DISCOUNT retailer Matalan remains confident about its prospects, despite seeing sales fall.

The Skelmersdale-based group said sales for the 13 weeks to May 28 stood at £268.1m – down 2.7% on the same period in 2009.

Matalan said the business grew until the middle of May, but sales to the end of the month failed to match strong figures from last year.

It said menswear and childrenswear ranges performed well, while homewares sales were improving. Online sales doubled compared to the same three months in 2009.

The company said trading conditions were still challenging. But the company, which opened one store in the period, said it would “continue to invest modestly in new stores” and was considering expanding its store refurbishment programme.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at £27.6m. Chief executive Darren Blackhurst said: “While our financial performance has been challenging in the first quarter and we expect these conditions to remain for the near future, there are many reasons to be confident and excited about the long-term future.

“The brand has real equity with customers from a value perspective, there is considerable latent potential within our core business and the opportunity for future expansion remains.

“The fact is, customers face tough times at present. Juggling the weekly budget is becoming increasingly difficult for many households.

“While we remain cautious about future trading, we will focus on giving our customers a relevant offering during these uncertain times.

“As such, we have three clear priorities for this year – keeping prices as low as possible for our customers, investing in quality and design to bring customers the most fashionable products for less, and continuing to improve the shopping experience.”

Matalan was founded by Liverpool docker’s son John Hargreaves in 1985.