Steinhoff - comment

Pepco today announced it had begun to narrow the negative LfL trend and curtailed CapEx. The company is signalling price investment - in line with what we are seeing throughout the European discount apparel sector. However, Pepco promise that this won’t have to impact Gross Profit. Due to the number of stores still coming online, sales have been at record level. Management sounds like they have the situation under control, but it’ll take a year and a dent in expansion to rebuild momentum.