UK Childrenswear Retailers 2010

UK Childrenswear Retailers 2010 published by Datamonitor in November, 2009. This report consists of 304 pages and the price starts from US $ 3450.

Introduction

Abstract

Introduction

Verdict Research: UK Childrenswear Retailers 2010 is a comprehensive analysis of the UK sector. Childrenswear has proved to be the most resilient of the clothing sectors during the recession, but some retailers have been more adept at gaining share. This report explains the challenges and issues retailers face, as well as the opportunities the market offers for future growth.

Scope of this research

• Market value 1999-2009e including girls, boys and infantswear market sizes. Channel value and shares, space allocation and advertising spend.
• Profiles of 16 major operators including Asda, Adams, Gap, H&M, M&S, Matalan, Mothercare, Primark, Tesco, and a new addition on smaller specialists.
• Five year market shares, 10 year trading records and store portfolios, sale densities, space allocation, advertising spend, key operating statistics.
• Outlook for market and analysis of threat from smaller niche operators, non specialists and online development.

Research and analysis highlights

Though the childrenswear market will decline by 0.1% in 2009 this will be less than adult sectors, and infantswear will increase thanks to a mini baby boom. The most important change is in volume, which we expect to slump from growth of 4.0% in 2008 to a decline of 0.1%. This represents a challenge for childrenswear retailers.

Retailers have won share primarily as a result of Woolworths' demise in late 2008. The 5.4% market share this freed up has been spread across the market but value retailers and grocers are the main beneficiaries. Grocers collectively have gained £324 million in 2009.

Childrenswear specialists have continued to lose share - only Mothercare and Adams remain as significant operators, with the former having the most potential to grow its business in both the UK and internationally. Clothing specialists hold the largest share of the market - accounting for over half the £4.23bn market in 2009.

Key reasons to purchase this research

• Benchmark your business against competitors and the market with Verdict' s comprehensive data and expert analysis.
• Identify growth opportunities and develop effective business plans by comparing retailers' tactics and using our advice on strategies for success.
• Understand the dynamics of the market and which categories will produce further market share gains once Woolworths' share has been absorbed.

Table of Contents

EXECUTIVE SUMMARY

• Key findings
• Main conclusions
  • Childrenswear resilient as consumers cut back
  • Falling volumes major factor in declining childrenswear sales
  • Mini baby boom to drive market growth
  • Online essential to defend market share
  • Woolworths demise creates opportunities
  • Adams and JJB other casualties
  • Clothing specialists gain - but midmarket cedes share to value players
  • Primark big winner
  • Matalan and Peacocks also do well
  • Grocers pick up Woolworths share
  • Midmarket loses grip of sector
  • Price deflation softening

MARKET ANALYSIS

• Market definition
• Market size, value and trends
  • More resilient than market
  • Deflation slowing

• Category values - trends by sub categories
  • Infantswear benefits from baby boom & older mothers

• Channels of distribution - value and shares
  • Grocers biggest winners as specialists suffer

COMPANY DATA ANALYSIS

• Top childrenswear retailers - market shares
• Next under pressure at top of table

• Market shares over five years
  • Woolworths share creates opportunity

• Market shares - winners & losers
• Primark moving ahead

• Sales densities
• Key operating statistics
• Space allocation by sub-category
• Advertising expenditure

OUTLOOK

• Key issues
  • Recessionary factors have less effect on childrenswear than other catergories
  • Childrenswear prioritised as spending patterns change in recession
  • Changing patterns in motherhood and demographics
  • Price inflation delayed but due soon
  • Midmarket faces new wave of competition
  • Niche brands providing premium experience
  • Smaller non-specialists posing threat
  • Online development

ADAMS

• New ownership may give greater stability
• Recent key events
  • Trying to bring the business back to health

• Proposition
  • New stores aim for fashionable, modern look

• Financials
  • In and out of administration once more after pre-Christmas 2008 downturn

• Space
  • Dramatic reduction in store numbers
• Space allocation

• Sector performance - childrenswear
  • Decline in sales slows slightly

• Outlook
  • Adams will have to work hard to establish differentiated fashion positioning

ASDA (GEORGE)

• Benefits from consumer focus on low prices
• Recent key events
  • Reacts to consumers changed view on value for money

• Proposition
  • Every day value and convenience key

• Financials
  • Sales growth accelerates during downturn

• Space
  • Space expansion and rising densities both help growth

• Sector performance - childrenswear
  • George sales beat market

• Outlook
  • Under pressure from value clothing retailers

BHS

• Bhs cuts costs through Arcadia merger
• Recent key events
• Proposition
  • More investment needed to create new brand positioning

• Financials
  • Turnover in gradual decline

• Space
  • Bhs puts store growth on hold
  • Space allocation

• Sector performance - childrenswear
  • Childrenswear sales fall back after small revival

• Outlook
  • Needs to widen customer range, which Arcadia brands will do

• Shows rivals how to segment childrenswear with sub brands
• Recent key events
  • Developments in product offer

• Proposition
  • Broad brand portfolio attracts a wide customer base

• Financials
  • Trading performance positive

• Space
  • Expansion has driven sales growth
  • Space allocation

• Sector performance - childrenswear
  • Recovery continues after a dip in 2007

• Outlook
  • Midmarket customers recognise value of better products

GAP

• Struggles to reverse sales losses in UK
• Recent key events
  • Problems in core business yet to be tackled

• Proposition
  • Midmarket positioning lacks differentiation

• Financials
  • UK sales on the slide since 2005

• Space
  • Expansion put on hold til now
  • Space allocation

• Sector performance - childrenswear
  • Renewed decline after stabilisation in 2007/08

• Outlook
  • UK business a prisoner of US corporate strategy

H&M

• Swedish giant continues UK success
• Recent key events
  • UK remains top performing market for H&M

• Proposition
  • Fashion proposition carefully geared to age groups

• Financials
  • Fashion and value positioning enables H&M to ride out downturn

• Space
  • More and larger stores for H&M
  • Space allocation

• Sector performance - childrenswear
  • Space productivity takes a dip in 2009

• Outlook
  • Increasingly powerful player but could high profitability be under threat?

JJB SPORTS

• Suffers from sports market downturn
• Recent key events
  • New management aims to stabilise JJB financially

• Proposition
  • Needs to revive authority as performance sportswear retailer

• Financials
  • Slump in sales leads to losses
  • Sales hit by decline in like-for-likes and store disposals

• Space
  • Major contraction as loss-making stores go
  • Space allocation

• Sector performance - childrenswear
  • Childrenswear sales fall away as general performance deteriorates
  • Market share halves over five years

• Outlook
  • Remains in a difficult situation

JOHN LEWIS

• Fashion growth an antidote to home market crisis
• Recent key events
  • Fashion takes lead in the wake of a downturn in home

• Proposition
  • A one stop shop for wealthy middle class customers

• Financials
  • Margins take a tumble as the downturn bites

• Space
  • Expansion plans held up by downturn in property market
  • Space allocation

• Sector performance - childrenswear
  • Boosted by fashion success

• Outlook
  • Growth in fashion will put pressure on midmarket rivals

MARKS & SPENCER

• Needs childrenswear boutique type environments with child appeal
• Recent key events
  • Devises post-recession strategy

• Proposition
  • Growth trend reverses as recession hits

• Financials
  • Trading performance disappoints again

• Space
  • Space expansion key factor behind growth
  • Space allocation

• Sector performance - childrenswear
  • Sharp decline in sales and space productivity after three years of growth

• Outlook
  • Needs to speed up execution of growth strategy

MATALAN

• Childrenswear needs new ranges to add excitement
• Recent key events
  • Business improvements attract new customers

• Proposition
  • Creates more interest in the OOT store environment

• Financials
  • Like-for-like uplifts boost performance

• Space
  • Expansion on agenda again
  • Space allocation

• Sector performance - childrenswear
  • Sudden recovery after stagnation in 2008/09

• Outlook
  • Strategy delivers growth, boosted further by recession

MOTHERCARE

• One stop shop in larger stores creates halo effect for clothing
• Recent key events
  • Mothercare cuts costs and reinforces brand

• Proposition
  • Creating a retail destination for parents

• Financials
  • International operations drive profits growth

• Space
• High street stores cut back
• Space allocation

• Sector performance - childrenswear
  • (Untitled sub-section)

• Outlook
  • Product and brand authority in younger market a big strength

NEW LOOK

• More gender-neutral brand could raise sales of boyswear
• Recent key events
  • Grows business

• Proposition
  • Moves store image upmarket

• Financials
  • Trading performance continues to impress

• Space
  • Space expansion and online are the key factors behind UK growth
  • Space allocation

• Sector performance - childrenswear
  • Sales take off in 2007/08 and 2008/09

• Outlook
  • Competition with value retailers intensifies

NEXT

• Childrenswear sales stagnate despite raising space
• Recent key events
  • Next revamps brand image while bearing down on costs

• Proposition
  • Next creates more aspirational retail experience

• Financials
  • Sales trend dips into decline

• Space - growth slows but larger sites are targeted
  • Space allocation

• Sector performance - childrenswear
  • Next' s childrenswear sales stagnate

• Outlook
  • Highly profitable but circumstances not in its favour

PEACOCKS

• Benefits from downturn
• Recent key events
• Proposition
  • Basic stores allow for high fashion at value prices

• Financials
  • Growth in sales remains consistently strong

• Space
  • Peacocks pace of expansion slows after bumper 2007/08
  • Space allocation

• Sector performance - childrenswear
  • Childrenswear sales growth accelerates

• Outlook
  • Peacocks wins from consumer downturn

PRIMARK

• Primark continues in its success
• Recent key events
  • (Untitled sub-section)

• Proposition
  • Basic stores allow for high fashion at value prices

• Financials
  • Sales growth slows, but stays over 10.0% in UK

• Space
  • Aggressive expansion switches overseas
  • Space allocation

• Sector performance - childrenswear
  • Childrenswear sales increase slows

• Outlook
  • Brand evolving as it expands

TESCO

• Market leader threatened from all angles
• Recent key events
  • Continuous initiatives to ride out recession on top

• Proposition
  • Growth trend reverses as recession hits

• Financials
  • Trading performance shows ability to defy recession

• Space
  • Sustains space growth despite recession
  • Space allocation

• Sector performance - childrenswear
  • Sales revive after dip

• Outlook
  • Needs sales drivers beyond adding space

GLOSSARY

• Financial Statistics - VAT
  • Trading Profile
  • Key Operating Ratios
  • Physical Development
  • Abbreviations

TABLES

• Table: Childrenswear market definition 2009
• Table: Childrenswear and total clothing market trends 1999-2009e
• Table: Childrenswear market trends by sub category 1999-2009e
• Table: Childrenswear channels of distribution by value 2004-2009e
• Table: Childrenswear channels of distribution breakdown 2004-2009e
• Table: Childrenswear channels of distribution breakdown 2004-2009e
• Table: Childrenswear market shares 2004-2009e
• Table: Clothing retailers key UK operating statistics 2008/09
• Table: Childrenswear retailers space allocation 2009
• Table: Leading childrenswear retailers advertising spend 2003-2008
• Table: Childrenswear retailers advertising spend by media type 2008
• Table: Percentage of births to foreign born women 2007 on 2001
• Table: Niche specialist childrenswear retailers 2009
• Table: Smaller non-specialist childrenswear retailers 2009
• Table: Major online developments in childrenswear 2009
• Table: Adams company overview 2009
• Table: Adams retail proposition 2009
• Table: Adams UK key operating statistics summary 2003-2009e
• Table: Adams trading record 1999-2009e
• Table: Adams store portfolio 1999-2009e
• Table: Adams childrenswear space allocation vs market average 2009
• Table: Asda company overview 2010
• Table: Asda retail proposition 2010
• Table: Asda UK key operating statistics summary 2004-2009e
• Table: Asda trading record 1999-2009e
• Table: Asda store portfolio 1999-2009e
• Table: Asda childrenswear space allocation vs market average 2009
• Table: Bhs company overview 2010
• Table: Bhs retail proposition 2010
• Table: Bhs UK key operating statistics summary 2004-2009e
• Table: Bhs trading record 1999-2009e
• Table: Bhs store portfolio 1999-2009e
• Table: Bhs childrenswear space allocation vs market average 2009
• Table: Debenhams company overview 2010
• Table: Debenhams retail proposition 2010
• Table: Debenhams UK key operating statistics summary 2004-2009
• Table: Debenhams group trading record 1999-2009
• Table: Debenhams group store portfolio 1999-2009e
• Table: Debenhams childrenswear space allocation v market av 2009
• Table: Gap company overview 2010
• Table: Gap retail proposition 2010
• Table: Gap UK key operating statistics summary 2005-2010e
• Table: Gap trading record 2000e-2010e
• Table: Gap UK store portfolio 1999-2009e
• Table: Gap childrenswear space allocation vs market average 2009
• Table: H&M company overview 2010
• Table: H&M retail proposition 2010
• Table: H&M UK key operating statistics summary 2004-2009e
• Table: H&M UK trading record 1999-2009e
• Table: H&M UK store portfolio 1999-2009e
• Table: H&M childrenswear space allocation vs market average 2009
• Table: JJB Sports company overview 2010
• Table: JJB Sports retail proposition 2010
• Table: JJB Sports key operating statistics summary 2004-2009
• Table: JJB Sports trading record 1998-2010e
• Table: JJB Sports store portfolio 1999-2010e
• Table: JJB Sports childrenswear space allocation vs market av 2009
• Table: John Lewis company overview 2010
• Table: John Lewis retail proposition 2010
• Table: John Lewis UK key operating statistics summary 2005-2010e
• Table: John Lewis trading record 2000-2010e
• Table: John Lewis store portfolio 2000-2010e
• Table: John Lewis childrenswear space allocation vs market av 2009
• Table: Marks & Spencer company overview 2010
• Table: Marks & Spencer retail proposition 2010
• Table: Marks & Spencer UK key operating statistics 2004-2009
• Table: Marks & Spencer UK trading record 1999-2009
• Table: M&S store portfolio 1999-2009
• Table: M&S store portfolio 1999-2009
• Table: M&S childrenswear space allocation vs market average 2009
• Table: Matalan company overview 2010
• Table: Matalan retail proposition 2010
• Table: Matalan UK key operating statistics summary 2005-2010e
• Table: Matalan trading record 1999-2010e
• Table: Matalan store portfolio 1999-2010e
• Table: Matalan childrenswear space allocation vs market average 2009
• Table: Mothercare company overview 2010
• Table: Mothercare retail proposition 2010
• Table: Mothercare UK key operating statistics summary 2004-2009
• Table: Mothercare UK trading record 1998-2009
• Table: Mothercare store portfolio 1999-2009
• Table: Mothercare childrenswear space allocation vs market av 2009
• Table: New Look company overview 2010
• Table: New Look retail proposition 2010
• Table: New Look UK key operating statistics summary 2004-2009e
• Table: New Look trading record 1999-2009e
• Table: New Look UK store portfolio 1999-2009
• Table: New Look store portfolio 2008-2009
• Table: New Look space allocation vs market average 2009
• Table: New Look kids space allocation vs market average 2009
• Table: Next company overview 2010
• Table: Next retail proposition 2010
• Table: Next Brand key operating statistics summary 2005-2010e
• Table: Next Brand trading record 2000-2010e
• Table: Next Brand turnover and profits 2005-2010e
• Table: Next UK store portfolio 1999-2009
• Table: Next childrenswear space allocation vs market average 2009
• Table: Peacocks company overview 2010
• Table: Peacocks retail proposition 2010
• Table: Peacocks UK key operating statistics summary 2004-2009e
• Table: Peacocks UK trading record 1999-2009e
• Table: Peacocks store portfolio 1999-2009
• Table: Peacocks childrenswear space allocation vs market av 2009
• Table: Primark company overview 2010
• Table: Primark retail proposition 2010
• Table: Primark UK key operating statistics summary 2004-2009e
• Table: Primark trading record 1999-2009e
• Table: Primark store portfolio 1999-2009
• Table: Primark childrenswear space allocation vs market average 2009
• Table: Tesco company overview 2010
• Table: Tesco retail proposition 2010
• Table: Tesco UK key operating statistics summary 2004-2009
• Table: Tesco UK trading record 1998-2009e
• Table: Tesco store portfolio 1999-2009
• Table: Tesco childrenswear space allocation vs market average 2009

FIGURES

• Figure: Childrenswear and clothing sales index (1999 = 100) to 2009e
• Figure: Childrenswear as % of total clothing sales 1999-2009e
• Figure: Deflation in childrenswear 2004-2009e
• Figure: Sales split in childrenswear 1999 and 2009e
• Figure: Change in channel share 2009e on 2004
• Figure: Top childrenswear retailers market shares 2004 and 2009e
• Figure: Winners & losers in the childrenswear market 2009e on 2008
• Figure: Estimated childrenswear sales densities year end 2008/2009
• Figure: Childrenswear market issues 2010
• Figure: Percentage change in consumer expenditure, current prices seasonally adjusted, 2009 Q1 vs 2008 Q1
• Figure: Thousands of UK live births 1998-2008
• Figure: 000s of UK live births by age of mother 1998 and 2008
• Figure: Forecast of child population by age group 2009-2014
• Figure: Price index for clothing imports (2005=100) and value of the pound against the US dollar and euro Q2 2007 to Q2 2009
• Figure: Adams UK sales and growth to July 2004-06 and Jan 2008-09e
• Figure: Adams kidswear sales growth to July 2004-06 and Jan 2008-09e
• Figure: Adams kidswear sales per sq ft to July 2004-06 & Jan 2008-09e
• Figure: Adams childrenswear market share 2004-2009e
• Figure: Asda sales growth to December 2004-2009e
• Figure: Asda UK retail operating profit to December 2003-2007
• Figure: Asda UK clothing sales per sq ft (est) to December 2004-2009e
• Figure: Asda clothing space breakdown 2005-2009
• Figure: Asda childrenswear sales to December 2004e-2009e
• Figure: Asda childrenswear sales per sq ft to December 2004e-2009e
• Figure: Asda childrenswear market share 2004e-2009e
• Figure: Bhs UK retail sales and growth, year end March 2004-2009e
• Figure: Bhs group operating profit year end March 2004-2009e
• Figure: Bhs clothing space allocation 2005-2009
• Figure: Bhs Childrenswear sales to year end 2004e-2009e
• Figure: Bhs childrenswear sales per sq ft to end March 2004e-2009e
• Figure: Bhs childrenswear market share 2004-2009e
• Figure: Debenhams UK retail sales and growth to August 2004-2009
• Figure: Debenhams Group operating profit to August 2004-2009
• Figure: Debenhams online sales to August 2005-2009e
• Figure: Debenhams clothing space breakdown 2005-2009
• Figure: Debenhams childrenswear sales to August 2004e-2009e
• Figure: Debenhams childrenswear sales/sq ft to August 2004e-2009e
• Figure: Debenhams childrenswear market shares 2004-2009e
• Figure: Gap UK sales and growth, year to January 2005-2010e
• Figure: Gap clothing space breakdown 2005-2009
• Figure: Gap childrenswear sales growth, year to January 2002-2010e
• Figure: Gap childrenswear sales/sq ft, year to January 2005e-2010e
• Figure: Gap childrenswear market share 2004-2009e
• Figure: H&M UK sales and growth, year to November 2004-2009e
• Figure: H&M UK operating profit year to November 2004-2009e
• Figure: H&M clothing space breakdown 2005-2009
• Figure: H&M childrenswear sales year to November 2004e-2009e
• Figure: H&M childrenswear sales per sq ft to November 2004e-2009e
• Figure: H&M childrenswear market share 2004-2009e
• Figure: JJB Sports UK sales and growth, year to January 2004-2009e
• Figure: JJB Sports Group operating profit year to January 2004-2009e
• Figure: JJB Sports clothing space breakdown 2005-2009
• Figure: JJB Sports childrenswear sales year to January 2005-2010e
• Figure: JJB Sports childrenswear sales/ sq ft to January 2005e-2010e
• Figure: JJB Sports childrenswear market share 2004-2009e
• Figure: John Lewis UK sales and growth, year to January 2005-2010e
• Figure: John Lewis operating profit, year to January 2004-2009e
• Figure: John Lewis clothing space breakdown 2005-2009
• Figure: John Lewis childrenswear sales and growth to Jan 2004-2009
• Figure: John Lewis childrenswear sales/sq ft to January 2004-2009e
• Figure: John Lewis childrenswear market share 2004-2009e
• Figure: Marks & Spencer UK sales and growth year to March 2004-2009
• Figure: Marks & Spencer UK operating profit year to March 2004-2009
• Figure: Y-o-Y change % in M&S quarterly divisional sales in UK Q1 2008/09-Q1 2009/10
• Figure: M&S UK divisional l-f-l performance year to March 2008/09
• Figure: Marks & Spencer online sales year to March 2008-2011e
• Figure: M&S est sales/sq ft in food and non-food to March 2005-2009
• Figure: M&S clothing space breakdown 2005-2009
• Figure: M&S childrenswear sales year to March 2004-2009
• Figure: M&S childrenswear sales per sq ft to end March 2004-2009
• Figure: M&S childrenswear market share 2004-2009
• Figure: Matalan store interior Longton 2009
• Figure: Matalan Amman store entrance 2009
• Figure: Matalan UK sales and growth, year to February 2005-2010e
• Figure: Matalan operating profit year to February 2005-2010e
• Figure: Matalan clothing space breakdown 2005-2009
• Figure: Matalan childrenswear sales growth year to February 2005-2010
• Figure: Matalan childrenswear sales per sq ft to February 2005-2010e
• Figure: Matalan childrenswear market share 2004-2009e
• Figure: Mothercare UK sales and growth, year to March 2004-2009
• Figure: Mothercare UK operating profit year to March 2004-2009
• Figure: Mothercare direct sales year to March 2004-2009
• Figure: Mothercare childrenswear sales year to March 2004-2009e
• Figure: Mothercare childrenswear sales per sq ft to March 2004-2009
• Figure: Mothercare childrenswear market share 2004-2009e
• Figure: New Look UK retail sales and growth, year to March 2004-2009
• Figure: New Look group operating profit year to March 2004-2009
• Figure: New Look online visitors year to March 2008 and 2009
• Figure: New Look clothing space breakdown 2005-2009
• Figure: New Look childrenswear sales year end March 2004-2009
• Figure: New Look childrenswear sales per sq ft to March 2004-2009
• Figure: New Look childrenswear market share 2004-2009e
• Figure: Next Brand sales and growth, year to January 2005-2010e
• Figure: Next Brand operating profit, year to January 2005-2010e
• Figure: Next clothing space breakdown 2005-2009
• Figure: Next UK childrenswear sales, year to January 2005-2010e
• Figure: Next UK childrenswear sales, year to January 2005-2010e
• Figure: Next childrenswear market share 2004-2009e
• Figure: Peacocks UK retail sales and growth, year to March 2004-2009
• Figure: Peacocks group operating profit year to March 2004-2009
• Figure: Peacocks clothing space breakdown 2005-2009
• Figure: Peacocks childrenswear sales year to March 2004e-2009e
• Figure: Peacocks childrenswear sales per sq ft to March 2004-2009
• Figure: Peacocks childrenswear market share 2004-2009e
• Figure: Primark UK retail sales and growth to September 2004-2009e
• Figure: Primark group operating profit year to September 2003-2008
• Figure: Primark clothing space breakdown 2005-2009
• Figure: Primark childrenswear sales year to September 2004-2009e
• Figure: Primark childrenswear sales per sq ft to September 2004-2009e
• Figure: Primark childrenswear market share 2004-2009
• Figure: Tesco UK sales and growth, year to February 2004-2009
• Figure: Tesco UK operating profit year to February 2004-2009
• Figure: Tesco UK non-food sales growth, year to February 2006-2009
• Figure: Tesco.com online sales year to February 2005-2009
• Figure: Tesco clothing space breakdown 2005-2009
• Figure: Tesco childrenswear sales year to February 2004-2009
• Figure: Tesco childrenswear sales per sq ft to February 2004-2009
• Figure: Tesco childrenswear market share 2004-2009e

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