Matalan sees rising revenues in Q3 as strong consumer demand remains

Fashion and homewear retailer Matalan recorded £291.4 million in revenues for its Q3 and Christmas trading period, an increase of 19% compared to the same period in 2020.

The Merseyside-based retailer also announced pre-tax profits of £61.1 million an increase of £7 million compared to the same period in the year prior (£54.1 million).

Steve Johnson, Executive Chairman of Matalan, said: “The results published today reflect a strong performance in what continue to be challenging circumstances, not just for ourselves but for the broader sector."

He added that product availability had suffered from delays in inbound stock, adding that "heavy disruption" in the UK logistics and labour markets had created significant extra costs.

Stock turnaround was quicker than ever once merchandise became available, Johnson noted, indicating a positive customer reaction, with the Ladies range performing particularly well.

"I’m pleased with the way in which our business has responded in managing these challenges, demonstrating unprecedented levels of agility in making stock available to customers as quickly and efficiently as possible," Johnson said.

Matalan operates 229 stores in the UK as well as an e-commerce platform and 52 overseas franchise stores. Investment in its online sales channel over the past two years had also paid off,  the retailer said, with annual turnover now over £200m.

"Our stores are very much complementary to a scaled up online channel and together they provide over 11 million savvy customers with convenient and flexible access to our ranges. We will therefore also continue to invest in our store portfolio in the years ahead, further enhancing the store environment and proposition to capitalise on what we see as an opportunity to add further range breadth and choice for customers in relevant and adjacent categories," Johnson concluded.