Poundland reports 6.4% like-for-like sales growth as turnaround continues
Poundland’s recovery has “gathered momentum” in its fourth quarter, with a return to like-for-like sales growth following a restructuring programme that included the removal of some categories such as frozen food.
The discount retailer said the sales will have risen by 6.4% on an adjusted basis when the period ends on 27 September. On an unadjusted basis, like-for-like growth is currently projected to be 3.3%.
Subscribe to TRBPoundland attributed the improvement to a particularly strong performance in FMCG, as customers responded well to the company’s return to simple pricing and the fact that half of grocery items are now being priced at £1.
It said the general merchandise category is also now contributing to growth and that clothing is expected to follow as autumn/winter ranges land in stores.
In addition, Poundland’s profitability is improving, with EBITDA expected to be around £80 million better than last year.
Shaun Wills, Poundland chief financial officer who joined the business in July, said: “I’ve been really impressed with the hard work that’s gone into the turnaround programme at Poundland which has led to its return to profitability and like-for-like growth in a short space of time.
“The fundamentals of this business are strong and it’s clear that the simplification strategy is starting to deliver positive and sustainable results.”
The return to growth comes as Poundland begins its set-up for Christmas across all three of its major business units including general merchandise, grocery and clothing.
Poundland managing director Barry Williams said: “The end of the final financial quarter where we returned to like-for-like sales growth marks another important milestone for our recovery.
“Thanks to the amazing efforts of our colleagues and suppliers, our return to growth is the clearest signal
yet, that we’re getting back to be the kind of business that our customers want us to be.
“With the revamp of all our ranges across grocery, general merchandise and clothing complete, we look
forward to the Christmas period with real momentum and confidence.”
