23 January 2024 , 15:34
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Fashion chain Quiz has revealed that a squeeze on shoppers due to higher prices led to a drop in its sales of over £1 million during the festive season.
The company reported an 11% decrease in December sales compared to the same month last year, with total sales amounting to £8.7 million. The firm attributed this decline to consumers feeling the pinch as inflationary pressures increase the cost of living.
This resulted in fewer people splashing out in stores and online during the typically busy Christmas shopping period. Quiz, known for selling women's occasionwear like dresses and jumpsuits, had already experienced a weak Black Friday.
In December, the company warned investors that its annual sales were likely to be lower than previously expected due to a "prolonged period of challenging trading". However, the retailer remains confident in achieving the current full-year outlook. Chairman Peter Cowgill, who previously led the board at JD Sports, announced that the company had launched a strategic review following the weaker financial performance.
The findings of this review are expected to be reported by the end of March. In contrast, rival fashion retailer Boohoo informed investors that it was trading in line with market expectations, despite previous warnings that its full-year sales could fall by up to 17%.
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The company is also running at a loss, with pre-tax losses hitting over £25 million at half-year. It has highlighted a more challenging trading environment and decreased consumer demand.
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