Consumer slowdown has moved into the value retail sector and for Matalan in the period to 27th August, total sales reduced by 1.8 per cent and like for like sales reduced by 6.4 per cent. However, the value retailer continued to improve margins during the same period, which increased by 1.2 per cent, reflecting a more profitable sales mix and an improved currency position.

John King, Chief Executive, said: The measures undertaken earlier this year have enabled us to keep the business in good shape during a difficult six months in UK retail and we are pleased to have delivered an improvement in gross margins across the half. The business is more streamlined as a result of tighter cost control and improved cash flows, and our stock position has been carefully managed. Our focus is now on a successful launch of the new season ranges.'