Steinhoff’s European discount retailer Pepco says its revenue surged by about a quarter over the key festive period, with record trading days across its brands, as it benefited from its ongoing store rollout, its status as a discount retailer in tough economic conditions, as well as a healthy stock position.
Pepco, the owner of the discount Pepco and Dealz brands in mainland Europe and Poundland in the UK, said in an update on Thursday group revenue rose 27% in constant-currency terms to €1,65 billion (R30.1 billion) in the quarter to end December from a year prior, rising 24% on an actual basis - which includes currency effects.
Pepco added 105 new stores during the quarter, bringing its total to 4 066, and it operates in 19 territories, including the UK, Italy, Greece and across eastern and central Europe.
Steinhoff holds more than three quarters of Pepco, which accounts for about half of its revenue, and listed in Warsaw in 2021.
Pepco said on Thursday its value-proposition as a discount retailer had proved successful in the current economic environment, with inflation remaining elevated across its markets, although inflation in clothing and footwear is running significantly below the headline rate.
Inflation has surged across the eurozone in the wake of Russia's invasion of Ukraine, notably pushing up energy prices, but also food prices. Eurozone inflation hit a record high of 10.6% in October, although it then eased a little, falling to 9.2% in December.
"We had a very successful Christmas trading period with record trading days at each of our brands, as we continued to outperform the wider market across Europe," Pepco Group CEO Trevor Masters said in a statement. "We benefitted from re-building our stock to appropriate levels, enabling us to satisfy the strong demand that we experienced."
In early trade Pepco's shares had dipped 0.87% in Warsaw, while on the JSE, Steinhoff was unchanged at 53c. Click here for details on Steinhoff's shares as well as other info.