Polish firm Pepco is entering the Ukrainian market: the company hopes to fill the gap left by IKEA
This was reported by LIGA.net, citing Marcin Stank, Pepco’s Chief Operating Officer for Central and Eastern Europe.
When will the first Pepco shops open?
Pepco Group plans to launch its first retail outlets in Ukraine in October 2026. According to Stank, two Ukrainian cities are in the running to host the first store.
Separately, the company is considering the possibility of launching several stores at once. Among the potential options mentioned by LIGA.net are Kyiv, Lviv, or the opening of two or three retail outlets simultaneously. Pepco’s Ukrainian office is to be based in Kyiv.
Ukraine will become the 20th European market for the Pepco Group. Following a pilot launch, the company plans to scale up its presence and, in the long term, open up to 100 shops a year in Ukraine, provided the initial results are successful.
Why Pepco is targeting IKEA’s niche
The company directly links its plans to the fact that IKEA has not resumed operations in Ukraine since the start of the full-scale war.
Stanko explained that Pepco is not a direct counterpart to IKEA, as it does not focus on large furniture items. At the same time, the chain’s product range overlaps with IKEA’s in the homewares segment: textiles, home décor, tableware, kitchen accessories and everyday items at affordable prices.
“There are products similar to those at IKEA. And as we know, IKEA has not yet returned to Ukraine, so Pepco is well-positioned to fill this niche,” said Stanko.
What Pepco will sell in Ukraine
Pepco operates as a discounter. The chain’s core product range comprises clothing for children and adults, homewares, textiles, home décor, tableware, seasonal items, toys and everyday essentials.
The company sees the combination of low prices and a wide range of home goods as its key advantage in the Ukrainian market. According to Stanko, Pepco aims to compete not only with homeware chains but also with other discounters that are already expanding rapidly in Ukraine.
What is the scale of Pepco?
Pepco Group is one of Europe’s largest discounters. The company was founded in 1999 in Poland and now operates across Europe.
According to Pepco Group, at the end of the 2025 financial year, the group’s turnover rose by 8.7% to €4.5 billion. Pepco also reported having 4,359 stores at the end of the financial year and having opened 247 new stores over the course of the year.
Industry publications, citing the group’s results, also noted that Pepco Group’s underlying net profit rose by 19.7 per cent to €219 million.
The chain serves millions of customers every month. An RBC-Ukraine article, citing company data, mentioned over 36 million customers per month and more than 4,000 stores across Europe.
What is known about IKEA in Ukraine
IKEA suspended operations in Ukraine following the start of Russia’s full-scale invasion in 2022. Since then, the company has not specified a date for its return.
Pepco believes that IKEA’s absence creates a gap in the affordable homeware segment in Ukraine. However, this is not about completely replacing the Swedish chain, but rather about partial overlap in the categories of home décor, tableware, textiles and household goods.
Follow us on Telegram.
