Leading discount fashion chain Matalan has announced plans to invest £25 million in the replacement of its financial and supply chain systems.

The out-of-town clothing retailer said it will invest in the new technology over the next three to five years, but said the move was not triggered by a recent £1.1m fraud by a UK-based supplier.

"We are looking to replace all our core retail systems over the next few years, focusing on finance and the supply chain over the next 18 months," said Matalan chief executive Paul Mason.