Matalan’s new young fashion sub-brand Be Beau helped boost like-for-like sales by 8.2% for the 14 weeks to June 6, after the retailer posted a strong set of results for the year to February 28.
Matalan launched fast-fashion brand Be Beau this spring and it smashed internal sales targets by 250% in the first few months of trading. The trend-led range was designed to help the value chain grab a bigger share of the young fashion market, with dresses starting at £25. Matalan chief executive Alistair McGeorge said: “Be Beau has had a very strong start, we are very pleased. Overall, women’s and kids’ wear have been doing very well.”
Matalan said the strong growth had also been achieved with improved margins. McGeorge said the introduction of Matalan’s good, better, best pricing strategy had also helped it to grab market share from rival multiples Marks & Spencer and Next at the better, best level of the market.
Matalan said sales for the year ended February 28 rose 2% to £1.03 billion. EBITDA grew 6.3% to £145.1 million. Matalan also invested £16m in store refurbishments over the year, which McGeorge said helped boost sales.
McGeorge added that sales at one of Matalan’s largest stores in Longton in Lancashire had risen 14% since it was refurbished. He said Matalan planned to revamp most of its 203 stores by the end of this year and also open three new stores.