- Although not in Poland, Pepco Group is accelerating its development in Western Europe, mainly in Austria, Italy and Spain.
- In our country, the company is currently developing a network of pharmacies and food Dealz
- Pepco Group’s revenues in Poland are growing more slowly than in other countries
- More such information can be found on the Onet home page
At the end of March, Pepco’s European chain of stores already had 3,700 owners. points, ie 350 (+ 13.9%) more than a year ago – said the Dutch company, which has established success in our country and is now spread throughout Europe, in its semi-annual report.
The group has set a target of opening 400 to about 450 new chain stores this year, but it is primarily about development in other European countries, not Poland. The Pepco chain already has 1,185 stores, so the market is saturated. It started only 18 years ago.
In Poland, he is now developing another brand, Dealz. This is the name of the network owned by the British company Poundland, which Pepco took over in the first half of last year.
From October last year to March this year. 33 Dealz stores have opened in Poland. They sell food and pharmacy products, and this is more competition for Rossmann or Hebe than for Biedronka and Lidl. If we look at Rossmann’s high margin in Poland, we can see that the new competition will benefit them.
Dealz currently has more than a hundred stores in Poland, and its 100th store opened in Olsztyn, and there is a long way to go to reach Rossmann at the end of last year. he scored 1578 points. At the end of March this year, Jeronimo Martins (Biedronka) belongs to the Hebe chain. There were 292 stores.
Until October last year and in March this year. The company opened 235 new chain stores, excluding the closure of 43 Fultons stores. Another 586 stores have been modernized. The expansion mainly covers Austria, Italy and Spain.
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The number of stores in Italy has almost doubled during the year to 49, while in Spain the network already has 40 outlets (from 13 last September), and in Austria, which opened in September last year. – already 36. The Dealz store brand is mainly developed in Poland.
The Polish part of Pepco is growing more slowly than the rest
The company earned 2.37 billion euros or 18.9 percent. more in the first half of the fiscal year, ie from October 2021 to March 2022. Revenues in Poland increased by 13.5 percent. yyyy, and outside the United Kingdom and Poland – up to 31 percent. yy.
Excluding newly opened and closed stores and purchases, sales increased by 5.3% across the group under comparable LFL terms. yy. In the second quarter of the fiscal year 2021/2022 (first quarter of this year), the growth was 12.1%. yy.
The overall margin reportedly fell 137 bp to 41%, according to the report increase in freight coststhis was partially offset by “effective discount management”, ie less price reduction.
The group said in a press release that it is on track to meet its full annual forecasts, provided macroeconomic conditions do not deteriorate further.
“High inflation in Central and Eastern Europe is offset by short-term rapid wage growth. A sharp rise in inflation amid wage stagnation in Western European markets has led to lower consumer spending.”
In addition, there is a certain increase in turnover due to the influx of people from Ukraine, but this is somewhat offset by the effects of the war, which exacerbates the existing gaps in supply chains and causes inflation.
Return to traffic before the pandemic
Pepco Group said in a report that LFL sales in stores exceeded pre-pandemic levels in the third quarter of the fiscal year.
“Since the easing of Covid restrictions in all major markets, the Pepco-led team has performed well in the third quarter thanks to positive results from Easter, effective promotional campaigns and customer return to stores. Group store sales (LFL) for fiscal year 2019 at the same time exceeded the pre-pandemic level. “
Pepco’s average weekly sales rose 13.7 percent in the eight weeks since the pandemic was lifted. compared to pre-pandemic levels. Poundland’s average weekly sales rose 4.3 percent over the same period.
The group’s capital expenditures accelerated to € 114 million in the first half of fiscal year 2020/2021, compared to € 71 million.