Fashion retailer QUIZ is looking to make costs savings in the year ahead after reporting a drop in sales today.
In a market update this morning, the Glasgow firm also confirmed that its founder and CEO - Tarak Ramzan - is to step down with immediate effect.
He is being replaced by the retailer's chief commercial officer, Sheraz Ramzan, who is stepping up to fill his father's shoes.
He will now implement a turnaround strategy to recalibrate the QUIZ brand, its product offering, and "reconnect with consumers" with the aim of moving the business back into profitable growth.
Tough conditions
QUIZ - which has a major outlet in Union Square - said UK sales continue to be impacted by subdued levels of traffic both in-store and online.
Sales in the period from 1 January to 29 February 2024 amounted to £8.6million, a £0.9million or 9% reduction on the prior year period from 1 January to 28 February 2023. Cumulative sales for the period from 1 April 2023 to 29 February 2024 amounted to £74.4million, a £10.3million or a 12% reduction on the prior year period from 1 April 2022 to 28 February 2023.
Today's update confirms plans to make savings this year to boost profitability.
"The Group is taking a number of positive steps to counter the impact of the declining revenues including targeting cost savings for the forthcoming year, eliminating loss making activities, reviewing operational efficiencies and optimising its product offer," it said.
Succession
Announcing the changes at the top of the company, Peter Cowgill, Non-Executive Chairman, said: "The UK apparel market has undergone significant well reported changes since QUIZ 's IPO in 2017 and it continues to evolve at pace.
"The Board changes announced today provide an opportunity for a fresh vision and new leadership approach to create value for all shareholders. I look forward to working closely with Sheraz, following his well-deserved promotion to CEO, to determine the optimum path forward for the business.
"On behalf of the Board and everyone at QUIZ, I want to express our sincere gratitude to Tarak for his strong leadership and unwavering commitment since founding the business. Tarak is an exceptional entrepreneur and I have greatly enjoyed working with him in my capacity as Chairman since 2017. I look forward to his continued support and input as a Non-Executive Director and major shareholder."
Sheraz Ramzan, Chief Executive Officer said: "I look forward to transitioning into the CEO role and working closely with Peter and the rest of the Board to drive change and successfully implement a turnaround strategy, maximising value for all shareholders."
Outgoing boss Tarak Ramzan added: "I am grateful to all my colleagues and our customers for their support over the past 31 years in my role as CEO of QUIZ. Now is the right time for me to move on from the role and I am confident that Sheraz - with Peter and the Board's valuable support - will take the business forward in what remains a dynamic and challenging retail environment."
FTSE 100
The UK's flagship share index, the FTSE 100, was up one point at 7,931 shortly after opening this morning.
Brent crude oil futures was up 0.35% today, trading at $85.71 a barrel.
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