The UK is to see a slowdown in the growth of value clothing expenditure, as household disposable income will shrink, according to a new report by Verdict Research. Key retailers, such as Primark, Sainsbury's and H&M are increasing their store presence and improving ranges encouraging consumers to spend despite tight purse strings.
For the first time, from 2014, the forecast growth in value clothing expenditure is expected to underperform the overall clothing market. A gradual shift in shopping habits of consumers making more considered purchases and wanting better value for money through quality and product design will result in a proportion of consumers trading up to midmarket players.
Despite the lower costs associated with out of town (OOT) stores, high street locations are much more desirable for attracting younger shoppers. While OOT stores remain important for catering to families, value players need to have a presence in high footfall locations to build retail brand awareness – particularly those with a high fashion offer which target 16–24s.
Logistically, Europe offers more convenient expansion than in regions further afield due its closer proximity to the UK, similar seasons and westernised consumers wanting fashions similar to the UK's.
European competitors would include C&A, H&M, Kiabi and TK Maxx and UK players must identify gaps in the markets to ensure successful launches.
Image: Primark campaign