Poundland's parent group Pepco has released its Q1 results, for the three months ending 31st December 2019. It shows positive performance continues at both Poundland and Dealz.
Poundland and Dealz results
- Overall revenue growth: 3.1%
- Like-for-like growth: 1.3%
- Year-on-year store growth: 3.9%
Poundland sees record day of sales
Despite the challenging trading environment seen over Christmas, Poundland performed well. It had a record day of sales on December 23rd, when it served close to 1.6m shoppers. In the UK overall market growth was just 0.2% and volumes were negative, with Sainsbury's and Morrisons seeing negative like-for-like sales. Fellow variety discounter B&M saw positive Q3 results (29th September 2019 to 28th December 2019) with revenue growth of 8.8%, however this was driven by new store openings, with like-for-like sales at only +0.3%.
Pepco reported the positive results were driven by the strong performance of the PEP&CO clothing and the introduction of its new pricing structure. The retailer now has seven price points in its core categories; grocery, health and beauty and household. This has allowed it to expand its range, serve different missions and grow basket size.
Dealz expansion continues
In Q1 Pepco opened 22 new Dealz stores. It plans to open a further 30 by the end of the financial year.
Looking for more insight?
- Find out more about the evolution of Poundland and how the changes it made in 2019 will affect suppliers
- See more detail of how Poundland is widening its range to grow basket size with the introduction of its new pricing structure in our Walsall store visit report
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