Table of Contents
Red Sea attacks: Poundland owner Pepco said cargo had to travel a different route to Europe
Poundland owner Pepco said sales were hit as disruptions in the Red Sea delayed the arrival of its summer stock in stores.
The group, which also owns the Pepco and Dealz brands, said the cargo had to travel by a different route to Europe because of attacks by Houthi rebels in the region this year, but assured investors its Christmas stock would arrive on time.
Pepco said the delays were partly responsible for a 4.3 percent drop in sales in the quarter ended June 30.
Sales fell further at its 800 Poundland stores in the UK, which posted a 6.9 per cent drop.
But the Polish retail group “remains confident” that availability problems will ease.
Pepco president Andy Bond said: “We’re very confident that we’ll be in a better position for Christmas than we would have been otherwise because we’ve brought forward inventory. Others will do the same.”
A disappointing launch of its Pepco-branded apparel and general merchandise also weighed on sales.
Total sales reached £1.25bn thanks to new stores, including some former Wilko stores in the UK, which proved lucrative.
DIY INVESTMENT PLATFORMS
AJ Bell
AJ Bell
Easy investment and ready-to-use portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free investment ideas and fund trading
interactive investor
interactive investor
Flat rate investing from £4.99 per month
eToro
eToro
Stock Investing: Community of Over 30 Million
Trade 212
Trade 212
Free and commission-free stock trading per account
Affiliate links: If you purchase a product This is Money may earn a commission. These offers are chosen by our editorial team as we believe they are worth highlighting. This does not affect our editorial independence.