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Matalan reveals impact of supply chain challenges

Matalan says that it expects availability to remain “somewhat compromised” over the coming months as it absorbs the impact of supply chain shortages.

“In common with the broader retail market, over the last few months we have been feeling the impact of disruption within the inbound product supply chain, delaying the flow of stock into the UK and adding extra costs into the process,” says Steve Johnson, executive chairman of Matalan.

He said the company was working closely with suppliers and partners to manage and mitigate the effects of this but said that the combination of the negative impact of product delays, coupled with customer demand to new product when it does arrive, would mean availability problems would continue.

However he said the company had now reached a major milestone in its supply chain development programme with the implementation of the first phase of automation in Matalan’s Knowsley warehouse.

“This significant piece of change will further boost our capacity to support and sustain our rapid growth online in addition to providing greater agility, efficiency and improving service for customers as we move into next year,” said Johnson.

He said the company was now planning the next phase of its supply chain and digital capabilities improvements.

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