Verdict forecasts that the UK womenswear market is set to grow by just 1.8 per cent this year, compared with a growth rate of 7 per cent in 2000.
The research showed that constant price deflation has meant spending is beginning to slow significantly because women can get more for their money every year. Intense competition on price has made consumers savvier, expecting high fashion at low prices.
Value retailers Primark, Peacocks, New Look and TK Maxx, as well as the supermarket chains Asda and Tesco, have achieved a greater market share at the expense of more traditional retailers. According to Verdict, Primark will overtake Debenhams this year to become the UK's fourth-largest womenswear retailer.
The group also predicts market share gains for Marks & Spencer. Verdict said the retailer's combination of low prices and improving product and store environments are helping it to steal customers from value brands as well as mid-market retailers.
Verdict retail analyst Maureen Hinton said: 'Since low prices now prevail in womenswear, retailers need to attract customers in other ways. Retailers with good selling skills will thrive - those who are focusing on product design, innovation, brand differentiation and shopping experience.'
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