The EU clothing market has grown by 6.3% since 2001 to reach EUR292bn in 2006.

But nearly 80% of the market is produced by six markets and weak growth in the largest two markets, Germany and Italy, over the last five years has held back total EU performance. The fastest growing markets over the last five years were Estonia, Lithuania, the Czech Republic and Slovakia. Specialists sales densities have risen in all of the new member states, with the biggest changes in Slovakia, Latvia and Estonia.

Middle market retailers are most likely to struggle abroad. These typically target older customers, who are likely to have more established, nationally-derived clothing preferences. Older consumers are also more likely to have financial commitments, making them more attracted by low-priced clothing that requires high volumes to be profitable.