Value retailers will snap up much of this year's growth in clothing retail, as they integrate with the mainstream to create a new middle market.
According to the report Verdict on Value Clothing Retailers 2003, the steady growth enjoyed by fashion retailers over the past two years will halve to just 2.7 per cent this year, and value clothing retailers will account for 63 per cent of that growth.
Consumers will spend an extra£820 million on clothing this year - down from the£1.4 billion increase last year.
George at Asda leads the value clothing pack as it segments its offer further and prepares for its first high street store launch next month. Retailers that can differentiate themselves in this way will prosper most, the report says.
As the value players become mainstream, they now need to develop their offers to broaden appeal, by moving from good and better offerings to good, better and best.
According to Verdict: 'Moving from the broad and shallow stance of a little for everyone, to either narrow and deep targeting - as at Bonmarche and Officers Club - or broad and deep through segmentation - as at George and New Look - will be a key factor in their future success.'
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