Artem Voloskovets
While many international retailers remain cautious about Ukraine, Pepco is moving in the opposite direction. The European discount chain plans to test the market with 5–10 stores in 2026, making it one of the largest retail groups to announce a new expansion initiative in the country since the start of the war.
For Pepco, the announcement is a growth story.
The retailer operates 4,359 stores across 18 countries and serves more than 41 million customers per month. Ukraine offers access to a large consumer market where demand for affordable retail remains strong and international competition is still relatively limited compared with many European countries.
The company is taking a low-risk approach. Rather than committing to a nationwide rollout, Pepco will begin with a pilot network of 5–10 stores, allowing management to assess consumer demand, store economics, and operational performance before expanding further.
The strategy resembles the approach used by Polish fashion retailer LPP, whose brands, including Sinsay and Reserved, built a substantial presence in Ukraine despite wartime conditions. That experience provides evidence that value-oriented retail formats can continue to grow in the market.
The initial store count will have little impact on Pepco's financial results. The importance of the move lies in future potential. A successful pilot could open the door to a much larger store network and provide an additional source of long-term growth beyond the company's existing markets.
Ukraine is not a symbolic investment. It is a calculated attempt to secure an early position in a market that could become one of the group's next expansion opportunities in Eastern Europe.
Artem Voloskovets
