Lack of Focus at Matalan
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Trading figures for Matalan revealed that like-for-like sales for the 13 weeks to May 31 were down 7.5 per cent, compared to a 3.7 rise for the same period last year. Sales were up 6.2 per cent to GBP 241.3 million and gross margin rose by 80 basis points.
John King, the retailer's chief executive, admitted to Lorna Hall that Matalan had not given its customers enough incentive to visit its stores this season. As an out-of-town retailer, customers need to feel it is worth their while travelling to see the product offered.
The lack of focus on the womenswear range has proven difficult in finding the balance between fashionability and its core and more classic offer. Industry insiders say that Matalan, which in the past has had a good record of gaining market share in womenswear, is now understood to be stalling.
The new buying team, which is spearheaded by former M&S buyer Jane Hotz, should see the retailer more focused this autumn.