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The importance of these non-food categories was reinforced recently with Asda's announcement that it intends to open a supermarket in Walsall, dedicated solely to non-food merchandise. Yes - a supermarket without food. Coming on the heels of the launch of the retailer's George brand in stand-alone high-street stores, it will be interesting to see how the public takes to this latest innovation.

While the public may be keen to see such a convenient and value-conscious proposition turned into commercial reality, the chances are that there will be a few prayers offered up in several retail boardrooms - particularly those of clothing businesses - that this venture falls flat on its face.

The key battleground here is the clothing market. It is the second-biggest retail sector after food, but is fragmented like no other. Significant growth is occurring at opposite ends of the market. The major supermarket players, which focus on price and value, are growing their own clothing businesses at rates in excess of the clothing market as a whole, some by as much as 20% a year.

At the opposite end of the spectrum, the smaller high-street players (which include the French Connections, Jigsaws, Jane Normans and Zaras of this world) are, on average, also reporting growth rates in excess of the market average.

In contrast to the supermarkets, they differentiate their offering on product, backed by a strong and recognisable brand. So the squeeze is on for those businesses that are stuck in the middle of this struggle for increased market share such as M&S, Bhs and some of the Arcadia brands.

What can they do in response? They are hardly likely to downsize their business to compete more effectively with the smaller, niche players.

At the same time, who can realistically expect to compete with the buying power of the supermarkets?

Unnerved by the prospect of the corporate giants moving into their sector still further, one saving grace for smaller clothing businesses may be that it is hard to envisage a real 'category killer' engulfing the sector, with shoppers always demanding specialist outlets.

A recent Verdict report supported this view, stating that it is not a viable concept, the simple reason being consumer individualism. There's no problem with us all buying the same widescreen TV from our local supermarket, but it won't happen with clothes.

So what are the options for retailers that want to continue to grow?

A business would have to go on a real corporate shopping spree to build up a significant market share (unless you wanted to buy M&S, of course).

Plus, many of the more successful UK clothing retailers have only small market shares. Success does not appear to be dependent on size, but on the brand and what it stands for.

And let's not forget other types of retailer. We may be focusing on the supermarkets' impact on the clothing sector, but what effect will their non-food activities have on a business such as Woolworths, the original cross-category retailer?

No one likes to see an innovative retail idea fail, but I can't help thinking there will be a few big sighs of relief across the country if this one does.

- Amanda Aldridge is head of retail at KPMG

30 SECONDS ON ... WOMENSWEAR

- The womenswear market was worth £16.4bn in 2003. Although this had grown by 4.2% over 2002, the figure was not as high as the 6.8% growth of the previous year.

- This was partly due to last year's summer fashion for skimpy tops and mini skirts, which brought down average transaction values.

- The 'value' section of the market (TK Maxx, New Look et al) has doubled its share since 1998 to reach £3.3bn. These businesses have gained primarily at the expense of Marks & Spencer, Next, Arcadia Group (Top Shop, Wallis, Evans, Dorothy Perkins and Miss Selfridge) and Bhs.

- Despite its troubles, M&S remains the market leader, with a 13.5% value share. Arcadia, Next, Debenhams and New Look follow.

- Asda's George brand now commands a 2.9% share of the market - more than Bhs, H&M and Oasis.