Single price retailer Poundland has posted a 3% decline in revenue in the first nine months of the year, at constant currency levels, of €1.32 billion.
The performance of the retailer was included in the nine month financial results for Steinhoff International, the group's South Africa-based parent. Poundland, along with Pepco and sourcing arm PGS, form part of Steinhoff's Pepkor Europe division.
Store Closures
Poundland, which also operates under the Dealz banner in Ireland, Poland and Spain, said that the dip in sales performance was due to the closure of approximately 60 stores in the comparative period.
Like-for-like sales in the nine month period to 30 June were up by 1.7%, however, which the company said 'outperformed the wider UK market'.
It added that sales momentum at Poundland has 'strengthened even further in the first two months of the fourth quarter'.
'Shop In Shops'
The period saw Poundland continue its rollout of Pep&Co 'shop in shops', with an additional 175 sites added, meaning that a total of 274 sites now boast Pep&Co merchandise, including its entire Ireland portfolio.
'Performance of Poundland stores with a shop-in-shop has been strong at +7.7% like-for-like sales in the period under review, significantly higher than the chain average,' the group said in a statement.
It said that the European-based operations in Spain and Poland 'continue to develop well', with the rollout of three Pepco-supplied shop in shops in Spain, and the extension of its Poland trial by a further two stores.
'Pepkor Europe’s core businesses – PEPCO, Poundland and the sourcing arm, PGS – are increasingly interdependent, providing significant opportunities to accelerate future progress,' the company said.
'It continues to be well positioned to realise its ambitious plans to build a discount retail business of scale.'
© 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.
