Pepco Group

What Pepco Group does

Pepco Group N.V. is a pan-European discount variety retailer listed on the Warsaw Stock Exchange (ticker: PCO), headquartered in London and registered in the Netherlands. Following the 2025–2026 divestment of Poundland and Dealz Poland, the group operates as a pure-play discount retailer under the Pepco brand, running 4,359 stores across 19 European countries and serving more than 41 million shoppers monthly with clothing and general merchandise at value prices. The Pepco brand accounts for 93% of group revenue and 92% of the store footprint, with the largest market being Poland (1,397 stores) and a growing Western European presence of 583 stores generating €695 million in revenue.

The group is supported by Pepco Global Sourcing (PGS), a vertically integrated in-house sourcing arm managing end-to-end product development across a supply network of more than 375 vendors and 1,200 factories, which sources 92% of own-brand products. PGS provides merchandising, quality assurance, and product inspection services, with the majority of production concentrated in China, India, and Bangladesh. Distribution is handled primarily through DHL-operated logistics hubs covering approximately 290,000 square metres across Central and Eastern Europe and Spain. The company is investing in digital infrastructure, including a data lake, PIM, and CMS systems, and plans to launch a mobile app with a built-in loyalty programme in Q1 2026, supported by an in-progress 'Coupon at Till' pilot in Poland.

Revenue is generated almost entirely through direct-to-consumer physical retail sales on a unit-pricing model, with no subscription or recurring software revenue. Strategic priorities include accelerating Western European expansion (600+ new stores targeted between FY27 and FY30), improving gross margins (FY26 guidance of approximately 51%), and returning capital to shareholders via a €400 million tender buyback announced in July 2026. Pepco Group is controlled indirectly by Steinhoff International Holdings through the IBEX group of companies, which holds a majority stake and certain board nomination rights.

Name

Pepco Group

Legal name

Pepco Group N.V.

Website

https://pepcogroup.eu

Company type

Public

Founded year

2015

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Pepco Group is a pan-European discount variety retailer operating 4,359 Pepco stores across 19 countries, serving more than 41 million shoppers monthly with value clothing and general merchandise. Following the 2025–2026 exit from FMCG, the group is a pure-play discount retailer backed by vertically integrated global sourcing.

Ownership category

akta.pro rank

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices4 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Supply Chain, Personnel, Operations, Infrastructure, Marketing or Sales, Technology or R&D

Revenue model

1. Retail Sales - Pepco Stores: Pepco Group generates revenue primarily through retail sales of clothing and general merchandise products through its network of >4,000 stores across 18-19 European countries. Pepco represents 93% of Group revenue and 92% of store footprint. Products include clothing for the whole family, home décor, toys, and seasonal products.

Pricing tiers

Go-to-market motion2 records

Distribution channels1 record

Marketing channels3 records

Core offering

Pepco Group operates a pan-European discount variety retail business through the Pepco brand, offering quality clothing for the whole family and general merchandise including home décor, toys, and seasonal products at market-leading prices. The company runs over 4,000 stores across 19 European countries and is supported by Pepco Global Sourcing (PGS), a vertically integrated sourcing operation managing 375+ vendors and 1,200+ factories that sources 92% of own-brand products.

Product overview

Pepco Group operates as a pure-play discount variety retailer following the strategic exit from FMCG businesses (Poundland sold June 2025, Dealz Poland sold July 2026). The company's core product is Pepco, a pan-European discount variety retail brand spanning clothing and general merchandise, operating over 4,000 stores across 19 countries. Supporting the retail operations is Pepco Global Sourcing (PGS), the company's vertically integrated internal sourcing arm that manages over 375 vendors across 1,200+ factories, providing end-to-end sourcing, merchandising, quality assurance and product inspection services.

Differentiator

Problem solved

Functional benefit

Products and services

• Pepco Discount Variety Retail Brand

Quantifiable outcome

• 8.5% constant currency revenue growth in Q3 FY26
• +4 more outcomes

Named customers1 record

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Three partnerships are on record, tiered minor and core.

• Modella CapitalminorOthers · 3 June 2026Pepco Group agreed to sell Dealz Poland business to Modella Capital for nominal consideration of PLN 1. Dealz Poland operated 343 stores across Poland. Transaction completed in July 2026. Pepco provided an 18-month asset-backed vendor financing facility of up to £20 million upon completion.
• DHL Supply ChaincoreStrategic or Co-development Partner · 1 April 2026DHL Supply Chain manages five strategic logistics hubs for Pepco across Central and Eastern Europe. Partnership began in 2019 with Sosnowiec, Poland facility, expanded to Spain (2024), Rawa Mazowiecka, Poland (September 2025), Gyál, Hungary (January 2026), and Bucharest, Romania (April 2026). DHL manages approximately 290,000 square meters of warehouse space for Pepco. Partnership aims to improve delivery speed, product availability, and network scalability.
• Gordon BrothersminorOthers · 12 June 2025Pepco Group sold Poundland to Gordon Brothers for nominal consideration. Pepco provided a secured loan of £30 million. Following UK High Court approval of Poundland's restructuring plan in August 2025, unsecured loans transitioned into a minority equity stake in Poundland Group enabling Pepco to share in upside potential.

Scale indicators19 records

Recent moves6 records

Expansion highlights4 records

Regional players

• Dollar Tree: Dollar Tree operates 8,000+ discount variety stores across the US and Canada selling general merchandise, household goods, and food at fixed low price points. The discount variety model and value positioning make it a relevant international format peer despite geographic separation from Pepco's European operations.
• Five Below: Five Below is a US-based extreme-value retailer operating 1,800+ stores selling general merchandise, toys, and seasonal items priced up to $5. The discount variety retail format closely mirrors Pepco's model, though Five Below operates exclusively in the US market.

Broad incumbents

• TK Maxx (TJX Companies): TK Maxx is the European arm of TJX Companies operating 600+ off-price retail stores across Europe offering discounted branded clothing, homewares, and accessories. While operating an off-price rather than variety discount model, TK Maxx competes for value-conscious family shoppers in markets where Pepco also operates.
• Lidl (Schwarz Group): Lidl is a major European discount supermarket chain operated by Schwarz Group, with 12,000+ stores across Europe offering groceries alongside non-food general merchandise. While primarily a grocery discounter, Lidl's non-food rotating assortment and value positioning make it a broad incumbent competitor in European discount retail.
• Aldi (Aldi Nord / Aldi Süd): Aldi is one of Europe's largest discount supermarket operators with 10,000+ stores across Europe and the US, offering value-priced groceries alongside seasonal non-food items. Aldi's broad discount retail footprint and value positioning create competitive overlap with Pepco's discount variety model.

Direct peers

• Poundland: Poundland is a UK discount variety retailer operating 800+ stores selling general merchandise, food, and beverages at single-price points. Pepco sold Poundland to Gordon Brothers in June 2025, so although now divested, Poundland remains the most directly comparable format peer in the UK market.
• Tedi (Tengelmann Group): Tedi is a German discount variety retailer with 2,900+ stores across Europe selling clothing, household items, toys, and seasonal goods at low prices. Tedi competes directly with Pepco in German-speaking markets and other European countries with overlapping value-retail positioning.
• Primark (Associated British Foods): Primark is a leading European discount apparel retailer offering affordable clothing, homewares, and beauty products across 450+ stores in 17 countries. It competes directly with Pepco in the discount clothing and general merchandise segment, particularly in Western European markets where both brands are expanding.
• Action (Action Service & Distributie): Action is the largest pan-European non-food discount variety retailer operating 2,700+ stores across Europe with similar value-positioning, broad assortment of clothing and general merchandise, and rapidly expanding Western European footprint. Pepco board member Sander van der Laan is Action's former CEO, underscoring direct comparability.
• Woolworth (Germany): Woolworth Germany operates 500+ discount variety stores across Germany and Europe offering clothing, household goods, food, and seasonal merchandise at value prices. The format closely mirrors Pepco's discount variety proposition and competes in overlapping European geographies.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks4 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/pepco-group

Revenue estimate

Valuation estimate

Number of profiles

Profiles17 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Pepco Group