Dealz Parent Poundland Announces Sales Growth In Q3 2015
Poundland Group, which operates Dealz in the Republic of Ireland, has announced total sales growth of 29.4 per cent, excluding its Spanish business, for the 13 weeks ending December 27 2015.
The group’s total revenue in Q3 2015, excluding Spain, increased by 30.1 per cent, going from £328.4 million to £424.9 million (approximately €570 million) on an actual currency basis.
Poundland's sales alone grew by 9.0 percentage points, which includes 3.0 percentage points from converted 99p Stores. Under their own branding, the acquired 99p Stores contributed 21.1 percentage points.
According to the group, while there was an improvement in sales growth in December, UK high street footfall remained low, which impacted its overall sales growth.
Chief Executive Jim McCarthy, explained, "Total sales in the third quarter increased by 30.1 per cent on a constant currency basis and our Christmas and Halloween ranges were our best ever.
"However, 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."
Total revenue for Poundland’s Spanish business during the period was £4.5 million (€6 million), with a constant currency growth of 121.9 per cent and actual currency growth of 102.1 per cent.
Throughout 2015, it opened 14 stores across the UK and in Ireland, which together with the 25 converted 99p Stores, brings its number of UK outlets to 628 and Irish stores to 51. It adds that it is continuing to develop its Dealz trial in Spain, having recently opened its tenth location there.
The group ended Q3 with net cash of £35.4 million (€47.5 million), and going forward, has confirmed plans to open 70 new stores this year while converting the majority of the 99p Store estate. It has also described the plans to use the acquired Family Bargains stores to launch a multi-price format as 'well advanced'.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Jenny Whelan. To subscribe to ESM: The European Supermarket Magazine, click here.