THE champagne is flowing and fine-frocked women, a kaleidoscope of colour, congregate around the racecourse.

It can only be Ladies' Day at York and, special as it always is, attracting the fashion-conscious from throughout the country, this year's is even more so.

With the course hosting Royal Ascot next year, being stylish has never been more important and it is already time to start thinking about that special outfit.

Andy Willder, managing director of The Hat Company, in the centre of York, said it was already taking orders for next year.

"We are taking orders for top hats and there are a lot of ladies in York already looking for next year, but obviously ranges will change by then," he said.

As one of the region's leading hat retailers, the shop is anticipating Royal Ascot with delight.

"We are expecting a huge increase in demand," said Mr Willder. "We are actually opening a second showroom just for Ascot."

And if the hat shops are waiting for the money to roll in, designer clothes shops are equally optimistic.

The McArthur Glen designer outlet centre on the outskirts of the city has long been associated with Ladies' Day and is keen to capitalise on this next year.

Spokeswoman Becca Potter said: "We haven't confirmed plans for next year, but we are already sponsoring York Tourist Bureau Ascot website.

"It's such a key event and I would imagine we'll see an upturn in trade."

So how did this year's Ladies Day fare in the style stakes?

Making my way to the course was like going to a giant wedding among a sea of bobbing hats. While some were quite conservative it seems that, for many, showing off was the main object, with some peeping from beneath what appeared to be entire ostriches.

Also extremely popular were feathers and "fascinators" (decorative pieces that fit into the hair).

Outfits covered the entire colour spectrum, from black and white to pastels, with the occasional splashes of red or cerise. There were also plenty of creams, chocolates and neutrals.

Clearly, a great deal of effort has gone into creating the looks, as was confirmed by Holly Teague, 18, from Saddleworth, Manchester.

Holly was there with her mother, young sister and two friends, and was eye-catching in tight-fitting lace.

"I wanted something orange and backless and my dress was £250 from a shop in Manchester," she said.

"We're planning on coming next year and we're going to blow our student loans on dresses."

With such dedication to the cause, it seems that York is sure to shine for Royal Ascot.