Jan. 20--Value fashion chain Matalan will this week report one of the strongest Christmas sales performances of any major High Street clothing group.

The privately owned company is expected to say that like for like sales in the crucial five weeks to January 4 were up

5.9 per cent year on year at stores that have been open for at least 12 months and 3.4 per cent year on year in the final quarter.

This year the 203-store chain will capitalise on its growing success by opening its first new shops since it was taken private in 2006.

Chief executive Alistair McGeorge has identified up to 70 locations for possible stores in the next few years.

The surge has helped the retailer to reduce its debt, down to about 1.5 times its earnings from 3.6 times earnings after the buyout.

The performance follows convincing trading statements from value rivals Primark, New Look and Peacocks.

Primark was the sole group to match Matalan's performance, but it provided only a total sales growth figure, which includes new stores.

McGeorge said: "I don't think you can say that just because you are a value retailer you are going to do well.

"You have to deliver value so that your customers can see it and believe it."

Meanwhile, Morrisons is expected to announce that like-for-like sales rose about eight per cent over Christmas. Investors have been impressed by the turnround achieved by the company's chief executive Marc Bolland.

The sales increase has beaten supermarket rivals Asda, Sainsbury's and Tesco. However, some analysts have warned that his real test will be at the strategic update, which he is expected to deliver in the spring.

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