Poundland's parent company Pepkor Europe has announced it is renaming to Pepco Group, emphasising its operational and financial independence from Steinhoff. This comes after a Group refinancing and changes to the senior management team.
Alongside this move the retailer has announced its expansion plans for the future. We look at these in more detail.
Business vision: Europe's largest variety discount retailer
The Pepco Group believes it can become Europe's largest variety discount retailer, with the potential for over 4,000 stores across the business. Expansion will be driven by its Pepco clothing stores, the main body of the business. It currently has 1,805 Pepco stores across 11 countries.
Dealz: rapid expansion in Poland and Spain; exits France
Since opening its first Dealz store in Poland in 2017 it has expanded to 37 stores. Pepco aims to reach 90 by the end of 2019. Beyond this, the plans are to continue the rapid expansion, looking to get to 350 stores by the end of 2024.
Pepco also sees the potential for significant expansion in Spain, a market it entered in 2014. There are currently 16 stores in the market, with the retailer looking to reach 50 by the end of 2019.
Pepco has closed its small network of stores in France; despite reports of good sales, the larger size of stores could not be run profitably.
Pepco has not ruled out new market entries in the future.
Poundland: growing basket size
In the UK, Pepco does not anticipate growing net store numbers. The focus will be on renegotiating rents and relocating sites to new locations as it seeks to make cost savings.
To drive organic sales growth Poundland will focus on growing basket size. The retailer will also continue to trial its new pricing structure which will enable it to widen its range. Poundland has said it wants to move away from its high dependency on the single price point.
Looking for more insight?
- Check out the recently released Poundland results for the nine months prior to June 30th
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