Partner Article

Poundland witnesses record sales jump

Poundland has seen profits jump to record levels as consumers turn to the retailer looking for branded products.

The £1 retailer witnessed sales of £780 million and pre-tax profits of £18.3 million, a 19.3% increase on the £12.2 million registered during the previous year.

These latest figures indicate that Poundland is becoming one of the fastest growing retailers in the UK, and is thriving in the face of difficult economic conditions.

4 million consumers now visit the retailer on a weekly basis, up from 3.5 million last year, a trend which chief executive Jim McCarthy attributed to the decision by supermarkets to focus on their own-brand ranges over the past year.

60-65% of all product in Poundland stores are branded, in comparison with less than 50% in supermarkets.

Mr McCarthy said: “I think manufacturers recognise that the discount channel has a growing resonance with consumers and they have become more interested in it for sure.

“And with supermarkets focusing a lot on own-label, you can understand why branded manufacturers might want to find a wider audience and use people such as us ourselves to extend their brand reach.”

Over the past year Poundland has added around 100 new brands to stores, taking the number up to 1,000. They also opened 62 new shops, which brought the total number of stores nationwide to 389, with opening 1,000 over the next decade.

Growth was helped by landlords keen to fill properties with a fast-growing business. Some landlords also offered rent-free periods for the first year of the shop being opened.

This was posted in Bdaily's Members' News section by Ruth Mitchell .