Pepco Eyes Sale of Poundland and Dealz Amid Losses

Pepco Group is considering selling its struggling UK discount chain Poundland as part of a strategic shift to focus on more profitable segments, such as its Pepco clothing brand. The move is driven by Poundland's declining sales and challenging UK retail conditions, compounded by upcoming tax changes that will further strain costs. Poundland contributes significantly to Pepco's revenue, but its financial performance has been a drag on the overall group, leading to a substantial impairment charge and a pre-tax loss for 2024. The company is also contemplating offloading its Dealz business in Poland and integrating its operations for greater efficiency. This strategic pivot aims to simplify Pepco's business model and bolster profitability by concentrating on higher-margin products.