Quiz records declining sales pre and post Covid

Fashion brand Quiz has recorded a 10% year-on-year revenue decline in the year ended 31 March 2020. It said this was due to “macroeconomic” challenges throughout the year as well as the impact of the Covid-19 pandemic at the end of the period.

A fall in revenue occurred both online and in-store, with eCommerce declining by 9% year-on-year, primarily as a result of lower sales via third-party websites. Sales from UK stores and concessions dropped by 12%.

Quiz also revealed that online sales made up 31.8% of total group revenue in this period, which compares to 31.4% in the previous year, while its active online customer base went up by 11% to 638,000.

In the trading update, the fashion retailer also outlined the impact of the Covid-19 pandemic on its business, with total sales declining by 73% in the six months to 30 September. This was caused by the closure of stores and concessions for a number of months as well as the suspension of its eCommerce business at the start of the crisis.

Last month, Quiz said it was in the process of renegotiating lease arrangements with its landlords for its standalone stores in light of the customer shift to eCommerce. And in today’s update, it revealed it has successfully achieved restructuring in a number of its stores, “resulting in lower future rental costs and more flexible leases”.

Tarak Ramzan, founder and chief executive officer at Quiz commented: "Whilst we are pleased with the further growth in our customer base during FY20, this was a challenging year for Quiz characterised by macro-economic uncertainty and challenges presented by the accelerating structural shift towards online retail. In addition, from early March the Group, along with the wider retail sector, faced significant challenges as a result of the Covid-19 pandemic. The Board has taken decisive action to protect its customers and its people, preserve liquidity, and restructure its store estate to align the Group's business model to the new reality of store retail.”