Discount Retailer Pepco To Quit Austrian Market
European discount retailer Pepco Group has said it will exit the Austrian market, saying it does not expect appropriate returns in the country.
“The Group has today concluded that it will cease its operations in Austria, as it does not foresee that the Austrian market will reach the appropriate level of returns expected,” it said in a regulatory filing late on Monday.
Austrian Presence
The Warsaw-listed owner of the Pepco, Poundland and Dealz brands, which at had 4,832 stores end-December, entered the Austrian market in September 2021 and operates 73 stores in the country.
In October, Pepco said it would slow down its store opening programme to focus on rebuilding profitability, but it still plans to open at least 400 net new stores in 2023/24.
The exit from Austria will improve the group’s cash flow and underlying profitability for 2024, it said, adding it would enable it to focus on other markets where it can generate higher returns.
Growth Strategy
It also said the decision does not impact its existing growth strategy in Western Europe or impact its operations elsewhere.
Trading conditions continue to be challenging across much of Europe, Pepco said last month, though it remained ‘cautiously optimistic’ for 2024.
According to a trading update last month, the company recorded €1.9 billion in group revenue for the fiscal first quarter ending 31 December, marking an 11% increase on a constant currency basis.
Executive chair Andy Bond stated at the time that despite potential external factors like industry-wide supply chain disruption, the positive trajectory is anticipated to persist throughout FY24.
ESM
Related news
Pepco gains new momentum after reorganization – a strategic winner in the Hungarian market
While the Pepco group is making a painful exit from…
Read more >Pepco’s German subsidiary placed under bankruptcy protection
Pepco’s German division has filed for insolvency, despite the retail…
Read more >Non-food discounters target Central Europe
Non-food discounters are rapidly transforming European retail: Action, Woolworth and…
Read more >Related news
The 30,000-forint pensioner food voucher cannot be used in all stores
Between September 1 and October 15, the 30,000-forint pensioner food…
Read more >Baby Coupon Week at Rossmann – for the first time, the 10% discount is also available at the Online Drugstore
Between 4 and 10 August 2025, Rossmann is once again…
Read more >Tens of thousands of orders have already been placed in Kifli.hu’s new discount program
The number of subscribers to the Kifli.hu Xtra loyalty program…
Read more >