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Last Updated: Sunday, 12 June, 2005, 15:48 GMT 16:48 UK
Matalan cuts jobs in costs drive
Matalan store
Like other stores, Matalan has been hit by the retail slowdown
Discount clothing retailer Matalan is cutting its workforce in response to the retail slowdown which has struck stores up and down the High Street.

The Lancashire-based firm said it would cut an unspecified number of jobs as part of a cost-cutting drive.

The company warned earlier this year that it would seek greater efficiencies after seeing a 9% fall in like-for-like sales in March and April.

Consumers are tightening their belts, making life difficult for retailers.

Staying competitive

The impact of a series of interest rate rises in 2004, a slowing property market and fierce competition at every level of the retail market is forcing retailers to find savings to remain competitive.

I can confirm that Matalan is carrying out a restructuring that will result in job losses
Matalan spokesperson

Matalan, which has 190 UK stores and whose head office is at Skelmersdale, said it could not put a figure on how many jobs would be lost ahead of a consultation exercise with staff.

The Sunday Telegraph reported that hundred of jobs were likely to go.

"I can confirm that Matalan is carrying out a restructuring that will result in job losses," a company spokesperson told the Press Association.

"However, it is impossible to be specific until the consultation period is completed."

Matalan, which employs about 17,000 staff, made a pre-tax profit of 83.5m last year.

However, tougher trading conditions are expected to limit any rise in profitability in the current year.


SEE ALSO:
Matalan slowdown after 2004 surge
04 May 05 |  Business
Matalan shakes off retail gloom
02 Mar 05 |  Business


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