First-half sales gloomy at Matalan |
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Thu, 01 Sep 2005 19:05
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LONDON - Matalan PLC, the country's leading discount clothing and homewares retailer has announced that sales in the first half of the year dipped even as the general trading conditions continued to be tough in the UK market.
The like-for-like sales declined by 6.4 percent as against the 4.5 percent growth that was registered at the same time last year. Overall, in the 26 weeks upto August 26, sales fell by 1.8 percent and compared unfavorably with the massive 13.6 percent rise the last time around. However, Matalan regrouped in the in the eight weeks to August 27 as sales rose marginally by 0.2 percent, but the figures remained way below the 13.1 percent surge reported previously. Even the like-for-like sales remained 3.4 percent below expectations in these eight weeks.
But chief executive John King remained upbeat about its prospects for the future, "The measures undertaken earlier this year have enabled us to keep the business in good shape during a difficult six months in UK retail. The business is more streamlined as a result of tighter cost control and improved cash flows, and our stock position has been carefully managed.
Our focus is now on a successful launch of the new season ranges," he commented. Matalan has begun refitting its stores to lure back customers in hope of increasing the sales. The company is also looking to refurbish 17 shops in the second half of the year in addition to the 18 that were refurbished in the first half.
The Lancashire-based company is also committed to a massive restructuring that will cull 300 jobs but save £15 million a year. In the backdrop of the sales dip, Matalan shares slid by 0.75 pence to 197.75 pence in early trading.
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