Poundland owner sales fall amid supply chain disruptions

Poundland owner Pepco Group has reported that like-for-like revenues fell 3.1% during the fourth quarter, as a result of ongoing supply chain disruptions affecting the “consistent and timely” availability of stock in stores. 

This comes despite Pepco’s group revenues for the 51 weeks to 22 September rising 10% on a reported basis, driven by store expansions over the year. 

While group like-for-like revenues have remained behind the prior year overall, Pepco like-for-like has seen “progressive” quarterly improvement through the year. 

The group opened a total of 64 net new stores during the fourth quarter and expects to finish the year with 390 new stores overall, in line with prior guidance.

Pepco said it has taken steps to mitigate the disruptions, including shipping products earlier, optimising shipping routes and selectively using faster carrier options, which are expected to improve availability during the first half of FY25.  

Andy Bond, executive chair of Pepco Group, said: “I am pleased with the positive progress we have made this year, particularly in rebuilding profitability in our core Pepco business in Central and Eastern Europe, with further opportunities for continued improvement. 

“Group like-for-like revenues in the fourth quarter remained lower than the prior year, partly related to ongoing supply chain disruption, nevertheless, we expect to deliver record revenue and underlying EBITDA in FY24, driven by significant improvements in gross margin year-on-year.”

He added: “While there is much more to do, particularly around like-for-like sales progress, we remain committed to expanding our price leadership position, enhancing the core customer proposition and improving our supply chain capabilities.”