|
Sections |
| Title | Starting Page | Number of Pages |
|---|
| Introduction<Br><Br><paragraph>We think that a massive shift in consumer behavior is under way we are witnessing the return to frugality and the fast fashion and value players are ideally positioned to exploit this with their proposition of cheap fashionab | 0 | 1 |
| EXECUTIVE SUMMARY | 2 | 12 |
| It is recession boom time for European value clothing retailers, | 2 | 1 |
| Consumers trading down as a reaction to the recession means that every retail proposition with a strong and deep value focus should do well. | 2 | 1 |
| Value is a growing segment in a declining sector, as overall clothing volumes are down. | 2 | 1 |
| However in recessionary times the value players will have to contend with strong discounting from middle market players | 2 | 1 |
| As Tesco s halo has slipped somewhat in the recession, Ireland s Primark is set to take up the torch of sharpest and most feared retailer from the British Isles. | 2 | 1 |
| The fashionability and the focus on a young demographic are perhaps Primark s unique selling points and something much of the competition obviously lacks with perhaps the exception of H&M. | 3 | 1 |
| The harsh lesson UK fashion multiples had to learn in recent years stands to be repeated across the continent. | 3 | 1 |
| Indeed C&A s capitulation of its Avanti fascia makes us unsure about the retailer s future prospects altogether, | 3 | 1 |
| As such the race between ABF s Primark and C&A s Avanti to conquer the European value clothing market has come to a premature conclusion. | 3 | 1 |
| Kik and Takko look the most interesting competitors to Primark for the young value fashion crown | 3 | 1 |
| H&M need to focus on l-f-l growth. | 3 | 1 |
| TKMaxx is a class apart, as it operates a different business model without a dedicated private label line. | 4 | 1 |
| That said, Primark and the value fashion retailers in general need to focus their efforts on ethical issues as clothing retailing in consumers perception has become holistic. | 4 | 1 |
| For the value players strategic decisions need to be made about store locations, and management will have to choose between offensive and defensive tactics in terms of expansion abroad also. | 4 | 1 |
| Another key decision will have to be taken about foreign expansion. | 4 | 1 |
| Now is the time to grow and the value clothing specialists should not sit idly by while the hypermarkets and grocery discounters battle it out amongst themselves at the value end of the market. | 4 | 10 |
| CLOTHING MARKET STRUCTURE | 14 | 16 |
| First major fall in a decade in EU27 clothing expenditure | 14 | 3 |
| Per capita figures demonstrate catch up potential of newer member states | 17 | 1 |
| Specialists sales follow downward trend | 18 | 3 |
| Specialists space growth stagnates | 21 | 2 |
| Pressure on sales densities builds | 24 | 1 |
| Store numbers continue long term decline | 25 | 3 |
| Average sales per specialist clothing store in EU about to reach 500,000 | 28 | 1 |
| ... while specialist clothing store average sizes spanned 156sq m range in 2008 | 29 | 1 |
| STRATEGIC ISSUES | 30 | 23 |
| Economic picture GDP crawls back up | 30 | 2 |
| Euro interest rate remains at historic lows | 32 | 2 |
| No sign of inflation yet | 34 | 2 |
| Unemployment time bomb | 36 | 2 |
| Massive opportunity for EU value players | 38 | 2 |
| Internationalisation and emergence of pan-European value clothing retailers | 40 | 5 |
| Diverse strategies stretch value model | 45 | 1 |
| Migration online and multichannel development | 45 | 2 |
| Non-specialists from Aldi to Tesco threaten specialist value players | 47 | 2 |
| Discounting more competition on low cost front | 49 | 1 |
| Ethical concerns and the environmental implications of throwaway fashion | 50 | 3 |
| FRANCE | 53 | 8 |
| Potential for value chains to grow and consolidate | 53 | 4 |
| Recent key events | 57 | 1 |
| Varying growth strategies for French value chains | 57 | 1 |
| La Halle launches new layout | 57 | 1 |
| JL s Styleco chain outperforms | 58 | 1 |
| Kiabi buys 100 V ti stores | 58 | 1 |
| Maurice aims to turn Pimkie around | 59 | 1 |
| Outlook value chains will expand long term regardless of midmarket discounts | 60 | 1 |
| GERMANY | 61 | 6 |
| Value clothing sales grow robustly | 61 | 4 |
| Recent key events | 65 | 1 |
| C&A pulls Avanti out of race | 65 | 1 |
| Kik resilient | 66 | 1 |
| Primark debuts | 66 | 1 |
| Outlook competition in value clothing will increase | 66 | 1 |
| Kik and Takko expand in town centers and shopping malls | 66 | 1 |
| ITALY | 67 | 5 |
| Discretionary cutbacks | 67 | 2 |
| Recent key events | 69 | 1 |
| Decathlon ups sales 26.0% and could open Koodza | 69 | 1 |
| Gruppo Coin begins rebranding Oviesse as OVSindustry | 70 | 1 |
| Outlook expect more M&A activity post-recession | 71 | 1 |
| SPAIN | 72 | 6 |
| Severe economic downturn takes toll | 72 | 3 |
| Recent key events | 75 | 1 |
| Cherokee ties up with Eroski | 75 | 1 |
| Mango launches value line | 75 | 1 |
| Avanti fails Spanish test | 75 | 1 |
| Decathlon launches Koodza | 75 | 1 |
| Outlook fast fashion value (like Primark) appeals to Spaniards in financial tough times | 76 | 2 |
| UK | 78 | 4 |
| Value clothing well established and highly competitive | 78 | 2 |
| Recent key events | 80 | 1 |
| Italian fashion group Gruppo Coin targets the UK for expansion | 80 | 1 |
| Sales of Chanel line at Peacocks up 30.0% | 80 | 1 |
| New Look acquires stores from Borders | 80 | 1 |
| Primark settles out of court over Superdry s leather jacket as worn by David Beckham | 80 | 1 |
| Tesco launches fashion online | 80 | 1 |
| Matalan s sales boosted by new sub brands | 80 | 1 |
| Outlook low cost operators with scale will prevail | 81 | 1 |
| COMPANY COMPARISONS | 82 | 5 |
| Sales | 82 | 1 |
| Value positioning | 83 | 1 |
| Primark top | 83 | 1 |
| Stores | 84 | 1 |
| New Look catches up | 84 | 1 |
| Sales densities slip | 85 | 1 |
| But Primark stays top | 85 | 2 |
| C&A | 87 | 11 |
| Shuts down Avanti value fast fashion format in Germany and Poland | 87 | 1 |
| Avanti | 88 | 1 |
| Sourcing | 89 | 1 |
| Recent key events | 90 | 1 |
| Avanti throws in the towel | 90 | 1 |
| Spain remains important market | 90 | 1 |
| Exits Argentina, but stays in Brazil and Mexico | 90 | 1 |
| Sells bank | 91 | 1 |
| Wider role for organic cotton | 91 | 1 |
| Yessica Pure moves C&A upmarket | 91 | 1 |
| Avanti executive moved to Primark | 91 | 1 |
| C&A Online Europe | 91 | 1 |
| Financials | 92 | 2 |
| Stores | 94 | 3 |
| Outlook C&A format needs continual development for mature markets | 97 | 1 |
| H&M | 98 | 12 |
| Global fashion retailer | 98 | 2 |
| Recent key events | 100 | 1 |
| Rolf Eriksen hands over after 23 years to new CEO Karl-Johan Persson | 100 | 1 |
| H&M takes on IKEA with homewares launch | 100 | 1 |
| Opens in Middle East and Japan | 100 | 1 |
| Financials | 101 | 3 |
| Current trading | 104 | 1 |
| Stores | 105 | 3 |
| Outlook closes on Inditex by targeting new customer groups | 108 | 1 |
| H&M s like-for-like figures need to be addressed | 108 | 1 |
| as it recovers ground on Inditex | 108 | 1 |
| Uses home shopping expertise online | 108 | 1 |
| Leads field on brand identity | 108 | 1 |
| Maintains high margin | 108 | 1 |
| In 2008/09 H&M plans to open a net 225 new stores | 109 | 1 |
| H&M positive about prospects in Russia | 109 | 1 |
| KIABI | 110 | 7 |
| France s leading value clothing retailer focuses on Europe | 110 | 1 |
| Recent key events | 111 | 1 |
| Acquires 100 V ti stores | 111 | 1 |
| Les Mousquetaires bites bullet 18 months on | 111 | 1 |
| Sale boosts revenue 46.0% | 111 | 1 |
| Franchise stores open in Russia | 111 | 1 |
| Financials | 112 | 2 |
| Stores | 114 | 2 |
| Outlook a serious threat to C&A and Primark? | 116 | 1 |
| Group turnover set to surpass 1.0bn in 2009 | 116 | 1 |
| Franchising is a key growth opportunity for the group | 116 | 1 |
| If approved by competition authorities, V ti acquisition should benefit Kiabi s French business immensely | 116 | 1 |
| Focus on Europe | 116 | 1 |
| NEW LOOK | 117 | 10 |
| Develops beyond EU through franchises | 117 | 1 |
| Recent key events | 118 | 1 |
| Acquires Borders London flagship | 118 | 1 |
| Appoints COO with global expertise | 118 | 1 |
| Restructures top management | 118 | 1 |
| Moves to London | 118 | 1 |
| Happy Christmas | 118 | 1 |
| Opens in Westfield London | 118 | 1 |
| Hits 25 stores in the Middle East | 119 | 1 |
| Launches myLook | 119 | 1 |
| Financials | 119 | 4 |
| Stores | 123 | 2 |
| Outlook under pressure from weak sterling | 125 | 1 |
| Proposition trades strongly | 125 | 1 |
| Young customer base strongest asset in a recession | 125 | 1 |
| Time when New Look should push fashion and squeeze discounters in new markets | 125 | 1 |
| Franchising the path to international expansion outside EU | 125 | 1 |
| Global value fashion retailer status embryonic but growing | 125 | 1 |
| Develops multichannel offer | 125 | 1 |
| Weak sterling will pressurise retail prices | 126 | 1 |
| Synergy and scale benefits | 126 | 1 |
| PRIMARK | 127 | 10 |
| Density towers over rivals | 127 | 1 |
| Recent key events | 128 | 1 |
| Founder Arthur Ryan steps down in favour of Paul Marchant | 128 | 1 |
| Guy Young resigns | 128 | 1 |
| SAVE deal to support garment workers | 128 | 1 |
| TNS Knitwear | 128 | 1 |
| Thrapston center raises distribution capacity by 50.0% | 128 | 1 |
| Financials | 129 | 1 |
| Group 24 weeks ended February 28, 2009 | 130 | 2 |
| UK year to September 2008 | 132 | 1 |
| UK 40 weeks to June 20, 2009 | 132 | 1 |
| Stores | 132 | 2 |
| Outlook needs to manage ethical stance more proactively | 136 | 1 |
| Primark loses novelty factor in UK and becomes a mature player | 136 | 1 |
| Expansion slows in UK | 136 | 1 |
| European expansion offers big growth opportunities | 136 | 1 |
| Primark has better fashion credentials than most rivals | 136 | 1 |
| Needs higher profile PR to take on C&A | 136 | 1 |
| TK MAXX | 137 | 8 |
| Flight to value plays into TK Maxx hands | 137 | 2 |
| Recent key events | 139 | 1 |
| Buying trio to push European expansion | 139 | 1 |
| Closes Buckinghamshire DC | 139 | 1 |
| TK s handbags website is a first for TJX group | 139 | 1 |
| Not good enough for Regent Street | 139 | 1 |
| Opens on Kensington High Street | 139 | 1 |
| Financials | 140 | 2 |
| Stores | 142 | 1 |
| Outlook now is the time to break into Europe | 143 | 1 |
| Good quality eclectic range attracts shoppers | 143 | 1 |
| Price overriding consumption driver across Continent | 143 | 1 |
| Localisation will help in Germany | 143 | 1 |
| Poland is a good market for the retailer to expand into next | 144 | 1 |
| New markets may not be plain sailing | 144 | 1 |
| TK Maxx should be wary of some domestic competitors that it will face in new markets | 144 | 1 |
| Evolution of factory outlets in Europe could be an indicator for future target markets | 144 | 1 |
| Designer handbags provide a route to market for a fully transactional high end online offer | 144 | 1 |
| APPENDIX | 145 | 2 |
| Definitions | 145 | 1 |
| Value clothing market definition 2009 | 145 | 1 |
| Glossary | 145 | 1 |
| Abbreviations | 145 | 1 |
| Financial statistics VAT | 145 | 1 |
| Source Verdict Research | 146 | 1 |
| Verdict Research consulting | 146 | 1 |
| Disclaimer | 146 | 1 |
