QS to dispose of 34 stores as it rethinks estate

The retailer, which is owned by Indian textiles company Alok, will axe stores across the UK, including one in Solihull, Birmingham, where it its headquarters are.

The disposals have raised eyebrows in the fashion sector, coming only a week after it claimed to have plans to expand its 204-store portfolio by more than a fifth.

Chief executive David Pidgeon said: “It is a re-engineering of our portfolio. We are categorically looking for a net increase and not a net decline in store numbers.”

He said QS will continue to roll out the rebranding of its shops under the Store 21 fascia.

Speculation surrounds the future of a number of value fashion retailers, including Mk One and Ethel Austin, in the face of a consumer spending downturn, growing competition from Primark and the supermarkets, and the downward pricing strategy by mid-market retailers.

Verdict chairman Richard Hyman said consumers’ “love affair” with value products has moved on to “a different plane”.

“Whether you are QS or any other value retailer, the extent to which you are able to add value to your product is far more important than before,” he said.

“There are already more fashion stores than the market can support. Unlike previous years, generating incremental sales growth is likely to depend on value players taking business from other value players.”

Last week, QS announced that it wanted to open 40 stores over the next financial year and had appointed Doug Sinclair, from health food retailer Holland & Barrett, as property director.

QS will open three stores by the end of March, in Great Yarmouth, Pitsea near Basildon and Binnington in North Yorkshire.