Mata­lan sees sales rise to £262.4m as dis­counts cut

Belfast Telegraph - Business Telegraph - - News - BY ALYS KEY

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.

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