Poundland and Dealz owner Pepco Group has posted a 17.1% rise in third-quarter revenue as cash-strapped shoppers fuelled demand at its discount stores.
Revenue rose to €1.21 billion on a constant-currency basis in the three months ended 30 June, with like-for-like sales gaining 4.9%.
The company is on track to launch 450 net new stores in fiscal 2022 as part of its strategy of selling low-price products amid rising inflation, even as many retailers are focusing more on online sales.
On Track For Another Good Year
The European discount retailer said it was on track for another good year in the absence of any further significant deterioration in the macro trading environment.
Rising costs, supply-chain snags and the conflict in Ukraine, which borders three of the company's largest operating territories, pose a threat to the firm's business, it noted.
Trevor Masters, CEO of Pepco Group, commented, "The group has delivered another quarter of good progress and a 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."
In June, Pepco Group said consumers in the UK are scaling back on essential items due to the cost-of-living crisis.
News by Reuters, additional reporting by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.
