UK retailer Matalan posts revenue of £286.4 mn in Q2

Overall growth was also delivered against 13 week adjusted pre-pandemic levels as well as last year. Inflationary pressures within the supply chain continued to weigh on profitability against historic comparatives, albeit in the context of only modest movements in like-for like pricing during the Spring/Summer season. Current year profitability in the quarter is absent of last year’s non-recurring level of COVID stock provision unwinds and business rates relief.

“We also believe that opportunities continue to exist for the addition of profitable new store space within the UK market. Favourable changes in retail property economics presents attractive opportunities for well-positioned retailers like Matalan. In the current retail climate, although we do not have an aggressive store opening strategy, we believe that there will be opportunities to grow our store estate over the next four years. We have a modest opening programme planned of up to 10 new stores through to FY26, including the potential for one in late FY23 or early FY24,” the company said in a press release.

Matalan also announced the appointment of Nigel Oddy as interim CEO of Matalan Retail Ltd, following a careful and extensive recruitment process, which has been underway over the past year. He will be joining the business initially on an interim basis, with effect from October 3, 2022. Oddy has significant retail experience in senior leadership roles, most recently at New Look as CEO and formerly COO.

“I am delighted to be joining Matalan and very much look forward to working with the wider team, which includes many long-established suppliers and franchise partners, as we progress with the execution of the growth strategy of this unique and iconic retail business. I have followed Matalan closely through my career and have admired its excellent value and quality focused credentials. I have noted its particular momentum in recent years in driving ahead with its mission to offer an excellent omni-channel experience for the millions of families it serves up and down the nation, and beyond. Matalan has a long standing and loyal customer base, and we need to continue to offer them, as well as new customers, what the business has been known for over the past 37 years – great products at fantastic prices. Now more than ever, value is so important to every shopper,” Oddy said.

“Matalan is a business that has been in my DNA since the day I founded it in 1985. I am stepping down as chairman so that I can participate in the strategic sales process as a bidder. My focus and absolute commitment will remain to do what I believe is in the best interests of the company and all its stakeholders, in particular the 11,000 people we employ. My intention is to be instrumental in positioning the business for long-term success. I am delighted to welcome Nigel Oddy as the business’ new CEO and am confident Matalan is in good hands,” John Hargreaves, founder and chairman, said.

Fibre2Fashion News Desk (RR)