Pepco revenue up 8.5% after ‘exceptional’ performance in Western Europe
Pepco Group has announced that its revenue grew by 8.5% excluding Dealz in its third quarter, with like-for-like revenue up 5.4%.
The group attributed the performance to a strong customer response to new product ranges and its continued focus on price.
Subscribe to TRBBy region, growth was led by Western Europe, where like-for-like revenue rose by 15%, with CEE South and CEE North both delivering a 3.6% uplift.
During the quarter, Pepco opened 74 new stores, bringing its total to 4,151. The group also announced that it had agreed to sell Dealz Poland as part of a wider strategy to simplify its structure and focus on its higher growth, higher margin Pepco clothing business.
Stephan Borchert, chief executive of Pepco Group, said: “Our impressive third-quarter performance reflects continued execution against our New Pepco strategy, the strength of the Pepco brand and the consistency we are building across the business.
“Pepco like-for-like revenues grew by 5.4% excluding FMCG and double-digit on a two-year basis, demonstrating that the improvements made in availability, price leadership and product ranges are resonating with customers.
“Our Western European business delivered an exceptional quarter, with like-for-like revenues up 15.0% excluding FMCG, underpinning our confidence to accelerate growth in the region.
“On 3 June 2026, we agreed the sale of our Dealz Poland business, marking the final step in the strategic transformation of our portfolio into a pure-play Pepco business, and completing our exit from FMCG retail following the sale of Poundland in June 2025.”
The group has now raised its full year guidance for after the divestment of Dealz, which means it now expects gross margin to be around 51% and underlying EBITDA to be in the mid-teens.
Borchert said: ” “With a simpler structure, strong cash generation and clear momentum behind the Pepco brand, we look forward with confidence to delivering further profitable growth and enhanced returns for shareholders.”
