Low-rank matrix approximation (LRMA) is a powerful technique for signal processing and pattern analysis. However, its potential for data compression has not yet been fully investigated in the literature. In this paper, we propose sparse lowrank matrix approximation (SLRMA), an effective computational tool for data compression. SLRMA extends the conventional LRMA by exploring both the intra-and inter-coherence of data samples simultaneously. With the aid of prescribed orthogonal transforms (e.g., discrete cosine/wavelet transform and graph transform), SLRMA decomposes a matrix into a product of two smaller matrices, where one matrix is made of extremely sparse and orthogonal column vectors, and the other consists of the transform coefficients. Technically, we formulate SLRMA as a constrained optimization problem, i.e., minimizing the approximation error in the least-squares sense regularized by ℓ0norm and orthogonality, and solve it using the inexact augmented Lagrangian multiplier method. Through extensive tests on realworld data, such as 2D image sets and 3D dynamic meshes, we observe that (i) SLRMA empirically converges well; (ii) SLRMA can produce approximation error comparable to LRMA but in a much sparse form; (iii) SLRMA-based compression schemes significantly outperform the state-of-the-art in terms of ratedistortion performance.