A homewares retailer in England reported total sales of £984.6m for the year ended 22 February 2025, down from £1bn in 2024. Pre-tax losses narrowed to £45.4m from £48.2m the previous year.
© Estelle Bowden | Dreamstime
The company, Matalan, attributed the decline to subdued consumer spending, increased market competition, and stock availability issues, partly caused by trade disruptions linked to the Red Sea Crisis. A strategic focus on profitability over revenue also contributed to the lower sales.
While online performance stabilised after a previous setback, in-store sales fell year-on-year due to weak consumer demand and a competitive market. The international franchise business also recorded a decline, with several key partners in the Middle East and Mediterranean affected by challenging macroeconomic conditions and regional political instability.
Matalan emphasised that despite the reduction in sales, the business is maintaining efforts to strengthen profitability amid a difficult economic environment. The report reflects a broader trend of pressure on retailers navigating complex supply chain issues and changing consumer behaviour.
Source: www.bigfurnituregroup.com
