Poundland owner Pepco has plans to roll out 550 more sites this year across the UK and Europe as its cheap and cheerful goods continue to perform well with customers amidst the cost of living crisis.
In its interim results the value shop, which sells everything from groceries to clothes, posted a 22.8 per cent jump in revenues of €2.83bn (£2.44bn) up from €2.37bn (£2.04bn).
As food inflation remained reached its second highest levels on record during the quarter, Poundland reported an increased demand in its value chilled and frozen ranges, as shoppers look to stock up and cut back on waste.
The brand, which has 756 stores across the UK, did however report a 5.7 per cent drop in profit before tax of €134m (£115m), which it said reflected investment in new stores, supply chain costs and soaring inflation.
The 50 new stores across the UK, will create up to 800 new jobs, according to reports in The Sun in January.
“As we highlighted previously, inflation remains at elevated levels in Central Europe, against which trading in Pepco stores has remained challenging during the third quarter to date,” Trevor Masters, chief executive of Pepco Group, said.
He added: “Despite this, we have continued to do the right thing for customers on a budget by maintaining our price leadership and growing our market share, while focusing on the cost of doing business in these inflationary times.”
Poundland said it is on target to open and relocate 50 new stores during FY23 across a number of locations in UK high streets, shopping centres and retail parks.
So far this year, Poundland has opened or relocated 33 new stores, the rest of its openings will be under the Pepco brand which trades across central Europe.
Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Pepco has benefitted from a newfound frugality among many shoppers in the face of rampant inflation, and seeks to continue to profit from this trend by opening new stores.
“Discount stores have stood as beacons of affordability amid a relentless cost of living crisis where bills soar high, and salaries fail to outstrip price rises. An increasing number of people from all walks of life have turned to discount stores, offering products at significantly lower prices compared to their mainstream counterparts, as a means of managing their budgets more effectively.
“Even as inflation cools, thrifty habits that have formed during the cost of living crisis will be difficult to unpick – which could prove profitable for Pepco in future.”