Matalan on growth trail after profits leap
NORTH West discount fashion and home wares chain Matalan says there is “significant scope” for new stores.
The privately-owned, Skelmersdale-based group, which has 203 outlets, will open three new stores this year and said it was working on an accelerated programme for next year.
The retailer announced operating profits of £102m for the year to February 28, up from £89.4m last year.
The business, like a number of others in the region such as Home Bargains, Original Factory Shop and TJ Hughes, has defied the recession as shoppers have turned to low cost chains.
Matalan, taken private three years ago by founder John Hargreaves, said market conditions remained challenging but said it had outperformed the wider market.
In the first 14 weeks of the new financial year, like-for-like sales improved by 8.2% as shoppers warmed to an ongoing store refurbishment programme.
Around £16m was invested in the last financial year, with a similar figure expected this year.
Chief executive Alistair McGeorge added: “We believe there is significant scope for new Matalan stores in the UK and expect to continue to exploit this opportunity in coming years.”
Founder Liverpudlian market trader John Hargreaves opened the first Matalan store in Preston in 1985, taking inspiration from low-price, out of town retailers in the US. By 1995 there were 50 stores across the UK.
