Pepco CEO says low prices, more stores will boost growth

By Karol Badohal

-Poundland owner Pepco Group is having a bet on a fast expansion of its network of stores and tight cost keep an eye on to boost its results, its leader executive instructed Reuters on Thursday after the company published a leap in quarterly income.

The proprietor of PEPCO and Dealz discount store brands, published a 12% upward push in its quarterly total revenue on a continuing forex basis and like-for-like gross sales up 0.7%.

At 1348 GMT the shares were down 3.8% at 42.58 zlotys ($10.77) apiece, nearing their debut price and all time low, impacted by concerns over consumer demand and supply chain disruption in step with mBank BM analyst Janusz Pięta.

Pepco Workforce said that having navigated its most significant trading quarter it remained assured of accomplishing benefit expansion in line with historic levels.

Despite shops an increasing number of shifting towards on-line gross sales, the group is betting on its bricks and mortar store roll-out and sticking to its present prices amid emerging inflation in its bid to attract consumers and gain marketplace percentage.

“simple math says lots of other things our customers spend money on have long gone up in value. From that time of view it’s significantly illogical in my view to put our costs up because other folks even have less to spend with us as opposed to more,” said Andy Bond.

Bond, who is stepping down on the end of March because of well being purposes, cited that such an method requires value discipline, pointing to distribution, working of outlets and supply chain efficiencies as spaces to seek out savings.

Pepco Crew said a record quarter for retailer openings with 161 new branches, 146 beneath the PEPCO logo, lots of that have been in the strategically essential Western European markets of Italy, Austria and Spain.

“We do look ahead to over the yr as an entire commencing more retail outlets than the market expects,” Bond stated.

“I wouldn’t like to supply an exact number, however it will certainly be considerably greater than 400,” he said.

The staff, which indexed on the Warsaw inventory change closing Would Possibly, said on Thursday its first-quarter revenue for the duration October-December got here in at 1.35 billion euros ($1.54 billion).

($1 = 0.8742 euros)

($1 = 3.9541 zlotys)

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