7.2.2 Sports clothing
7.2.3 Plus size clothing
7.2.4 Homewares
7.2.5 Health and beauty
7.3 Online Value Clothing Market
7.3.1 Sector lags behind total online clothing
7.3.2 New Look is the largest online value clothing specialist
7.3.3 Specialists dominate but grocers take a third of online value clothing sales
7.3.4 Online channel set to grow to 14.2% of the value clothing market in 2020
7.3.5 Few new online entrants will make an impact, but established value players must remain wary
7.4 Value-Focused Online Pureplays Threaten Multichannel Players
7.4.1 Up and coming players steal sales from established retailers
7.4.2 The value to midmarket segment has seen the most activity in the past 10 years
7.4.3 Being top of mind is imperative for pureplays to sustain growth
7.4.4 Reliance on transactional website ensures on-going investment is crucial
7.5 Shopper Profile and Spending Habits
7.5.1 Value retailers must satisfy a very broad customer base
7.5.2 Opportunities to boost visitor share of males, 55+s and ABs
7.5.3 One-quarter of all value clothing shoppers in the UK visit Primark
7.6 International Expansion Opportunities
7.6.1 Nearly 40.0% of sales will come from international operations by 2019
7.6.2 Primark infiltrates Europe and heads across the Atlantic
7.6.3 TJK Europe shifts focus away from UK
7.6.4 New Look enters China
7.6.5 Forever 21 uses the UK as a stepping stone to the rest of Europe
7.6.6 Untapped international opportunities remain for value retailers
8 Methodology
8.1 Methodology: Recommendations
8.2 Methodology: Market Size
8.3 Methodology: Market Forecast
8.4 Methodology: Channel Shares
8.5 Methodology: Market Shares
8.6 Methodology: Sector Trends
8.6.1 Value market
8.6.2 Online value clothing market
8.7 Appendix
8.7.1 Appendix: Recommendations
8.7.2 Abbreviations
8.8 Appendix: Market Size
8.8.1 Definitions
8.8.2 Abbreviations
8.9 Appendix: Market Forecast
8.9.1 Definitions
8.9.2 Abbreviations
8.1 Appendix: Market Shares
8.10.1 Definitions
8.10.2 Abbreviations
8.11 Appendix: Sector Trends
8.11.1 Definitions
8.11.2 Abbreviations
9 Appendix
9.1 About Verdict Retail
9.2 Disclaimer

List of Tables
Table 1: Value clothing market definition, 2015
Table 2: Summary of clothing sectors, 2015e
Table 3: Value clothing trends, 2005-15e
Table 4: Value clothing expenditure by sector (£m), 2005, 2010 and 2015e
Table 5: Value clothing expenditure by sector (£m), 2015e-20e
Table 6: UK value clothing channels of distribution expenditure (£m) and share (%), 2010, 2014 and 2015e
Table 7: Value clothing market shares (%), 2010-15e
Table 8: Smaller value clothing retailers' market shares (%), 2010-15e
Table 9: Value womenswear market shares (%), 2010-15e
Table 10: Value menswear market shares (%), 2010-15e
Table 11: Value childrenswear market shares (%), 2010-15e
Table 12: Value clothing retailers' key operating statistics, 2014/15e
Table 13: Replacement cycles of sports clothing (%), 2015
Table 14: Retailer Net Promoter Scores by plus size shoppers, 2015
Table 15: Value clothing market definition, 2015
Table 16: Value clothing market definition, 2015
Table 17: Value clothing market definition, 2015
Table 18: Value clothing market definition, 2015

List of Figures
Figure 1: Sector shares of the clothing market (%), 2010 and 2015e
Figure 2: Value clothing spend (£bn) and year-on-year change versus total clothing (%), 2005-15e
Figure 3: Consumers who agree that they look for cheaper products when buying into short- term fashion trends (%), 2015
Figure 4: Value clothing market drivers (£bn), 2015e on 2010
Figure 5: Positioning map of value clothing retailers by age and style, 2015
Figure 6: Value retailers' clothing sales mix (%), 2005, 2010 and 2015e
Figure 7: Value clothing retailers' share of total clothing segments (%), 2005, 2010 and 2015e
Figure 8: HandM spring/summer childrenswear, 2015
Figure 9: Value clothing spend (£bn) and year-on-year change versus total clothing (%), 2015e-20e
Figure 10: Methods to drive value clothing expenditure in 2015 and beyond
Figure 11: Value retailers' clothing sales mix (%), 2015e and 2020e
Figure 12: Value clothing share of total clothing segments (%), 2015e and 2020e
Figure 13: UK value clothing channel shares (%), 2010 and 2015e
Figure 14: UK value clothing online and offline channel shares (%), 2010, 2015e and 2020e
Figure 15: Value clothing market shares (%), 2010 and 2015e
Figure 16: Winners and losers in value clothing market share (percentage point), 2015e on 2014
Figure 17: UK clothing space growth versus clothing sales growth (%), 2014/15e
Figure 18: Clothing sales (£m), 2014 and 2015e
Figure 19: Clothing sales densities (£/sq ft), 2014 and 2015e
Figure 20: Growth areas for value clothing retailers, 2015
Figure 21: Consumers who agree/disagree that they view brands as important when purchasing sports clothing (%), 2015
Figure 22: Most popular sports partaken in over the past 12 months (%), 2015
Figure 23: Key areas in sports clothing in which value players must invest, 2015
Figure 24: Where consumers purchased sportswear in the last 12 months (%), 2015
Figure 25: UK sportswear expenditure growth (%), 2014-19e
Figure 26: Most important drivers when purchasing sports clothing (%), 2015
Figure 27: Consumers who agree that they do not buy branded sports clothing due to replacing products frequently (%), 2015
Figure 28: Percentage of consumers who have bought sports clothing at a value retailer over the last 12 months (%), 2015
Figure 29: Primark Workout range, Tooting Branch, 2015
Figure 30: Percentage of respondents who bought sports clothing online by gender (%), 2015
Figure 31: Consumers who agree or disagree that there is enough plus size choice at value prices (%), 2015
Figure 32: Where plus size shoppers prefer to buy their clothing (%), 2015
Figure 33: Why plus size shoppers prefer to buy from a retailer's core offer (%), 2015
Figure 34: Characteristics of the online plus size shopper (%), 2015
Figure 35: Most shopped at value retailer for plus size clothing over the past 12 months (%), 2015
Figure 36: UK homewares expenditure growth (%), 2015e-20e
Figure 37: Matalan and Asda homewares, 2015
Figure 38: Primark homewares, 2015
Figure 39: UK cosmetics expenditure growth (%), 2015e-20e
Figure 40: Online value clothing expenditure (£bn), 2010 and 2015e
Figure 41: Retailer share of online value clothing market (%), 2015e
Figure 42: TK Maxx online visual merchandising, 2015
Figure 43: Share of online value clothing market (%), 2015e
Figure 44: Sample Figure
Figure 45: Online value clothing expenditure (£bn), 2010, 2015e and 2020e
Figure 46: Online clothing and footwear expenditure (£m), 2014e-19e
Figure 47: Clothing and footwear expenditure through online pureplays (£bn), 2009-19e
Figure 48: Top 10 most visited online clothing and footwear retailers and their conversion rates (%), 2013
Figure 49: Strengths and opportunities for Pretty Little Thing and Daisy Street to grow sales, 2014
Figure 50: Online clothing and footwear positioning map, 2014
Figure 51: Fashion Union advertisement at City Thameslink station, London, April 2013
Figure 52: boohoo #Dressmas campaign, December 2013
Figure 53: Google search results for 'onesie', February 2014
Figure 54: Fashion Union website, The Style Edit feature, April 2014
Figure 55: Features that make a compelling website, February 2014
Figure 56: Five year change in value clothing shoppers vs total clothing shoppers (%), 2009 and 2014
Figure 57: Value clothing shopper profile (%), 2014
Figure 58: Value clothing shoppers by household size (%), 2014
Figure 59: Opportunities for retailers to target lower penetration visitor segments, 2014
Figure 60: Value clothing retailers' visitor share (%), 2014
Figure 61: Value clothing retailers' loyalty scores (%), 2014
Figure 62: Share of international sales at UK value retailers (%), 2009, 2014e and 2019e
Figure 63: Share of non-UK sales at Primark, TJX Europe and New Look (%), 2012 and 2014e
Figure 64: Opening of Primark Marseille, December 2013
Figure 65: New Look's non-transactional website for China, 2014
Figure 66: Forever 21 expansion across Europe, 2014
Figure 67: Map of international expansion opportunities, 2014 and beyond

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