Poundland sales impacted by lower high street footfall
Poundland grew its sales by 29.4% to £424.9 million in its third quarter despite “volatile” trading conditions.
In the 13 weeks to 27 December, the retailer saw constant currency sales growth of 30% excluding Spain, but including the recently acquired 99p Stores chain. Within this, Poundland contributed nine percentage points, including three percentage points from converted 99p Stores, whilst 99p Stores trading under their own fascia contributed 21.1 percentage points.
Total revenue from Spain grew to £4.5 million from £2.3 million in the previous year, with constant currency growth of 121.9% and actual currency growth of 102.1%.
Poundland said trading was volatile in the quarter. Whilst December saw an improvement in sales growth, overall sales growth was impacted by UK high street footfall remaining below last year.
The group now expects pre-tax profit for the year to March to be at the lower-end of market expectations.
Poundland chief executive Jim McCarthy said: "The trading conditions that we experienced in November continued through the third quarter, with high street customer numbers down year-on-year and this has impacted sales growth."
Poundland plans to open around 70 net new stores in the UK this year and expects to open around 60 new stores in the 2017 financial year.
It said the 99p Stores' conversion programme has started well and the vast majority of stores will be converted by April 2016. The retailer will also launch a new multi-price format in April 2016 in a number of the larger Family Bargains stores that were acquired with 99p Stores.