Matalan toughs it out
Market share maintained in core clothing areas.
In the 26 week period to 26th August total sales reduced by 1.0 per cent whilst like for like sales reduced by 1.0 per cent. Core clothing sales were more resilient at +0.5 per cent (2005: – .5%). Matalans planned withdrawal from unprofitable `grey market’ sales, (sales of branded clothing at discounted prices) uppressed like for like sales by -0.4 per cent.John King, Chief Executive of Matalan said “Trading conditions remain challenging, however our agenda of focusing on improving profitability and cashflow is now beginning to bear fruit. Our gross margin is now improving, we have tightened controls over costs and stocks and our working capital improvements will see the company in a healthy net cash position by the year end.”
