Deep Dive 15 minutes PremiumStrong Demand for Value, E-Commerce and Sportswear Sustains Pressure on Europe’s Middleground Apparel Retailers Coresight Research March 22, 2019 Executive SummaryWe discuss three growth segments in European apparel, which look set to keep the pressure on legacy midmarket apparel retailers: High-Quality Value Retailers: Primark has raised standards in discount apparel. It appears to have drawn shoppers from midmarket rivals while consolidating the value segment. T.K. Maxx likely had a similar impact. Consolidation means the apparent strength of the discount segment is not a rising tide that lifts all boats. Internet Retailers: Zalando aims to grow gross merchandise volume (GMV) from €6.6 billion in 2018 to €20 billion by 2023/24. But Zalando, like ASOS and Boohoo Group, is facing a challenge as fulfillment cost ratios rise in line with consumer expectations. More positively, marketing costs as a share of revenue are tending to decline across the pure-play space. Major Sportswear Brands: In the UK, Germany and France, sales of sports apparel have grown considerably faster than sales of all apparel. Even as brands focus on direct-to-consumer channels, we see demand for premium-branded sportswear supporting multibrand platforms such as ASOS, Zalando and Amazon. We see a degree of symbiosis in increased demand for major sportswear brands and the growth of online fashion platforms. This report is for paying subscribers only. Already a paying subscriber? Please log in to see the entire report.If you wish to learn more about our subscription plans and become a paying subscriber, click here. This document was generated for Other research you may be interested in: Weinswig’s Weekly: What’s Happening with US Retail Inventories?In-Store Shopping Thrives: US Consumer Tracker 2023, Week 27Powering the Retail Revolution: Insights Presented at RetailNext Executive Forum 2023Singles’ Day Participation Analysis: China Consumer Survey Insights