Freezers beat the squeeze
CRISIS BOOST FOR POUNDLAND PROFITS
POUNDLAND owner Pepco says more customers are buying its frozen food to cope with the squeeze on living standards.
At its third quarter trading update, Pepco chief Trevor Masters said the discount chain’s third quarter revenues were up 3.8 per cent to £430million as inflation continues to put pressure on household budgets.
Poundland stores with frozen and chilled foods were found to be outperforming those in the chain without those sections – so Pepco is now busy increasing them.
In June, just 265 Poundland stores out of its estate of around 900 offered frozen and chilled food. The firm’s aim is to increase that to more than 350 by September and 645 within two years.
Pepco’s total sales for the three months to the end of June were up 17.1 per cent to £1billion as shoppers across Europe found themselves becoming increasingly cash strapped due to inflation. Aside from the UK, Pepco has operations in countries such as Spain, Poland, Austria and the Czech Republic. Masters said the retailer is looking for further opportunities to cut its operating costs to fund lower prices and help customers cope in the cost-ofliving crisis. “With inflationary pressures continuing across the wider market, the Group is committed to investing in its price proposition and maintaining its market-leading variety discount offering,” he said. Founded in 1990 in Burton-upon Trent, Staffordshire, Poundland serves more than seven million shoppers a week and employs 18,000 people. It carries more than 1000 brands in 17 categories.