QS was once a Marks & Spencer manufacturer that sold surplus stock and seconds under the Quality Seconds fascia. But by the 1990s retailing had become its main activity with a nationwide portfolio trading from mainly secondary locations.
Two years ago it was bought by Grabal Alok, a joint venture between the Mumbai-based textiles giant Alok Industries and Grabal Albert Grabher of Austria. The company trades from over 200 stores, with more than 800,000 sq ft of sales space, but since the acquisition it has struggled to turn a profit in a highly competitive market.
In the year to 28 March, 2009, parent company Grabal Alok reported a £21.4m pre-tax loss sales of £91.3m. The previous year losses stood at £24.7m.
Under chief executive Anupam Jhunjhunwala the company has unveiled a new turnaround strategy that involves a rebranding exercise and diversification into homewares. And Jhunjhunwala insists the company is well-positioned to thrive in a downturn: “Offering our customers great value, style and quality has not only enabled us to weather the economic downturn, it has helped us to grow,” he says. “We opened five new stores in November alone and with the continued backing of our parent group in India, we plan for this momentum to build throughout 2010.”
Fifty stores have already been rebadged as Store Twenty-One, and the aim is that 150 will trade under the new fascia by the end of 2010. This will be achieved partly by conversions and partly by new openings.
The most recent new openings have been in Retford, Belle Vale in Liverpool, Chard, Tewksbury and Stanley. Sales performance of all five stores is currently exceeding the company’s expectations and this has given further optimism to the new store opening programme.
The company believes it could take on in excess of 50 new sites this year throughout the UK and is utilising three retail property agents to identify locations that fit the current requirements. Smith Price covers the East and South-East of England; GL Hearn the North of England and Wales, and Rowley Hughes Thompson the Midlands, the South West and South Wales. As a measure of its confidence, the group was one of only a handful of retailers represented at October’s BCSC exhibition and showcase in Manchester.
According to John Mortimer at Smith Price the stores required will ideally comprise 4,000 to 6,000 sq ft of sales space plus an additional 1,000 to 2,000 sq ft of ancillary space. The move to a larger store format will allow Store Twenty One to expand its product range into homewares. In the stores that have already been converted, homewares sales are reportedly up 50 per cent year-on-year, and this has given Jhunjhunwala confidence to press on with the diversification strategy.
“We will continue to introduce new suppliers to the business, while also building on the excellent relationships that we have developed with our existing partners,” he said. “Our message is loud and clear - we offer great style, fashion and quality - all combined with incredible value. We always aim to exceed our customers’ expectations.”
- Realm to operate London Designer Outlet
- CBRE boosts UK retail management division
- Charles Miller quits JLL for NewRiver
- Plaudits for Portas
- Four new deals for Buchanan Street development
- Meadowhall opens its doors to young enterprise
- New baby changing facilities at Braehead
- Urban Outfitters chooses Meadowhall
- Planning permission granted for Charter Walk...
- LGP unveils plans for new phase in Hounslow
