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Poundland's parent company Pepkor has released its latest financial results for Q1.

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Pepkor Europe-owned Dealz, part of the Poundland family, plans to open 20 stores in Spain over the next three years. Dealz currently has 10 stores in Spain, after opening two in Q4 2018. InfoRetail reports the news as part of an interview with the company.

Targeting shopping centres and high streets

Dealz will continue to open its new stores in shopping centres and high streets and start opening in retail park locations. Geographically, the openings will be split between Madrid and Valencia. The stores will have sales areas of between 750 to 1000 sqm. Around 5,500 items will be sold, 2,500 of which cover its clothing range.

Dealz has upgraded the clothing section in some of its existing stores and has seen higher than expected sales growth. In a Madrid store the average price of clothing items is €1.50. If the expanded clothing range is successful in the initial tests, it will be rolled-out more widely.

Sales growth driving expansion

Dealz performed well in Spain in FY 2018 with positive like-for-like growth. In Q4 2018 Dealz saw 10% sales growth, two percent more than Q4 2017. Read Pepkor Europe’s full 2018 results here.

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We bring you three examples of how value retailers are finding new ways to stand out and drive sales this Christmas.

Poundland: pre-wrapped Secret Santa gifts

Poundland is trialling a 'secret santa' aisle in its Stratford store. All of the products cost £1 and are pre-wrapped, making the purchase a secret for the shopper also. The initiative is aimed at workplace secret santas, where colleagues usually buy low budget gifts for each other. Depending on its popularity, Poundland will consider rolling this out to more stores next year. The secret santa aisle is great way for suppliers to understand how Poundland aims to be inventive and fun for its shoppers; and it attributes this to its success. Read the latest Poundland results here to see how the retailer is performing.

Iceland: online exclusive '12 deals of Christmas'

Iceland is running an online exclusive promotion called '12 deals of Christmas' from Monday 10th December to Friday 21st December. A new product is put on promotion each day, with its strong value proposition being the key sales driver. Promotional mechanics vary e.g. £1 off or half price, however the offer states 'when it's gone, it's gone', encouraging online shoppers to take part in the promotion. The promotion is available with next day delivery only: a tactic to encourage shoppers to complete their transaction and spend up to £35 to qualify for free delivery.

Lidl: calling out higher priced retailers with billboard campaign

In a response to premium retailers M&S and Waitrose, Lidl has created billboard adverts to highlight its comparatively lower prices. The adverts show Waitrose and M&S-style banners overlaid with Lidl's own marketing to highlight the quality and price of several products such Christmas puddings and mince pies. This campaign to promote its Christmas products ties in with Lidl's strapline 'Big on Quality, Lidl on Price', and aims to remind shoppers that Christmas can be upgraded to quality products without over-spending. Last year Lidl was the winner at Christmas with the most growth (16%) and we expect a strong seasonal trading period this year too. Retail Analysis subscribers can read our Christmas 2018 forecast here.

Want to know more?

Retail Analysis subscribers can access our latest insight report on Christmas 2018 retail innovations here.

Poundland's parent company Pepkor Europe has revealed its latest financial results for Q4 and the full year ended 30 September 2018.

Group update

A positive year in terms of sales for Pepkor Europe as it expands its footprint across the continent with its three brands: Poundland, Dealz and PEPCO.

  • Q4 sales: €781m (£691m), +12.9%
  • FY sales: €3,049m (£2,696m), +10.6%
  • FY Stores: 2,360, +12.6% (861: Poundland and Dealz,1,499: PEPCO)

To read Q3 2018 results, click here.

Poundland: positive like-for-like growth

All of Pepkor Europe's retail brands have contributed positive like-for-like sales growth in the last year. For Poundland, this has been driven by the group's strategy to roll out more Pep&Co clothing shop-in-shops. Retail Analysis subscribers can view our latest store visit report here to see how clothing has been integrated in-store.

Dealz performs well in Spain and Poland

Dealz stores in Spain have performed well, with positive like-for-like sales. In Poland, where Dealz entered last year, the discounter now has eight stores. Encouraging performance indicates that more stores will open this year, particularly as this is a market the group knows well. Dealz also continues to trade in Ireland and trial stores in France, however we expect the store growth to focus on Spain and Poland this year.

Want to know more?

Retail Analysis subscribers can learn about future plans and priorities in our Strategic Outlook for Poundland report here.

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