Pep&Co

The retailer expanded rapidly during 2016, particularly in locations where similar rival Primark had no presence, with Pep&Co's managing director Adrian Mountford suggesting that they are the only retailer which competes directly with Primark on price. Other outlets have been opened within existing Poundland stores, particularly larger stores where space has allowed, further aiding the rapid progression at a faster rate than opening individual stores would.[10] Many of the retailer's newly opened stores have been in smaller towns, where lower rent costs help ensure their pricing model is sustainable; this has been feasible largely due to bigger supermarket chains opening smaller store formats in town centres, drawing customers to those areas and creating a greater footfall.[6] Stores are typically designed to be minimalist in aesthetics, with their Kings Heath store having a minimal roof and bare floor, which the retailer claims allows them to cut costs which can then be passed on to the consumer.[7]

The impact of a weakened exchange rate throughout 2016-2017 had an effect on Pep&Co, with proposals to increase prices on loss-leading T-shirts with a sell price of £1, initially conceived a marketing tool to draw in customers. Whilst some of the impact of a weakening currency had been offset by higher sales and subsequentially higher supplier orders, it is still not enough to fully absorb the higher import costs.[10]

The clothing retailer uses social media as a means to market and compete with its rivals, with one particular case in February 2018 involving Primark, whereby the retailers were embroiled in a light-hearted battle regarding the price of their jeans offering; Primark had reacted to a statement from Pep&Co that the latter's jeans price were lower, which made Primark publicly lower their own price in return.[11]

Pep&Co's parent company Pepkor has existing supplier relations in place with their other subsidiary chains, offering the retailer shorter lead times and an existing global sourcing network.[6] Products on offer come with a 101-day guarantee (compared to the 100-day guarantee offered by ASDA), though many items sold are produced outside of the UK.[7] An interview with the managing director in September 2015 discussed the lack of a menswear department since their inception several months prior, although this was addressed in November 2015, introducing essential men's clothing items such as jeans, shorts and casual shirts, with a pricing strategy broadly in line with their existing female clothing ranges.[6]

The typical target market is primarily females in the 30-45 age bracket, as opposed to the typical younger-aged fashion market.[10] Customers are on average slightly older than those that shop at Primark, who are better known for their offerings in younger fashion lines.[6]

The retailer's first 15 months of trading resulted in a net loss of £14.7m, reportedly due to administrative expenses of £22.3m despite turnover reaching £29.1m.[12]