Upper cut growth for premium brand clothes
Upmarket fashion chains are enjoying faster sales growth than budget clothes stores, research out in the UK says.
Premium retailers will take an extra £785m (€1bn) at the tills in 2007 compared to last year, market analysts Verdict predict.
That upturn eclipses the £697m (€975m) extra which shoppers will splash out in value chains.
Consumers now have the option of buying clothes at rock bottom prices and also investing their cash in quality garments, Verdict said.
Premium high street chains such as Hobbs and Reiss through to luxury brands including Burberry have collectively enjoyed a spending upturn of 13.9% this year.
Their combined share of the clothing market will increase to 18.5% during 2007.
Although the premium fashion sector still attracts the lowest proportion of consumer spend, it is the fastest growing area of the clothing market.
Value fashion chains account for a 24.6% cut of the clothing market following an 8.9% sales upturn.
Mid-market clothing stores enjoy the lion’s share at 56.9% of the market but suffered a sales dip of 1.1% in the past year. according to Verdict’s research.
Lead analyst Maureen Hinton said shoppers were now looking for exclusivity and for brands with strong identity.
“The realignment on price since the millennium, fuelled by the value retailers, has given shoppers the option of buying garments at rock bottom prices and investing their savings at the top end of the market,” she said.
Retailers are increasingly creating niche premium fashion ranges to cater for customer demand, according to the research.
