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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.
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