'Home-alone' shock sprung by Matalan

Matalan is considering standalone homewares stores on the back of the success of its home business, which accounts for 20 per cent of sales.

The retailer is assessing potential locations in the South, where its homeware products are most popular.

It is understood the 'home-alone' stores would measure about 12,000 sq ft (1,115 sq m) and be situated in town centres, like the fashion-only store being tested in Northern Ireland.

Chief executive John King said: 'It is definitely on the agenda. It is something we have been looking at for a while, but I can't say anything about numbers yet.'

The homewares market is worth£9.73 billion in the UK, according to Verdict Research. Retail Knowledge Bank research director Robert Clark believed Matalan could capitalise on the sector, but warned that it was getting overcrowded.

Marks & Spencer will open home stores next year, and Inditex - owner of Zara - has launched a home offer. Next has also been opening standalone home stores.

King was confident about the homewares business, despite the disappointing performance of Matalan overall in the first half.

Profit before tax in the 26 weeks to August 30 sank to£41.2 million, from£53.6 million last time, because of a 'heady cocktail' of fashion errors. Sales were£507.6 million from£492 million last year.

King's strategy to de-clutter stores went too far and resulted in lack of choice, he admitted.