Poundland owner Pepco sees revenues rise as shoppers flock to discounters

Pepco Group, the owner of Poundland and Dealz has posted a 17.1% rise in third-quarter revenue as cash-strapped Brits fuelled demand at its discount stores as the cost-of-living crisis continues.

Revenue rose to €1.2bn (£1bn) in the three months ended June 30, with like-for-like sales up 4.9%.

The group is on track to launch 450 net new stores in fiscal 2022 as part of its strategy of selling low-price products amid rising inflation.

The discount retailer said it was on track for another good year in the absence of any further significant deterioration in the macro trading environment.

Rising costs, supply-chain snags and the conflict in Ukraine, which borders three of the company’s largest operating territories pose a threat to the firm’s business.