Red Sea attacks: Poundland owner Pepco said cargo had to travel a different way to Europe
Poundland owner Pepco said sales were hit as disruption in the Red Sea delayed its summer stock getting to stores.
The group, which also owns the Pepco and Dealz brands, said cargo had to travel a different way to Europe due to attacks by Houthi rebels in the region this year. But it reassured investors its Christmas stock will be here in time.
Pepco said the delays were partly to blame for a 4.3 per cent sales slump in the quarter to June 30.
Sales fell even more at its 800 Poundland stores in the UK, which saw a 6.9 per cent drop.
But the Polish retail group ‘remains confident’ that availability issues would ease.
Andy Bond, Pepco chairman, said: ‘We are very confident that we are going to be in better shape for Christmas than we otherwise would have been because we’ve pulled stock forward. Others will do the same.’
A disappointing launch of clothes and general merchandise at its Pepco brand also hurt sales.
Overall sales hit £1.25billion thanks to the new stores, including some former Wilko shops in the UK, proving lucrative.
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