Shoppers have a keen eye for bargains
Cut-price stores, such as Matalan, Primark and Peacock, have doubled their share of the market in the last six years, a survey by retail analysts Verdict found.
Verdict said the "value clothing" sector now accounts for 15.1% of total clothing sales, and is worth £4.4bn.
Some middle-market chains, such as BHS and Littlewoods, may have to look over their shoulder, the firm said, as the cut-price sector could account for 21.9% of the clothing market by 2006 if its growth continued at its present level.
Sales growing
While the clothing market overall grew 5% in 2001, the value sector managed 19% sales growth, the research found.
Fashion and homewares store chain Matalan was the best performer in the sector, with a 16.6% share of the budget clothing market.
The next-biggest player was US-owned supermarket Asda, with its George fashion label, which has 16% of the market.
New Look is in third position, followed by AB Food's Primark and another supermarket group Tesco.
Earlier this month, Matalan reported a sharp rise in profits, fuelled by 20 new stores and a 45% rise in turnover.