Matalan records sales growth amid post-Brexit economic slowdown

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Matalan

Matalan has said it managed to escape the effects of a squeeze in consumer spend since the Brexit vote, recording sales growth in its first quarter trading update.

In the 13 weeks to May 27, the discount retailer recorded a 1.3 per cent increase in revenue to £253.4 million, bolstered by a 21.5 per cent increase in full price sales.

Earnings also rose from £16.2 million to £22.3 million in the first quarter.

“Consumers face tough times at present,”  chief executive Jason Hargreaves said.

READ MORE:  Matalan profits boosted by full price sales

“Inflation is rising and they are surrounded by economic uncertainty.

“In such a climate Matalan is well positioned to offer fantastic design and quality at outstanding value.

“We don’t expect the retail environment to improve in the near term, so remain cautious, but are pleased with how the business is progressing with improvements to the ranges, store estate, and strong growth in the online channel.”

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