UK retail group Poundland, which operates the Dealz franchise in Ireland and Spain, has seen its like-for-like sales drop 2.8% in H1 on a constant currency basis, according to interim H1 results.
The group saw its underlying EBITDA drop 18.5% to £16.8 million, while underlying pre-tax profits fell 26.3% to £9.3 million.
Boosted by new store openings - 52 net new stores in the UK and Ireland - overall sales were up 5.6% on a constant currency basis.
In Ireland, Poundland said it was ‘increasing the rollout’ of its Dealz brand, and is now targeting 100 stores in the country, up from its previous target of 70. It recently opened its 50th store in Ireland (pictured).
It also plans to soon open its tenth trial Dealz store in Spain.
Commenting on its performance, Jim McCarthy, Poundland chief executive said "The sales comparables in the second half are softer and our Christmas range is our best ever. However, we have seen highly volatile trading conditions so far in the third quarter.
"The quarter's performance therefore depends more than ever upon the last six weeks' trading towards Christmas."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
