Matalan | Verdict Company Briefing
Low levels of footfall continue to be an issue for Matalan, with limited consumer confidence and discretionary spending impacting sales. Moreover, we believe its out-of-town locations have also been a hindrance to sales. This Verdict company briefing includes estimated sales data and market shares for Matalans' total clothing, womenswear, menswear, childrenswear, accessories and value clothing.
- Compare your allocation of clothing retail space with Matalan by uncovering Verdict's data on the space dedicated to over 30 product categories.
- Justify and inform development of private label ranges in clothing by uncovering Matalans' activity in this area and the impact on sales.
- Learn of the challenges Matalan faces with its OOT store formats and use this to build your own space expansion strategies
- Benchmark Matalans' performance in clothing by using Verdict's proprietary sales data for womenswear, menswear, childrenswear and accessories.
Matalan should not compete purely on price as grocers and Primark are also fighting to be the cheapest, but should justify price points through quality and instore experience – features competitors find hard to gain loyalty on. If customers feel they are getting good value, it will enable Matalan to raise its prices rather than take a hit on margin
Matalan is approaching space expansion carefully, which is a sensible strategy given the tough economic climate forcing consumers to cut back on discretionary purchases. Moreover, high fuel costs have impacted consumer willingness to travel to OOT locations, so Matalan should continue to approach these formats with caution
Matalan faces fierce competition from high street players H&M and Primark which continue to add new retail space. Both have also improved their fashionability and lead times to get newness into stores faster, driving return visits particularly among younger shoppers – difficult for Matalan to compete on given its OOT locations
- How have Matalans' clothing sales and densities developed and how does Verdict see this changing? How does it allocate its space between categories?
- What is Matalans' share of the womenswear, menswear and childrenswear markets? What is Verdict's value clothing market share prediction for 2012?
- Which customer segments visit Matalan for clothing and what is its share of each demographic group? Will new range launches in clothing alter this?
- What has impacted profitability in 2011/12 and how should it prepare to turn around its performance? What impact has its OOT locations had on sales?
Table of contents
Takes a hit on profitability;
Attracts younger shoppers with improved clothing ranges;
Menswear outperforms womenswear in 2011/12;
Must implement click & collect to drive footfall to OOT stores;
Should consider town centre formats.
Focus on profitability essential in 2012/13
Recent key events
New management increases focus on online rather than physical stores
Proposition & customer penetration
Matalan's footfall has decreased marginally
Recovers sales growth but operating margin halves in 2011/12
Approaches expansion with caution
Sector performance – clothing
Clothing sales recover after slip in 2011
Clothing densities decline for second year
Regaining profit growth should come before investment in new stores
Verdict company briefing
Market size calculation
Sales density calculation
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Table: Matalan company information 2012
Table: Matalan retail proposition 2012
Table: Matalan key operating statistics 2007–12
Table: Matalan trading record 2002–12
Table: Matalan UK store portfolio 2002–12
Table: Matalan space allocation 2011
Table: Matalan UK clothing sales 2007–12
Table: Matalan UK clothing growth rates 2007–12
Table: Matalan clothing segment market shares including accessories 2007–12e
Figure: Matalan fascia 2012
Figure: Clothing visitor share by demographic group 2012
Figure: Matalan total sales and growth to February 2007–12
Figure: Matalan operating profit and growth to February 2007–12
Figure: Matalan clothing space breakdown 2007 – 11
Figure: Matalan clothing sales mix 2012
Figure: Matalan clothing sales to February 2007–12
Figure: J Hampton and Sons menswear sub brand 2012
Figure: Matalan clothing sales per sq ft to February 2007–12
Figure: Matalan clothing market shares including accessories 2007–12e
Figure: Matalan value clothing market shares 2007–12e
Related research categories
By company: Matalan Retail Limited