Matalan revenues drop 8% as customers cut down on non-essential items

Matalan has seen total revenues drop by eight per cent to £263.6 million in the 13 weeks to 27 May, which the retailer blamed on changing customer habits largely driven by the cost-of-living crisis.

The clothing and homewares retailer said in a trading update that fewer customers were spending on non-essential items and were delaying purchases due to cooler spring weather. The retailer added that in-store shopping is proving to be more popular for its customers than online.

However, sales did increase by nearly six per cent to £122.5 million in the five weeks to 1 July.

The company also predicts a strong full year EBITDA in the the range of £60 million to £65 million, driven by a “strengthened leadership approach and a wider transformation programme”.

Commenting on the company’s financial results, Jo Whitfield, Matalan’s chief executive, said the company was concentrating on improving choice and prices for customers.

“We are creating a much stronger Matalan, building on the assets the business has already around brand, customer loyalty and an engaged set of colleagues that want the business to thrive,” she added. “We are surfacing clear routes to value through operational improvements, margin enhancement and business transformation to enable growth and have a number of initiatives already running across the business to enhance performance and improve profits in the years to come.”

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