Poundland records festive sales uptick

PepCo, which trades under the Poundland fascia in the UK and the PepCo and Dealz fascias in Europe, posted a 5.5% rise in like-for-like sales in the quarter to December 31, 2020.

Poundland, which qualified as an essential retailer and was therefore able to trade from its stores during lockdown, reported a 4.3% rise in like-for-like sales during the period despite significantly reduced footfall to its stores, which are primarily located on high streets.

The retailer said this growth is “likely to have resulted in market share gains in the UK, providing further evidence of the successful change programme the Poundland brand is undertaking”.

In recent months, Poundland has launched a grocery and frozen food offering across a number of its stores, as well as bolstering its homewares range, both of which drove demand during the festive period.

The discount retailer also attributed its growth to strong demand for its Pep&Co clothing range and the expansion of product ranges above its £1 price point. 

During the period, PepCo added 87 new stores in Europe and renovated 38 Poundland sites to introduce chilled and frozen food sections and new price points across all categories.

PepCo chief executive Andy Bond said: “We anticipate that the consumer backdrop will remain challenging in the short term. 

“However, with our established growth strategy, centred on significant future store expansion within a structurally advantaged discount retail segment, and strong financial base, we believe that our future growth opportunity is greater than a year ago. 

“Accordingly, we remain confident about our prospects for continued growth across Europe in the balance of the financial year and beyond.”