· New Pepco store is a key milestone in the Group’s profitable store expansion
· Pepco brand operates across 17 countries, demonstrating its pan-European scale
· Pepco recently entered Greece and plans to launch in Portugal in 2023
1 December 2022: Pepco Group, the fast-growing pan-European variety discount retailer, and owner of the Pepco and Dealz brands present across Europe and Poundland in the UK, today announces the opening of its 3,000th Pepco store.
The landmark new Pepco store in Berlin, Germany, that opens today marks an important milestone for the Group’s profitable, pan-European store opening programme. Pepco currently has four stores in Germany, with more in the pipeline. After launching in Greece in October, the Pepco brand operates in 17 countries having only opened its 2,000th store in Croatia in June 2020, reflecting the speed of its highly targeted expansion.
After launching in Poland in 2004, Pepco expanded further in central and eastern Europe, including Bulgaria, Czech Republic, Romania and Lithuania, before launching in western Europe in recent years, with successful openings in Spain, Italy, Germany and Austria – demonstrating how the whole of Europe is addressable to the Group. This growth is set to continue with plans to launch the Pepco brand in Portugal on track for spring 2023.
Pepco’s diversified offer spans c.500 categories at market-leading prices, including women’s, kids’ and men’s clothing, as well as homewares, toys and cosmetics.
The chain also provides limited collections, licensed products and seasonal offers, including back to school or Christmas collection. Of Pepco’s own-brand clothing and general merchandise, 84% is supplied by its vertically integrated sourcing operation, PGS.
Trevor Masters, CEO of Pepco Group, said: “Pepco is one of Europe’s most compelling physical retail growth stories and this landmark opening in Berlin further underlines our confidence in the Group’s strategy. The whole of Europe is now an addressable market to us, and we will continue our profitable store opening programme – which remains our biggest source of value creation – to capitalise on this opportunity.
“This is an exciting time for Pepco, and we continue to make good progress against our strategic ambition to become a bigger, better, cheaper and simpler business. As we continue to grow, we will bring our popular retail proposition to more customers and deliver on our purpose to help families on a budget by offering great range, value and convenience.”
As stated at its pre-close announcement in October, the Group plans to open at least 550 net new stores in FY23, primarily through the Pepco brand, while also expanding the presence of its Dealz brand largely in Poland. This will see the Group – which employs c. 43,000 – create thousands of net new jobs across Europe in its financial year to September 2023. The Group continues to invest in training and development for colleagues and offer career progression opportunities.
Poundland plans to introduce five new stores, two extensions and one relocation on 10 December, primarily larger stores offering its full range of chilled and frozen, clothing and homewares, creating 160 new UK jobs in one day. With a well-established estate of more than 850 stores in the UK and Republic of Ireland (where it trades as Dealz), Poundland will look to open select new stores in 2023, where opportunities arise, alongside store relocations.