Discount chain Matalan today joined the growing army of value retailers to report strong Christmas results.
The discount fashion and homewares store said like-for-like sales jumped 5.9% in the five weeks to 4 January 2009.
Good value has helped sales
Matalan said its value offering is helping it buck the trend in the current trading climate, while its already heavily discounted range meant that, unlike many other retailers, it was not forced to slash profit margins by cutting prices still further. Discount retailers are generally weathering the storm better than higher-priced rivals – Primark’s sales were up 18%over the 16 weeks to 3 January, while budget supermarket Aldi posted a 25% sales growth over 2008.
In contrast Next reported a 7% dip in sales between the end of July and Christmas Eve, while Marks & Spencer saw a 7.1% plunge in like-for-like sales in the 13 weeks up to Christmas.
Other fashion retailers are showing much healthier results, with fashion website ASOS boasting sales that more than doubled over the Christmas period. Sales soared 118% in the nine weeks to 16 January and the website says it now has more than one million active customers.
© Press Association 2009
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