Retail

Dealz Owner Pepco Sees Strong Demand Despite Economic Uncertainty

Share this article

Pepco Group, operator of European discount retailer brands Pepco, Poundland and Dealz, said the demand for its products remains strong even against the backdrop of macroeconomic uncertainty.

The group, which listed on the Warsaw stock market last year, forecast underlying core earnings (EBITDA) on a constant currency basis, for full year ended September 30, to come in the range of €735 million to €750 million, in line with its growth expectations.

“We will continue to drive our business using our four key strategic levers – bigger, better, simpler and cheaper," commented Trevor Masters, Pepco Group CEO.

"This strategy is driving faster growth through accelerated store openings and innovation to improve each store for customers and colleagues, helping to further enhance our LFL performance."

Group Revenue

It said group revenue rose 17.4% on a constant currency basis to €4.82 billion, partly driven by 516 new stores.

Like-for-like sales rose 5.2% and were up 15.5% in September, providing a strong exit rate into the new financial year.

Central And Eastern Europe

Pepco said in its core markets of Poland, Hungary and Romania inflation in clothing and footwear was running at only around a third of the headline inflation rate.

Both clothing and food remain resilient categories in the Polish and wider Central and Eastern Europe retail sector, the company said, adding that the outlook across the UK remains 'challenging' as constraints on consumers' disposable income persist.

'That said, our value-led proposition becomes even more relevant in these challenging times and continues to drive new customers to our stores, expanding our target market, across Europe,' it added.

The group has made efforts to lower its cost structure, as well as improve back-office structure and processes, a strategic focus that has "served us well in growing sales and delivering on EBITDA and cash generation," Masters added.

"We are accelerating our strategy in order to capitalise on the opportunities available to us in these volatile market conditions."

News by Reuters, edited by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days

Copyright © 2022. All rights reserved. Developed by Square1 and powered by PublisherPlus.com