Profits at value fashion retailer Matalan have plunged, after it carried out heavy discounting in a bid to clear spring stock following lockdown.

In the 13 weeks to 29th August, the chain, which has stores in Gloucester and Cheltenham, saw profits fall by 44 per cent to £28.5 million. Total sales for the same period fell by 3.9 per cent, as reported by Retail Gazette.

The company said its main focus for the summer was to sell its surplus seasonal stock, which it achieved, but it hit profits for the quarter hard. It said managing to shift the stock was thanks to the hard work of staff and puts the company in a good position to recover full price sales in autumn and winter.

However, Matalan said the current second wave of Covid-19 and the new government-imposed restrictions in parts of the country would put pressure on customer behaviour over the next few months.

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