Matalan sales recovery on track
Discount retailer boosted by promotions and store refits
Matalan is seeing the benefits of investment in price cuts and promotions, reversing its sales decline and launching a programme of store refurbishments.
The value clothing and homeware retailer, which saw a 6.5 per cent decline in like-for-like sales across the year to February 28, said like-for-likes have grown by 4.1 per cent across the 18 weeks to July 3.
Total volume growth across the 18 weeks was 12.4 per cent, but average selling price declined by 8.3 per cent, reflecting deflation across much of the UK retail clothing second as well as Matalan’s investment in price cuts and promotions to clear surplus stock. Turnover grew by 13.7 per cent.
Chief executive John King said: “We are starting to see the results of delivering better value to our customers through lower prices, better promotions, improved quality and greater choice. We still have much to do and our focus over the next two months is on successfully closing out the Spring/Summer season and on launching our new Autumn/Winter ranges.”
The company said ladieswear, childrenswear and homeware “have all progressed well and we have started to take action to address the disappointing performance of menswear”.
Trials of a new format at three stores have delivered sales uplifts of more than 5 per cent, prompting Matalan to launch a refurbishment programme for older stores, with another 30 due due to be refurbed by the end of October, ahead of the Christmas trading period.
Matalan chairman John Hargreaves said: “I am pleased with the progress being made. Our current trading demonstrates that the actions the management team have taken are beginning to deliver an improved performance.”
