Poundland owner Pepco Group’s sales have slipped amid what executive chair Andy Bond described as a “challenging” trading environment for the discounter.
The group saw like-for-like sales fall 2.5%, however on a constant currency basis for the six months to 31 March, sales rose 11% to £2.73bn (€3.2bn).
Despite Poundland having experienced a “positive” FMCG performance, comparative sales at the discounter dipped 0.7%, offset by a “weaker” performance in clothing and general merchandise, which the group said was impacted by the transition to new Pepco ranges.
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However, Pepco said it looks to see “progressive improvement” in performance in the coming months.
The discount giant first began its bigger push into grocery in February 2022 with the launch of new fresh bakery, fruit and vegetable products, followed by a leap into fresh meat and fish categories in August of the same year.
Last June, the discounter expanded into grocery further as it added frozen and chilled food to more than 570 stores.
Looking ahead, Bond said Pepco Group is “confident about delivering profitable growth this financial year – reflecting a stronger and more resilient business – as we continue to move forward to build Europe’s leading variety discount retailer.”
