Pepco Group posts Q2 revenues growth, names new CEO

Discount retailer Pepco Group, which owns the Pepco and Dealz brands in Europe and Poundland in the UK, reported second quarter revenue of 1,349 million pounds, up 11.7 percent, while like-for-like sales were down 2.9 percent.

In the first half, revenue of 3,200 million pounds with constant currency growth of 11 percent versus last year, while like-for-like (LFL) revenues declined by 2.5 percent.

The company also announced the appointment of Stephan Borchert as its new chief executive officer, effective from July 1, 2024. Pepco Group said in a statement that executive chair Andy Bond will revert to the role of non-executive chair on October 1, 2024. Borchert will be based in London.

Commenting on the results and CEO appointment, Bond said: “While the trading environment remains challenging, we are encouraged by signs of an improved performance in some of our core Pepco Central and Eastern Europe markets – a key geographical region for the Group – during the second quarter.”

“On behalf of the board, it is great to welcome Stephan, who brings a wealth of experience and a results-driven track record in retail and international business operations,” Bond added.

Highlights of Pepco Group’s Q2 and H1 results

In the second quarter, Pepco and Poundland LFL sales were down 2.8 percent, while Dealz posted a decline of 4.6 percent.

In the first half, Pepco LFL sales were down 3.2 percent LFL against a tough comparative period, Poundland was down 0.7 percent LFL, with a positive FMCG performance offset by a weaker performance in clothing and general merchandise and Dealz posted a drop of 4.6 percent LFL.

The company added that the strong recovery in gross margin continued, driven by Pepco. New store openings moderated in the second quarter as expected, with 86 net new stores opened across the Group. The company opened 289 net new stores during the first half. The Group continues to expect to open at least 400 net new stores in FY24.

Pepco Group names Stephan Borchert as new CEO

Borchert, the company said, is an accomplished CEO with a strong track record of leading international companies across various sectors including fashion, beauty, pharmacy and healthcare services.

Borchert served from 2018 to 2022 as CEO of GrandVision, the leader in optical retail operating more than 7,400 stores in more than 40 countries worldwide under more than 33 different retail banners, with annual revenue of 4 billion euros. He led GrandVision – owner of the Vision Express and Apollo Optik chains in Europe – until it was acquired by EssilorLuxottica in July 2022.

Prior to GrandVision, Borchert was president of Sephora EMEA on the global executive committee, where improved profitability and increased revenue, while accelerating the beauty and cosmetics retailer’s omni-channel development.

He is currently holding non-executive director roles at two major pan-European retail companies in the sector of beauty and apparel.

“Pepco Group is a powerhouse retail business with a strong reputation for delivering incredible range, value and convenience for customers. I am delighted to work alongside the leadership team to deliver on the strategic priorities as Pepco Group enters the next phase of its growth journey,” added Borchert.