Covid-19 hits Matalan hard
By Sarah Wood | 22nd July 2020
Discount fashion and homewares retailer Matalan saw sales plunge by over 70 per cent, as a result of the coronavirus crisis.
Revenue at the retailer, which has a store in Gloucester, fell by 72 per cent to to £75.3 million for the 13 weeks to 30th May, compared with the same period last year, as reported by Retail Gazette.
Matalan stores were closed for most of the first quarter and lost revenue couldn't be offset by its online channel.
This resulted in a loss of £10.2 million for the quarter, compared with a profit of £50.4 million for the same period in 2019.
The fashion and homewares retailer ended the quarter with cash of £40.9 million, compared with £71.2 million the previous year.
Matalan said it took immediate action to preserve cash, manage working capital and reduce costs and also accessed all available government support, in response to the pandemic.
The retailer said its large and out-of-town stores have been performing well since it began reopening them when lockdown restrictions eased.
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