Discount retailer and parent company of Poundland, Pepco Group, has announced that it will exit the Austrian market after just over two years in the country.
Pepco said it has been “constantly assessing” its growth strategy and monitors the performance of its operations on “an ongoing basis”.
In a statement, Pepco said: ”As part of these ongoing and in-depth performance reviews, 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.
The discount retailer entered the Austrian market in September 2021 and currently has 73 Pepco stores in the country.
Pepco said exiting the Austrian market will improve the group’s cashflow and underlying profitability for 2024, while allowing the group to focus on markets where is can “generate higher returns”.
The group continued to say: ”The exit from Austria does not impact the Group’s commitment to continue its existing growth strategy in Western Europe. Today’s announcement will also have no impact on any of Pepco’s operations in its other territories.”
In its most recent financial results, Pepco posted record first-quarter group revenues of €1.9bn (£1.63bn) and said it is making “good progress” against its renewed strategy outlined in October 2023 which aims to improve profitability and cash generation.
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