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News - 7 May 2006
Matalan to throw off its cheap image
The consumer slump is biting so deep that even bargain basement retailer Matalan is suffering. The company has seen its profits plummet by almost 30% and doesn’t see any chance of improvement until the second half of this year.
Profits for the year 2005 to February were £56.7 million compared with £80.5 million the previous year. Trading has improved in March and April but not by much. Over this period clothing sales, which form the lion’s share of the business, increased by 0.1%.
In a bid to increase profitability the company is looking to shift its image away from the cheap and cheerful and more toward the fashionable. By focussing more on fashion it hopes to appeal more to its predominantly female customers.
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