Matalan invests £35m to cut prices of more than 700 products

Matalan, the Knowsley-based out-of-town discount retailer, is investing £35m in cutting prices on a range of more than 700 products.

It says it is passing on the benefits of reduced input costs and falling inflation to families reeling from the impact of the cost-of-living crisis on their household budgets. There is a 15% average price drop across all categories, with some items falling by as much as 25%.

Matalan says it has unlocked price cuts for customers through a more collaborative buying and sourcing strategy introduced by the company’s new senior leadership team and by passing on reduced input costs as inflation falls.

Today’s announcement is under the leadership of Jo Whitfield, Matalan’s new CEO, who is driving efficiencies and improving ranges to offer customers better style, choice and value.

Ms Whitfield said: “The start of the year is always a tough time financially and this year, given how difficult 2023 was for so many families, it’ll be harder than ever.

“So, for 2024 we want to start the year off differently.

“We’ve unlocked efficiencies at a time when inflation and input costs are starting to fall, enabling us to pass these savings on directly to our customers – bringing down the prices of new and existing lines of everyday essentials and favourites across all our key categories.”

She added: “It’s all part of our mission to build a stronger, more modern Matalan that brings families a better choice of quality clothes and homewares at great prices.”

The business was acquired by its four lenders, Invesco, Man GLG, Tresidor and Napier Park, in January last year.

In July the board forecast a full year 2024 EBITDA of £60m-£65m, which would compare with £30.6m in the 2023 financial year.