TNS new research – AFFLUENT SHOPPERS GET SMART & NET THEMSELVES A BARGAIN
12-05-2005
It’s all about price! Even the affluent middle class are bargain hunting and shunning the traditionally upmarket clothing outlets. The supermarket sector are merrily leading the way with brands such as the now well established George range from Asda and new recruits Cherokee from Tesco and the new brand Florence and Fred. AT one point the market deemed this shift in buying habits to be a move towards throw-away fashion however the supermarkets have created a loyal shopper following. With the supermarket giants’ large buying power and the resultant economies of scale they can insist on high standards of quality and make in design, fabric and production. The high street shopper has come of age – they want value twined with fashionable styles. The convenience factor also plays a large part in the success story too. For today’s harassed housewife, mother and career woman it’s an ideal opportunity to pick up a bargain whilst grabbing the weekly shopping! Over the last two years survey after survey has revealed that the high disposable sector of the 45-54 AB woman has been neglected in favour of the spend-thrift teenager hence the new focus of ranges from designers such as Calvin Klein et al. However, in the last year the 45-54 year woman has had a purchase growth of over 10% according to TNS FashionTrak. AB’s have bought 4.8 million more items of clothing and footwear from the fashion multiples and supermarkets this season, taking advantage of lower prices from both – prices are down 2 per cent in the fashion multiples and 4 per cent across the supermarkets in the latest season. In contrast, AB’s are buying fewer items from clothing independents, general stores and department stores (volumes down by 8 per cent in the latest 24 weeks) as these outlets have increased prices by 4 per cent over the same period – retail sectors which have historically attracted more affluent customers but who are now appealing more to C2’s. This trend towards buying lower-priced items amongst AB shoppers is particularly prevalent amongst women as they become more adroit at mixing and matching cheaper fashion bargains with better quality items to create individual styles. This trend has been given credibility by TV programmes and press articles which highlight the comparable savings on offer as the fashion shops and discount stores replicate designer styles. In the latest half year, over half (63 per cent) of all AB women have purchased an item of outer clothing from the value sector (discount stores, cash and carry outlets and supermarkets), with sales of adult clothing rising 7 per cent in the latest season. The TNS FashionTrak figures also show that more AB women now buy outer clothing from supermarkets (26.4 per cent) than from mail order catalogues (16.3 per cent). Fiona Bell, business director of TNS FashionTrak, said: “More affluent customers are increasingly making savings by buying cheaper clothing. It is now perfectly acceptable, if not desirable, to be seen as a smart shopper. The trick is to cherry pick the high-fashion items from the more basic markdowns available in the value sector.”
Total Clothing, Footwear & Accessories (Great Britain)
Market Trends & Retail Sector Shares
Expenditure, Volume & Price Trends
Data to 03 April 2005
24 w/e 06 Apr 2003
24 w/e 04 Apr 2004
24 w/e 03 Apr 2005
04 v 03 % Change
05 v 04 % Change
Expenditure £000’s
14,427,370
14,616,250
14,783,450
1
1
Volume 000 units
1,351,258
1,391,545
1,416,577
3
2
Average Selling Price £
£10.68
£10.50
£10.44
-2
-1
Total Menswear
4,543,978
4,547,588
4,502,921
0
-1
Total Womenswear
7,889,630
8,031,529
8,203,002
2
2
Total Childrenswear
1,993,795
2,037,123
2,077,493
2
2
AB Shoppers – Womenswear
Expenditure £000’s
1,838,142
2,029,632
2,008,720
10
-1
Volume 000 units
132,195
139,035
141,667
5
2
Average Selling Price £
£13.90
£14.60
£14.18
5
-3
Retail Sector Shares – Total Market £%
24 w/e 06 Apr 2003
24 w/e 04 Apr 2004
24 w/e 03 Apr 2005
04 v 03 % Change
05 v 04 % Change
TOTAL MARKET
100.0
100.0
100.0
HIGH STREET
64.5
65.4
64.8
0.9
-0.6
Multiples (Inc New Look)
24.9
26.6
27.1
1.7
0.5
Clothing Independents
8.1
9.0
8.8
0.9
-0.2
General Stores
16.9
16.1
14.9
-0.8
-1.2
Dept Stores
8.7
8.1
8.2
-0.6
0.1
Footwear Shops
5.9
5.6
5.7
-0.3
0.1
HOME SHOPPING
7.0
6.1
6.6
-0.9
0.5
Agency Home Shopping
2.5
2.2
2.2
-0.3
0.0
Direct Home Shopping
4.5
3.9
4.3
-0.6
0.4
VALUE
14.7
15.2
15.2
0.5
0.0
Discounters & Cash & Carry
10.2
9.8
9.6
-0.4
-0.2
Supermarkets
4.5
5.4
5.6
0.9
0.2
SPORTS SHOPS
9.7
9.6
9.9
-0.1
0.3
OTHER OUTLETS
4.2
3.7
3.6
-0.5
-0.1
Source: TNS FashionTrak
Jenny Holloway
Industry Advisor
The information in this article has been kindly supplied by TNS FashionTrak.
For further information please contact
Rachel Argyle Senior PR Executive- UK
TNS email rachel.argyle@tns-global.com
Phone +44 20 8967 1415
The findings above are based on TNS FashionTrak 24 week ending data to 03 April
2005 versus the same period last year. 15,000 panellists aged between 12 and
74 in Great Britain are interviewed.
For more information please contact:
Rachel Argyle, Senior UK PR Executive, TNS
Tel: 020 8967 1415 / 07903 556 365 or email: rachel.argyle@tns-global.com