Matalan in credit card launch

DISCOUNT clothing retailer Matalan is to offer financial services, taking a lead from the supermarkets.

The company is to offer motor, home and travel insurance, plus phone and utility services in a trial at 27 of its stores. There are also plans to offer personal loans and credit cards from next month.

Chief executive John King denied that the financial launch would detract from Matalan's core fashion business.

The Lancashire-based company, which is 52%-owned by founder John Hargreaves and his family, admitted recently that sales in the spring had been poor. 'We are trying to present the best value for our customers,' said King. 'The core clothing market will remain the day job.

'Financial services are being handled by third parties with a skeleton staff at Matalan to manage the project. A lot of research has gone into this - it has been on the drawing board for a year - and we see it as a way to offer a significant extra service.'

Matalan's insurance products are with The OutRight Company, which guarantees to beat any home renewal premium by at least £25. The retailer has joined with Carphone Warehouse for its home phone deals and Atlantic Electric and Gas for utilities. The personal loans, available from September, are being offered in conjunction with HBoS bank.