Discount clothing retailer Matalan is to offer 20 per cent off the cost of all merchandise from Friday, December 12 to Monday, December 15, in order to recover from a slump in early second half trading.

The Lancashire-based company, which saw like-for-like sales drop seven per cent in the 14 weeks to December 6, blamed the slump on shoppers buying fewer higher priced goods.

As such, CEO John King said the retailer's full-year pre-tax profit would fall "materially short of market expectations."

He added that the company would "have to plan differently for November and December next year" in response to consumer demands for increased discounting.

Matalan, which owns the Lee Cooper jeans brand, operates 171 stores across the United Kingdoom.