Poundland’s parent company Pepco has hailed strong sales despite “difficult times” for customers, as the group also said it will accelerate its store opening programme.
It came as the retail group said total revenue grew 17.4% to €4.82bn (£4.25bn) in the year to September, compared with a year earlier.
The company’s Poundland business posted a 5% rise in revenue to €2.11bn (£1.86bn) for the year.
Poundland saw like-for-like growth of 1.7% in the final quarter of the year as customers grappled with rising household bills.
Trevor Masters, chief executive of Pepco Group, said: “These are very difficult times for families in Europe and we are absolutely committed to helping customers on a budget by offering great variety, value and convenience, and we are confident that this will will allow. to expand our customer base in the future.”
The group, which runs around 3,900 stores across Europe, including around 800 Poundland stores, said demand for products “remains strong even against a backdrop of significant uncertainty in the macroeconomic environment”.
He added that the UK is “challenging” as customers continue to see pressure on their disposable income.
The company added: “That said, our value-based proposition becomes even more relevant in these challenging times and continues to attract new customers to our stores, expanding our target market across Europe.”
On Wednesday, it confirmed it had grown its store floor space by 516 over the past year, surpassing targets for 450 new stores.
It said it now plans to accelerate its plans to open at least 550 new net stores in the new financial year.
Masters said: “Following another year of good progress, we are accelerating our profitable store expansion programme, our main source of value creation, and store refit strategy, helping to drive growth of similar sales.
“Following the recent successful openings, we will launch the Pepco brand in the new markets of Greece and Portugal throughout 2023.”
