Matalan Christmas sales surge 13.7%
DISCOUNT retailer Matalan saw like-for-like sales surge by nearly 14% in the run-up to Christmas.
New figures from the Lancashire-based chain show that sales rose by 13.7% in the five weeks to January 2. Total sales covering a 13-week period to January 2 were up 10.4% to £362m with like-for-like revenue up by 9.3%.
Matalan’s performance underlines an eagerness for bargains among shoppers during the recession. The business outperformed Marks & Spencer, which reported like-for-like sales of 0.8% in the three months to December 26, and Debenhams where sales were flat.
The figures should strengthen the hand of owner John Hargreaves during negotiations over the sale of the business which was put up on the market in October for £1.5bn.
Private equity bidders include Warburg Pincus, TPG, Advent International and BC Partners but Retail Week has reported that questions have been raised over the price tag. Potential bidders are understood to be seeking more clarity about how the company’s £270m debt can be refinanced.
In today’s announcement Matalan said it had improved gross margins during the period and cash generation was strong, with debt levels being reduced. Footfall in December grew and the end of season sale, launched on Christmas Eve, has, “performed strongly”.
Chief executive Alistair McGeorge said: “Our ranges continue to strengthen and we always offer fantastic value to our customers. The three new stores that were opened in the second half are trading well and the online offering launched last year continues to grow strongly. We are well placed to continue this growth and will be accelerating our rate of investment to drive this.”
Based in Skelmersdale, Matalan has more than 200 out-of-town stores selling fashion and homewares.
