Matalan had expected the new software to replace its replenishment and merchandising system. However, the company later decided upon an overhaul of its existing system believing this strategy to offer less risk and reduced costs. The company also said that it was considering taking legal action against IT consultants Kurt Salmon Associates.
Suffering from difficult trading conditions, Matalan’s profits fell to GBP56.7 million in the year ending February 25, 2006, compared with GBP80.5 million in 2005. The company did however note that current sales were better and that it had cause for optimism.
Speculation will nevertheless continue to surround Skelmersdale, UK-based Matalan with its chairman and founder John Hargreaves already thought to be looking for potential buyers.
