Matalan to go private cheap as chips !

twozuluzulu, you are talkig complete garbage. Companies sell goods which they are discounting in sales to shift range goods that are slow. The usual markup in the rag trade is 300%. These good are thus bbeing sold at or close to cost. They are a buyers mistake. It happens - forget about it.

That the goods at full retail sell at £10 means that there is not a lot of fat that can be trimmed and that the pressure is on buyers to have as high stock turnover as possible so that cash can roll into the till in advance of falling due to creditors and money can be made from turnover of stock and overnight lending.

This is not a risk tolerant company in boom times. By the very nature of the price attributed to its products, it panders to the most vulnerable and least affluent in our country. And, lets face it, if all you want is 30 pairs of socks/boxers, bras and knickers with change from £50, it saves a whole abount of money if you haven't got a washing machine.

Do the maths (washing machines cost £500, bax of powder £12 per month, calgon £4 and softener £2 - these other incidentals are £220 per year). And surprise, surprise, you can afford to wear these garments four times and throw them away for the same money to be replaced - and all of that without thinking about the space for washing machine, tumble dryer, sorting into pairs, darning, shrinkage etc, and you can always go to the laundramatte once a year and wash the whole lot for £15 for another year FOC.

No, discount stores pander to the lowest common denominator. I am surprised that they have any loyalty of cutomer, have any growth in the share price and have any place in the FTSE 250 at all. The shares are expensive compared with their earnings and the only advantage in a buyout is from the real estate and re-branding that could be made in, say a Wal Mart clothing division where rubbish is sold, its origin, the US either as overstock or poor lines where gullible and rather un-intelligent britons arte suckered into paying top dollar for rubbish.

However as 3 wearing clothing, reasonable vfm.

EJ