Poundland and Dealz owner Pepco had a good Christmas quarter compared to many in the UK and European retail sectors. But same-store sales still fell 2.1% due to pandemic-linked store closures. Reported revenue rose 9.1%.
The problems afflicting the UK high street have been illustrated by news from the Local Data Company (LDC) that showed a quarter of former BHS stores remain vacant, even though the retailer collapsed in 2016.
Budget retailer Poundland has announced a major new transformation programme designed to take it through the next decade. The programme will also see the company testing out online delivery for the first time.
Warnings that the UK retail environment will remain challenging during the rest of the year may deter many large chains from investing in bricks-and-mortar but Poundland is planning to open six new Pep&Co shop-in-shops.
Pan-European value retailer Pepco Group has had a reasonably good first half, despite the pandemic, as many stores were able to operate during lockdowns due to them selling essentials as well as non-essential goods.