H&M 'will knock M&S off top spot'

Swedish company H&M is set to topple Marks and Spencer as Europe's biggest clothing retailer, experts predict today.

Hennes & Mauritz could pass M&S next year if its recent strong sales growth continues, according to a study by market research group Mintel.

M&S sold £3.64 billion of clothes in 2003/4, C&A sold £3.46 billion worth, and H&M clothing sales were worth £3.45 billion.

But while H&M sales grew more than 70 per cent from 1999 to 2003, M&S and C&A could not match that, leaving H&M poised to overtake them.

Experts pointed to H&M's efficient supply lines and ranges such as its Karl Lagerfeld collection. Esprit and Matalan also did well, and Asda and Tesco took almost five per cent of the UK clothing market in 2003.