Fashion and homewares retail chain Matalan has reported a decline in sales although losses narrowed slightly.

According to its latest filed accounts for the year ended 22 February 2025, total sales fell to £984.6m from £1bn in 2024.

Pre-tax losses resulted at £45.4m, narrowing from a loss of £48.2m recorded the previous year.

Stated within its report, the company said: “Against the backdrop of a challenging economic environment, the year-on-year decline in sales was a direct result of subdued consumer spending driving an increase in market competition.

“This decline was further exacerbated by stock availability issues due in part to the disruption to trade caused by the Red Sea Crisis as well as a conscious decision of the business to focus on profitability over top-line revenue performance.

“Whilst online performance stabilised after the step back in the prior year, store sales delivered a year-on-year reduction on the back of subdued consumer demand and a highly competitive market.

“The International franchise business also saw a year-on-year sales decline as a number of key franchise partners in the Middle East and Mediterranean coast were negatively impacted by the challenging macro-economic conditions and regional political instability.”