Matalan invests £25m in store estate as part of multi-year transformation

Matalan, the value fashion and homeware retailer, has today announced an investment of over £25 million in its UK store estate. It marks the beginning of a multi-year programme to modernise and expand its brick-and-mortar footprint.

The investment follows an additional £25 million in funding secured from Matalan’s anchor investors last month and forms a key part of the brand's wider business transformation strategy.

Throughout 2025, the initiative will see Matalan open 10 new and relocated stores and refurbish 30 existing sites across the UK. Expansion is set to target key areas including London, Essex, Hampshire and Northern Ireland.

This marks the first phase of a longer-term estate refresh programme, with Matalan aiming to open 10 new stores each year over the next three to five years. The focus will be on bringing the brand’s combination of quality and value to untapped markets.

The retailer will also invest in upgrading 30 stores annually. These refurbishments will focus on improving layouts, elevating store design and introducing customer-first features. Enhancements include clearer definitions between departments and relocating services like fitting rooms and tills to a single area. Larger checkout zones in updated stores will feature faster, easier-to-use self-service tills.

It comes after refurbished stores in Croydon, Linwood, Bristol Filton and Dumfries have already reported a significant uplift in sales, exceeding expectations.

James Dorling, Property Director at Matalan, said: "Matalan storefronts have been a fixture of UK communities for 40 years, so it is only right that bricks-and-mortar retail remains at the centre of our transformation programme.

"With ten exciting new store openings and extensive refurbishments across our estate, this investment marks a step-change in our strategy – creating a better, more seamless shopping experience for our loyal existing customers, while also introducing the Matalan brand to new consumers."

The investment also extends to digital, with Matalan set to enhance its omnichannel offering through the launch of a new app. The platform will support its e-commerce operations and loyalty programme.