This is Pepco, the “Polish Primark” taking Spain by storm

The scene was repeated in different parts of Galicia. Long lines at the door new Pepco stores in Ferrol and Santiago. And all signs indicate that the picture will be repeated at Tui in a few weeks, when the one known as the “Polish Primark” raises its shutters. The Pepco thing is starting to be a comparable phenomenon that of his Irish brother. Unsurprisingly, behind the Polish clothing and accessories chain is much of the same secret formula that has powered Primark in recent years.

But the question many ask is, What exactly is Pepco? The phenomenon is more than present in the DNA of this company low price. that is, Pepco shelves They offer customers fashion products, home products and even toys that have a common denominator: a low price. And with these ingredients, it is more than clear who the Polish chain wants to oppose. It has giants like Primark or even Ikea in the spotlight.

Born in 1999 in Poland, Pepco managed to make a real breakthrough in recent years, in which he managed to put a pike in 16 countries of the Old Continent. It has more than 1,196 stores in its country of origin, and Romania is the second region with the most open establishments (with more than 416). It is taking accelerated steps in Spain and has currently raised the curtain on more than 146 stores across the country. And the figure promises to grow rapidly in the coming years given the expansion forecast already on the table.

The numbers confirm this. The Pepco Group (which also includes other companies such as Dealz and Poundland) concluded 2022 with an increase in sales of 17.4% (representing 4,823 million euros) and a profit growth of 14.3%. Your success is not just based on numbers. Also by the recognition of experts. Forbes qualified Pepco as a diamond company.

Faced with such greedy numbers, many people wonder: Who is behind Pepco? Despite being of Polish origin and listed on the market of this country, 78% of the multinational is owned by the Dutch fund Steinhoff International, to make company specialized in the sector retail. These experts managed to instill in those responsible for Pepco philosophy of low cost success. To do this, the Polish company practices a business model based on economies of scale. They export and sell huge quantities in order to reduce costs as much as possible and lower the prices that customers find in stores. PGS, a supplier located in China that is in charge of buying products from eastern factories and exporting them to Europe in colossal containers, has a lot of credit for achieving this goal.

Already the proverb says that opportunity is a picture of the bald and in case The Pepco moment couldn’t have been better. With an entire continent plunged into a loss of purchasing power due to spiraling inflation destroying family economies, these are very good times for this phenomenon low price.

He pepco sprouts in Spain it has its own name. Dealz, the food stores with which the Poles landed here. The idea was to implement the Spanish version of the famous British one poundlands. To do this, Dealz offered a fixed price of 1.5 euros for all the items it sold, from food to drugstores, including personal hygiene. It didn’t really take off and at the end of 2021, the parent company decided to radically change its strategy and close those supermarkets. In the places where there used to be food establishments, the format of fashion and home stores is now open. Pepco began its definitive conquest.

Some phenomena have catapulted Pepco to places as important as social networks. The last Barbie was the object of desire of thousands of Spaniards. not for nothing Pepco offered at the door the arrival of their majesties the Kings of the East Barbies with a ten euro cheaper price than in other stores. And the formula worked. Because in just a few days, visiting any of the bars meant coming across the “Sold Out” sign. Peppa Pig toys were also a real goldmine, with prices unmatched by any other chain.