Matalan reveals Christmas sales boost
Tuesday 17 January 2012
Out-of-town fashion and homeware retailer Matalan today hailed its Christmas television advert as it revealed a surge in sales in the run-up to the festive period.
The 190-strong chain said like-for-like sales in the five weeks to December 31 increased 9.9%, up from 1.3% in the 13 weeks to November 26, as customers responded well to the TV campaign, which features customers floating inside a giant snowglobe.
The company said it delivered its best sales week to date during the period, beating its previous record in 2005 as a number of discounts on selected lines also helped to pull trade.
However, the company warned that the combined impact of the January 2011 VAT increase, higher input costs and promotional mark-down continues to put downward pressure on margins.
The strong sales performance comes against a mixed backdrop of the retail sector over Christmas, as chains such as John Lewis posted strong sales while others suffered, such as La Senza and Blacks Leisure, which both fell into administration.
Elsewhere, Matalan recorded total revenues of £310.8 million in the quarter, with underlying earnings of £41.7 million.
The company said whereas the increased cotton prices in late 2010 and early 2011 have now finally filtered through, subsequent falls in the cost of cotton will not be reflected in its margins until the second half of 2013.
Looking ahead, Matalan added: "The outlook for the UK consumer continues to remain uncertain with increasing pressures on disposable incomes, declining confidence levels and the expectation of a tough January and February 2012."
- 1 Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
- 2 Novel Scarlett Johansson tried to ban, Grégoire Delacourt’s The First Thing You See, to be published in UK
- 3 A pint of water every day is the key to losing weight, scientists say
- 4 Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
- 5 Carol Vorderman reveals she is 'covered in burns' after she fell off her treadmill while running naked
Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
Nazi gold train: 'Significant' discovery made in Poland
Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
Carol Vorderman reveals she is 'covered in burns' after she fell off her treadmill while running naked
TTIP controversy: The European Commission and Big Tobacco accused of cover-up after heavily redacted documents released
Dresden riots: Protesters in Germany attack refugee buses shouting 'foreigners out'
France train shooting: US soldiers speak of the moment they stopped gunman and 'beat him until he was unconscious'
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£13000 - £25000 per annum: Recruitment Genius: Would you like to be part of a ...
£20000 - £25000 per annum + competitive: SThree: Are you passionate about sale...
£25000 per annum + benefits: Ashdown Group: A large financial services company...
£20400 per annum: Ashdown Group: An established and highly reputable organisat...