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Poland: Pepco's revenues rise as it plans European expansion post Poundland sale

Discount Variety Retail Chain Pepco Group has announced plans to accelerate its expansion across Europe after finalising the sale of its struggling British discount chain Poundland.


The Warsaw-listed company, which owns the Pepco and Dealz brands, said the sale to investment firm Gordon Brothers marked a strategic shift that will allow the business to focus on higher-margin growth markets, particularly in Central and Eastern Europe.

"The group is much simpler now after the sale of Poundland, and we'll focus on accelerating growth and profit," CEO Stephan Borchert told Reuters.


Pepco had been exploring options for Poundland since December 2024, aiming to offload a business that had become a drag on overall profitability.


In its third-quarter trading update, Pepco posted record-high revenue of €1.1 billion (£950 million), which was up by 7.7% year-on-year at constant currency. This was driven by solid performances from both Pepco and Dealz, which drove a 2.6% rise in like-for-like sales.

"We will still focus on store openings in Central Eastern Europe because we believe we have still a lot of potential here," Borchert added.


He also pointed to promising developments in Western Europe, particularly in Italy, Spain, and Portugal, which he called "the next growth frontier."


The company also announced the launch of a share buyback programme of up to €50 million (£43.1 million) , set to begin around 17 July. The move is designed to reduce capital and meet obligations under staff incentive schemes. Borchert noted that the decision reflects Pepco’s belief that the current share price does not fully reflect its long-term growth prospects.


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