LONDON (Reuters) – European low cost retailer Pepco Group reported a 22.8% surge in first-half income, pushed by sturdy demand for its worth provides from cash-strapped customers and the opening of 166 new shops.

The Warsaw-listed group stated income was 2.84 billion euros ($3.11 billion) for the six months to March 31. Like-for-like gross sales have been up 11.1% within the first half and up 8.5% within the second quarter.

The proprietor of the Pepco, Poundland and Dealz manufacturers stated it remained on observe to ship full-year core earnings progress within the “mid-teens”.

European customers have been pressured for greater than a yr by excessive inflation that has outstripped pay progress.

In financial downturns, low cost operators are likely to do comparatively higher than mainstream friends, as they’ve decrease price bases and customers develop into extra worth delicate.

“The macro atmosphere the group faces is extra balanced now than prior to now 18 months with product enter prices beginning to ease, although headwinds stay on different prices, together with vitality,” Pepco stated, noting an bettering margin outlook within the second half.

($1 = 0.9125 euros)