Pepco expands European footprint, debuts stores in Bosnia and Herzegovina

Pepco Group, owner of the Pepco and Dealz brands across Europe and Poundland in the UK, opened its first store in Bosnia and Herzegovina.

Commenting on the retail expansion plan, Trevor Masters, CEO of Pepco Group, said: “The opening of the first Pepco store in Bosnia and Herzegovina represents a milestone in the group’s profitable store expansion programme – our biggest source of value creation.”

The company said in a statement that opening of the first Pepco store in Sarajevo on September 12 will be followed by further openings by the end of the year in locations such as Mostar, Livno, Gradačac, Kakanj, Čitluk and Lukavac.

The opening of the first Pepco store in Bosnia and Herzegovina follows the continued successful expansion into Western European markets, most recently in Portugal earlier this summer.

The company added that Pepco Group is on track to open at least 550 net new stores in FY23, primarily through the Pepco brand, while also expanding the presence of its Dealz brand in Poland.

The announcement follows a successful debt refinancing by Pepco with its inaugural bond issue of 375 million euros in June 2023, which saw strong demand from international and Polish investors and was oversubscribed.

The company further said that Pepco achieved ratings from the three largest global credit agencies - Fitch, S&P and Moody’s – who noted the robustness of the business and a healthy organic growth profile, driven by its store development programme, scale, and value offering.