Poundland has issued its second trading update in less than a fortnight as its bosses engage in talks with owner Gordon Brothers over a management buyout.
It said like-for-like sales growth had continued in the first week of its current quarter, which started on 28 September, climbing by 9.8% on an adjusted basis and 6.7% unadjusted.
The discount chain also confirmed like-for-like sales growth for its fourth quarter to 27 September, of 6.4% adjusted or 3.3% unadjusted. The same numbers were issued by Poundland as a projection in the final days of its fourth quarter, in a trading update brought forward in response to news reports on the sale process.
As reported by The Grocer on 29 September, Poundland bosses and Andy Bond, the former CEO of Asda and Pepco Group, have engaged in talks with Gordon Brothers over a management buyout funded by one of the bidders in the auction.
Poundland has also begun trialling a new store layout, with general merchandise more integrated with fmcg, rather than separated into “traditional retail departments”. It aims to encourage customers to discover a new fmcg range that rolled out to stores over the past 12 months.
The layout is so far in 15 pilot stores, where like-for-like sales and profitability is said to be ahead of other branches.
“We ended the quarter with significant momentum, returning to positive like-for-like growth, and that momentum has only strengthened in the first week of the new financial year,” said Poundland MD Barry Williams.
“Our recovery plan is working, thanks to our investment in simple low pricing and new ranges, powered by our new in-house teams.
“That positive customer reaction is great news for our shareholders, colleagues and suppliers.
“And while our new merchandising pilot is a demonstration that it’s ‘business as usual’ at Poundland, what’s unusual is our new trial also highlights the top-to-bottom refresh of all our ranges over the last 12 months.
“We’re excited about putting those new items in front of our customers as they return to our stores.”
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