A revival in clothing sales at supermarkets and a boom in revenues at etailers are driving growth in the value clothing sector, a new report from retail thinktank Fung Global Retail & Technology has found.
The UK value clothing market was worth almost £10bn by the end of 2016, which is equivalent to around a quarter of the total clothing market.
Lead analyst John Mercer said grocery retailers are benefitting from the demise of BHS in August 2016, while etailers such as Boohoo, PrettyLittleThing and Missguided are drawing in shoppers with ultra-low prices and fashionable ranges.
“Meanwhile, undistinguished, middle-ground retailers targeting shoppers in the family life stage or older shoppers have struggled to gain traction, just as their midmarket retail peers have,” he added.
He also pointed to new entrants such as Pep&Co, which is now rolling out clothing to stores in its sister chain Poundland; Reserved, the Polish retail chain that is set to open its first store on London’s Oxford Street later this year; and Amazon, which is readying the launch of a private label range.
He said the wide variety of choice available is heaping pressure on long-standing value players such as Matalan, New Look and Blue Inc: “Growth in the overall value clothing market is not a rising tide that is lifting all boats.”