What's Happening?
Matalan, a fashion and homeware retailer, has reported a robust performance in its third quarter, ending November 28, 2025. The company achieved a pre-IFRS16 EBITDA of £27 million, marking a 38% increase year-on-year. This growth was supported by a 2% rise in like-for-like sales and a significant 11% increase in online sales. The retailer's digital channel was particularly strong, with Black Friday being the most successful online sales day outside the COVID-19 pandemic. Matalan plans to launch a new app and a refreshed loyalty scheme to enhance customer engagement further. Additionally, the company has seen success with its store investments, with refreshed locations outperforming the wider estate by 12%. Matalan plans to upgrade 40 more stores
in the next financial year.
Why It's Important?
Matalan's strong performance highlights the importance of digital transformation and strategic store investments in the retail sector. The company's ability to increase its market share in both womenswear and menswear during a challenging economic period demonstrates the effectiveness of its business strategy. This growth is significant as it shows resilience in the face of economic pressures and changing consumer behaviors. The focus on digital channels and customer engagement through new apps and loyalty programs could set a precedent for other retailers aiming to adapt to the evolving market landscape. Matalan's success may encourage similar strategies across the industry, potentially leading to increased competition and innovation.
What's Next?
Matalan is set to welcome a new CEO, Henrik, next month, which could bring new strategic directions for the company. The planned upgrades of 40 additional stores in the next financial year indicate a continued focus on enhancing the in-store experience. The launch of a new app and loyalty scheme later this year is expected to further strengthen customer engagement and drive sales. As Matalan continues to invest in digital and physical retail spaces, it will be crucial to monitor how these initiatives impact its market position and financial performance in the coming quarters.
