Executive Summary

Childrenswear represents a fast-growing sector of the UK clothing industry. Since 1991, the retail market has grown by over 60 percent, and in 2001, there was an increase of 5.1 percent, to £5.57bn. The three main sectors covered in this report are girls' and boys' clothing for children aged up to 14 years old, and infants' clothing for newborn babies up to 2 year-olds.

Childrenswear has evolved from being a homogenous product to a diverse part of the fashion industry, offering premium-priced products and catering for every sector of the market, from budget-priced basics to the latest designer labels.

Market growth over the past 2 or 3 years to 2002 has been attributed mainly to the continued influence of fashion, with almost every designer and top fashion retailer launching their own children's couture. The main buying force is from 9 to 14 year-olds, or `tweenagers', who are more financially independent and fashion conscious, and are heavily influenced by pop celebrities and sports personalities.

During 2001, the retail sector became increasingly sophisticated, with the growing involvement of the large grocery chains. During the 4 years to 2002, ASDA Group Ltd, Tesco PLC and J Sainsbury PLC have all launched new branded collections. ASDA has been particularly successful with its `George at ASDA' range, while Sainsbury's linked up with the specialist Childrenswear retailer Adams, to open in-store concessions. Sainsbury's also signed up the top fashion designer Jeff Banks, to launch a new fashion range. In autumn 2002, Tesco will launch a range of casual clothing in partnership with the Cherokee fashion label.

Value discount retailers have been a success, and have begun to move upmarket, e.g. Matalan offers a more fashionable choice in new attractive environments. Although the mid-market retailers, e.g. High Street specialists and variety and department stores, have been the most affected, they have fought back by investing in new refit programmes and by increasing store quality, while also becoming more customer focused.

Despite a shrinking child population, relatively healthy growth is expected in the UK Childrenswear market over the 4 years to 2006. Key Note forecasts that the market will expand over the period 2002 to 2006.