Despite a drop in profit, Poundland owner Pepco Group intends to open new stores in a move that shows confidence in their discount offering.

The group has seen its full-year revenues rise by three per cent year on year to £3bn but the group reported a 30.8 per cent decrease in its underlying EBITDA to £198.2 million in the year to September 30 which the company attributes to Coronavirus related forced store closures. Nick Wharton, the group’s Chief Financial Officer commented that 1200 stores or 40 per cent of Pepco’s Global Estate were shuttered at some point of the financial year.

Wharton also commented that the group remains confident that their discount proposition remains attractive to consumers and Pepco Group Chief Executive, Andy Bond, commented: “With a strengthened proposition and more customers than ever across Europe being attracted to the discount sector, we believe that our future growth opportunity is now greater than a year ago.”

In addition to the 400 new store openings, the brand intends to add to its frozen and chilled grocery section to 100 of its stores, with a further 300 set to be included in this target at a later date.