Pepco, the parent company of Poundland in the UK, Dealz in Ireland and Europe, and Pepco in Europe, has announced strong trading results for the third quarter. The company experienced significant revenue growth, with like-for-like revenue increasing by 29.3% and total growth reaching 46.7%, resulting in €1.043 billion in revenue for the three months ending June 30.

The Pepco chain, in particular, saw impressive performance, with a 37.3% increase in like-for-like revenue and a 59.8% increase in total revenue, amounting to €562 million. Poundland and Dealz also achieved growth, with a 21.1% increase in like-for-like revenue and a 33.8% increase in total revenue, totaling €481 million. These figures surpass the results for the first nine months of the financial year.

The previous year’s third quarter was heavily affected by the pandemic, with 18.4% of trading weeks lost. However, this year saw a significant improvement, with only 7.5% of trading weeks impacted by Covid-related closures. By the end of the quarter, all stores were open for business.

Pepco has continued its store expansion, opening 342 stores since the beginning of the financial year last October. The company has recently entered the markets in Italy and Spain under its Pepco brand, further strengthening its presence in Europe.

CEO Andy Bond highlighted the strategic progress made by the company during the quarter, as consumer confidence gradually returned following the easing of Covid restrictions. However, global supply chains continue to face challenges due to reduced raw material availability and input cost pressures, compounded by limited container capacity. This may result in cost inflation during the upcoming autumn/winter 2021 season.

Nevertheless, Pepco’s unique Asian direct sourcing operation, PGS, enables it to maintain strong relationships with suppliers and factories. This allows the company to closely monitor and swiftly address any potential impacts, ensuring that it remains the lowest-priced operator in all markets.

In conclusion, Pepco has reported robust trading performance in the third quarter, with strong revenue growth across its brands. The company has adapted well to the easing of Covid restrictions and continues to expand its store portfolio. While supply chain challenges persist, Pepco is well positioned to mitigate potential impacts and maintain its competitive pricing strategy.

(Useful links:
Pepco official website
Poundland official website)