Shares in discount retailer Matalan have tumbled 11 per cent after a disappointing take-up on its spring and summer ranges meant a slide in sales.
As well as seeing lower interest than hoped, the company admitted customers had been put off by a lack of choice.
A move to create more space within its stores went too far, reducing the amount of clothing on sale.
Chairman John Hargreaves said like-for-like sales in the 13 weeks to May 31 slid by 7.5 per cent. Shares lost 21.5p to reach 183.75p.
Meanwhile, total sales grew by 6.2 per cent, boosted by the opening of two new stores and a relocation.
The sales drop comes less than five months after the group disappointed investors with just one per cent sales growth during the Christmas period. But sales in February and March offered an encouraging start to the new season.
The group said yesterday it was reconsidering its plans for the autumn and winter ranges in light of the difficulties.
Thursday June 5, 2003
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