Business Irish

Saturday 22 September 2018

Bargain hunting? Discount store to sell clothes for as little as €1.50

Models wear clothes from the new range
Models wear clothes from the new range
Ellie Donnelly

Ellie Donnelly

Shoppers can expect clothes from as little as €1.50 with the opening of 30 Pep&Co concession fashion stores in Dealz shops around the country.

The first 10 of the 30 concessions will open on February 23rd. They will appear initially in the Dealz flagship in Blanchardstown, as well as Kilkenny, Dundrum, Naas, Newbridge, Gorey, Athy, Finglas, Ballina and Castlebar.

Clothing prices will start at €1.50, with almost 60pc of items selling for €5 or less, and shoppers can expect hundreds of products lines.

"We are very excited to bring our fashion and brand to Irish consumers. We already run 170 Pep&Co stores in the UK, most of them located inside Poundland stores, so introducing Pep&Co to the Irish marketplace via Dealz has always been a priority," said Adrian Mountford, managing director at Pep&Co.

"We see an opportunity to provide great value to our customers," said Barry Williams, managing director of Poundland and Dealz, which are part of the same chain.

"We have a huge volume of customers, but a relatively small share of their spend.

"So the more categories we can add to our proposition, the more that we can encourage customers to shop more with us."

The news comes as part of a wider announcement from Dealz parent company Poundland, as they unveiled plans to open over 150 Pep&Co concessions over the next 12 months in Ireland, the UK and France.

In 2016 Poundland was acquired by South African retail holding company Steinhoff International for £610m (€687m) and today Poundland has over 800 stores in the UK, Ireland, and Spain.

However Steinhoff was plunged into crisis in the latter half of 2017, following the revelation of accounting irregularities concerning its 2016 financial reporting.

Earlier this year Steinhoff admitted that while an internal investigation into the matter was on-going, the restatement of the financial statements "for years prior to 2015 is likely to be required", adding that the 2016 and 2015 financial statements "can no longer be relied upon."

In December rating agency Moody’s downgraded Steinhoff, warning that it may not have sufficient funds to "sustain its European operations".

However Mr Williams told the Irish Independent that Poundland and Dealz had enough funds ring-fenced to sustain itself.

"We published our results for the period October to December, up to Christmas Eve, which were industry leading numbers…[we had a ]record breaking Christmas, so the business is performing exceptionally well," Mr Williams said.

"And part of that announcement we also talked about the funding that we have secured into the business, we have a two year deal line of credit into the business that covers all of our cash flow requirements, we feel really comfortable about that."

(Additional reporting from PA).

Irish Independent

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