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The company has more than 150 stores, with an average of 30,000 square feet of space per store, selling brand name and private label merchandise.

Although the stores were once membership only, with customers paying £1 to register (which covered the cost of the membership card), Matalan opened its doors to members and non-members alike in 1996.

The company continues to offer membership and benefits include advance notice of new collections, special offers and sales, as well as receiving seven catalogues per year. It also offers its own credit card to its members.

At the end of June 2002, membership stood at 8.5 million. Matalan opened its 100th store at the beginning of 2000 and plans to have 200 stores by 2005.

The story started with John Hargreaves, the founder of Matalan, who began his career as a market trader in the 1970s. Following a trip to the US in the early 1980s, he discovered out-of-town membership-based retailers, and decided to implement the same retail concept in the UK. The first Matalan Discount Club store opened in Preston in 1985. The company floated on the London Stock Exchange in May 1998 and John Hargreaves and his family continue to own around 65% of the company.

In the year to February 23, 2002, Matalan saw sales increase 44.6% from £586m to £847.4m. Like-for-like sales, excluding extensions, grew 8.3%.

Pre-tax profit increased 29.8% from £82.9m to £107.6m. The ratio of operating profit to sales fell to 12.7%, due to increased promotional activity.

This promotional activity included the launch of four 30-second TV ads in late 2001 created by CDP-travissully. It followed the theme of shoppers obsessed with the store's low prices using the strapline 'Matalan: savings you just can't keep to yourself'.

In April and May this year it purchased the Wosely and Easy Jeans brands respectively. It also announced plans to open a further 20 stores nationwide during this year.

In June Matalan, appointed M&C Saatchi and Lida, the agency's direct marketing operation to handle its account in a bid to establish a nationally recognised brand.

Matalan conducted a review of its business strategy last month and announced the creation of a shop-in-shop concepts for its high street brands such as Falmer and Lee Cooper, which it acquired in June 1999 and July 2001 respectively. This involves a Falmer and Lee Cooper area within stores and so allows Matalan to segment its offerings and create a 'good, better and best' principle to its offerings.

Turnover                  £847.4m
Pre-tax profits           £107.6m
Employees                 11,300
(Figures for year to February 23)

Advertising agency
M&C Saatchi
Media agency
Feather Brooksbank
PR agencies
Weber Shandwick, ZPR

Adspend (year to June 2002)
Press                     £2,971,878
TV                        £3,550,792
Direct mail               £1,919,701
Radio                     £1,401,130
Total                     £9,843,501
Source: ACNielsen MMS

Marketing Director
Euan Sutherland
UK headquarters
Gillibrands Road, Skelmersdale, Lancashire WN8 9TB
Tel: 01695 552400
Web site: www.matalan.co.uk