CLOTHING chain Matalan said it was in good shape despite like-for-like sales falling 6.4 per cent over the past 26 weeks.

The group, which has stores in Malvern and Kiddermi-nster, offset the decline with better margins as it carried out measures to improve efficiency and benefited from a more profitable mix of sales.

Among changes, Matalan has tightened stock levels and overhauled its distribution network, while it recently announced the completion of a restructuring that cost 300 jobs but should help to save £15m a year.