15-June-2015

Poundland to hit £1bn sales mark as bargain fever continues

By Elizabeth Anderson, Daily Telegraph

 

The UK's largest pound shop is still luring shoppers

 
 
       
 
       
 
       
 
       
 
       
There are almost 600 Poundland shops across Britain
There are almost 600 Poundland shops across Britain 
 

 

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The high street discount chain is expected to post annual revenue of £1.1bn this week, up from £998m the year before. Pre-tax profits are forecast to be £44m, up 20pc from £36.8m the previous year.

 

Poundland has added 60 stores over the last 12 months to bring its total estate in Britain to 590. It is also in talks with competition regulators to take over rival 99p Stores, which could add another 250 outlets.

 

The company is also targeting international growth, and opened its first store in Spain last year.

However, analysts warned that Poundland’s profit will have been hit by volatile currency movements and a strong pound.

 

Lower high street footfall has also put pressure on sales, as well as stronger competition from supermarkets, which have brought in aggressive price cuts over the past year to win back customers.

 

Poundland, which serves around five million customers a week, was launched in 1990 and is the largest of the fixed-price discounters in Britain.

 

The company floated on the stock market last year and the business is currently valued at £746m. Its shares have fallen by 28pc since February this year after investors took fright over forecasts of slowing profits.

 

Its most popular products are Toblerone, packets of Kodak batteries, and cut-price DVDs.

 

Poundland chairman Jim McCarthy says "Brits love a bargain."

 

 

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