// Pepco Group reports a 22.8% surge in first-half revenue as shoppers seek out value
// The group maintained its full-year guidance and said it “remains confident on the outlook”
Poundland owner Pepco has posted a 22.8% rise in first-half revenue, driven by strong demand for its value offers from cash-strapped shoppers amid the cost of living crisis and the opening of 166 new stores.
The retailer’s revenue stood at €2.84 billion for the six months to March 31 while like-for-like sales were up 11.1% in the first half and up 8.5% in the second quarter.
Poundland achieved a “record-breaking” first week of sales in its largest-ever store opening in Glasgow, which opened last month, resulting in the highest week-one clothing sales in its history.
As a result, the owner of the Pepco, Poundland and Dealz brands said it remained on track to deliver full-year core earnings growth in the “mid-teens”.
Chief executive Trevor Masters said: “Our strategy of price leadership gives us continued conviction in our ability to win customers and market share, which we have grown in our key markets over the last quarter,”
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The group currently trades from 4,127 stores in 19 territories across Europe.
Over the full year, it plans to open at least 550 net new stores, including the launch of the Pepco brand in Portugal and Bosnia and Herzegovina in the second half.
The retailer maintained its full-year guidance and said it “remains confident on the outlook”.
Masters said: “Demand for our products remains strong and double-digit like-for-like revenue growth demonstrates solid progress for the group. We have continued to deliver against our strategic priorities, including the successful store refit strategy and profitable store expansion programme – our biggest source of value creation.
“For the first time, the number of net new store openings in western Europe, including our 100th store in Italy, outweighed the number of openings in central Europe across the quarter. This is a strategically important milestone for the group and the continued positive consumer response to our proposition across those markets demonstrates that the whole of Europe is addressable to us.
“We will look to leverage this opportunity further over the rest of the year, and our plans to launch the Pepco brand in Portugal and Bosnia and Herzegovina in the second half of 2023 remain on track.
“While the consumer environment remains challenging due to inflationary pressures, our strategy of price leadership gives us continued conviction in our ability to win customers and market share, which we have grown in our key markets over the last quarter.”
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