Value clothes ranges at Asda and Tesco are threatening higher priced clothes brands at Next, Marks and Spencer and GAP.

A report by retail analysts Verdict - Childrenswear Retailers 2003 - has questioned whether these high street chains should consider pulling out of childrenswear to free up space for clothes categories that bring in better sales.

Value clothing accounts for 27% of the childrenswear market, with Next’s share at 9%, followed by Asda on 8%, with M&S in third spot on 6.5% and Tesco in sixth place with 3.9%.

Tesco revealed that its ‘Back to School’ clothing range doubled in the third quarter to November 15. Finance director Andrew Higginson said its range offered "good design and fantastic value".

Higginson added: "We’ve become a much more credible place to shop for clothes."