Lancashire-based Matalan is mid-way through a growth drive which will see it open 20 new stores by the end the year, increasing its total number of UK outlets to 166.

The company has opened nine of these new stores so far.

Matalan is also planning to relocate five of its existing stores to larger premises before the end of the year.

Investors reacted cautiously to the news, marking Matalan shares down 11p to 275p.

Matalan, which sells premium fashion labels at knock-down prices in out-of-town stores, is one of the UK retail sector's recent success stories, stealing market share away from established High Street operators.

In May, the company said it made full-year profits of £107.6m, 30% higher than the previous year.