Pepco Group plans min. 400 new stores in FY 2024 vs. 668 in FY 2023

Pepco Group will present new information today on the Group's strategy, including key areas on which the Group will focus in the near term, as well as a renewed vision to become a leading European discount retailer. The presentation will include, among other things, plans to open at least 400 net new stores across the Group in fiscal 2024 (up from 668 in fiscal 2023), the company said.

"The presentation, which will also be attended by other company executives, will include the following strategic pillars:

- Rebuilding the profitability of Pepco's core business in Central and Eastern Europe.

- A more disciplined approach to growth and capital expenditures across the Group, including:

o A more targeted approach to opening new stores in existing markets, with plans to open at least 400 net new stores across the Group in fiscal 2024 (vs. 668 in fiscal 2023).

o Reviewing the store renewal program in Central and Eastern Europe.

- Improve cash generation and review capital allocation.

- Strengthening the Group's position in key markets, including:

o Continuing Pepco's progress in existing Western European markets, including scaling up operations in Italy and Spain.

o Focusing on the UK as the Group's largest market.

- Concentrating Dealz's operations in Poland and strategically assessing the brand's position in the Group.

- Accelerating the transformation towards unification of the Group's operations and customer offering." - The announcement reads.

Earlier in October, Pepco Group executive chair Andy Bond announced that he would present his key priorities at the Capital Market Days (CMD; October 17-18), which include a renewed focus on customers in our core business in Central and Eastern Europe, implementing a more targeted growth plan in the markets where the Group has a presence, and accelerating the transformation of the Group into a single, integrated company. In doing so, it intends to improve profitability and cash generation capacity, and ensure more sustainable growth.

"We need to refocus on delivering more measured growth - doing less to achieve more - with a greater focus on improving profitability and cash generation within our established business. Significant opportunities exist and we will now try to take advantage of them in a more targeted way. Despite challenging market conditions, the Group has a market-leading customer offering, a strong balance sheet and stable operating cash flow. I am therefore confident that by focusing on fulfilling the renewed strategy, we will be able to continue to deliver the Group's successes across Europe," Bond said.

A document with the presentation displayed at today's meeting will be made available on the Group's website today, following Capital Markets Day, the company also announced.

Source: Pepco Group and ISBnews