Marks and Spencer and Arcadia are losing their market share in women’s clothing to discounters such as George at Asda, a report suggests.

The report, Verdict on Women’s Retailers 2005 by Verdict, found that M&S and Arcadia have lost nearly 4% of their market share to the eight largest discounters.

In contrast, discounters such as George at Asda, Primark and New Look, increased their market share from 10.3% to 17.6%.

Maureen Hinton, author of the report said: “Middle market players are evolving their models as they struggle to compete with this price competition. Margins will continue to be squeezed and we expect to see more casualties.”