Matalan performance boosted by fewer price cuts
Value fashion giant Matalan posted revenues of £259.9m (up from £245.5m) in the quarter ending 26 August and said its performance had been boosted by offering fewer discounts.
The chain, which operates 227 stores, said its full-price sales mix had "increased significantly" in the 13-week period which also saw profits rise from £15.5m to £22.7m. Online sales had also performed well, it said.
CEO Jason Hargreaves said that the family-owned business had also been pleased with early reactions to its autumn ranges. "Our focus remains on delivering outstanding product and value whilst improving the journey for customers. We believe this will position us well in what continues to be a challenging retail environment," he said.
It was reported this morning that a high level of discounting has a detrimental effect on customer loyalty. Customer engagement specialist Optimove said that offering discounts of more than 30% attracts only "cherry pickers" who do not return of a second purchase.
