Why the Net has the advantage in the ‘Undies world’
- Shopping blogger Emma Iannarilli
Record sales at Poundland
Thursday 16th April 2009, 11:30AM BST.
Poundland, the all-for-£1 chain based in the Black Country, today revealed record sales – and said it plans to become Britain’s next Woolies.
It is opening more than 40 branches in the next year, many of them at former Woolworths stores. It has already taken on 120 former Woolies staff as it looks to fill the gap left by the chain.
Today Poundland boss Jim McCarthy revealed business is booming as the recession draws new customers into his stores.
He said: “We are benefiting from the ‘flight to value’ as it is called, with a 22 per cent increase in shoppers from the higher social groups last year. We have just completed our financial year and, while I can’t reveal the figures yet, it was a record year.
“We have also just had a record Easter, doubling our like-for-like sales figures in the last few weeks.”
Founded by former Wolverhampton market trader Steve Smith and his father Keith, Poundland is one of a number of budget chains flourishing in a recession that claimed the Woolworths brand in January after almost a century.
Mr McCarthy said: “We have been a successful single price retailer for 19 years. We do seem to be filling some of the vacuum left by Woolworths.”
Poundland has already taken over three former Woolworths stores in London and is re-opening the former Woolies in Kings Heath, Birmingham, on April 30. Several others are set to be reopened in future months.
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That’s an unfortunate aspiration – to become the next high street chain that goes bust? Not very ambitious is it?
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It is a nice thought for them to be as big as woolies but i agree with Connor in that it probably isnt the best idea to be the next big company to go bump.
Poundland is good for somethings but rubbish for others eg technology cables, cleaning products and the tools it stocks are that cheap there rubbish. Plus it says poundland everything for a pound, why wasnt the VAT reduction of 2.5% passed on too the customer??
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i gotta hand it to them – they’ve been a God Send in these times of recession and although their tools and technology items are rubbish, they sell brand named toiletries which is why i shop there..
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Connor – you read my mind!
Poundland plans to become Britain’s next Woolies. Someone needs to think before they speak!
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Connor/WiseMan – I think they mean they will be the next Woolies in terms of brand/name presence and store count (Wollies had 850+ stores|). BIG difference being they will always be a single price retailer and thus totally different business model.
Also, I would have to disagree on the tech items and cables – brilliant prices on what is very often big brand stuff like Belkin, Phlips, etc. No way is that “rubbish”. A USB printer cable at Poundland or £10 for the very same item from Dixons? Hmmmm….
I think if they pass on the 2.5% VAT reduction it destroys their business model – the 97.5p store doesnt sound right and we no longer have a 0.5 (halfpenny) denomination. Kind of hard to give out change maybe!
Anyway, Good look to them – you pays your money and makes your choice. Folks seem to be voting with their pockets, hence the artcicle. Plus they employ folks in this region, not just in their stores, but also in their DC down in Willenhall / Black Country Route.
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Good luck to em!
I have been going there for years and love it.
Yes the tools are a bit cheap but i am not going to be using them day in day out like a tradesman would so they suit me just fine.
Long live poundland i say!
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That’s it, knock any business that appears to be doing well or has ambition! A typical nasty, cynical reaction to a positive story.
Think about the jobs and tax revenues that it will generate before you are so negative!
I say good luck to anyone who is creating jobs & supporting the economy.
In these times, we need people like Jim McCarthy.
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