Clothing and footwear will be the fastest growing sector over the next five years with total retail expenditure predicted to grow by 16.5% as consumer confidence is boosted by the improving economy.
Verdict Research forecasts that retail growth will double the 8% seen over the last five years, which has suffered from the dampening impact of the recession.
The clothing and footwear market is expected to grow by 22% with menswear offering the greatest growth opportunities as male become increasingly interested in fashion. Due to a population rise in 0 to 14 year olds kidswear could also prove to be a growth area.
However Verdict said middle market operators will continue to be squeezed by both the value end and premium players.
Patrick O’Brien, lead retail analyst, said: “Defined brands that have ranges and propositions that stand out will be the winners, while those that are just regurgitating mass market trends in uninspiring stores or websites will continue to suffer.”
Population growth will help drive sales rises as the UK population is set to grow by 2.2 million in the next five years, however half of these will be in the 60+ age group, which do not spend as much in retail as younger age groups.
Verdict said there will still be downward pressures on spending, particularly when interest rates start to rise and homeowners have to make higher repayments on their mortgages.