US Retail Giant To Expand To UK

Target, a US discount retailer, is said to be planning an acquisition to enter the UK market, with Matalan as its target.

Target would be an interesting addition to the British discount retailing sector, not least because its biggest selling own-label brand is Cherokee, which is sold in the UK under an exclusive licence with tesco.

A value sector source told Draper's that 181-store Matalan would be the most suitable choice for a bid because of the similarities between the two retailers. Both sell own-brand clothing, as well as similar discounted mass-market brands including Wrangler, Levi's and Fruit of the Loom. Both also sell in predominantly out-of-town locations.

Target has around 1,250 stores in the US. It has sales of around USD 43bn and profits of USD 2bn.