Middleton effect could boost premium retailers

Luxury fashion chains will enjoy the strongest rate of growth in the clothing sector over the next three years, boosted by the forthcoming royal wedding and a "flight to quality", research today predicts.

Barclays Corporate said it expects a 29 per cent surge in the value of the so-called "premium" market by 2014, to 8.6 billion from today's estimated price tag of 6.7bn. The sector is likely to benefit from a number of factors, the bank added, including the "Middleton effect", which has already catapulted key pieces from Reiss and Whistles collections on to the front pages.

Euan Murray, relationship director at Barclays Corporate, said: "Kate Middleton is expected to do for many British high street names what Michelle Obama did for J Crew in the US.

"Shoppers really get inspired by these big glossy images of her in styles which are very accessible."

The top end of the market has also benefited from Britain's ageing population as older consumers place more emphasis on quality, and service over price, the research noted.

This is expected to lead to a shift in focus for many retailers which will increasingly tailor offerings to the older shopper, Barclays argued.