Steinhoff International has reported positive Poundland results for the three months ended December 2016.
Results 'ahead of expectations'
According to Steinhoff's latest financial results, the newly-acquired Poundland business performed positively, contributing £448m to the South African conglomerate. In his webcast, Steinhoff CEO Marcus Jooste revealed that this is the first time since December 2014 that Poundland has seen positive like-for-like sales.
Confident regarding future growth
Jooste sees this performance as a positive signal, following a couple of turbulent years following the acquisition of 99p Stores and the change of management. Confident about future growth, he is happy with Andy Bond and his team, saying 'we will find our way as we go on', indicating there is much to learn about the business and work on. A couple of ways in which Steinhoff has had an influence in the UK discounter so far is with the introduction of Pep&Co clothing within some Poundland stores and the conversion of GHM! to Poundland.
Poundland has now reached a significant scale in terms of stores and operations so the business will focus on initiatives beyond store openings. Priorities for the rest of the year will include executing a value creating plan which involves introducing a larger multi-price point range, optimising stores and collaborating with the extended Steinhoff group to improve supply chain initiatives.
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|Priya Chandarana is a Retail Analyst at IGD, specialising in research on the growing discount channel. To learn more about how IGD's research can benefit your business further, please get in touch - firstname.lastname@example.org|