Pep&Co will roll out shop-in-shops in Poundland’s European retail arm Dealz next year in Ireland, France and Spain.

The value clothing retailer could open shop-in-shops in approximately half of Poundland stablemate Dealz’s 60 stores across the Republic of Ireland early next year, Retail Week understands.

The clothing retailer, which currently sells through 170 UK outlets including 132 Poundland shop-in-shops, will also begin selling in mainland Europe next year via shop-in-shops in three Dealz stores in Spain and five in France.

Pepkor chief operating officer Sean Cardinaal, whose remit was recently expanded to oversee the Poundland business following a board reshuffle, told Retail Week that he aims for Pep&Co to operate out of “in excess of 300 outlets” by the end of next year.

“It’s been an absolute winner in terms of value creation for the Poundland business and for the Pep&Co business, which would never have been able to expand at the rate it has without the Poundland store footprint,” he said.

Pep&Co’s growth will be driven by expanding into more Poundland and Dealz stores, rather than via more standalone store openings.

“Whichever Poundland stores can feasibly accommodate the space should have a Pep&Co shop-in-shop inside,” said Cardinaal.