The initiative from the influential fashion player will put pressure on mid-market childrenswear retailers such as Adams and Mothercare, which are already in the grip of price pressure from supermarkets.
Topshop's range will cater initially for girls aged up to 12 months and will reflect the Arcadia-owned chain's footprint of fashion-forward adult trends. If it is a success, it could pave the way for a full kidswear range.
Mini Topshop will debut in the retailer's Oxford Street flagship and Kensington High Street stores in London with 'competitive' price points.
The retailer will also stock babywear from ethical fashion labels People Tree and Gossypium.
The Chambers retail consultant Sally Bain said the range is a logical extension of Topshop's move into maternitywear in 2004. She said: 'Young, fashionable mums are going to be very interested in dressing their babies in fashionable me-too outfits, rather than traditional velour Babygros. There's lots of opportunity to trade up if the product is interesting, different and fashionable.'
But Verdict managing director Richard Hyman warned that under-fives clothing is a tough market. He said: 'The existing players are finding the going hard, but history shows Topshop has management that makes very few mistakes.' He added that the range was a reflection of how Topshop's target customer has evolved to encompass a slightly older demographic.
Verdict forecasts a growth slowdown in the childrenswear sector in the next five years.
The under-fives market grew by 18 per cent between 2000 and 2005, but this figure is expected to decrease to 15.3 per cent by 2010. Hyman attributed the slowdown to a declining birth rate and price deflation provoked by value retailers such as Asda and Tesco.
Analysts said Next took the largest slice of the kidswear market last year, with a 10.1 per cent share. Asda and Tesco followed with 8.1 per cent and 6 per cent respectively.
Topshop has an estimated 2.6 per cent share of the UK womenswear market, although it caters for a more limited age group than leaders M&S and Next. Its fast fashion rivals Zara and H&M both stock kidswear.


















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