Poundland and Dealz owner Pepco Group on Thursday posted a 17.1% rise in third-quarter revenue as cash-strapped shoppers fuelled demand at its discount stores.
Revenue rose to €1.21 billion ($210.44 million) on a constant-currency basis in the three months ended 30 June, with like-for-like sales gaining 4.9%.
New Stores
The company is on track to launch 450 net new stores in fiscal 2022 as part of its strategy of selling low-price products amid rising inflation even as many retailers are focusing more on online sales.
The European discount retailer said that it was on track for another good year in the absence of any further significant deterioration in the macro trading environment.
Rising costs, supply-chain snags and the conflict in Ukraine, which borders three of the company's largest operating territories pose a threat to the firm's business.
Cost Of Living
On the 9 June, the Warsaw-listed group noted that the cost-of-living crisis in the United Kingdom has seen consumers scaling back even on essential items.
The company said that while the absolute levels of inflationary pressure were greater in Central and Eastern European markets, higher wages in those regions were substantially offsetting this in the short term.
In Western European markets, however, the acute spike in inflation in a stagnant wage growth environment had quickly resulted in absolute lower spending by consumers.
"Specifically in the UK, the cost-of-living crisis has impacted customers’ disposable income as they scale back even on essential purchases in the short term," Pepco noted.
News by Reuters, edited by Donna Ahern, Checkout. For more Retail stories, click here. Click subscribe to sign up for the Checkout print edition.
