Clothing firm Quiz aiming to sew up online sales growth
● Expects most of sales to be digital within two years ● But network of stores still growing in UK and abroad
Glasgow-based womenswear retailer Quiz expects the majority of its sales to migrate online in the next couple of years after revealing that total full-year revenues climbed by nearly a third.
The firm, which floated on the Alternative Investment Market in July, said in a trading update that total revenues for the 12 months to 31 March showed a 30 per cent year-onyear jump to £116.4 million, in line with its expectations.
Sheraz Ramzan, chief commercial officer, told The Scotsman: “We were very pleased with the performance. There’s a lot of momentum in the business and we’re pleased to have achieved the growth that we have in all the channels that we’re operating in. We’re looking forward to continuing that momentum into this new financial year.”
Online sales jumped by just under 160 per cent to £30.6m, and Ramzan said that while the business is not expecting this pace to continue, it does forecast “very strong” online growth to continue overall.
“That will change the shape of the business,” he added, noting that online currently represents about a quarter of company turnover. “We see that proportion increasing, so online, over the next couple of years, will probably represent the majority of the business turnover.”
However, he praised the performance of the firm’s UK stores and concessions, where sales jumped by 12 per cent to £64.6m. Quiz bucked the trend in a highly troubled UK bricks-and-mortar retail sector, which Ramzan attributed to it operating in the fast fashion value sector, and its omnichannel business model.
A recent report from PWC found that on average more than five stores a week closed on the Scottish high street last year, with clothes shops experiencing the largest drop, at 25.5 per cent.
Quiz in its full financial year opened about five net outlets in the UK, and recently opened its latest flagship site in Bluewater. Ramzan, whose father Tarak is founder and chief executive of the group, highlighted plans to open about half a dozen stores this financial year. However, he said most of Quiz’s growth will come from online and international, with the latter seeing a 4 per cent rise to £21.2m, and the firm is to launch its own website in the US this month, having already more broadly opened its brand up to more consumers over the year.
Peel Hunt analysts Jonathan Pritchard and John Stevenson said the trading update “showed that the brand remains in rude health”. British Airways owner International Airlines Group (IAG) has confirmed that it is exploring a potential acquisition of low-cost carrier Norwegian Air Shuttle. IAG said in a stock market announcement that it has acquired a 4.61 per cent stake in the airline, which is “intended to establish a position from which to initiate discussions with Norwegian”, including the possibility of a full offer for the firm. Norwegian Air has expanded rapidly over the last 12 months.