CAPITAL MARKETS DAY 21 June 2018 PRESENTING TEAM
EXPERIENCED SENIOR MANAGEMENT
PETER COWGILL TARAK RAMZAN GERARD SWEENEY SHERAZ RAMZAN OMAR AZIZ NON–EXECUTIVE CHIEF EXECUTIVE CHEIF FINANCIAL CHIEF COMMERCIAL RETAIL OPERATIONS CHAIRMAN OFFICER OFFICER OFFICR DIRECTOR
HAROUN SALEEMI LESLEY MORTON KAREN DOUGALL HARRY BUTT KEITH AUSTIN HEAD OF E-COMMERCE HEAD OF MARKETING HEAD BUYER HEAD OF MENSWEAR INTERNATIONAL
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 2 INTRODUCTION
Peter Cowgill
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 3 WELCOME TO QUIZ’S CAPITAL MARKETS DAY
AGENDA
TIME TOPIC PRESENTER
14:30 – 14:40 WELCOME & INTRODUCTION PETER COWGILL
14:40 – 14:50 STRATEGIC VISION TARAK RAMZAN
14:50 – 15:10 FINANCIAL STRENGTHS & KPIs GERRY SWEENEY
15:10 – 15:30 BRAND & MARKETING LESLEY MORTON
15:30 – 15:50 PRODUCT & BUYING KAREN DOUGALL & HARRY BUTT
15:50 – 16:00 Q&A
16:00 – 16:10 BREAK
16:10 – 16:30 UK RETAIL OMAR AZIZ
16:30 – 16:50 INTERNATIONAL EXPANSION KEITH AUSTIN
16:50 – 17:10 ONLINE GROWTH HAROUN SALEEMI
17:10 – 17:30 Q&A
17:30 – 19:30 Smiths of Smithfield 67-77 Charterhouse St, Clerkenwell, London, EC1m 6HJ
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 4 THE DRIVERS OF OUR OPPORTUNITIES
ESTABLISHED AND SIGNIFICANT AND GROWING OMNI-CHANNEL DISTINCTIVE BRAND FAST-FASHION MARKET FLEXIBILITY
CLEAR INTERNATIONAL STRONG FINANCIAL TRACK SKILLED, PASSIONATE AND OPPORTUNITIES RECORD DEDICATED MANAGEMENT TEAM
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 5 SENIOR MANAGEMENT TEAM
TARAK RAMZAN Founder & Chief Executive Officer
SHERAZ RAMZAN OMAR AZIZ GERRY SWEENEY Chief Commercial Officer Retail Operations Director Chief Financial Officer
PRODUCT GROWTH DISTRIBUTION OPERATIONS
HEAD OF IT HEAD OF HEAD OF RETAIL Operations BUYING & DESIGN TEAM Scott Cottingham INTERNATIONAL OPERATIONS Karen Dougall & Harry Butt Keith Austin Omar Aziz HEAD OF E- HEAD OF ACCOUNTS COMMERCE OperationsAlex Knox HEAD OF Haroun Saleemi MERCHANDISING HEAD OF MARKETING HEAD OF DISTRIBUTION Katie Williams & SOCIAL MEDIA CENTRE HEAD OF HR Lesley Morton Allan More OperationsJason Swandells
ETHICAL COMPLIANCE MANAGER Natasha Staddon
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 6 STRATEGIC VISION
Tarak Ramzan
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 7 QUIZ TODAY
OUR OMNI-CHANNEL FAST FASHION OFFERING
Established and distinctive fashion brand
More than 300 standalone stores, concessions, franchise stores across 20 countries
Proven infrastructure and “test and repeat” fast fashion supply chain
Employs more than 1,500 people
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 8 STRONG & DISTINCT BRAND
OUR VIEW OF THE COMPETITIVE ENVIRONMENT:
DRESSY WEAR FOCUS Coast Lipsy London Destination brand for evening wear, occasion wear, prom wear and the latest fashion trends
Brand appeals to broad age range of women who like to dress up Miss Selfridge Oasis Boohoo River Island Stands-out on quality and style, BRICKS & MORTAR FOCUS ONLINE FOCUS Topshop Missguided not just price PrettyLittleThing New Look ASOS Zara Strong brand with clear USP H&M enables multiple routes to market Primark
CASUAL WEAR FOCUS
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 9 CLEAR GROWTH STRATEGY
STORES & CONCESSIONS INTERNATIONAL ONLINE
STRATEGIC VISION TO BECOME A GLOBAL OMNI-CHANNEL FAST-FASHION BRAND
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 10 FINANCIAL STRENGTH AND KPIs
Gerry Sweeney
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 11 REVENUE GROWTH TRACK RECORD
£m 120 CAGR Stores & concessions 12.1% International 27.8% 100 Online 58.2% Total 21.3%
80
60
40
20
0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Stores and concessions International Online
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 12 MARGIN ENHANCEMENT
Operating/EBITDA % Gross Margin % 12 64
10 62
8 60
6 58
4 56
2 54
0 52 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Operating Margin EBITDA Margin Gross Margin
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 13 PROGRESS AGAINST FINANCIAL KPIs
Underlying Revenue (£m) Gross Margin (%)
FY 18 FY 18
FY 17 FY 17
FY 16 FY 16
0 20 40 60 80 100 120 60 60.5 61 61.5 62 62.5 63
Adjusted EBITDA (%) Underlying Cash Flow from Operating Activities (£m)
FY 18 FY 18
FY 17 FY 17
FY 16 FY 16
0 2 4 6 8 10 12 0 1.5 3 4.5 6 7.5 9
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 14 INVESTMENT FOR LONG TERM GROWTH
180K SQ. FT. DC NEAR GLASGOW OPERATIONAL EFFICIENCY & DE-RISKED FASHION MODEL OPENED IN 2016 AGILITY SUPPORT FAST FASHION • Stock cover of approximately 8 weeks for SUPPLY CHAIN • Capable of being able to distribute c.450k own stores, concessions and web items to stores each week • Fully integrated ERP & POS system – gives live • Disciplined pricing policy • 120k online orders per week based on the stock & sales information • Strict ROI criteria for key investment current fixed resources and working hours • Implementing new CRM system decisions • Stores receive new styles every working day received by the DC the previous day
COULD SUPPORT 3x GROWTH IN PEOPLE STRONG BALANCE SHEET AND SALES WITHOUT SIGNIFICANT CASH RESERVES • Refurbished and extended head office to FURTHER INVESTMENT accommodate enlarged teams • Business grew by re-investing profits in • Expanded DC in Autumn 2017; increased • Built in-house photography studio for previous years space by 40% to 232k sq.ft campaign shoots • IPO provided cash to accelerate growth plans • Further space to extend into • Head office of c.33% since IPO • Cash of £9.2m at 31 March 2018 to support • Scope to substantially extend working hours future expansion
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 15 MANAGING OUR SUPPLY CHAIN
• The ethics of our supply chain is a continual priority for the Group
• We benefit from long-term supplier relationships and the fact that QUIZ does not compete purely on price
• Appointed Ethical Compliance Manager in April 2018 – reporting into the Operational Board
• Responsible for overseeing the suitability of the Company’s supply chain and responsible sourcing strategy
• Implemented QUIZ’s Ethical Code of Practice and Supplier Manual • Committed to operating in accordance with the core principles of the ETI base code
• Focused on ensuring that all products are produced in a safe working environment, sourced responsibly and where workers’ rights are respected
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 16 BRAND AND MARKETING
Lesley Morton
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 17 THE QUIZ BRAND
A very broad age range; cater Occasion driven from race days not just for the 16-35 crowd, Offers quality and value for to proms and weddings to but also for the slightly older money products birthday celebrations. QUIZ is fashionista who has grown up synonymous with going “out- with QUIZ out”
We are a destination brand for fashion-conscious women looking to dress for some of the most memorable occasions of their lives…
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 18 THE QUIZ QUEENS CUSTOMER SHARED CONTENT: OWNED CONTENT:
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 19 CUSTOMER PROFILES
16-30 YEARS OLD 30+ YEARS OLD
• Primarily shops online (mobile first) and on our app • Has grown up with QUIZ • Very sociable • Shops online and in store as part of a shopping • Influenced by social media and celebrity world occasion – e.g. Saturday shopping with kids, lunchtime • Tied to her mobile shopping, or girls days out • Loves fashion but doesn’t stray off the beaten track to • Trend follower, not trendsetter find it: favourite bloggers, magazines, TV shows and • Influenced by TV, social media Instagram are all key to identify new trends and outfits • More brand loyal but also value-driven • Value-driven rather than brand-loyal • Engaged in-store, through magazine, press, TV, • Engaged through social media, digital marketing advertising and social media (mobile-first), influencers, events and partnerships
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 20 CUSTOMER LIFECYLE
AWARENESS ACQUISITION ONBOARDING ENGAGEMENT ADVOCACY
• Celebrity collaborations • B2C events • Welcome e-mails • Email marketing • Product reviews • Organic & paid social • Affiliate marketing • Abandoned basket • Social Media: • #QUIZQueen • Influencer marketing • E-Mail marketing campaigns • Influencer content • Trustpilot • SEO • Competitions – in-store, • Paid search - re-targetting • Ads • Loyalty schemes • Social online and social • social media • Stories • Advertising • SMS campaigns • Transactional e-mails • PR • App • Abandoned browse • Paid search – prospecting • In-store data capture campaigns • Brand partnership • In-store magazine • Re-engagement e-mails • Stores • Delivery notes • Third party marketing • Landing pages • Digital lookbooks • Video content • Push notifications • Blogs • VIP events • Email receipts
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 21 DIGITAL MARKETING TO SUPPORT ONLINE GROWTH
REACH ACT CONVERT ENGAGE
Acquisition strategy to build awareness of web presences Conversion rate optimisation, home-page optimisation, Content marketing SEO, pay per click landing page optimisation, AB testing, PPC retargeting, strategy, e-mail (prospecting), affiliate e-mail marketing (abandoned basket, re-engagement marketing, loyalty marketing, display campaigns) schemes, e-receipts etc. (prospecting), online PR content, social media marketing and influencer marketing
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 22 INFLUENCER MARKETING IMPACT
90% 50%
Of consumers trust peer User generated content is recommendations 50% more trusted by internet users than traditional media
71% 81%
Consumers 71% more likely Of US consumers trust to make a purchase based advice and information from on social media referrals blogs
source: Neil Patel • Outreach 100+ bloggers per week ranging from micro-bloggers with 10k+ followers, to influencers with over 1m followers • Our hashtag #quizqueen allows us to pull this UGC • The role of influencers: • Authenticity • Content generation • Reach • Awareness
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 23 CAMPAIGN APPROACH
TV
BRAND PR PARTNERSHIPS
EVENTS ADVERTISING
MAGAZINE DIGITAL CONTENT MARKETING
SOCIAL TRADE MEDIA MARKETING CONTENT
STORE INFLUENCER BRANDING MARKETING AND POS
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 24 RESULTS
SOCIAL ENGAGEMENT
9m+ total ad impressions 100,000+ views
13,500 likes 60,000+ views of Instagram Stories
20,000 new Instagram 5000+ new searches for followers QUIZxTOWIE
Engagement from launch of QUIZ x Towie on 10th May - QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 25 15th June KPIs & MEASUREMENT
Exposure Engagement Impact Advocacy PAID • Impressions • Engagements (paid social) • Web visits • Mentions in earned • Reach • Click-thrus • Attending event channels TV, out of home advertising, • Frequency • Page views (landing pages) • Sales conversion • Recommendations partnerships, collaborations, PPC, • Viewability • Interactions • Code redemptions • Referrals display, paid Influencers, social ads, • Completed Views • Reviews paid content • Impacts
OWNED • Traffic – sessions and • Return visitors • Sales • Repeat visitors visitors • Page views per visit • Blog reads • Mentions in earned Websites, mobile site, app, blog, • App Downloads and usage • Magazine downloads channels social media channels, magazine, • Subscriptions (newsletter / blog) • Instore data capture • Recommendations retail stores and concessions, • Interactions: clicks, views, likes, • E-mail Sign-ups • Referrals franchise partners comments • App • Reviews • Footfall
SHARED • Organic impressions • Likes / followers • Store visits • Mentions in earned • Organic reach • Comments • Sales conversion channels Social media, referrals – where • No. of followers • Shares • Attend event • Recommendations brands and customers interact • Replies • Tagging friends • Referrals • Retweets • Reviews • Hashtag usage • Hashtag Usage
EARNED • Reach of press coverage • Mentions • Web visits • Mentions in earned • No. of blogger posts • Impressions on blog posts • Attending events channels Media relations, blogs, influencer • No. of customer reviews • Footfall in stores • Recommendations elations (non-paid), customer • Competition Entries • Promo redemptions • Referrals reviews • No. of reviews • Reviews
RETURN ON INVESTMENT
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 26 GROWTH OF THE QUIZ BRAND
(000) Instagram followers (000) Facebook likes 350 700 300 600 250 +387% 500 +104% 200 400 150 300 100 200 50 100 -
-
Jan… Jan… Jan… Jan…
Ma… Ma… Ma… Ma… Ma… Ma… Ma…
Nov-… Nov-… Nov-…
No… No… No…
Mar-… Mar-… Mar-… Mar-…
Sep… Sep… Sep…
May-… May-… May-…
Jul-15 Jul-16 Jul-17
Jan-15 Jan-16 Jan-17 Jan-18
Sep-15 Sep-16 Sep-17
Jul-15 Jul-16 Jul-17
(000) (000) Traffic Online active customers 35,000 400 30,000 350 25,000 +68% 300 +307%
20,000 250 200 15,000 150 10,000 100 5,000 50 0 0 2012 2013 2014 2015 2016 2017 2018 FY 2015 FY 2016 FY 2017 FY 2018
Active customers defined as customers who have purchased in QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 27 the last 12 months RETURN ON INVESTMENT
(£m) 2.5 120
100 2
80 1.5 c.£7 60
1 40 FY18 cost per customer acquisition in the UK 0.5 20
0 0 2016 2017 2018 Revenue Marketing
INCREASED MARKETING INVESTMENT DRIVING ACTIVES AND SALES; HOWEVER RATIO REMAINS RELATIVELY LOW
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 28 LOOKING AHEAD
MORE DIGITAL ACTIVITY MORE INTERNATIONAL ACTIVITY MORE BRAND TRACKING MORE TOOLS TO GIVE US A – CAMPAIGNS AND CONTENT SINGLE VIEW
MORE COLLABORATIONS MORE INFLUENCERS INVESTING IN MARKETING TEAM – PROVIDING RESOURCE AND COUNTRY FOCUS
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 29 PRODUCT & BUYING
Karen Dougall Harry Butt
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 30 BUYING, DESIGN AND MERCHANDISING ADVANTAGE
30 people across design, 80% of all products Focus on not only fast Supply chain enables fast Business model allows us buying and designed in-house fashion but great fit, production and rapid to continually reduce merchandising quality and value for repeats: we can give our slow moving stock Total SKUs increased 30% money as well. customers what they in FY18 to c.2,300 want, when they want it Provides ability to flex spend into high demand categories.
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 31 BUYING, DESIGN AND MERCHANDISING APPROACH
CATWALK INSPIRATION STORE FEEDBACK
RIGHT PRODUCTS | RIGHT TIME | RIGHT PRICE
SOCIAL MEDIA FEEDBACK & “TEST & REPEAT” MODEL ENGAGEMENT
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 32 COMPLETE OUTFITS TO CAPTURE & MAXIMISE SPEND
34% DRESSES & SKIRTS from £12.99 – £120.00
23% BLOUSES & TOPS from £4.99 – £29.99
10% PLAYSUITS from £19.99 – £44.99
10% OUTERWEAR & KNIT from £19.99 – £79.99
7% FOOTWEAR from £17.99 – £44.99
6% JEANS & BOTTOMS from £7.99 – £34.99
5% ACCESSORIES from £6.99 – £34.99
3% CURVE from £19.99 – £79.99
2% JEWELLERY from £2.99 – £16.99 RELEVANT & FLEXIBLE PRODUCT RANGE TO SUIT CUSTOMER DEMAND QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 33 “TEST & REPEAT” – TRUE FAST FASHION
Styles & trends Products available for identified & sale in stores & online developed next day delivery In-house team selects New products supplied designs to stores every day
DC allocates Fabric sourcing & products to stores & sampling process online 1 – 5 days 1 – 2 days
Transport product to Product QUIZ manufacturing • 1 – 2 days from UK • Up to 7 days in the UK • Up to 5 days from Far East by air • 7 – 21 days in the Far East • Up to 21days from Far East by sea
CATWALK / SOCIAL MEDIA TO STORE IN 2 – 4 WEEKS
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 34 CATWALK TO QUIZ
FROM DESIGN TO STORE WITHIN 28 DAYS
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 35 CATWALK TO QUIZ
FROM DESIGN TO STORE WITHIN 28 DAYS
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 36 QUIZMAN
• Trial collection crafted to complement the USP of womenswear - designed to offer a smart dressy look which flows from work to a night out
• Created to fill a gap – providing top brand looks at a value for money prices but not at a lower quality
• Leveraging the Group’s infrastructure, the brand, team and supply chain to explore opportunities in fastest-growing segment of QUIZMAN – initial concept mood boards market
• Initial trial of 100 SKUs across casualwear to tailoring with the addition of knitwear and outerwear for A/W 18
• QUIZMAN.com launched in April 2018; also trading on NEXT which has been well received; Debenhams to follow shortly
• Monitoring potential with future plans to grow through third –party concessions, internationally and on QUIZMAN.com
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 37 QUIZMAN – PRODUCT “USP”
Price: £69 Price: £29
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 38 UK RETAIL
Omar Aziz
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 39 QUIZ’s UK RETAIL PRESENCE
PROFITABLE & PRIME MORE THAN JUST GROWING PILLAR LOCATIONS STORES
FY18 total retail sales New stores are always in Build brand awareness increased 12%; store prime location of centres and reflect QUIZ’s traffic increased 5.6% glamorous, Vast majority in malls, aspirational identity Flexible leases and strong with a mix of regional economics flagships, town centres Support online growth and local shopping through digital kiosks, in- Currently operate 71 destinations store iPads, Click & stores and 147 Collect and fulfilment concessions in the UK
UK Retail Space – Square Footage (000 sq. ft.)
FY 18
FY 17
160 200 QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 40 FLEXIBLE AND AGILE STORE ESTATE
STORE LOCATIONS • Flexible demand-led store estate with five year typical lease length Scotland • Average time on leases remaining is 29 months 22 stores • No legacy leases or upward only rent reviews
Northern • Potential new sites subjected to rigorous assessment Ireland process and incentives attained to reduce cap-ex 7 stores North East exposure 9 stores • ROCE payback target for stores within 24 months North West • Last 12 sites which have been opened for 67 stores East Midlands more than one year achieved a 22 month 4 stores payback Wales & West Midlands 5 stores London & South East 13 stores South West 4 stores PROFITABLE ESTATE SHORT LEASES MINIMISED RISK
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 41 QUIZ’S RETAIL MODEL
COMPELLING STORE EXPERIENCE
CONTINUALLY TRAINING & IN STORE CONTINUAL REFRESHED SERVICE TECHNOLOGY REFURBISHMENT STOCK PROGRAMME
New In store staff Pads and digital Upgrading look, feel and product delivered in are trained kiosks broaden design of stores store each week for and focused on range and availability in-store merchandising offering a personal Sales increase of and window display: service to c.10% post refurb, in educating our every customer conjunction with the customer to visit flexible lease structure regularly and landlord incentives, ensures the investment is self funding
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 42 THE (NEW) ROLE OF THE STORE
• The store's role is changing with the increasing convergence with online and off-line routes to market • Stores offer customers a physical touchpoint helping to build brand equity, loyalty and convenience • QUIZ stores tie-in with social media and marketing campaigns to drive traffic and create exciting spaces for our customers to visit • Huge marketing potential and ability to 'showcase' the brand gives a significant advantage over pure-play online retailers • Act as a successful model for franchise partners and international opportunities • Flexible approach, strict ROI criteria, prime locations and continued investment provides solid base going forward
65% 5.6%
of shoppers browse online and increase in store footfall for FY18 then buy in-store (Source: CMO 2017)
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 43 FLEXIBLE AND PROFITABLE CONCESSIONS
• Concessions provide an additional pillar in our omni-channel strategy • They provide access to a different and often more affluent customer base, helping to increase brand awareness including online • QUIZ is one of leading brands by sales density amongst many of our concession partners • Minimal cap-ex and ROCE benchmark of 12 months – limited closures required in recent years • No fixed lease terms so can exit when necessary relatively quickly • Ability to scale up overseas opportunities with our concession experience
12% 97%
FY18 concessions of QUIZ concessions sales growth are profitable
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 44 AN OMNI-CHANNEL EXPERIENCE
• Our in-store experience offers a smooth transition between online and the physical shopping experience • Click & Collect, iPads and digital kiosks access to offer our full inventory at point of sale • Introduction of e-receipts to capture customer data and better tailor our marketing
What’s next?
• Give store staff visibility of relevant customer data to help engage with the customer e.g. customers online wish lists or social likes
• Use of visual media in-store to promote the QUIZ identity
• In-store customer social interactions to help promote QUIZ through the customers social network
• Continually refine and improve customer ordering & convenience
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 45 THE WAY AHEAD
• The physical side of retail is here to stay: used effectively stores are a real asset and an important part of engaging with the customers and building brand loyalty • Brands that can complement the online and off-line routes to market will have the best chance of growing total market share • We will continue to invest in product, technology and store experience to maintain a compelling store experience • QUIZ DNA is all about flexibility, agility and speed: we can follow the customer and adapt to whichever channel suits the market we are operating in • Continue to appraise openings with between five and seven new UK stores anticipated in the year ahead
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 46 INTERNATIONAL EXPANSION
Keith Austin
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 47 CLEAR GROWTH STRATEGY
STORES & CONCESSIONS INTERNATIONAL ONLINE
STRATEGIC VISION TO BECOME A GLOBAL OMNI-CHANNEL FAST FASHION BRAND
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 48 GROWING INTERNATIONAL BRAND
32% 18% 300 20 +
FY18 international revenue FY18 international sales as a QUIZ outlets** worldwide Countries with growth* proportion of Group QUIZ stores
International outlets serviced
FY 18
FY 17
0 16 32 48 64 80
*International sales comprise the results from QUIZ standalone stores and concessions in the Republic of Ireland, standalone stores in Spain and franchises in 20 countries. Figures refer to underlying sales which exclude non-recurring wholesale revenue in relation to Spain in the year ended 31 March 2017. ** Including UK standalone stores, UK concessions, international franchise stores, concessions, wholesale partners & international online partners
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 49 “LAND AND EXPAND” INTERNATIONAL STRATEGY
Department stores (wholesale / concessions)
Own stores Factors to consider - Strategic developed • Market size/development Five vertical markets • Operational complexity routes to International • Brand awareness customer Franchise stores team to drive give - Developing markets • Partner availability individual significant • Local legislation market flexibility • Financial economics (e.g. requirements Own websites ROCE) • Capital requirements Partner websites - Access different customers - Build brand awareness
USING A LOW-RISK APPROACH TAILORED TO THE INDIVIDUAL MARKET OPPORTUNTY
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 50 ESTABLISHED OMNI-CHANNEL & INTERNATIONAL BRAND
Europe 7 standalone stores in Ireland 20 concessions in Ireland 3 standalone stores in Spain UK QUIZ country specific website in Spain Zalando online partnership selling into Germany 71 standalone stores 147 concessions
Own website 5 online partners
Africa, Middle East & Asia
70+ franchises stores / wholesale partners
Myntra, Namshi & Sivvi – online partners US
Wholesale to department stores QUIZ country specific website planned for 2018
* Including UK standalone stores, UK concessions, international franchise stores, concessions, wholesale partners & international online partners
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 51 INTERNATIONAL GROWTH FOCUS FOR 2019
MIDDLE-EAST SPAIN USA
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 52 MIDDLE EAST – MUTLI-CHANNEL EXPANSION
LAND EXPAND OPPORTUNITY
Franchise operations Successfully transitioned Opportunity to open up were initially established partners from wholesale to 12 stores in the region in the Middle East in 2006 to consignment models – in the next 12 months giving double digit growth Anticipate opening further First in Riyadh, Saudi for both the partner and Arabia and Dubai franchise outlets in QUIZ current financial year The customer profile and Now in multiple countries Third party wholesale QUIZ product of maxi in the Middle East. QUIZ online is growing dresses and long gowns, partners have the right exponentially as mobile and shopping experience infrastructure, culture and increases complimented the QUIZ influence with the brand landlords to open stores in the right location With two partners opened 29 stores in Saudi Wholesale agreement Arabia, eight stores in with leading market UAE, three in Jordan and player seven in Egypt
Potential of sales growth in excess of 20%
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 53 SPAIN – ESTABLISHING THE BRAND
LAND EXPAND OPPORTUNITY
Wholesale opportunity Three stores opened in Allow for a full year’s with stock package which Madrid in Autumn 2017 – sales before committing launched in 2016 – first outside UK and ROI to any further demonstrated strong expenditure – prudent and measured appetite in the Spanish Same investment criteria applied; leases with five market year term The brand continues to resonate well in the It was a low risk approach Website launched in Spanish market as we to test the market September 2017 continue to track market specific opportunities Core product offering similar to the UK but Steady improvement in styles tailored for Spanish sales through 2018 market Supported by experienced Area and General Managers
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 54 USA – EXPLORING THE POTENTIAL
LAND EXPAND OPPORTUNITY
Entered through wholesale Product being sold through Look to develop offline and pop-up in Lord & Taylor Lord & Taylor website online opportunities with department stores in selling well – 30% of QUIZ department stores December 2017 sales were though the throughout the states website Strong reaction to pop-up Increase brand awareness through partnership store led to a rollout from Resulted in the launch of marketing with Walmart and four to 30 stores from Lord & Taylor April 2018 – Lord & QUIZ US website in April Taylor’s fastest rollout for 2018 a ladies fashion brand Lord & Taylor recently Leverage Lord & Taylor’s partnered with customer base; USA huge Walmart.com as their market opportunity premium fashion solution Lord & Taylor known for its dressy proposition – QUIZ is a filling a gap in their assortment – win, win opportunity
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 55 ONLINE GROWTH
Haroun Saleemi
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 56 CLEAR GROWTH STRATEGY
STORES & CONCESSIONS INTERNATIONAL ONLINE
STRATEGIC VISION TO BECOME A GLOBAL OMNI-CHANNEL FAST FASHION BRAND
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 57 QUIZ ONLINE
4 5
own brand websites: QUIZ Online with third parties UK, QUIZ US, QUIZ ES and including Next, Debenhams QUIZMAN and Zalando
102% 158%
Growth in FY18 online sales FY18 online revenue through QUIZ own growth – QUIZ’s fastest websites and apps growing channel
RAPIDLY GROWING ONLINE PRESENCE
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 58 HOLISTIC ONLINE EXPANSION STRATEGY
RAPID ONLINE GROWTH
QUIZ websites 40% FY18 online sales Great product & Partner exclusive websites collections 60% FY18 online sales RAPID ONLINE GROWTH Apps Marketing & Currently 5% of awareness QUIZ website sales In-store iPads, kiosks and click & collect C&C represented 25% of FY18 online sales
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 59 FOCUS AREAS
TECHNOLOGY & COUNTRY SPECIFIC THIRD-PARTY DEVELOPING EXCLUSIVE INNOVATION WEBSITES WEBSITES MOBILE CHANNELS PRODUCT & COLLECTIONS Investment in in-house Multi-currency and multi- Successful launch with Fastest growing channel development team domain ecommerce Zalando in May 2017 Curve launched initially platform New Android and iOS online only in March 2017 Amazon Web Services to Strong growth with app launched in October Launched Spain Next, started in H2 2017 2017 Bridal initially online only support global growth (September 2017) and US in April 2017 In-house studio – agility (April 2018) QUIZMAN.com and speed
Complex integrations with third party platforms - Using API technology
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 60 RESULTING IN POSITIVE TRENDS ACROSS KPIs
Online Sales Online Sales as a % of Turnover
FY 18 FY 18 FY 17 FY 17 FY 16 FY 16
0 6 12 18 24 30 % 0 6 12 18 24 30 %
Active Online Customers (000)
FY 18
FY 17
FY 16
0 80 160 240 320 400
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 61 RESULTING IN POSITIVE TRENDS ACROSS KPIs
(000) (m) Total traffic Mobile traffic 25 16 14 20 +314% +165% 12 15 10 8 10 6 4 5 2 0 0 2015 2016 2017 2018 2015 2016 2017 2018
£ Average basket size % Conversion rate 52 2.5 50 +57% 2 48 +16% 46 1.5 44 1 42 40 0.5
38 0 2015 2016 2017 2018 2015 2016 2017 2018
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 62 WHAT’S NEXT
CONTINUED ONLINE GROWTH
EXPERIENCE PERSONALISATION INNOVATION EXPANSION Next day delivery cut off Advanced analytics and AI - post purchase Continued investment in improved to 7pm personalisation tools experience e.g. chatbots product and exclusive Same day delivery (to collections store) New marketing platform - AR – create engaging in- single customer view store mobile experiences New and optimised New Pick Up options: product ranges for all ASDA & Hermes Automated and third party sites Annual delivery pass personalised marketing activities New territories with Payment options: Klarna, Zalando Amazon pay Mobile - new checkout & visual Search New best in class platform to optimise online experience - product listing pages, basket and checkout etc. QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 63 CLOSING REMARKS
Q&A
QUIZ CAPITAL MARKETS DAY 21 JUNE 2018 64