Contents
Contents .............................................................................................................................2
Companies featured...........................................................................................................3
Next.................................................................................................................................................................. 3
Debenhams ..................................................................................................................................................... 3
M&S ................................................................................................................................................................. 3
UK clothing retail and the consumer .................................................................................4
UK retail sales are holding up – especially food and clothing........................................................................ 4
Themes affecting M&S, Debenhams and Next: Risks ......................................................9
Consumer debt and access to credit .............................................................................................................. 9
Currency .......................................................................................................................................................... 9
Swine flu pandemic ....................................................................................................................................... 10
Pressure on mid market clothing retailers ..................................................................................................... 10
Outlook for taxation ....................................................................................................................................... 11
Other themes to consider ................................................................................................12
Diversification ................................................................................................................................................ 12
Online clothing retail...................................................................................................................................... 12
Modernisation................................................................................................................................................ 13
Brand strength of each retailer....................................................................................................................... 14
Financial positions of M&S, Next and Debenhams....................................................................................... 14
Debenhams......................................................................................................................16
M&S.................................................................................................................................36
Next..................................................................................................................................40