Bargain hunters boost sales at Matalan

SHOPPERS who are keen to bag a bargain in these tough economic times have boosted sales at discount retailer Matalan.

While many clothing chains are reporting gloomy trading figures, the Skelmersdale-based firm has revealed a 4% hike in sales to £327m for the 13 weeks to January 3.

Like-for-like sales for the five weeks to January 4 are up 5.9%.

The out-of-town chain, which has 203 stores, said in contrast to many retailers in the clothing sector, the company maintained its usual promotional position, which resulted in improved margins.

Cash generation in the period was strong with debt levels being reduce, and the company added that footfall in December was up as its strong value proposition “chimed” with customers in the deteriorating macro-economic environment.

The end of season sale, which launched on Boxing Day, performed strongly and “millions” of items on sale for £1 appealed to consumers. 

Chief executive Alistair McGeorge said: “We are pleased to report this robust performance from the business. The ongoing investment we are making in stores is delivering a better shopping experience for our customers. Our ranges continue to improve and we offer fantastic value to all of our customers.

“We are now in a position to grow the business and will be investing to do so despite the current economic environment.”

Matalan was taken private by founder, former Liverpool market trader  John Hargreaves, in 2006.