Steinhoff International, which owns the Poundland and Dealz single price chains in the UK and Ireland, has posted a 48% increase in revenue in the first half of its financial year, to €10.165 billion. Operating profit at the group was up 13% to €903 million.
Commenting on the performance of the Poundland business, Amsterdam-based Steinhoff said in a statement that it remain 'excited about the Poundland acquisition providing the general merchandise business with the necessary scale in the UK.
'Poundland is trading ahead of expectations with continuing positive like-for-like revenue growth for the six months under review'.
During the first half of the year, Steinhoff International confirmed that Poundland closed 57 loss-making stores, which 'should have a positive impact on profitability going forward'.
In addition, the group introduced its Pep&Co store-in-store concepts to several outlets, as well as introduce a new tiered-pricing strategy.
'Focus areas include the introduction of a multi price point product range; expansion of product ranges to include clothing; optimisation of the store network; and collaboration with the greater Steinhoff group on supply chain initiatives,' the company said.
In Europe, where Steinhoff International also operates the Pep&Co and Pepco businesses, it posted revenue of €1.4 billion, with operating profit of €74 million.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine