Job cuts likely as struggling discount retailer bids to save £15m

Discount retailer Matalan has said it will shed jobs to save costs, following continuing poor sales.

Chief executive John King said a review of group operations is expected to save £15m a year, including some redundancy costs.

Fears of hundreds of job losses among its 17,000-strong workforce emerged several weeks ago when Matalan said it had to improve margins.

King declined to comment on the scale of job losses today, but he said: “We are in the middle of consultation and working with our colleagues on how best to do this. We will make an announcement at the end of July.”

Like-for-like sales growth in the 18 weeks to 2 July showed a 7.5% drop compared with a 4.1% increase a year ago.

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