Poundland boss Jim McCarthy has admitted he is “disappointed” by Christmas trading and said the threat of terrorism may have deterred shoppers.
McCarthy conceded that the value retailer’s like-for-likes were “negative” in the 13 weeks to December 27.
However total sales jumped 29.4% as Poundland benefited from the integration of 99p Stores, which it acquired in September.
After today’s results Poundland lowered its full-year profits guidance to around £42.6m – towards the bottom end of the published consensus of £39.8m to £45.8m.
McCarthy told Retail Week it had been a “challenging” third quarter and Christmas period as shoppers had left their spending late.
He also pointed out that footfall on high streets had been affected since the Paris attacks.
The mild weather that has hampered fashion retailers has also hit Poundland, McCarthy suggested. “If you’re not going out to buy your winter coat, you are obviously not on the high street,” he said.
Poundland also revealed further details today of its plans for the Family Bargain stores it acquired form the 99p Store deal.
Six of the 27 Family Bargain stores will be opened under an as-yet-unnamed fascia from April. The multi-price format will include a wider range than the current Poundland range, including some food.
Poundland also launched an ecommerce site in September and McCarthy said it expects to grow the offer on the site once the Family Bargain stores have launched.