Matalan Bets £25 Million More on Stores After Derby Hits £1m in 51 Days

Matalan will add nearly 100,000 sq ft of retail space this month, opening four stores in Aylesbury, Clacton-on-Sea, Bangor and Newport ahead of Black Friday and Christmas. The expansion follows a format test in Derby that reached £1 million in sales within 51 days — the most successful opening in the value retailer's history.

The Liverpool-based fashion and homeware chain opened a 30,000 sq ft store at Brooke Retail Park in Clacton-on-Sea and a 22,000 sq ft unit at Aylesbury Shopping Park on 7 November. A 17,000 sq ft store at Springhill in Bangor, Northern Ireland, follows on 14 November. In Newport, Wales, Matalan will open a 27,000 sq ft full-price store at Mendalgief Retail Park, replacing its nearby clearance operation. The retailer said each site would employ around 40 staff, implying roughly 160 new roles across the four locations.

What is the new store format?

All four sites carry the format introduced in Derby earlier this year. It features brighter interiors, simpler layouts and more visual merchandising. The company frames the design as an operational tool, not decoration, since refreshed stores outperformed the wider estate by around 12% in FY26 and delivered like-for-like sales growth of 10% following refurbishment, according to the retailer's results.

Matalan's Hull store is also due to reopen later this month after a redevelopment turned it into a two-floor shop with new lighting, signage, fitting rooms and checkouts. James Dorling, Property Director at Matalan, said investment over the past two years had focused on "not just making stores look better, but making them easier to shop and better at showcasing what we have to offer". He added: "It's about investing in the right locations, improving the shopping environments, and giving our customers even more reasons to choose Matalan."

Who is paying for the rollout?

The programme is partly funded by an additional £25 million commitment from Matalan's investor group, secured in March. In June, the retailer extended its debt facilities to 2029. For the year to February, the pre-tax loss narrowed to £54.7 million, while adjusted EBITDA rose 24% to £69.4 million. The refinancing gives the chain a runway through the full refurbishment cycle rather than a single-season fix.

For FY27, Matalan plans to refresh 40 stores, including 14 of its traditionally best-performing locations, alongside at least 10 new or relocated sites. The figures separate measured intent from results already booked: the Derby £1 million and the 12% outperformance are achieved numbers, while the 40-store refresh and 10 openings remain announced plans.

How does the estate fit the turnaround?

The openings coincide with the launch of Matalan's Christmas collection, which spans fashion, gifting and homeware, with almost 95% of products priced below £35. The collection anchors the peak trading window that will test whether the new format converts footfall at scale.

The store push also follows the September launch of the Believe It's Matalan brand platform, which ties the refreshed stores, a new app and updated product ranges into a single turnaround strategy. Matalan reported earlier that the app drove 28% order growth as the retailer accelerated digital investment.

For sourcing and property teams, the signal is a chain committing capital to physical retail while its digital channel grows — and a landlord proposition built on proven sales density from Derby rather than projections. Whether the Newport full-price conversion and the Bangor opening match Derby's 51-day benchmark will become clear in the new year's trading updates.