Poundland owner Pepco’s sales soar as it increases store expansion plans

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Pepco has upped its store expansion goals for the year to drive further growth.

Poundland

For Poundland UK, revenues jumped 3.8% year on year in constant currency

The discount retailer, which owns the Pepco and Dealz brands in Europe as well as Poundland in the UK, recorded revenues up 17.1% to €1.2bn (£1bn) year on year on a constant currency basis.

Sales were up 4.9% on a like-for-like basis across the group in the third quarter to June 30.

For Poundland UK alone, revenues jumped 3.8% year on year in constant currency and 2% on a like-for-like basis.

Pepco said the biggest driver of growth was its store expansion plans, which it has now increased to 450 by the end of the financial year – up from a previous target of 350 that has already been achieved.

New store openings and store refreshes are being carried out across the group, including a trial in Spain offering the full range of Pepco clothing, Pepco general merchandise and FMCG across selected stores.

The group said it was committed to its value proposition in the face of the inflationary situation across both the UK and the rest of the world. It added that it was encouraging that the value sector is now more prominent than during the last financial crisis.

Pepco boss Trevor Masters said: “The group has delivered another quarter of good progress and resilient trading performance, driven by its successful and proven strategy.

“We are excited about our expansion plans in Spain as they are the first step on the journey to make the best of the group’s offering available to more customers than ever before. It means we can leverage the benefits of our broader offering across the group, making us even more efficient and effective.

“I would like to take this opportunity once again to thank all of our colleagues across the Pepco group for their hard work and ongoing commitment to serving our customers.

“Despite the challenging market environment, Pepco continues to accelerate and deliver against its successful growth strategy based around our four key pillars: bigger, better, simpler and cheaper. We remain confident in the strength of our customer proposition, market positioning and our ability to drive long-term value creation.”