Tuesday, September 26, 2023

European retailer Pepco reports a drop in consumption in the third quarter

LONDON, June 6 (Reuters) – European discount specialist retailer Pepco Group announced an 11% jump in its first-half operating results on Tuesday, including a 23% rise in revenue, but said the business had posted a negative growth in its third fiscal quarter I have faced more difficulties.

The group, which is listed on the Warsaw Stock Exchange and owns the Pepco, Poundland and Dealz brands, said the uncertain business environment continued during April and May, particularly around consumer discretionary spending in response to high inflation in central Europe. Faith remained weak. ,

“This is reflected in lower frequency of visits and different buying decisions by customers.”

Fast-moving consumer goods (FMCG) demand continued to strengthen across its businesses, while the apparel and general merchandise categories posted uneven performance.

European consumers have been under pressure for more than a year from high inflation, which has outpaced wage growth.

In economic downturns, discount traders tend to do relatively better than their more traditional counterparts, as they have a lower cost basis and buyers tend to be more price sensitive.

Pepco Group reported an underlying gross operating profit (EBITDA) of 377 million euros ($405 million) for the six months ended March 31, up from 347 million euros in the prior period.

Revenue amounted to 2,840 million euros, thanks to the fact that the group’s discount offer was adapted for consumers with liquidity problems and 166 new stores were opened, bringing the total to 4,127. Comparable store sales increased 11%.

Nation World News Desk
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