Red Sea crisis affects Poundland’s summer stock amid shipping delays – London Business News | Londonlovesbusiness.com

The Red Sea crisis is disrupting shipping and as a result Poundland has revealed they have had a sales slump in their latest quarter.

The Iranian backed Houthis rebel group who are based in Yemen have been launching missile and drone attacks on shipping in the Red Sea in response to Israeli attacks in Gaza, this has forced most shipping to redirect around bottom of Africa.

Poundland has said that as a result in the quarter to 30 June this has delayed “summer stock hitting store shelves.”

Poundland owner Pepco said, “The group remains confident that availability issues that have impacted LFL sales will ease through the fourth quarter, as we mitigate the Red Sea impact by shipping product earlier and channelling stock through different shipping routes.”

Pepco reported that in the quarter like-for-like sales fell 4.3% and sales across Poundland stores was worse with a 6.9% fall in like-for-like sales.

The company said despite this revenues were up 8% year-on-year to £1.25 billion.

Andy Bond, executive chair of Pepco Group, said: “We have continued to execute against our strategy to deliver more measured growth – doing less, to achieve more – with a greater focus on improving profitability.

“Group like-for-like revenues in Q3 were below our expectations, partly due to macro factors, such as ongoing supply chain disruption, and company-specific issues, including slower-selling older stock which is being removed through markdown, as well as the transition to Pepco-sourced clothing and general merchandise in Poundland and Dealz.

“We are actively improving the availability and breadth of our ranges, and expect to benefit from these actions in the new financial year.”