Friday, 8 October 2010
Poundland, the ultimate in fair-share negotiation….
But where does all its stock come from and how can it be sold so cheaply?
Chief executive Jim McCarthy explains his business model:
"A supplier could come to us on a Monday with a cancelled order of a few million units of something. They would get an answer on the same day, probably at the same meeting. By Friday, the stock would be sold and their invoice paid in full. If you want something shifted, Poundland is the place to do it."
Poundland is the bargain discount store that has appeared, seemingly overnight sometimes, on High Streets and shopping malls everywhere — filling the hole left by the collapse of Woolworths in 2008.
The chain is actually in its 20th year, and boasts 299 stores throughout the UK with many more planned — much to the annoyance of some snobby town councils…..
Real issue for suppliers is making making marginally-costed bespoke £1 SKUs on a promotional basis that suddenly become a permanent part of the product portfolio, a possible drain on profitability…
Have a no-nonsense weekend, from the Namnews Team!