Poundland owner Pepco reshuffles management team and issues profit warning amid ‘challenging trading environment’

The Poundland parent company has altered its EBITDA for the full year to approximately €750m (£648m). The revised profit guidance is driven by weaker sales, continued inflationary pressures on costs and the “drag from investment in new stores”.

Pepco saw lower-than-anticipated revenues during August, which worsened in September as there was lower consumer demand for clothing and general merchandise, as well as “weaker than expected” performance from new stores.

The group said it has not seen the expected recovery in gross margins as it works through inventory from earlier in the year purchased at a high cost.

Following the underperformance, Pepco has reshuffled its management team with Pepco managing director Anand Patel stepping down with immediate effect and will be replaced by current Poundland managing director Barry Williams.

Poundland’s current chief operating officer Austin Cooke will assume the role of managing director of Poundland. The reshuffle comes two weeks after the resignation of Pepco chief executive Trevor Masters.

A new group executive committee will undertake a strategy review across the business to address costs and initiatives that are likely to “generate appropriate returns in the near term, accelerate the transformation into a single business and refocus on our core markets”.