Discount Textile Retail Chain Pepco Group (owned by WSE listed Pepco Group) has updated its strategy for the coming years. Its key area will be to rebuild the profitability of its core business in Central and Eastern Europe. Pepco plans to take a more disciplined approach to expansion in existing markets and open at least 400 new stores in FY 2024 vs. 668 in 2023.
Pepco Group, the fast-growing discount retailer that owns the Pepco and Dealz brands in Europe and Poundland in the UK, is hosting a presentation to investors today on the occasion of Capital Markets Day. At the event, the Group's Executive Chairman, Andy Bond, will provide an update on the Group's strategy and key areas of focus in the near term. Poland remains a key market for Pepco The company has already signalled the main assumptions of this strategy. These include, m.in, the restoration of the profitability of Pepco's core business in Central and Eastern Europe and a more disciplined approach to growth and capital expenditures across the Group. Pepco Group has announced preliminary plans to open at least 400 net new stores in fiscal 2024 (compared to 668 in fiscal 2023). The Group will also look at its store renewal program in Central and Eastern Europe and announce improvements in cash generation and a review of capital allocation. Pepco wants to strengthen its position in key markets (UK, Poland), as well as increase the scale of its operations in Italy and Spain.
"We need to refocus on delivering more measurable growth, investing less to achieve more, with a greater focus on improving profitability and generating cash. Opportunities remain large and we will try to take advantage of them in a more targeted way. Regardless of the challenging market environment, the Group has a market-leading offer for customers and stable cash flows from operating activities. This reassures me of continued success across Europe," said Andy Bond, Pepco's Executive Chairman.
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