Discount clothing retailer enjoys rise in sales

Liverpool discount retailer Matalan has bucked the slump on the High Street over the last 12 months.

The firm, which sells designer clothes at knock down prices, saw a double digit rise in sales.

The rise has come at a time when many retailers including House of Fraser, New Look and Bench are fighting for survival.

Matalan’s approach appears to have escaped while many others have been hit by a slowdown in spending and a shift in shopping habits.

The company enjoyed a 12% increase in full price sales for the year to Feb 24, helped in large part by shoppers looking for bargains.

Earnings before interest, taxes, depreciation and amortisation also climbed 36pc to £104.5m.

The retailer said it had benefited from a store revamp and the launch of a new website.

While Matalan said it remains confident about the future it added that there was no let up from the tough conditions facing the retail sector.

Chief executive Jason Hargreaves added that the firm was “cautious” about the year ahead after being confronted by a high level of market volatility during the spring.

He said: “The business has delivered a strong year, in which it outperformed the market and successfully refinanced in January.

“In what remained a volatile and challenging market, customers were savvy in seeking out true value.
“We expect consumer confidence to be fragile for the foreseeable future.”

The company said a push to revamp its 227-stores across the UK had resulted in an increase in sales.
Total revenues grew by 10% to £1.1bn over the period compared with £1bn the year before.