T
he proprietor of Poundland has reported increased half-year gross sales helped by retailer openings, however warned that harder current buying and selling has continued as shopper spending comes below strain.
Pepco Group, which additionally owns the Pepco and Dealz manufacturers, reported a 23% soar in revenues at fixed forex to 2.8 billion euro (£2.4 billion) within the six months to March 31, with turnover within the UK up 3% at 896.3 million euro (£771.5 million)
Like-for-like gross sales lifted 11.1% throughout the group, up 15.8% at Pepco and 4.9% increased for Poundland.
But it mentioned that an “uncertain trading backdrop” had continued into April and May with “signs of lower consumer confidence” and a clampdown on discretionary spending as a consequence of sky-high inflation, significantly in Central Europe.
“Evidence of this is being seen through lower frequency of visits and customers making different purchasing decisions,” Pepco mentioned.
Despite this, the group mentioned it was retaining its full-year outlook unchanged as it’s seeking to velocity up store openings and given expectations for value pressures to start abating within the second half.
Results for the primary half confirmed pre-tax earnings down 9% on a relentless forex foundation to 111 million euro (£95.5 million), weighed down by increased prices and funding in its retailer growth programme after it opened 166 new shops.
The group added that it had not handed on the entire increased inflation it has been dealing with to clients.
But it mentioned it’s anticipating commodity and delivery prices to ease again because the yr goes on, which is ready to spice up its profitability.
Trevor Masters, chief govt of Pepco Group, mentioned: “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.
“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.
“We remain well positioned and in the second half will see gross margins trending upwards, as we benefit from the tailwinds on certain input costs, including commodity and freight.”
The agency mentioned it’s on observe to open or relocate 47 shops within the UK over 2022-23, throughout excessive streets, purchasing centres and retail parks.
Overall, it’s aiming to open not less than 550 new shops on a internet foundation throughout the group within the present monetary yr.
