Business

Pepco revenue rises as inflation-hit shoppers lean on discount stores

Poundland and Dealz owner Pepco Group (PCOP.WA) on Thursday posted a 17.1% rise in third-quarter revenue as cash-strapped shoppers fuelled demand at its expanding chains of discount stores.

Revenue rose to 1.21 billion euros ($1.21 billion) on a constant-currency basis in the three months ended June 30, with like-for-like sales gaining 4.9%.

The company opened 109 net new PEPCO-branded stores in the quarter, including 40 in the Western European markets of Austria, Italy, Spain and Germany.

It said it was track to launch 450 net new stores in fiscal 2022 as part of its strategy of selling low-price products amid rising inflation even as many retailers are focusing more on online sales.

The European discount retailer said it was on track for another good year in the absence of any further significant deterioration in the macro trading environment.

Shares in the group, which have fallen 34% in the last 12 months, were trading 2.6% lower in morning trading.

Rising costs, supply-chain snags and the conflict in Ukraine, which borders three of the company’s largest operating territories, pose a challenge to the firm’s prospects.

($1 = 0.9979 euros)