Menswear Retailing - Ireland - June 2004

SUMMARY

This report examines the menswear market in Northern Ireland and the Republic of Ireland, highlighting the factors that are currently driving or curtailing the market at present. Key trends in the menswear market are underpinned in the Market Drivers and The Consumer sections of this report.

This report provides a market size breakdown of the menswear market in NI and RoI, market profiles of all the major players competing for a slice of the market and market sales values for the leading players in NI and RoI. The report also includes exclusive consumer research, detailing retail distribution patterns and frequency of browsing and purchasing clothing by specific consumer groups.

This report provides fresh insight into the all the industry's current talking points, providing analysis designed to help you shape effective marketing strategies. Key issues discussed include:

• The implications of achieving a strong brand offering
• How M&S is tackling sliding sales
• Consumer's thirst for 'fast fashion' and the pressing need for domestic retailers to learn from their European counterparts
• The impact of the supermarket multiples entry into menswear retailing
• Browsing vs. buying - who are the men most likely to make frequent purchases and which are the groups with more sporadic spending patterns?

TABLE OF CONTENTS

Introduction and Abbreviations

• Definitions
• Geographical, national and regional definitions
• Conversion factors
• BMRB Target Group Index sample sizes

Abbreviations

Executive Summary

Dunnes Stores key player in menswear market

The supermarket multiples

Foreign competition

Strong brand offering

M&S tackling sliding sales

'Fast fashion'

Extensive range of retailers

Men purchasing clothes as opposed to browsing

Market Drivers

Northern Ireland economy

• Figure 1: Economic outlook, NI, 2002-04

Republic of Ireland economy

• Figure 2: Economic outlook, RoI, 2002-04
• Figure 3: GDP growth, NI and RoI, 2002-04

Changing demographics

• Figure 4: Social grade, all men, NI and RoI, 2001 and 2003

Male population in the labour force in NI

• Figure 5: Make-up of employed men, NI, 2000-03

Make-up of employed/unemployed men, RoI

• Figure 6: Make-up of employed/unemployed men, RoI, 1998-2003

Population of Northern Ireland

• Figure 7: Population of Northern Ireland, by age group, 1998-2007

Population of Republic of Ireland

• Figure 8: Population of Republic of Ireland, by age group, 1998-2007

Range of retailers

Fashion trends and celebrity influences

Reluctance of male consumers to shop regularly

Occasional wear

Retail rents rising

Rise in out-of-town retailing

Credit

Market Size and Segmentation

• Figure 9: All-Ireland market size, 1997-2003
• Figure 10: Northern Ireland market size, 1997-2003
• Figure 11: Republic of Ireland market size, 1997-2003

Retailer Profiles

Department stores and variety stores

• Arnotts
• Figure 12: Arnotts: financial results, 2001-03
• Bhs
• Figure 13: Bhs (UK) stores and productivity, 2000-03
• Brown Thomas
• Clerys
• Debenhams
• Heatons
• Marks & Spencer
• Figure 14: M&S operating review half-year results, 2002 and 2003
• Roches Stores

Specialised stores

• Arcadia group
• Figure 15: Arcadia Group (UK): financial information, 2000/01-2003/04
• The Inditex Group
• Benetton
• Figure 16: Benetton (UK): financial highlights, 2000-03
• Bestsellers
• Burtons
• D2
• French Connection
• Gap Inc
• Figure 17: Gap (UK) stores and productivity, 2000-03
• H&M
• Figure 18: H&M (UK): Financial performance, 1998-2002
• Next
• Figure 19: Next (UK): Financial results, 2002 and 2003
• River Island
• Figure 20: River Island (UK): Financial information, 2000/01-2002/03
• Topshop/Topman
• USC Group
• Pull and Bear
• Zara

Value chains/discounters

• Dunnes Stores
• Figure 21: Dunnes Stores: Financial information, 1999/2000-2001/02
• Primark/Penneys
• Figure 22: Primark: Financial results, 2002 and 2003
• Matalan
• Figure 23: Matalan: Number of stores and productivity, UK, 2000-03
• TK Maxx
• Figure 24: TK Maxx: Financial performance, UK, 2000-03

The supermarket multiples

Sports retailers

Distribution

• Figure 25: Republic of Ireland major department and variety store retailers, 2002/03
• Figure 26: Republic of Ireland major clothing, textiles and footwear retailers, 2002/03
• Figure 27: Northern Ireland leading clothing specialists, 2002

The Consumer

Shops normally buy clothes from

• Dunnes and M&S overall favourites in NI
• Figure 28: Shops normally buy clothes from, by age group and socio-economic group, NI, 2004
• Part-time workers show high penetration for Dunnes in NI
• Figure 29: Shops normally buy clothes from, by working and marital status, NI, 2004
• 65% of men aged 25-34 choose Dunnes in RoI
• Figure 30: Shops normally buy clothes from, by age group and socio-economic group, RoI, 2004
• 60% of men in RoI purchase clothes from Dunnes
• Figure 31: Shops normally buy clothes from, by working status, RoI, 2004
• Married and single men reveal high penetration for Dunnes
• Figure 32: Shops normally buy clothes from, by marital status, RoI, 2004

Frequency of just browsing for clothes

• Men in NI less likely to browse for clothes than women
• Figure 33: Frequency of just browsing for clothes, by age group and socio-economic group, NI, 2004
• Male consumers in RoI browse less than every three months
• Figure 34: Frequency of just browsing for clothes, by age group and socio-economic group, RoI, 2004
• The differentiation between men and women browsing in NI and RoI
• Figure 35: Frequency of just browsing for clothes, by gender, NI and RoI, 2004

Frequency of actually buying clothes

• Male consumers in NI purchase once a month or less
• Figure 36: Frequency of actually buying clothes, by age group and socio-economic group, NI, 2004

Men in NI working part-time or full-time buy clothes once or twice every three months

• Figure 37: Frequency of actually buying clothes, by working and marital status, NI, 2004
• Consumers in RoI more likely to purchase clothes once a month
• Figure 38: Frequency of actually buying clothes, by age group and socio-economic group, RoI, 2004
• 49% of married men in RoI purchase clothes less than every three months
• Figure 39: Frequency of actually buying clothes, by working and marital status, RoI, 2004

Outerwear purchased in NI

• Figure 40: Men purchasing major items of outerwear during the last 12 months, by age group and socio-economic group, NI, 2001 and 2003 47

Outerwear items purchased in RoI

• Figure 41: Men purchasing major items of outerwear during the last 12 months, by age group and socio-economic group, RoI, 2001 and 2003

Socks purchases - NI and RoI

• Figure 42: Men purchasing socks, by age group, NI and RoI, 2001 and 2003

Expenditure on socks - NI and RoI

• 37% of men aged 35-44 in NI spent under €15 on socks
• Figure 43: Expenditure on socks, by age group, NI, 2003
• Almost 40% of RoI males spent over €15 on socks in RoI
• Figure 44: Expenditure on socks, by age group, RoI, 2003

All who bought ties - NI and RoI

• Figure 45: All who bought ties, by age group, NI and RoI, 2001 and 2003

Expenditure on ties - NI and RoI

• 16% of 25-34-year-olds in NI spend €25 or more on ties
• Figure 46: Expenditure on ties, by age group, NI, 2003
• More men in RoI spending under €15 on ties
• Figure 47: Expenditure on ties, by age group, RoI, 2003

All who bought shirts - NI and RoI

• Figure 48: All who bought shirts, by age group, NI and RoI, 2001 and 2003

Expenditure on shirts - NI and RoI

• 28% of 15-24-year-olds in NI spend €30 or more on shirts
• Figure 49: expenditure on shirts, by age group, NI, 2003
• 23% of 25-34-year-olds in RoI spend €75 or more
• Figure 50: Expenditure on shirts, by age group, RoI, 2003

All who bought jumpers and pullovers - NI and RoI

• Figure 51: All who bought jumpers and pullovers, by age group, NI, 2001 and 2003

Expenditure on jumpers and pullovers - NI and RoI

• More men spend €30-74 on jumpers in NI
• Figure 52: Expenditure on jumpers and pullovers, by age group, NI, 2003
• 18% of men in RoI spend €75 or more on jumpers
• Figure 53: Expenditure on jumpers and pullovers, by age group, RoI, 2003

All who bought underwear - NI and RoI

• Figure 54: All who bought men's underwear, by gender and age group, NI, 2001 and 2003

Expenditure on underwear - NI and RoI

• 46% of men in NI spend €15 or more on underwear
• Figure 55: Expenditure on underwear, by age group, NI, 2003

27% of men in RoI spend under €15 on underwear

• Figure 56: Expenditure on underwear, by age group, RoI, 2003

Personal appearance

Men in NI buying clothes for comfort not for style

• Figure 57: Personal appearance, by gender, NI, 2003

Men in RoI feel it is important to look well dressed

• Figure 58: Personal appearance, by gender, RoI, 2003

The Future

Greater variety in range

Expanding market segments

Multiples steal greater market share

Differentiation

'Fast fashion'

Customer service

Competition intensifies

Celebrity culture

Forecast

• Figure 59: Forecast of menswear market, at current and constant prices, NI, 2003-08
• Figure 60: Forecast for menswear market, at current and constant prices, RoI, 2003-08

Appendix: Research Methodology