Matalan has allocated £35 million to decrease prices on more than 700 products amidst the ongoing cost-of-living crisis.
The retailer of clothing and household items has cut the prices of selected products across all primary sections including women’s wear, men’s wear, children’s wear, and household items, both in-store and online, with an average reduction of 15%, and some items discounted by as much as 25%.
Matalan stated that the business was able to implement the price reductions through a more cooperative purchasing and sourcing approach, and by passing on reduced input costs as inflation decreases.
CEO Jo Whitfield remarked, “The beginning of the year is always financially challenging and this year, given the difficulty many families faced in 2023, it will be even more difficult.
“So, for 2024, we aim to start the year differently. We have optimized efficiency at a time when inflation and input costs are declining, allowing us to directly transfer these savings to our customers—lowering the prices of new and existing lines of essential everyday products and popular items across all our primary sections.”
“It’s all part of our mission to develop a stronger, more contemporary Matalan that provides families with a wider selection of high-quality clothing and household items at excellent prices.”
The price reductions are the most recent initiative under Whitfield, who assumed the leadership position in March, as she seeks to enhance efficiencies throughout the business and upgrade its retail offering.
Last month, the retailer expanded its online inventory by incorporating 10 new third-party fashion brands onto its website, including Quiz, Yumi, and Vanilla, with plans for more additions later this year.
This development follows Matalan witnessing a 30% surge in EBITDA for the second quarter ending on 26 August, amounting to £47.9 million, attributed to effective markdown control and sound cost management.
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