Poundland's Struggles Lead to €775M Write-Down for Parent Company Pepco

Pepco reports a €554 million annual loss, citing Poundland's declining sales, increased competition, and rising costs from UK budget measures.

Pepco, the Warsaw-listed parent company of Poundland, reported a €554 million pre-tax loss for the year ending September 30, reversing a €159 million profit from the previous year.
A €775 million non-cash impairment charge was recorded due to Poundland's underperformance, driven by declining sales in clothing and general merchandise and increased competition in the discount retail sector.
Poundland's like-for-like sales fell 3.6% over the year, with overall revenues growing just 0.2%, as the company struggled to transition to Pepco-sourced product ranges.
Rising costs from UK budget measures, including increased employer national insurance contributions and a higher minimum wage, have added further financial pressure on the business.
Pepco's newly appointed CEO, Stephan Borchert, announced plans to refocus Poundland on its core strengths and reassess its competitive positioning to improve future performance.