Pepco Group, the parent company of Poundland in the U.K. and Dealz and Pepco in continental Europe, has unveiled its strategy to rebuild profitability in Central and Eastern Europe. The company aims to open at least 400 new stores across the group in fiscal 2024.
Strengthening the Core Business
In a statement released ahead of its capital markets day in Warsaw, Poland, Pepco Group emphasized its commitment to delivering stronger cash generation. To achieve this goal, the company is carefully reviewing capital allocation and focusing on improving profitability and cash generation in its established business.
While remaining dedicated to its largest market, the U.K., Pepco Group also intends to strengthen its position in key markets and increase its scale in Italy and Spain. Additionally, the company will focus on assessing the strategic positioning of Dealz in Poland within the group.
Andy Bond, representing Pepco Group, stated, “We need to refocus on delivering more measured growth – doing less, to achieve more.” This approach underscores the company’s plans to prioritize profitability and cash generation while pursuing expansion opportunities.