Fast fashion retailer Quiz will seek to save an additional £3m in costs as it battles falling profits, its senior leadership has told Drapers.
Profit before tax tumbled by 97% to £200,000 in the year to 31 March as Quiz battled a “volatile” trading environment. Group revenue increased by 12% to £130.8m, driven by a 34% spike in online sales.
The Glasgow-based business has not ruled out store closures and will focus on improving margins and shaking up its supply base.
“We’re not throwing the baby out with the bath water – our offering still resonates with customers but there are a number of areas we need to address,” said chief commercial officer Sheraz Ramzan.
“There’s a negative trend to address when it comes to store footfall that we need to manage and going forward, that could mean rent reviews or possible closures. We’re also taking steps to improve margins, by looking at delivery costs, more effective marketing and challenging suppliers when it comes to our cost base.”
Quiz will explore working with new sourcing countries in Asia and closer to home, although it declined to reveal exact locations.
The retailer has also accelerated its omnichannel strategy and has reviewed its pricing architecture, Ramzan added.
“The biggest challenge has been footfall into our estate, so we will do a number of things to address that, including developing a single view of stock, fulfilling orders from store and offering same day click and collect. We’re also raising our pricing architecture across key categories to drive average transaction values. We can round up prices in a number of categories without having too big an impact on the customer.”
Quiz operates 73 stores and 174 concessions in the UK.