Matalan cautious despite best-ever Christmas
MATALAN, the fashion and homewares chain based in Skelmersdale, has reported sparking festive sales, but warned of tough times ahead.
The privately-owned company, which has 190 stores based on out-of-town locations said a strong advertising campaign boosted like-for-like sales in the five weeks to December 31 by 9.9%, up from 1.3% in the 13 weeks to November 26.
It said its 2011 festive trading period included its best-ever week’s sales, but was cautious on the outlook for 2012 due to continuing pressure on consumer spending.
Chief executive Darren Blackhurst said: “Style, quality and value are key to the Matalan offer and our customers recognise that.
During these challenging times, it is encouraging to see us deliver our best ever week’s sales in the run up to Christmas.
“We remain focused and cautious and recognise the need to maintain healthy cash levels and tight control of costs as we look after customers and exceed their expectations going forward.”
The company warned that the combined impact of the January 2011 VAT increase, higher costs, such as cotton, and promotions continues to put downward pressure on margins.
As well as its Christmas sales Matalan, founded by Liverpool-born Monte Carlo-based entrepreneur John Hargreaves released a trading update for the 13 weeks to November 26.
In the period the group’s underlying earnings (ebitda) was £41.7m on revenue of £310.8m.
Matalan added: “The outlook for the UK consumer continues to remain uncertain with increasing pressures on disposable incomes, declining confidence levels and the expectation of a tough January and February 2012.”
