Matalan profits up
By Sarah Wood | 20th October 2023
Value fashion retailer, Matalan, has reported a small rise in sales in its second quarter.
The retailer, which has stores in Gloucester and Cheltenham, saw revenue rise 0.8% to £288.6m for the 13 weeks to August 26, despite the ongoing cost-of-living crisis.
It said improved profitability was driven by a solid sales performance, tight control of markdown, effective cost management and positive movements in input prices.
But the retailer saw a 35% reduction in online sales for the quarter, which it blames on tough market conditions with strong competition and a shift to physical store shopping.
Jo Whitfield, chief executive of Matalan, said: "We have delivered a strong Q2 performance against the backdrop of a challenging and volatile retail environment. Shoppers continue to feel the impact of the cost-of-living crisis, spending less often and being more considered with their purchases, while retailers also faced unseasonable weather patterns."
Matalan remains confident for the future.
Jo Whitfield continued: "We are focused on initiatives that will open up material growth opportunities in the years ahead, while working at speed to deliver better choice, value and experience for our loyal customers."
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