Poundland drives sales for European owner
European discount retail group Pepkor Europe has reported a double-digit surge in half-year sales, boosted by the performance of its Willenhall-based flagship discount chain Poundland.
According to its interim report for the half-year period ending March 31, Pepkor reported a 13.3 per cent year-on-year rise in overall revenues to £1.53 billion.
The retail firm, which operates Poundland in the UK and Dealz and Pepco in mainland Europe, now trades from 2,473 stores across the continent – an 11.9 per cent year-on-year increase.
On its own, Poundland reported revenue growth of 1.6 per cent year-on-year to £829 million during the half year period, while its store estate grew a marginal 0.5 per cent to 875.
Pepkor said Poundland delivered “positive total sales growth” and continued to outperform the wider UK high street.
It highlighted that this was boosted by the roll-out of Pep&Co clothing shop-in-shops, now present in approximately 300 Poundland stores.
The company added that Poundland continued to manage its store portfolio by “balancing the exit from stores in weaker catchments with carefully selected new store opportunities in stronger locations”.
Twenty new Poundland stores opened in the first half while another five were relocated to larger sites.
“These results are further evidence that Pepkor Europe is developing into a strong, geographically well-balanced pan-European variety discount retailer,” Pepkor Europe chief executive Andy Bond said.
“The foundation of the group’s continuing strong performance remains our ability to provide exceptional value to our millions of customers every week within a core discount segment which is being accessed by an increasing number of consumers across Europe.”
He added: “Our trading progress has been matched by our strategic development. We continue to confidently expand Pepco and our belief that the Dealz format in mainland Europe can provide an exciting additional source of growth is increasing.
“Quality, scaleable infrastructure across the group is necessary to secure the growth opportunity available to us, and while such investment may slow our rate of earnings growth in the second half year, with a focused strategy in place a strong financial base and three trading brands all performing well, the opportunity for long-term growth across Europe is clear.”