Matalan sales drop

Matalan, one of the UK’s leading discount stores, has posted disappointing sales results. The company suffered a like-for-like sales decline of 8.8 per cent in March and April of this year, falling below expectations.

The company said that the number of consumers visiting its stores had dwindled by 7 per cent for the first time in nine weeks, revealing a weak retail climate. John King, Group Chief Executive, stated: “In a tougher marketplace, our focus over the next twelve months is to manage greater efficiencies into the business, delivering improved margins and stronger cash flows.”

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Group Chairman, John Hargreaves, said: “Our move towards improving profitability has led to a focus on improving our sales mix through a scaled down mid-season sale and a reduced grey market offer. Costs will continue to be controlled tightly to mitigate fixed cost increases from areas such as rents, rates, minimum wage and fuel prices. As part of a tighter control of stocks, the business began the financial year with 11 weeks of stock cover, a reduction of 2 weeks on a year earlier. Particular emphasis has been placed on reducing non-seasonal stock levels and the clearance of old season stocks.”

This morning the company’s share price was down 3.75 points to 189,25 pence.