Pepco Group has adviser to tackle falling sales at Poundland chain - media

According to Sky News, citing sources, Pepco is to explore options for Poundland, including starting a formal process to restructure the chain.

Unofficial information from the group suggests that no decisions have been made and the immediate task is to improve the cash position and offer to customers of the Poundland chain. Sources said that the sale process is not underway.

A few days ago, Pepco Group reported its sales results for the first quarter of 2024/25 financial year, ended December 31, 2024. The group posted revenues of EUR 1.934 billion in the period, up 3.1 percent year on year at constant exchange rates, of which Poundland alone saw revenues fall 9.3 percent to EUR 563 million.

Poundland's LFL sales fell by 7.3 percent, which the group explained by the continued poor performance of its clothing and everyday goods sales, as well as difficult market conditions. The chain also recorded a decline in gross margin.

Pepco Group's CEO Stephen Borchert announced that getting Poundland back on track was a priority for the group.

At the end of December, Pepco Group had 5,011 shops, including 825 shops in the UK Poundland chain.

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