Thursday 25 November 2010

Poundland plans to go online?

With a 29% increase in turnover to £509m via 320 stores, Poundland have moved into mainstream retailing.

Appealing to two groups of savvy consumers who seldom forget lessons learned in austerity, their regular shoppers are those who need to save money, and those who choose to do so…

Going online will simply remove some costs and broaden Poundland’s appeal.

No longer an outlet for ad hoc ‘special packs’, or ends-of-lines, the pound shops now sell regular lines and brands, albeit forecasting ‘overages’ on a transaction basis that has somehow become essential…

Their ability to grab headlines will increase the competitive threat they represent to the multiples and discounts, probably resulting in retaliatory pricing moves?

Perhaps it is time to scope out the options, run the numbers, reassess their competitive appeal and factor poundshops into your trading strategies, before the multiples do it for you?

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