Matalan sees sales rise to £262.4m as discounts cut
VALUE retailer Matalan, which will open its sixth Northern Ireland store this month, increased sales in the second quarter as shoppers bought more items at full price over the summer.
Total revenue reached £262.4m in the 13 weeks to August 25, compared with just under £260m in the same period last year.
Full-price sales at the chain, which will open in Belfast’s Castlecourt Shopping Centre, grew 3.3%.
The retailer described the market as “volatile and challenging” but said it had managed to deliver a reduction in discounts thanks to “design, quality and value”.
Underlying earnings were broadly flat at £22.8m.
“A strong focus on our strategy, good operational disciplines and the hard work of our colleagues has enabled us to absorb significant currency pressure in the first half of the year,” said chief executive Jason Hargreaves.
“This pressure increases through the remainder of the year and we don’t expect the difficult market conditions or consumer confidence to improve in the short term. However, we remain confident in our strategy, focused on execution, and believe this will continue to drive outperformance to the market.”
Although many retailers have struggled this year due to fluctuations in the pound and weaker consumer confidence, value retailers such as Matalan, Primark and B&M, posted resilient performances as shoppers trade down.
Matalan has also invested in refurbishing its stores and revamping the website.
Online growth was 25% during the quarter.