POUNDLAND owner Pepco has said its customers in the UK appear to be worse hit by the cost-of-living crisis than those elsewhere in Europe.
The company, which operates across central and eastern Europe, said the cost of living there is being offset by high wage growth, at least in the short term.
In Western Europe wages are not growing, which is pushing down the amount that customers spend. But Pepco singled out the UK as being particularly bad.
It comes as the budget retailer, which has 33 stores across Northern Ireland, prepares to open a larger store at the Kennedy Centre in west Belfast.
Up to 12 new jobs have been created in the larger unit, which opens on Saturday June 11.
The retailer said it will include the second largest fashion and home department in Pepco’s Northern Ireland portfolio.
Pepco announced on Thursdasy that Poundland revenue rose 11.4 per cent in the first half of last year to €1.1 billion (£940 million), though on a like-for-like basis it increased by just 3.3 per cent.
Overall sales across the group increased 18.9 per cent to €2.4 billion (£2.1bn).
Commenting on its latest figures, Pepco said: "In Western European markets the acute spike in inflation in a stagnant wage growth environment has quickly resulted in absolute lower spending by consumers.
"Specifically in the UK, the cost-of-living crisis has impacted customers' disposable income as they scale back even on essential purchases in the short term.
"Our continued focus on reducing the costs of doing business means that we are able to offset some of our input inflation, allowing us to protect prices for all of our cost-conscious customers."
