Poundland to expand low-cost fashion brand to compete with Asda

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Discount retailer Poundland is reportedly expanding sales of its clothing brand Pep&Co to more than 100 stores by the end of the year in an attempt to replicate Asda's success with George.

According to the Guardian, Poundland’s focus on clothing is also part of its wider strategy to broaden its price range to above £1.

The company, which in September was acquired by South African retailer Steinhoff International for £610m, reportedly plans to introduce the brand to 200 of its 850 stores in the longer term.

Pep&Co was founded by Andy Bond, the former boss of Asda’s George who now heads up Steinhoff’s European business.

“We are putting clothing into big Poundlands," Mr Bond told the Guardian.

"We are bringing back to high streets the kind of clothing that was once loved. This is not to shuffle in inflation but about new items,” he added.

Commenting on the move in December Mr Bond said: “The relationship between Pep & Co and Poundland will become increasingly significant. “

“My ambition is that, over time, Pep&Co will become to Poundland like George is to Asda.”

While Poundland built its business on selling products at a flat rate of £1, Pep&Co prices range from £5 for a pair of trainers to £12 for jeans.