Poundland owner sales rise as chain ‘outperforms’ high street

Poundland reported revenue growth of 1.6% over the half year to March 31 to €920m (£829m) and saw its store estate grow marginally to 875, up 0.5%.

The retailer said Poundland delivered “positive total sales growth and continues to outperform the wider UK high street”, due to its “competitive differentiation from the introduction of clothing ‘shop-in-shops’” and “measured product range extension to support a broader range of price points”.

The retailer said Poundland continued to manage its store portfolio by “balancing the exit from stores in weaker catchments with carefully selected new store opportunities in stronger locations”.

Poundland opened 20 new stores in the first half of the year and relocated a further five to larger sites.

Pepkor, which trades as Pepco and Dealz in mainland Europe, generated sales in excess of €1.7bn and a 29.1% increase in group EBITDA to €151m.

Boss Andy Bond said: “These results are further evidence that Pepkor Europe is developing into a strong, geographically well-balanced pan-European variety discount retailer.

“The foundation of the group’s continuing strong performance remains our ability to provide exceptional value to our millions of customers every week within a core discount segment which is being accessed by an increasing number of consumers across Europe.

“Our trading progress has been matched by our strategic development. We continue to confidently expand Pepco and our belief that the Dealz format in mainland Europe can provide an exciting additional source of growth is increasing.

“Quality, scaleable infrastructure across the group is necessary to secure the growth opportunity available to us, and while such investment may slow our rate of earnings growth in the second half year, with a focused strategy in place, a strong financial base and three trading brands all performing well, the opportunity for long-term growth across Europe is clear.”