Poundland accelerates Pep&Co concession expansion to take on Primark

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Poundland Pep&Co

Poundland is poised to ramp up the rollout of Pep&Co fashion concessions within its existing stores as intensifies its competition with Primark.

The expansion drive will see Poundland open 91 Pep&Co stores by summer, putting it on course to have a total of 330 by the middle of the year.

The company said that if expected sales were reached, it would be elevated it to a “top 15” fashion retailer by volume alongside the likes of River Island, Top Man, Asos and Peacocks.

Prices at Pep&Co start at £1 and 95 per cent of the range is £10 or under, rivalling Primark on price.

Poundland’s UK & Ireland managing director Barry Williams said: “We’re working flat out to make sure as many Poundland shoppers have access to Pep&Co by this summer.

“Pep&Co gives shoppers a major new reason to shop in our stores that we already know is a hit with our customers.”

According to accounts filed at Companies House, Pep&Co and Poundland’s UK-based holding company Pepkor UK booked a pre-tax loss of £18.9 million in 2016 on sales of £29 million.

The expansion also comes at a sensitive time for global parent company Steinhoff, which is dealing with an accounting scandal after irregularities linked to its 2016 accounts were exposed in December.

Pepkor has since worked to calm suppliers by replacing planned investment from troubled Steinhoff with a £180 million independent loan facility in January.

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