Vision, mission, ambition and strategy
How we operate is as important to us as what we do
The Group’s vision is to build Europe’s pre-eminent discount variety retailer by further strengthening its market-leading proposition and capitalising on the long-term opportunity to treble the size of the Group’s current store portfolio, implying around 20 years of roll-out potential at the Group’s current rate of expansion.
Provide a mum on a budget with her regular shopping needs at the lowest price within apparel, homewares-led general merchandise and FMCG.
Opportunity to deliver €1Bn+ EBITDA1 within 5-7 years through organic growth, store expansion, strong returns on investment and scale efficiencies.
The Group’s strategy is to build further competitive differentiation and strengthen the defensibility and sustainability of its operating model through the following five core principles:
Price is the principal reason the Group’s customers select a retailer. We buy and operate at the lowest possible cost in order to offer the lowest prices in each market and so deliver both “amazing value every day” to our customers and attractive economic returns to the Group.
The Group’s customer proposition is differentiated versus its key competitors within the discount sector, which tend to focus on a single category, by offering a multi-category assortment. PEPCO’s particular category strengths in childrenswear and homewares, designed and produced in house, are targeted at the products that are of most importance to its core customers.
The Group has established expertise in three core product categories: apparel, general merchandise and FMCG, which are sold in different category mixes across each of the Group’s three retail brands: PEPCO, Dealz and Poundland. The Group has adopted this tailored “mix and match” approach to market entry in order to maximise penetration.
The sharing of products, suppliers, regional infrastructure and services across the Group increases buying scale and reduces operational costs.
The Group has two strategies to achieve lowest cost sourcing. Firstly, it utilises PGS, its in-house direct sourcing operation, with hubs across Asia, to source its own-brand apparel and general merchandise ranges and, secondly, it leverages Poundland’s relationships with pan-European suppliers to source its branded FMCG products.