UK buyers ‘hardest hit in Europe’ by rising prices, says Poundland owner Business

UK buyers are suffering more from the cost of living crisis than their European neighbours, according to the company that owns Poundland.

Pepco said customers in the UK were cutting back on basic purchases as widespread inflation hit disposable incomes.

The variety retailer operates under its own name and under the Dealz brand in several European countries, including Germany, Italy, Poland, Czechia and Spain.

He said strong wage growth in central and eastern Europe was offsetting the rising cost of living, while households in western Europe – particularly in the UK – were feeling the pinch.

The group said: “In Western European markets, the sharp rise in inflation in an environment of stagnant wage growth quickly led to an absolute decline in consumer spending.

“Specifically in the UK, the cost of living crisis has impacted customers’ disposable income as they even cut back on essential short-term purchases.”

Pepco said it was trying to cut costs to protect customers from price increases. He added that the overflow of refugees from the Ukraine conflict had boosted his operations in Eastern Europe.

“The invasion of Ukraine, a country that borders three of our largest operating territories, continues to create volatility, albeit with some upside in trade due to the influx of people into key markets. from Pepco,” the band said.

Inflation in the UK is expected to average 8.8% in 2022 and reach double figures later in the year, according to a report released on Wednesday by the Organization for Economic Co-operation and Development, a think tank. based in Paris.

Its chief economist, Laurence Boone, said rising interest rates, reduced trade, high taxes and soaring energy costs had all contributed to the sharp rise in inflation.

Prices rose 9% in the year to April, the fastest pace in 40 years and the highest of any G7 country.