Matalan sales improve despite supply chain issues
Matalan saw its second quarter sales increase to £264.7 million from £258 million in the same period in the previous year despite footfall being impacted by the Covid-19 “pingdemic”.
In the 13 weeks to 28 August, the retailer moved to a pre-tax profit of £10.4 million from a loss of £23.8 million at the same time last year.
In a statement, Steve Johnson, executive chairman of Matalan, said: “Today’s results reflect the first full quarter of trading across all channels since before the start of the pandemic. Having seen a terrific customer response to stores re-opening in the spring, we quickly cleared much of the winter stock overhang, allowing our focus to be on new ranges during the summer. As a result, despite customer footfall being affected by the so-called ‘pingdemic’, appetite for new outfits remained strong, supporting a growth in full priced sales of 25% against last year. ”
Matalan said it had been affected by disruption within its inbound product supply chain which had delayed the flow of stock into the UK, although it is working closely with suppliers to mitigate this.
Johnson added: “The combination of the negative impact of product delays coupled with the very positive reaction of our customers to great new product when it does arrive means that we expect availability to remain somewhat compromised over the coming months.”
Matalan has recently launched a beauty collection in selected stores that includes brands such as Rimmel and Maybelline and is beginning to introduce new and expanded ranges within a number of home categories. It has also reached a major milestone in its supply chain development programme with the implementation of the first phase of automation in its warehouse in Knowsley.
