WOMEN'S CLOTHING RETAILER
No. 300
May 2007
Introduction
This profile provides practical guidance on setting up a women's
clothing shop, supported by online sales or a mail-order catalogue.
Training, start up costs and consumer legislation are considered,
along with promotion, potential competitors, and sources of further
information.
Women's clothing retailers range from those selling second-hand
clothing, to high street retailers selling mainstream fashion, as well as
high fashion outlets selling one-off designs. They may specialise in
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vintage clothing or eveningwear, or may sell clothing for all occasions
and ages. Many also sell lingerie and hosiery, jewellery, accessories
such as handbags and hats, or shoes. Some also offer dress and hat
hire for formal occasions.
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The women's clothing sector is dominated by high street chains, but
there is sustained demand for independent boutiques offering tailor-
made or designer clothing, appealing to affluent professionals seeking
high quality and individuality. There are also opportunities for niches
such as plus-size, Goth, ethnic and maternity clothing.
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Are you suited to this type of business?
The impression you wish to convey should be reflected throughout
your shop or website so customers can identify immediately whether
your products are suitable for them. You will need creativity, an eye
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for detail and colour, and ideally some knowledge of window design
and dressing, and in-store displays.
Customer service skills are essential, and you should be able to deal
with complaints and returns politely and professionally. One of your
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best selling points will be a friendly, helpful service, which will
distinguish you from larger competitors.
A willingness to keep track of market changes throughout the year is
crucial. You should be aware of seasonality and when new stock will
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be available. You should pay close attention to fashion magazines and
events like the twice-yearly London Fashion Week
(www.londonfashionweek.co.uk).
You need to be able to manage your stock levels according to the
season. Controlling stock ensures you have enough popular lines
during the busiest periods, but don't have too much unsold stock when
trade slackens or fashions change.
If you source stock from abroad, you will need to deal with paperwork,
suppliers, import regulations and deliveries. UK Fashion Exports
(www.5portlandplace.org.uk) can offer advice on these issues. You
should also be aware of tariffs associated with importing goods to the
UK. See the Department for Business, Enterprise and Regulatory
Reform's (BERR) website at www.berr.gov.uk/europeandtrade/
importing-into-uk/import-tariffs/page11291.html for more details.
If you are selling online and running an e-commerce website, you will
need to be well organised when processing and packing orders, as
well as dealing with customer queries.
Some knowledge of bookkeeping and accounts will be necessary for
the financial side of the business, including calculating stock levels,
working out profit margins and negotiating prices.
© CI n o bweb
Price £5.99
(Including VAT)
What formal training do you need?
No formal qualifications are required to start up this type of business,
but there are several courses that might prove useful.
A number of bodies organise S/NVQs for beginners and those with
some experience (see www.city-and-guilds.co.uk and
www.accreditedqualifications.org.uk). The S/NVQ in Bookkeeping
and Accounts takes a basic approach to business administration. The
S/NVQ in Business Start Up covers business proposals and planning.
Relevant retail qualifications include:
• The City and Guilds Higher Professional Diploma in Retail
Management is ideal for those running a shop, and covers
consumer behaviour and customer service, technology used
in shops and marketing.
• The Retail Academy offers a Certificate in Retail Principles,
which includes seven different qualifications covering visual
merchandising, security in a retail environment, serving
customers in a retail environment, product range planning,
marketing, legislation for the retail environment and monitor
retail operations. See www.retailacademy.org/minisite/
retailcert for further details.
• The London College of Fashion offers short courses, including
Starting a Retail Fashion Business, Marketing Fashion for the
Small Business and Online Selling. See
www.fashion.arts.ac.uk/shortcourses/LCF_shortcourses_
business_start_ups.htm for further details.
If you intend to employ staff, consider courses offered by the
conciliation service Acas covering issues such as employment
contracts, terms and conditions, and employment law. See
www.acas.org.uk/emsobs/acas_events_new.asp to view courses
in your area. Acas also offers several courses that can be studied
online - see www.acas.org.uk/elearning to register for its e-learning
facility.
If you are selling online, you may wish to undertake some IT training.
Contact your local college of further education or adult education
centre, or see www.learndirect-business.co.uk to find relevant
courses.
Who are your customers likely to be?
Clothing is one of the most highly developed of all retail sectors, and
women's clothing accounts for the most sales within the clothing
sector. The best way to attract customers as an independent is to
specialise in a niche market, or to offer additional services not available
in chains. Potential customers include:
• Fashion-conscious 18-30 year olds who appreciate unusual
designs and labels. Word-of-mouth may spread your reputation
and attract new customers.
• Older customers. Women aged 30 and up represent an
affluent and discerning market. Many appreciate shops with
personal service and you should match that with high-quality
clothes attractively displayed.
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• The maternity clothing market. This is a sizeable niche, with
pregnant women requiring casual, work and occasion clothing.
The first-time mother is often now more mature and has more
disposable income. You could also sell nearly-new clothes or
have a hire service, as women can be reluctant to spend a
lot on clothes that will only be worn for a short period.
• Customers who don't fit into standard high street sizes. The
market for plus-size clothing is growing. Almost one in five
British women are size 18 or above, according to Mintel,
which also reported that £2.3 billion was spent on plus-size
clothing in 2005, representing 17% of the UK women's wear
market.
• Women seeking special occasion wear. Clothes for weddings,
balls and other parties are premium items, with a slower
turnover but good profit margins.
• Women seeking ethnic clothing such as saris, both for
everyday wear and special events. The large market for
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ethnic clothing is often overlooked by the multiples. You
should decide which fashions to specialise in and be aware
of import regulations.
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• Ecologically aware customers who are keen to source
clothing produced by ethical suppliers. Fair Trade and even
organically produced clothing is a growing niche market.
Women are increasingly interested in where items come from,
and will pay more for clothing that can prove its provenance.
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• Cash-rich, time-poor women keen to order clothing online.
Selling clothes to women via the web is a growth market, with
research from Nielsen/NetRatings (www.nielsen-
netratings.com) suggesting that women are more likely to
purchase goods online than men.
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Who will you be competing against?
Your competitors will be any other retailers offering women's clothing
ranges, whether they are independents, small chains like Browns
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(www.brownsfashion.com), larger chains like Monsoon
(www.monsoon.co.uk), or the likes of Marks & Spencer
(www.marksandspencer.com), which has considerable buying
power, and can react quickly to trends and purchase in bulk. Larger
stores have the space and resources to offer extensive choice, and
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can offer low prices.
You should be aware of the 'Primark effect'. Primark
(www.primark.co.uk) and other budget fashion chains like Peacocks
(www.peacocks.co.uk), which have a fast turnover of cheap items,
are the real growth area of the fashion world. The stigma of buying
clothes from supermarkets has also disappeared and many women
now buy clothing with their groceries.
Other small retailers and boutiques in your area may represent
competition with specific brands and labels. However, many clothing
shops find it beneficial to locate in clusters away from the high street.
In some cases co-operation can result in greater customer numbers.
The eBay site (www.ebay.co.uk) now offers goods from hundreds
of niche online shops, selling new and vintage items. Spin-off site
eBay Express (www.express.ebay.co.uk), which only offers new
'buy it now' options, is another source of competition.
There is a growing trend to swap items of clothing, both between
friends at informal swapping parties, and via dedicated swapping
services. Websites like www.clothes2swap.com provide a forum for
people who wish to exchange unwanted clothing online.
Swapping and loaning is also popular among pregnant friends.
Antenatal groups often run informal maternity clothing swaps - see
www.nct.org.uk for details. Online retailers such as Blooming
Marvellous (www.bloomingmarvellous.co.uk) also command a high
proportion of the maternity clothing market.
If you are running an e-commerce site you will face rivals selling similar
clothing online. Overseas retailers also target UK online shoppers.
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WOMEN'S CLOTHING RETAILER
You can find out about specific competitors locally via the Yellow
Pages (www.yell.com) or Thomson directories
(www.thomsonlocal.com).
What are the key issues affecting the market?
Large retailers generally believe the traditional seasonal fashion cycle
has broken down over recent years, as purchasing managers and
manufacturers respond more quickly to changing demand. This is
demonstrated by the ability of Primark and ASDA's George label to
change ranges every few weeks.
The fashion sector has come under the media spotlight for not
recognising that the size of the models it uses does not reflect modern
British women and their body shapes. Retailer ASDA faced heavy
criticism from health professionals after it announced it would stock
size 0/UK size 4 clothing in a mainstream collection.
Globalisation and low costs in developing countries have driven the
manufacture of much of the clothing formerly made in the UK to
overseas suppliers. China is now one of the key exporters of clothes
to the UK, along with Hong Kong, India, Bangladesh, Turkey, Greece
and Portugal.
Branding and marketing are vital as fashion businesses try to predict
and influence consumer demand. Branding is also used to encourage
customer loyalty, and large retailers use this to their advantage.
How can you promote this enterprise?
Location is crucial in the success of any traditional high street shop.
You should consider the volume of passing trade, known as the
'pavement count', as well as the location of nearby competitors and
large stores. However, it may be worthwhile setting up near related
shops appealing to your clientele.
You should also consider your customers' requirements. If you are
selling maternity clothing, for example, customers should not have to
walk far from their car or the nearest public transport interchange.
Some promotional methods might include the following:
• The appearance of your shop will be important as fashion is
all about image. Think about how you display your goods,
whether you play music, how to arrange your lighting, and
how the décor will affect the atmosphere. You should change
your window display frequently to draw in passing trade.
• Seasonal sales are a good way of getting rid of old stock.
Prominently displayed posters attract bargain hunters, who
may become regular customers.
• Fashion shows of new season stock or for charity are good
promotional tools. You should send press releases to your
local newspaper about such events. See www.press-
release-writing.com for tips on writing press releases.
• A series of regular advertisements in local newspapers or
magazines may also produce good results. You should
research readership and circulation before choosing the
most suitable forum. See www.mediauk.com for potential
outlets.
• Consider selling by catalogue in addition to a website. A
printed catalogue demands investment in a permanent stock,
but may appeal to older customers or those in rural areas.
• If you are selling online, you should update your virtual 'shop
front' frequently so visitors are encouraged to return to your
website to check what's new. Also consider simple ways to
keep your site looking fresh, such as blogs and news items.
• Generic advertising in Yellow Pages and Thomson Directories
is also useful (see www.yelldirect.com or
www.thomsonlocal.com for details about advertising in their
online equivalents).
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No. 300 May 2007
What start up costs can you expect?
Your principal start up cost will be your premises, the cost of which
will depend on their size and location. A number of factors will affect
the cost of your rent, including passing trade, proximity to parking or
public transport, other shops nearby attracting potential customers,
and the level of business rates.
You will need storage space, display rails, shelves, chairs, mirrors
and changing facilities. Many of these can be bought second-hand,
but be cautious of cheap-looking fixtures as this will affect the image
you are trying to project.
You will need to buy stock outright in many cases, as suppliers may
refuse to give credit to a new business.
You will need a till - from £150 for a basic standalone machine to £2,000
for an electronic point of sale (EPOS) system and software, which
records every item that is sold and calculates what stock is left. You
can hire a chip and PIN machine from your bank for about £15 per
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month.
If you plan to sell goods online, you will need to set up an e-commerce
website. Basic online shops, hosted by third parties or by your Internet
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Service Provider (ISP), can be very economical. Costs to build the site
will vary, but you can expect to pay a professional web designer at
least £150 for the initial design and will then need to take into account
support charges and maintenance.
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The price of producing a mail order catalogue will vary depending on
the size, the paper stock you use, whether you take a DIY approach
or employ a commercial printer to publish it. Contact local printers for
quotes or search the web. Firms offering this service include
www.trade-print.com/brochures.html, www.printprice.net and
www.printhouse.co.uk.
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A computer (from £400), printer and accountancy software to deal
with business administration will also be required.
You may consider investing in CCTV and a security tagging system.
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Adequate insurance is also essential; you need public liability cover,
protection for your building and its contents, and if you hire staff, you
need employers' liability insurance.
What are the legal issues to consider?
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This section is intended as a starting point only. You should seek
professional advice before making any business decisions that may
have legal implications.
A range of regulations regulate the sale of clothing, including:
• The Textile Products (Indications of Fibre Content) Regulations
1986, as amended in 1994, govern the labelling of products
containing textile fibres. It is an offence to supply textile
products which do not comply with this legislation.
• Any footwear sold in England, Wales, and Northern Ireland
must comply with the Footwear (Indication of Composition)
Labelling Regulations 1995.
You will also be subject to the following:
• The Trade Descriptions Act 1968 prohibits a business from
advertising a product it cannot supply.
• The Supply of Goods and Services Act 1982 ensures goods
and services are priced correctly.
• The Consumer Protection Act 1987 prohibits the supply of
goods if they are unsafe. In the case of imported products,
or those for which the supplier is unable to identify a source,
the importer or supplier is liable for any damages.
• The General Product Safety Regulations 2005 require products
to comply with the health and safety requirements of UK law.
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WOMEN'S CLOTHING RETAILER
• The Price Marking Order 2004 places a duty on retailers to
ensure prices are unambiguous, identifiable and legible.
• The Sunday Trading Act 1994 restricts shops with a floor area
over 280 sq m or 3,000 sq ft to opening for six continuous
hours only on Sundays, between 10am and 6pm. In Scotland,
see the Sunday Working (Scotland) Act 2003.
• Under the terms of the Consumer Transactions (Restrictions
on Statements) Order 1976, misleading notices such as 'No
refunds' are prohibited.
See www.tradingstandards.gov.uk for further details of relevant
trading legislation.
Products sold online are covered by various regulations, including the
Consumer Protection (Distance Selling) Regulations 2000 and the
Electronic Commerce (EC Directive) Regulations 2002. Consumers
must receive clear information about the goods offered for sale, and
must receive confirmation of their purchases. Information, such as
business particulars, returns policies and pricing information, must be
specified on your website. See the Trading Standards leaflet at
www.tradingstandards.gov.uk/cgi-bin/bglitem.cgi?file=BADV065-
1011.txt for details.
The Data Protection Act 1998 is relevant if you plan to keep customer
details on a database for a mailing list or newsletter. See
www.ico.gov.uk for details.
You should be aware of the Disability Discrimination Act 1995 which
gives disabled individuals rights of access when purchasing goods
and services. Businesses have to make reasonable adjustments to
their premises to minimise barriers to access by customers with
disabilities. See www.direct.gov.uk/en/DisabledPeople/index.htm,
www.equalityhumanrights.com/en/forbusinessesandorganisation/
serviceproviders and www.equalityhumanrights.com/en/
forbusinessesandorganisation/employers for further guidance.
If you are employing staff, you must ensure they are paid the National
Minimum Wage (NMW). See www.berr.gov.uk/employment/pay/
national-minimum-wage for full details.
Finally, you must be aware of health and safety legislation, including
the:
• Health and Safety at Work etc. Act 1974.
• Management of Health and Safety at Work Regulations 1999.
See www.hse.gov.uk for more information.
Further information on relevant legislation is available from the:
• Office of Public Sector Information - www.opsi.gov.uk.
• Scottish Executive - www.scotland.gov.uk.
• Welsh Assembly Government - www.wales.gov.uk.
• Northern Ireland Executive - www.northernireland.gov.uk.
Further information
For practical start up and small business tips, ideas, know-how and
news, go to:
Website: www.enterprisequest.com
To access hundreds of practical factsheets, market reports and small
business guides, go to:
Website: www.scavenger.net
UK Market Synopsis 41 Clothing and Fashion
BOP 3 Fashion Designer
BOP 106 Jewellery Retailer
BOP 107 Dressmaker
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No. 300 May 2007
BOP 109 Fashion Accessories Retailer Fashion Capital is a UK fashion portal and provides information on
BOP 139 Dress and Suit Hire news, trends and suppliers.
BOP 180 Handbag and Travel Accessories Retailer Website: www.fashioncapital.co.uk
BOP 200 Wedding Dress Shop
BOP 272 Designer Clothing Retailer Fashion United provides news and information for the fashion
BOP 344 Lingerie Retailer industry.
BOP 421 Personal Shopper Website: www.fashionunited.co.uk
BOP 441 Men's Fashion Retailer
BOP 524 Children's Clothing Shop

'Drapers'
This is the weekly magazine for the fashion business, and includes
news, features and events listings.
Website: www.drapersonline.com

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The British Fashion Council organises events such as London Fashion
Week and promotes the British fashion industry.
5 Portland Place

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London
W1B 1PW
Tel: (020) 7636 7788
Website: www.londonfashionweek.co.uk/content.asp?CategoryID
=968&CategoryTypeID=2

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The Association of Suppliers to the British Clothing Industry (ASBCI)
brings together the clothing industry from all sectors of the supply
chain - from fibre manufacture through to garment manufacture,
distribution, retail and aftercare - and provides a platform for exchange
of ideas and knowledge.

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Unit 5
25 Square Road
Halifax
HX1 1QG
Tel: (01422) 354666
Website: www.asbci.co.uk

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The British Shops and Stores Association (BSSA) is a trade association
for non-food retailers. It features news and information on the retail
industry along with guidance on chip and PIN, current legislation and

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training.
Middleton House
2 Main Road
Middleton Cheney
Banbury
OX17 2TN
Tel: (01295) 712277
Website: www.british-shops.co.uk

The UK Fashion Exports trade association offers practical help to

British-based designers and manufacturers intending to sell abroad.
5 Portland Place
London
W1B 1PW
Tel: (020) 7636 5577
Website: www.5portlandplace.org.uk

The Interactive Media In Retail Group (IMRG) aims to promote and

encourage e-retail including via the Internet, telephone and through
home shopping.
88 Kingsway
London
WC2B 6AA
Tel: 07000 464674
Website: www.imrg.org

© Cobweb
Information
Page 4 of 4

CONTACT- This information is meant as a starting point only. Whilst

all reasonable efforts have been made, the publisher
scavenger@cobwebinfo.com makes no warranties that the information is accurate and
up-to-date and will not be responsible for any errors or
0191 461 8000 omissions in the information nor any consequences of any
errors or omissions. Professional advice should be
sought where appropriate.

for further information. © Cobweb Information Ltd,

1st Floor, Northumbria House, 5 Delta Bank Road, Metro Riverside Park,
Gateshead, NE11 9DJ, Tel: (0191) 461 8000

WOMEN'S CLOTHING RETAILER No. 300 May 2007