Discount retailers post strong sales figures

FORMER Asda boss Allan Leighton has become chairman of discount homewares and clothing chain Matalan.

The appointment at the Skelmersdale-based retail is his second in the region – he also chairs Entertainment Magpie, the LDC-backed Macclesfield company.

Matalan also announced a 4.1% increase in sales for the three months to August 25 to £269.2m. EBITDA in the same period was up 27% to £17.3m.

Mr Leighton said: “I am very excited about this opportunity; Matalan is a great company with a strong brand and management team. I look forward to working with the team to build on its fantastic reputation as a family retailer.”

Chief executive Darren Blackhurst added:  “Whilst we remain cautious in our outlook, with the launch of our exciting new collections for autumn/winter and our continued focus on quality, service and value, we are confident we are well placed to delight customers in the months ahead.”

Meanwhile, The Original Factory Shop, the Burnley-based non-food discount group said sales in the six months to September 30 were up 13.6%, including 5.8% like-for-like.

The private equity-backed group, led since 2009 by Angela Spindler, another former Asda executive, said it had opened 10 stores in 2012, including a 15,000 ft Christmas ‘pop-up’ shop in Hull for the Christmas trading period.

The retailer said its store opening program has created over 150 new jobs in the small towns it focuses on. Founded in Yorkshire the group has 183 stores and employs 2,800.

Mrs Spindler said: “We are trading strongly on Britain’s small town high streets and this is because people are searching for quality brands at low prices and they love the convenience of shopping locally.
 
“We will always be committed to Britain’s small town high streets, and we see there being scope for a network of 450 stores across the UK over the medium term.”  

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