Poundland is making a major play for the value fashion market by opening more than 150 Pep&Co shop-in-shops in its stores over the next year.
This will double the number of Pep&Co shop-in-shops to 300 and, if sales targets are met, will make Poundland a top 15 clothing retailer by volume.
The expansion comes day after Steinhoff-owned Poundland secured new funding to maintain its ambitious investment plan.
Poundland parent company Pepkor Europe’s chief operating officer Sean Cardinaal revealed that it has financially “severed any kind of alliance” with crisis-stricken Steinhoff through a newly secured £180m loan from US investment firm Davidson Kempner.
Taking on Primark
The first new shop-in-shop will open next month in Blanchardstone in Dealz, Poundland’s Irish format. It plans to open more than 30 Pep&Co shop-in-shops in the Republic of Ireland, taking on Primark on its home turf.
Pep&Co prices rival Primark with 95% of its range under £10.
Pep&Co managing director Adrian Mountford said: “This Christmas we sold over a million more items than we did in our whole first year of trading from standalone stores.”
“Thanks to our partnership with Poundland – and now Dealz in the Republic of Ireland - we’re set to double in size over the coming year, helping us to drive economies of scale to keep prices low, helping make Poundland an increasingly popular new fashion destination”.
Poundland UK & Ireland managing director Barry Williams said: “Who would have thought 12 months ago that we would make Poundland a must-stop fashion destination.”
“Well we’re turning that ambition into reality and by the end of this year…we’re set to become a major fashion player.”