Poundland ‘buzzing’ after record Christmas

Poundland has sought to shrug off the accounting crisis gripping its South African owners and the advertising controversy it created with record Christmas sales.

The discount retailer increased sales by 5.6% in the 12 weeks to Christmas, peaking at £59m in the final week.

“Poundland is buzzing, significantly outperforming the market, entering the new year with great confidence,” said managing director Barry Williams, who joined Poundland in late 2016 after seven years at Asda.

Poundland’s “Elf Behaving Badly” social media campaign, which used adult humour to take its brand message viral, is the subject of an Advertising Standards Authority investigation – but regardless appears to have achieved its aims in driving sales and making shoppers take a fresh look at the retailer.

The Willenhall-based group is ultimately owned by Steinhoff, a South African retail group that also owns Harveys and Benson for Beds.

Steinhoff has been caught up in an accounting storm, and is desperately trying to secure its future. It has announced that at least two years’ accounts will need to be restated and its market value has been obliterated.

Poundland has sought to distance itself from its parent company, and its intermediate owner, Pepkor Europe, has secured a £180m loan facility that is independent of its parent.

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