The Pepco Group has released its figures for the three months ending 31 March 2023. The Group operates three retail brands: Pepco, Dealz and Poundland.
Leading data and analytics company GlobalData associate Retail Analyst Sophie Mitchell offered her view: “The Pepco Group has continued to shine against the backdrop of inflationary pressures, ending its quarter two (Q2) fiscal year (FY) 2022/23 with another solid set of figures. Group revenue has risen by 19.7% and 8.5% on a like-for-like (L-F-L) basis.”
Mitchell asserts that the value retailer has continued to benefit from its leadership in providing low prices, enabling it to win shoppers as they trade down to discounters due to inflation.
Mitchell added: “The group experienced a L-F-L revenue growth of 11.1% in H1 and remains on track to achieve an EBITDA growth in the mid-teens for FY2022/23, as outlined in its Q1 trading update. This is despite the cost pressures being faced by the business.”
The Pepco Group has continued to expand its store estate, with 166 store openings in its H1. Although this figure is lower than the same period last year (H1 FY2021/22: 235), the Group stated that this is a result of different phasing, with the second half set to see a heavier weighting of store openings.
GlobalData analysis shows that for the first time in the Group’s history, the number of store openings in Western Europe outweighed those in central Europe. This demonstrates that it is an important strategy for the group to continue to move into more of the European market.
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The Poundland Group opened a net of 32 stores, with most openings due to the growth of Dealz Poland.
Changing consumer behaviour as a result of inflation is described as providing Poundland with a significant opportunity to boost its market share in the UK.
Mitchell concluded: “It will be interesting to see if Pepco continues to transform Poundland UK locations in the latter half of FY2022/23. This would help ensure it can compete with rival discounters such as Aldi, Lidl and Home Bargains.”