Matalan one of high street’s best performers

Discount clothing retailer Matalan was one of the best-performing High Street retailers over the Christmas season. The chain saw a 5.9% rise in its like-for-like sales – which strip out the impact of new store openings – in the five weeks to 4 January.The privately-owned firm said: “In contrast to many retailers in the clothing sector, the company maintained its usual promotional position.” Matalan said it had also cut its borrowings by an undisclosed amount.

The group, which owns 203 out-of-town stores across the UK, said comparable sales in the 13 weeks to 4 January also rose, by 3.4%. Matalan’s results are in sharp contrast to recent grim trading updates from many of its rivals. Next said sales plunged 7% across its stores between the end of July and Christmas. While Marks & Spencer has also been hit, with the group reporting an 8.9% fall in general merchandise sales for its third quarter.

However, discount groups have proved far more resilient, with cash-strapped shoppers hunting out bargains and trading down to cheaper alternatives. Primark reported better-than-expected Christmas sales, up 18% over the 16 weeks to 3 January. Matalan said on Sunday that its offering appealed to consumers in the current economic climate.

“Footfall in December was up as our strong value proposition chimed with our customers in the deteriorating macro-economic environment,” the retailer said in a statement.

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Founder John Hargreaves opened the first Matalan store in Preston in 1985. The business was taken private in 2006.

Source: BBC
Image: Matalan promo