Poundland's nine month results reveal a decline in sales, but like-for-likes remain in growth.
Sales decline reflects fewer stores trading
Poundland reported total sales of €1,324m for the nine month period ending 30 June 2018, a decline of 5% (3% at constant exchange rates). This reflects 60 fewer stores trading compared to the previous period.
The retailer's like-for-like sales remain in growth, up +1.7% across the nine month period. However, this performance has diluted period-on-period, as at the half year point like-for-likes were up +2.4%. Parent company Steinhoff attributes this to the early timing of Easter this year.
Roll-out of Pep&CO continues
Clothing shop-in-shops continue to be a strategic focus for Poundland, and are now present in 274 stores. Take a look inside Poundland Luton to see how the retailer is evolving this concept: Retail Analysis subscribers click here.
Dealz in Poland: new store openings
The retailer continues to expand its network of stores in Poland, following market entry in February. In the third quarter two more stores opened, taking the total count to six. Retail Analysis subscribers can download our Dealz Poland store visit report: click here.
At a group level, Steinhoff has had a challenging nine months. Focus remains on maintaining stability within its operations. The investigation into financial irregularities is on track to be "substantially complete" by the end of this financial year.
However, Steinhoff notes that Poundland is increasingly independent, which should provide significant opportunities to accelerate future progress.
We visited Poundland’s Luton store to explore the new dual-fascia with clothing brand Pep&Co.
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