Pepco Group vows to get Poundland back on track
Pepco Group has reported a 7.3% decline in first quarter like-for-like revenue at Poundland.
The group attributed the decrease to a weak clothing and general merchandise performance and ongoing challenging market conditions.
Trading was stronger at Pepco where like-for-like revenue rose by 1.4% as the retailer benefited from an improvement in availability and a renewed pricing focus on best-selling items.
Like-for-like revenue at Dealz climbed by 6.6% following strong demand across both the FMCG and general merchandise categories.
Never Miss a Retail Update!Meanwhile group revenue rose by 3% at constant currency to €1.9 billion, although group like-for-like revenue fell by 1.1%.
Stephan Borchert, chief executive of Pepco Group, said: “The group delivered a mixed performance in its first quarter, with a strong performance from both the Pepco and Dealz brands, partially offset by Poundland’s ongoing challenges.
“Getting Poundland back on track is a key priority – we are undertaking a comprehensive assessment of the business and taking immediate measures on improving our cash performance and strengthening the customer proposition.”
During the quarter, Pepco Group reached a milestone of operating over 5,000 stores after opening 63 net new shops. The group expects to open around 300 net new stores in the current financial year.
Join us at The Retail Bulletin’s Omnichannel Futures Conference in London on 6 March. Find out more and register for free places here
