Quiz reveals 77% drop in sales as it outlines lease renegotiation

Fashion retailer Quiz has revealed a 77% drop in revenues from 1 April to 31 August 2020, with the brand significantly impacted by the Covid-19 pandemic.

This includes a 54% decline in online sales and an 89% fall in in-store sales over this period. Quiz’s eCommerce operations were closed at the end of March until 15 April as it made changes to ensure its distribution centre was safe for its staff.

In the trading update, the brand said online revenues “steadily improved” over this period, and were just 11% lower compared to the previous year.

Following the enforced closure of its stores as a result of Covid-19 lockdown restrictions, the majority of Quiz’s 48 reopened UK stores have recommenced trading in recent weeks. It anticipates a total of 60 of its 75 UK stores will ultimately reopen. However, a number of its 164 concessions operating in the UK have still not reopened as of 9 September. Despite this, it is “encouraged by the consistent improvement in like-for-like sales in recent weeks” in both its standalone stores and concessions.

In light of the customer shift to digital as a result of the Covid-19 pandemic, Quiz also revealed it is making progress renegotiating the lease arrangements with its landlords for its standalone stores. For its 48 UK stores currently operating, rents are predominantly payable based upon revenues generated rather than the traditional fixed rental arrangement. Womenswear brand New Look is currently looking to negotiate a similar arrangement with its unsecured creditors due to the current uncertainty of in-store footfall and sales.

In June, Quiz outlined plans to restructure its store portfolio and become a more digitally focussed business following the pandemic.

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