Pepco Group hails success of new strategy
Pepco Group, the owner of the Dealz and Pepco, has reported an 8.7% uplift in revenue to €4.5 billion for the year to 30 September.
The group said this was driven by like-for-like growth of 2.6% and the opening of 247 net new stores which took the group total to 4,359 at year end.
Meanwhile underlying EBITDA increased by 10.3% to €865 million.
During the period, the group made a strategic return to its core Pepco model of clothing and general merchandise. It also exited FMCG within Pepco and disposed of its Poundland business as it looks to focus on the main Pepco brand. The company said it expects to begin a divestment process for Dealz next year.
Stephan Borchert, chief executive of Pepco Group, said: “2025 was a real turning point for the group. Having outlined our new strategic framework in March, the group has executed at exceptional pace, delivering significant progress in a short timeframe.
Subscribe to TRB“The decision to refocus on Pepco and exclusively on our core categories of clothing and general merchandise has been validated by these strong results, in particular our gross margin and free cash performance which were both ahead of expectations.
“We opened 247 net new stores with strengthened store economics and returns on capital for Pepco across our geographies, as we progressed our disciplined opening plans in both Western Europe, and Central and Eastern Europe. The performance of Western Europe has become a clear growth engine, exceeding our initial expectations.”
The group said like-for-like sales at Pepco rose by 3.9% excluding FMCG in the first quarter of its new financial year. However, the overall performance across the group was weighed down by weaker trading at Dealz.
Pepco Group is now expecting FY26 underlying EBITDA growth of at least 9% year-on-year.
