Pepco has opened its 3,000 store, located in the former Potsdamer Platz arcades in Berlin. The store will have a range of decorative items, household items, gifts, toys and fashion. The opening of the Berlin location is part of the retailer’s pan-European store opening programme; Pepco operates in 17 countries with plans to open nearly 550 new locations.
CEO, Travis Masters said: “Pepco is one of the most compelling physical retail growth stories in Europe and this landmark opening in Berlin underscores our confidence in the group's strategy. All of Europe is now an addressable market for us, and we will continue our profitable opening program.”
Mintel comment:
“With the shift to online shopping during the COVID-19 pandemic, some physical retailers have started reducing the number of stores. Not Pepco, founded in 2004 in Poland and headquartered in London the low-cost retailer continues to expand vigorously with a second store at Berlin’s Potsdamer Platz as the latest addition to their growing network. In April 2022, Pepco opened its first Berlin store in Steglitz. In recent years, the group has expanded into new markets in Western Europe including Spain, Italy, Germany and Austria. In spring 2023, Pepco plans to enter Portugal. Today, the Pepco’s store network, which offers apparel and footwear among other products, totals about 2900 shops.
In times of shrinking budgets, consumers are looking for value retailers and are trying to save by switching to cheaper retailers, a development in Pepco’s favour. As we discovered in our recent Clothing Retailing - Germany, 2022 Report, 29% of Germans have switched to cheaper fashion retailers within the past year and another 31% are planning on doing so. Stores offer about 60% clothing, shoes and underwear as well as interior and decorative objects, and the drive for greater value will mean significant opportunity for the chain moving forward.”
