Poundland sales jump in first-quarter results

Discount retailer Poundland has reported a 1.3% increase in like-for-like sales for the three-month period ended 23 December 2019.

Poundland also reported a “record trading day” on 23 December, serving almost 1.6 million customers.

The discount retailer said it benefited from the “continued strong performance” of the Pep and Co clothing brand, which is now present in 301 UK and Republic of Ireland (ROI) Poundland stores.

Pepco group, which owns Pep and Co and Poundland, said revenue growth was also attributed to the introduction of a new “extended product range at price points above and below the £1 anchor price point” within its core health and beauty, household and grocery categories.

Overall, sales at Pepco increased by 6.6% in like-for-like terms and 24.6% in total revenue growth to €597m (£498m) during the period.

Andy Bond, Pepco Group, CEO said: “With an established strategy, leading customer proposition within a structurally advantaged discount retail segment and a strong financial base, we remain confident about our prospects for continued growth across Europe in the balance of the financial year and beyond.”

Earlier this week, Advent international, the former owner of Poundland, reportedly teamed up with two rival equity firms to launch a takeover bid for the Pepco Group.

According to Sky News, Advent International, which offloaded Poundland in 2010 in a £200m deal, Hellman and Feidman and Mid Europa Partners is preparing a £3.8bn offer for Pepco.

According to sources cited by Sky, an offer is not yet certain but interest is said to be serious with the consortium advised Rothschild on any offer.

Pepco currently has a total of over 2,700 stores under the Poundland, Pepco and Dealz facias.