Main points
- Discounter chain Pepco announced a test launch of stores in Ukraine, focusing on employee safety due to war risks.
- Pepco is planning expansion in Ukraine, which could increase competition among discounters and create new jobs.
Polish giant Pepco enters Ukraine / www.ucsc.org.ua
Polish discount chain Pepco has confirmed its entry into the Ukrainian market and is preparing a test launch of stores in several selected regions. The group's CEO says that the brand is already familiar to Ukrainians.
What did Pepco say about entering the Ukrainian market?
The chain's stores will appear in selected cities, Pepco announced in an official statement.
We are also launching a carefully managed pilot project in selected regions of Ukraine – a market where Pepco already has real brand recognition, and which over time represents a potentially significant new growth opportunity for the Group,
– said the group's CEO, Stephen Borchert.
The company separately emphasizes that employee safety will be a key factor in making decisions about opening stores, as war risks in Ukraine remain relevant.
Rumors have been circulating before
Previously, reports about Pepco's preparation for an exit had already appeared in the media, RAU writes.
Consulting company Retail&Development Advisor (RDA), as the official exclusive representative of Pepco in Ukraine, reported that it is searching for the best locations for the international retailer. It was about searching for locations, negotiating with contractors and possibly opening the first 5-10 points in 2026.
Note: The company is originally from Poland and operates mainly in Central and Eastern Europe, but according to Borchert, it is preparing a large-scale expansion in Western Europe. By 2030, the company plans to open at least 600 new stores, doubling its presence there.
What does this mean for Ukraine?
Pepco's exit could affect several market segments at once:
- Increased competition among discounters – especially in budget retail
- Pressure on local networks due to pricing policy
- Creating new jobs in retail and logistics
- Growing interest of foreign businesses in the Ukrainian market despite war risks
What is the forecast? Pepco will most likely start with a small number of test stores. The decision to scale will depend on the security situation and purchasing power
In case of a successful launch, rapid expansion of the network in major cities is possible. In general, the Ukrainian market can become a “gateway” for Pepco for further expansion in the region
How is Pepco developing in Poland?
Pepco Group has announced financial results for the first half of this financial year, showing significant growth in profitability and revenue. The company also announced ambitious development plans in Western Europe, writes Wiadomości Handlowe.
According to the results of the six months, Pepco Group's revenue amounted to 2.47 billion euros. This is 5% more than in the same period last year.
The company emphasizes that the positive dynamics persist even despite the gradual abandonment of part of the fast-moving consumer goods segment. Excluding this segment, the group's revenues increased by 3.6%.
Poland remains a key market for Pepco, where the company is recording steady sales growth and positive revenue growth.
At the same time, the Dealz network, which is part of the group, continues to operate in difficult conditions:
- brand revenue decreased by 6.6%;
- comparable sales fell 8.3%.
Because of this, Pepco Group management decided to withdraw Dealz from the group structure by the end of this financial year.
Our results for the first half of this financial year are further proof that Pepco has regained its strength. Despite tough market competition and ongoing geopolitical uncertainty, we recorded solid financial results: Group revenue grew by 5.0% to €2.5 billion, and Pepco delivered its sixth consecutive quarter of LFL revenue growth.
– says the company's CEO.
One of the key elements of Pepco's transformation was its digital strategy.
In February this year, the company launched a new mobile app in Poland. It quickly gained popularity:
- about 2 million downloads;
- over 1 million users of the Pepco Club loyalty program.
The company notes that loyalty program customers spend on average twice as much as regular shoppers.
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How did Polish business in Ukraine increase its revenues?
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The number of companies with Polish owners in Ukraine exceeded 1,100, with a total turnover of 123.01 billion hryvnias, which is 20% more than in the previous year. The absolute leader was the company “LPP Ukraine”, which manages well-known clothing brands – Reserved, Cropp, House, Mohito and Sinsay.
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The largest concentration of these companies is observed in Kyiv, where 46 enterprises with revenue of over 100 million hryvnias are registered.