Struggling omnichannel fashion retailer Quiz said Thursday that stores sales were flat and digital revenues suffered during the 1 April to 31 May trading period. But following a comprehensive review in March, sweeping changes are coming.
That review now means the business has “greater clarity on our target customer and updating our brand identity to re-align our Marketing and Buying and Merchandising activities”.
So expect an elevation of the brand, including “creating a more aspirational image through refreshed marketing and social media activity”.
There’s also a restructure of its Buying and Merchandising team’s function aiming “to provide a clearer focus on developing our product and pricing strategies”. This includes the recruitment of a new Head of Merchandising as well as increasing the resources available to its buying team.
Quiz will also expand the distribution channels including its recently announced relaunch on Debenhams.com and associated websites.
Meanwhile, the retailer’s newly introduced omnichannel system will improve customer service, “including the option to offer same day click & collect functionality across the store estate”.
But that’s the near future and before it publishes full-year results in late July, the latest update on Thursday wasn’t positive. It showed overall sales slipped by £1.7 million to £13.8 million “impacted by ongoing cost-of-living pressures on [our] customers”. Gross margin performance in the period remained consistent year on year, it added.
Despite the “continued difficult trading environment in the period” Quiz also said it was encouraged by a 12% increase in demand for its product in international territories. That means sales in Quiz stores were “broadly comparable year on year on a like-for-like basis”, but UK online traffic was “severely impacted by the challenging environment and pressures on customers”.
Additionally, the company said it’s continuing to manage its cost base and working capital carefully and is continuing to identify opportunities to improve its revenue and profits.
Also, the group confirmed its £4 million bank facilities have been renewed for a further 12 months. Currently, the group has net borrowings of £1.6 million and a total liquidity headroom of £2.4 million.
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