Matalan retail sales slip 1.5%

10 Jul '06

3 min read

Ladies, mens, kids & home clothing retailer Matalan PLC announced AGM trading statement for the 9 weeks to 1st July 2006.

- Current period like for like is based on 182 stores which have traded from the same retail selling space since 27th February 2004.
- Grey market relates to promotional branded product.
- Includes Home sales.

Click here to see the financial statement

The trading environment across the sector remains tough. In the 9 week period to 1st July, like for like sales were broadly flat and total sales for the period have declined by 0.5 percent, reflecting the temporary closure of some stores for resizing and the scaled back store opening programme.
In clothing, our market share remained at 3.0 percent due to improved ranges and better marketing.

Despite our decision a year ago to reduce the general level of grey market activity within the business, the demand for branded World Cup related product has improved the company's total like for like sales over the last 9 weeks by 1.0 percent.

The repositioning of Homewares has continued with the aggressive clearance of existing ranges resulting in a consequent dilution in gross margin. This clearance will make way for new ranges which will be fully represented in store for the beginning of the second half.

We continue to improve overall gross margins, which have increased by 0.4 percent in the year to date despite the clearance activity within the Homewares area.

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