Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Matalan plans to expand

Matalan is planning to restart its store opening programme after the value chain bucked the retail gloom with a strong Christmas trading performance.

Its like-for-like sales rose 5.9% for the five weeks to January 4. Chief executive Alistair McGeorge said the business’s good performance was driving plans to open the chain’s first stores in several years. “We want to have three new stores this year, although we haven’t decided the locations. They will be the first openings in a while; we feel more confident about what we are doing now.”

Like-for-like sales were up 3.4% for the 13 weeks to January 3, with total sales up 4% to £327 million. Gross margin improved as the retailer held off discounting before Christmas, and market share increased across all categories.

Current net debt to EBITDA ratio is 1.5, compared with 3.6 at the time of the buyout of the business in December 2006.

The chain is also launching 
a womenswear label, Be Beau, in March, and is expanding its online product offer after setting up a transactional site at the end of last year.

However, McGeorge sounded a cautious note about this year’s trading environment. “Just because you are a value retailer doesn’t mean you are immune from a downturn,” he said.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.