Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Value market growth set to be lowest in 10 years

Growth in the value clothing market is set to slow down for the first time in 10 years as the sector reaches consolidation, according to retail analyst Verdict Research.

Although the UK value sector continues to outperform the total clothing market, with growth of 8.9% this year against 3.8% overall, Verdict's UK Value Clothing Retailers 2007 report predicts its slowest rate since 1997.

Verdict added that the growth is largely led by one retailer - Primark - which is estimated to increase its share by 4.1 percentage points this year to 18.49%, becoming the market leader ahead of George at Asda, whose share is expected to fall to 16.31% from 17.16%.

Verdict said one of the main factors affecting the slowdown is that middle market players have sharpened their own prices in reponse to value rivals. As a result, Verdict said value players have been working much harder to drive footfall, by extending their price architecture, investing into store environments and supporting this with higher marketing spend, which drives up costs and lowers profit densities.

According to the research, as value retailers reach space and demand capacity in the UK, they will look at international expansion to drive growth.

In 2007, the £8.5 billion value sector accounts for nearly 25% of all clothing spend in the UK.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.