EUROPEAN discount retailer Pepco Group is using train and air freight options to mitigate ongoing Red Sea shipping disruption to ensure it has enough stock for the festive trading season, Reuters reports.

Attacks by Iran-aligned Houthi militants in Yemen have disrupted Red Sea shipping using the Suez Canal, forcing vessels to take the longer route around Africa and adding weeks to transit times.

The Warsaw-listed owner of the Pepco, Poundland and Dealz brands warned in July about delays to summer stock landing on store shelves in the third quarter.

It said the issue had continued to affect "the consistent and timely availability" of stock and contributed to a year-on-year fall in the fourth quarter like-for-like revenue.

"Mitigating actions, which include shipping product earlier, optimizing shipping routes and selectively utilizing faster carrier options, are expected to improve availability during the first half of FY25," it said.

The company said it was shipping some products up to a month early to ensure supplies for the Christmas period and also using train and air freight options. Train and air freight is generally more costly than sea freight.

The group said total revenue for its fiscal year to date, the 51 weeks to September 22, was up 10 per cent, driven by new store openings, but its like-for-like revenue was down 3.1 per cent. It did not provide a figure for the fourth quarter.