Pepkor Europe, the parent company of Poundland in the UK and Dealz in Ireland, Poland and Spain, has reported total revenue growth of 10.6% for full-year 2018.
Revenue stood at €3.05 billion for the full year to 30 September – a period that saw the number of stores operated by the group rise by 12.6%, to 2,360.
Revenue for the fourth quarter, meanwhile, was up 12.9%, to €781 million.
Pepkor Europe also operates the Pepco clothing chain in a number of European markets.
The group said that its underlying group performance was partially offset by the closure of 60 'poorly performing' former 99p Stores outlets in February and March of last year.
Banner Performance
It added that the growth achieved in its Poundland network was 'pleasing', driven by the roll-out of Pep&Co 'shop in shops' in more than 300 outlets.
At Dealz, meanwhile, the group's European expansion 'continues to develop in line with our plan', the group noted.
'Spain continues to perform well, delivering positive like-for-like performance, with a full fashion offer introduced in four stores. Reflecting the Group’s established knowledge of the market, the Polish business, which now operates from eight stores, shows encouraging early signs,' it further noted.
Pepco expanded its store portfolio by 23.6% in the full-year period, with the opening of 286 stores, including the group's 200th in Romania.
Strong Finish
“We ended the financial year very strongly, as our key brands focused uncompromisingly on the delivery of their respective business plans," commented Andy Bond, chief executive of Pepkor Europe. "Poundland’s return to like-for-like growth is encouraging, and the continued growth of Pepco clearly evidences the broad appeal of their value-for-money proposition in existing and new markets.
“Although relatively small, the performance of our Dealz businesses in both Spain and Poland are particularly pleasing," added Bond.
He added that the group's discount positioning for its banners is "attractive to customers and growing at levels similar to that experienced online. Our established businesses are also financially strong, being profitable and cash generative. With a clear strategy in place, we are excited about our prospects for continued growth across Europe.”
Pepkor Europe is a subsidiary of Steinhoff International.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
