Dealz stores owner says trial to convert six outlets to Pepco going well 

Company said its trial to convert six Dealz stores to Pepco Plus in the Republic was 'receiving a strong customer reception'

Pepco trades as Dealz in the Republic and as Poundland in the North.

Pepco, the group that operates the Dealz and Poundland discount stores across Ireland, said it was benefitting from its huge expansion in western Europe, but trading was getting tougher in other regions as the cost-of-living crisis bites hard on households. 

The group operates over 4,125 stores, mostly under the Pepco name, and posted underlying earnings of €377m for the six months to the end of March, up from €347m at the half way stage last year, as revenues jumped 23% to €2.84bn. 

Pepco trades as Dealz in the Republic and as Poundland in the North, but does not report its all-Ireland sales and profits separately from its larger divisions. 

However, in an update, it said its trial to convert six Dealz stores to Pepco Plus in the Republic was "receiving a strong customer reception". 

It has 40 stores in Spain operating as Pepco Plus, which includes its grocery and clothing brands, after deciding to convert all its Spanish stores from Dealz to Pepco. 

Poundland, meanwhile, will start to source its clothing from Pepco and sell clothing under the Pepco brand later this year, it said.  

The group said it was on course to meet its revenue growth targets in the current financial year but cautioned trading conditions were becoming tougher, in some regions.  

"As we highlighted previously, inflation remains at elevated levels in Central Europe, against which trading in Pepco stores has remained challenging during the third quarter to date," chief executive Trevor Masters said in the earnings statement. 

"The group continued to make strong progress against our strategic objectives over the half year, while delivering an increase in revenues and underlying Ebitda [earnings]. 

"We opened 166 net new stores in the period and are confident on meeting our target of at least 550 net new stores this financial year, as part of our targeted and profitable opening programme," he sad. 

Its shares, which are listed on the Warsaw stock exchange, fell at one stage by 4.7% following the earnings report.