Poundland owner Pepco posts Christmas sales rise

Poundland owner Pepco Group saw revenues jump over the past three months as it was boosted by the firm’s growth across Europe.

The rise comes as Pepco’s troubled parent business Steinhoff continues to assess a potential float or sale of the value retail group.

Pepco reported a 13.3% increase in total group revenues to 1.14 billion euros (£960 million) for the three months to December.

Poundland saw like-for-like sales increase by 1.3% for the period, growing its market share “in the context of a weak consumer backdrop”.

It hailed a Christmas trading period which saw Poundland record its busiest ever day, with 1.6 million customers served on December 23.

The retailer was also strengthened after it renegotiated 36 store leases to keep costs lower.

Poundland sales were boosted by the “continued strong performance” of the Pep&Co brand, it said.

The group’s PEPCO branded stores in mainland Europe also drove growth throughout the period, reporting 24.6% revenue growth to 597 million euros (£504 million).

Andy Bond, chief executive of Pepco, said: “Pepco Group has continued to deliver operational and strategic progress in this important trading quarter, reflecting our clear growth strategy centred on the significant long-term opportunity for further PEPCO stores in central Europe, together with a focus on day-to-day retail execution.

“This combination has secured another quarter of strong revenue growth, both in total and like-for-like terms, in each of the group’s brands.

“With an established strategy, leading customer proposition within a structurally advantaged discount retail segment and a strong financial base, we remain confident about our prospects for continued growth across Europe in the balance of the financial year and beyond.”