The following research report contains market research, analysis, statistics and business intelligence relating to research on Developments In Fashion Retailing In The United Kingdom.

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ABSTRACT
Matalan is the fastest growing fashion retailer in the UK, and this growth shows no signs of slowing down. In August 2000 their profits before tax were up 72% to $50 million (35 million pounds). The Matalan concept is based on that of the U.S. shopping club, that is, they sell fashionable apparel at low prices, and their stores are located in out of town suburbs and business parks. This means they save valuable money on rental and overhead costs, savings which they can pass on to the customer through their products.

The retail market is rapidly changing as a result of a movement towards global retailing, changing customer needs and the price wars between retailers. There has been an increasing demand by consumers for good value, which has seen a rise in the popularity of discount stores and supermarkets. As a result, many of the UK's leading clothing retailers are in big trouble. As customer loyalty has declined, retailers have needed to be very price competitive to minimise the risk of losing customers to their competitors.

Matalan is managing to stay on top of this change in the market by constantly reinventing itself. Others have not coped so well. The major multiple retailer Marks and Spencer (296 branches) is currently trying to pull itself out of a black hole. Profits, market share and share prices are down, and customer perception of the M & S brand has changed. Many consumers and industry experts believe that they are simply out of date. There is also an overall feeling among consumers that the quality of their goods has declined - particularly their underwear and lingerie which used to be highly regarded worldwide. European retailers C & A have also suffered and paid the ultimate price for its inability to compete with the discounters - closure of 109 stores in the UK and Ireland in early 2001. Stores like these have serious work to do if they are to compete with the likes of Matalan, and the rapid growth of the discount sector that has already taken big chunks of business away from the middle market retailers.

So what is the secret to Matalan's success? Aside from the low overheads and low prices, industry insiders say it is the best merchandised and best managed store of its kind in the UK. They buy bulk imports of clothing from the Far East which they sell at very low prices. Their product lines are updated every two weeks. which prevents the consumer becoming bored with 'the same old thing' everytime they visit the store. Matalan's success can also be partly attributed to the internet. They have a comprehensive and informative website, and their plans to maintain growth include an Internet Service Provider (ISP) program and a Matalan credit card. They also boast a customer database of around 5.5 million people - arguably one of the largest in Britain. This, along with their internet presence, allows them to constantly tell their customers about their low prices and special offers.

In a recent study by Retail Intelligence on the most admired retailers in Britain, Matalan was ranked 4th after Tesco, Asda and Kingfisher - Marks and Spencer only came in at number 20. These top 4 are a true indication of the way the retail market is heading. Verdict research believes that these 4 retailers have such a strong hold on the market that they could increase their combined market share from 8.4% in 1999 to 13.9% in 2004, and the way it looks at the moment, Matalan may well be leading the way.

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

$3500 USD
For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: England
Industry: Retail
Pages: 45
Delivery: 7-12 Business Days
SKU: infre0000353