Matalan’s parent company has reported an increase in full-year profits as the retailer rowed back on discounting.
Missouri Topco posted a 37% jump in EBITDA before exceptional items to £77m in the year to February 25 as a renewed focus on driving full-price paid dividends.
However, revenues before exceptional items dipped 2% to £1.03bn, according to Drapers.
The business said reducing discounting was prioritised over sales growth, resulting in a “significant increase” in the proportion of full-priced sales.
Matalan added that improvements in its supply chain – including the fixing of problems at its Knowsley warehouse – drove better availability in its stores.
Productivity savings within the supply chain and its store operations offset the impact of wage inflation, Matalan said.
The retailer opened four new out-of-town stores during the year in Southampton, Christchurch, Fareham and Charlton, and rolled out its Home Extra format in three stores.
A further 50 Matalan stores will be refurbished in the coming year, while the business will also launch a new ecommerce platform.
Matalan’s online sales spiked 60% during the period.