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Matalan has secured a £25m funding commitment from its core investor group to accelerate investment across its product range, digital platforms, and physical stores.
The capital, provided by Invesco, Tresidor, Man Group, and Napier Park, follows a similar £25m injection 12 months ago. The discount retailer intends to use the funds to fast-track its store refresh programme.
Internal data shows that upgraded stores are currently outperforming the rest of the estate by 12%. The company now plans to complete 40 store refurbishments during the first half of the year.
The investment will also support increased stock levels for seasonal product lines during key trading periods. The retailer reported a 2% increase in like-for-like sales for the 13 weeks ended 28 November.
Meanwhile, EBITDA rose 38% to £27m during the third quarter. The business attributed the growth to improved margins and operational efficiencies across the group.
Henrik Nordvall, chief executive of Matalan, said: “This commitment to providing additional funding reflects the confidence of our anchor investors in both the business and our strategy, as well as the strong strategic progress we have made and the growing momentum in the business.
“We’re investing for growth and seeking to increase the pace of that investment in the areas we are seeing the strongest returns, including our stores and product offer, as we continue to strengthen our proposition around great style, quality and value and grow our market position.”
