Matalan sales hit by big chill
OUT-of-town budget clothing and homewares chain Matalan has joined the list of retailers hit by the bad weather in December.
The privately-owned Skelmersdale-based group said like-for-like sales in the 19 weeks to January 8 had fallen 4.5%.
Matalan, which has 209 stores nationwide, said it had been harder hit than other retailers die to its shops being based in out-of-town locations, making it harder for customers to get to.
The company has responded to the fall in sales by launching its first TV advertising campaign for four years and adopting an ‘aggressive’ promotional drive.
Former finance director Paul Gilbert, who took over as chief executive from Alistair McGeorge last year, said: “The extreme weather experienced in December was frustrating, however, we have managed the terminal stock risk and our cash balances well.
“The year ahead will be demanding and our focus will be on maintaining our price competitiveness, driving further efficiency into our cost base, continuing to invest in new stores and growing our customer base.”
In the 39 weeks to November 27 sales rose 0.7% to £836m. Underlying pre-tax profits on continuing operations were a fraction down at £134.9m, from the £135.2m achieved in 2009.
