Poundland enjoying £50m turnover boost

Discount chain Poundland is celebrating beating the economic slump after seeing its turnover leap by almost £50 million this year.

The Willenhall-based firm recorded a turnover of £330m in 2008 – compared to £281m in the previous 12 months – and notching up an £8m profit.

It comes as pound shops enjoy a surge in demand, with shoppers keen to bag a bargain. The company, which has 208 stores employing a total of 4,540 people was founded in 1990 by market-trader Keith Smith and son Steve.

Around two million customers are said to flock through the doors each week. Bosses have said the store in Croydon is the busiest single-price outlet in the world, generating more than £9m in revenue per year, with 30,000 customers a week.

Chief executive Jim McCarthy said: "We are the success story of the recession, getting more and more posh customers.

"They used to boast how much their houses have gone up, or how much their cars cost. Now they throw dinner parties to brag how much they've saved on loo roll."

Other companies benefiting from the surge include 99p Stores which has 72 branches nationwide.

The company was founded in 2001 by entrepreneur Nadir Lalani,who wanted to undercut Poundland by a penny. It employs 1,000 people and has a turnover of £94m, with a pre-tax loss of £1.14m. It serves an average 600,000 customers a week with Galaxy bars said to be its bestseller.

It cones after the owners of Poundstretcher, Instore, said Christmas sales came under pressure as shoppers flocked to snap up Woolworths' closing-down bargains.

The operator of the Instore and Poundstretcher chains said like-for-like sales dropped 1.9 per cent in the five weeks to January 3, adding it would make a loss of up to £5m for the year to the end of February. But Poundland said like-for-like sales rose 3.9 per cent in December.