Pepco Group Pledges Price Protection for European Consumers
The fast-growing pan-European variety discount retailer, Pepco Group, owner of the PEPCO and Dealz brands in Europe and Poundland in the UK, is reporting strong strategic progress and trading growth despite a challenging trading environment.
The group has announced a 17.5% increase in revenue for the second trading quarter and first half ending 31st March 2022, driven by significant expansion.
The Group operates discount stores offering consumers a variety of retail goods. Following the launch of the first PEPCO stores in Poland in 2004, PEPCO expanded into the Czech Republic and Slovakia in 2013, and between 2015 and 2017 opened in Croatia, Hungary, Lithuania, Romania and Slovenia. Since then it has opened in Latvia, Estonia and Bulgaria, Italy and Serbia with Spain also being added in April 2021.
Pepco Group has recorded 202 net new store openings for the period, including 84 in the Western European markets of Austria, Italy and Spain, where initial performance remains strong.
In announcing the positive results, the Group pledged to protect prices for consumers across Europe following the challenge of the last years, first due to the Covid pandemic and the current challenges presented to supply chains as a result of the Russian invasion of Ukraine.
A statement from the Pepco Group outlined it continued to see the ongoing impact of Covid-19 restrictions in stores. However, by the end of the half restrictions this had eased, with the Group March exit LFL rate of 19.4% demonstrating the strong underlying customer demand for the Group’s offering.
On March 31st, Andy Bond stood down as Group CEO and was replaced on an interim basis by Trevor Masters. Today, Mr. Masters outlined plans for a continued growth agenda which will enable the group to protect prices despite the challenges presented by the situation in the Ukraine and global inflation.
He said, “We will continue to drive our significant growth agenda whilst reducing our cost of doing business. This will enable us to offset the majority of our input inflation allowing us to protect prices for our cost conscious customers. The market within which we operate is likely to remain volatile in the near term, due to the situation in Ukraine and ongoing global inflationary pressures. However, we have a clear and successful strategy to deliver on our sizeable long-term growth opportunities. In the absence of any further significant deterioration in the macro environment, we remain confident of delivering in line with our profit guidance.”